Edwin I. Hatch Nuclear PlantFinancial Assurance Requirements for Decommissioning

Nuclear Power Reactors (10 CFR 50.75(f)(1))

Enclosure 3

Municipal Electric Authority of Georgia Response

March 9, 2015 NP ROPOWE-Docket Nos.: 50-321

50-366

U. S. Nuclear Regulatory CommissionATTN: Document Control DeskWashington, D.C. 20555

Edwin I. Hatch Nuclear PlantFinancial Assurance Requirements for Decommissioning

Nuclear Power Reactors (10 CFR 50.75(f)(1))

Dear Ladies and Gentlemen:

Pursuant to 10 CFR 50.75(f)(1), each power reactor licensee is required toreport to the NRC the status of its decommissioning funding for each reactoror part of each reactor it owns on a calendar year basis, beginning on March31, 1999, and every two years thereafter. Accordingly, the MunicipalElectric Authority of Georgia (MEAG) hereby submits the enclosedinformation in accordance with 10 CFR 50.75(f)(1) for operating licensesDPR-57 and NPF-5 issued for Edwin I. Hatch Nuclear Plant Unit 1 and 2,respectively. Southern Nuclear Operating Company, as the operatinglicensee and as an agent for the owners of the Edwin I. Hatch Nuclear Plant,is providing this information to the NRC on behalf of MEAG.

Based on the information presented herein, there is reasonable assurancethat the funding necessary for decommissioning the Edwin I. Hatch NuclearPlant, consistent with the NRC prescribed minimum set forth in 10 CFR50.75(c), will be available on the expiration date of operating licenses DPR-57 and NPF-5.

Please advise if you have any questions or comments regarding theinformation provided herein.

Respectfully submitted,

MUNICIPAL ELECTRIC AUTHORITY OF GEORGIA, by,

?mnes E FullerSenior Vice President, Chief Financial Officer

Enclosure Minicipal Electric Authority of Gcorg

170 I-ivereidge Parkway NW

Atlanta, Gei•rgia 30328-46410

J-800-333-MEAG 770 563 0300Fax 770-953-31,11

Enclosure

Edwin I. Hatch Nuclear Plant

Municipal Electric Authority of GeorgiaOwnership Percentage - 17.7%

10 CFR 50.75(f)(1) Requirement Unit I Unit 2

1 The NRC minimum decommissioning estimate,pursuant to 10 CFR 50.75(b) and (c). 1 $114,423,000 $114,423,000

2 The amount accumulated at the end of the $103,333,855 $101,891,205calendar year preceding the date of the report foritems included in 10 CFR 50.75(b) and (c).

3 A schedule of the annual amounts remaining to be See Schedule in See Schedule Incollected; for items in 10 CFR 50.75(b) and (c). Attachment 1 Attachment 1

4 The assumptions used regarding:

(a) rates of escalation in decommissioning 3.60% 3.60%costs;

(b) rates of earnings on decommissioningfunds; 5.60% 5.60%

(c) real rate of return; and 2.00% 2.00%

(d) rates of other factors used in funding None Noneprojections.

5 Any contracts upon which the licensee is relying Attachment 2 Attachment 2pursuant to 10 CFR 50.75(e)(1)(v).

6 Any modifications to a licensee's current method None Noneof providing financial assurance occurring sincethe last submitted report.

7 Any material changes to trust agreements. None None

NOTES:The NRC formulas in section 10 CFR 50.75(c) include only those decommissioning costs incurred by licenseesto remove a facility or site safely from service and reduce residual radioactivity to levels that permit: (1) releaseof the property for unrestricted use and termination of the license; or (2) release of the property under restrictedconditions and termination of the license. The cost of dismantling or demolishing non-radiological systems andstructures is not included in the NRC decommissioning cost estimates. The costs of managing and storingspent fuel on-site until transfer to DOE are not Included in the cost formulas.

2 This amount is based on NUREG-1 307, Rev. 15, for the burial factor (Option 2) and the December 2014 BLS

data for labor and energy.

Attachment I

Schedule of the Annual Amounts Remaining to be Collected

MEAG POWERDecommissioning Funding Plan

Nuclear Decommissioning Fund - Hatch I(Dollars in thousands)

CalendarYear

201420152016201720182019202020212022202320242025202620272028202920302031203220332034

Balance atBeg. of Year

(A)Contributions (1)

(B)

InterestEarnings

(C)

Less:Fees(D)

103,334108,909114,686120,676126,892133,345140,049147,016154,262161,801169,649177,824186,343195,225204,490214,158224,251234,793245,808257,322

5,7355,9436,1636,3946,6386,8967,1677,4537,7558,0738,4098,7639,1369,5299,944

10,38210,84311,32911,8428,267

(160)(166)(172).(178)(185)(192)(200)(208)(216)(225)(234)(244)(254)(265)(276)(288)(301)(314)(329)(229)

Balance atEnd of Year

(E)

103,334108,909114,686120,676126,892133,345140,049147,016154,262161,801169,649177,824186,343195,225204,490214,158224,251234,793245,808257,322265,360

Total 166,662 (4,636)

Options: Level Payments

(1). Based on the current funding levels and decommissioning forecast, thedecommissioning contributions for Hatch Unit One are being suspended.

Date: 3/5/2015; Time: 8:40 PM

MEAG POWERDecommissioning Funding Plan

Nuclear Decommissioning Fund. Hatch 2(Dollars in thousands)

CalendarYear

2014201520162017201820192020202120222023202420252026202720282029203020312032203320342035203620372038

Balance atBeg. of Year

(A)

InterestEarnings

Less:FeesContributions (1)

(B)Earn. .ing .....

(C) (D)

101,891107,384113,069118,956125,057131;382137,945144,758151,835159,190166,838174,796183,079191,707200,697210,070219,846230,047240,696251,818263,439275,585288,282301,562

5,6515,8486,0566,2766,5076,7517,0087,2807,5667,8678,1858,5218,8759,2479,641

10,05510,49210,95311,44011,95212,49313,06313,6637,162

(158)(163)(169)(175)(182)(188)(195)(203)(211)(219)(228)(237)(247)(257)(268)(279)(291)(304)(318)(332)(346)(366)(383)(200)

Balance atEnd of Year

(E)

101,891107,384113,069118,956125,057131,382137,945144,758151,835159,190166,838174,796183,079191,707200,697210,070219,846230,047240,696251,818263,439275,585288,282301,562308.525

Total 212,554 (5,920)

Options: Level Payments

Footnoles:(1) - Based on the current funding levels and decommissioning forecast, the

decommissioning contributions for Hatch Unit Two are being suspended.

Date: 3/5!2015; Time: 8:41 PM

Attachment 2

Edwin I. Hatch Nuclear Plant Financial AssuranceRequirements for Decommissioning Nuclear Power

Reactors - 2015 Submittal

Project One Power Sales Agreement

POWER. SALES CONTACT

Between

?4U.TlPAL 2LECT.IC kUTHOR=T OF GEOGITA

CIT OF

This C fract, mJuse and enwcred into a• of October 1, 1974, by and bore'n theMunicipul Elacric Autkr4t7 of Georgia. a public body corporate ana Loiti ad .i a pu.ttccorporatfn of the State of Georgia hereiaittr sometima dUfsgated as the Authority, crest.

Sby thepyrrs af2. Ga.L. 197S, p. 107, u maded, Ud.

CITY OF

S poU@Ifcal saou lton of the State of Georgia,' hereinadtr sometimes designated aj the PLar.

WITNESSETH

THAT:

* WHEREAS, the Pgrtcdpa• ha emd for an econwtca], rlabe source of eldectrcpower end eserly to meet the growing duuod3 of its customers sad hs3 dgtu=rnend to

purchase such electric power and ismray from rucuroma vemd, contl5, or pckuei: I• theAuthoritna nd

WEREAS, the AuthoityV wil take or cau to be taken all steps necessary to moresuch guvernmental permits. licens, and approals as uare necauary for, aud wMil than po.caed as appro•iats with final desdgn, flasncin and scquslitfon or cnmotrwtUon of Ihoseiadiutes herein duaabed sud desigated n the PoJect for tIe supply of elctri power andeneurg to the Participant end to all ottb poitical eubdlfslons.conba•cUp with the Athwr.it7 therefor, and w•ll mD the output and merr~as ofgu& hfacilltles qmuuat to this ContuctWnd to con.trct ubststtidlly Identical to this Conbrt wMth other politwcal subdivlslans,deisinatad tolether wth the Part•_kbant as th. P•Srtidpanb MAnd

WHER!R. in addition to the male to the Participants of ite output and sm-ricas of thePjecut, the Authority will also obtain for and provide to the Particdpanta the YPurtcipantSupplerwAstaB*. Pwe supply, ."hezehaftar deflard, and

WHEREA., In order to enble the autharty to Issue Its rv'venue bonda to pay the costsof acauhbg asd ecnstructg the Prqecti It Is necausf'for the Authority to have Wndflgcontracta with such political subdiviadon of the State of Georlis &a may detannitn, ourmuantto authority at I Gm. IL. 1975, p. 107, as amended, to contract with the Atutoufty, and .Il par-meats requked to be made in acordance with the provions of Article I11 of such conoba-b,Jnarudlng payments requred to be made under Article 33I c4 this Contract% and all other paM.mants attulbufibe to the PrO10e or to thi A4nnusl Project Costn,.so herelaffti dWimed, to bemade tn aceardancs with or purnvant to any other provision cf this Contract and ulich otherrontruts a'M bi pldged as security for the paymaet of such .Bonds;

I

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NOW 732REFORE;

For and in consideration of the Premises And the mutual covunanta snd apeements here-ladter set forth. and In order to pay the Authority for its costs of providing (1) the PFeri.elpant's EnUtItment Share, As hereinafter defined, of the cutpetind serylces of ah gadlityof the Project and (if) the Participants SupplementaI Bulk Power Supply, It s. agr/ed by andbetwen the paris hereto as follows:

ARTICLE I

TERM OF CONTRACT, DEFINITIONS

Section 10L Term.Thb term of t"• Coubract shall begin and this Contzact shall conitituta a binding obU-

gaiton ao the parties hereto from and after Itai eUctfon by the lsut party to ancnto thesame. The obligation of the Authority to provide electric power and ecrers, under ths pro-visions of this Contract shall begin with the first lzsuance'aWd dilivorf by sald Aulthorlti ofany of Its Baods which are authortsid to be Issued by the pruovlmin of I U L. 19M, p. 207,am amended. or, In the event nots of the Authority are I•ued in anticipation of the slusuance.of Bonds, such obligation shall begin with the Iss"ace an dhrivhy of auch bond. saticipa onnotes. The term of this Contract shall continue in full force and affect uuntl such Ume, notaxe.sdtinI ffty yeas, &a all of the Authorfty'e Bous as herabnftsr'deflnmd or notes IssuedU anticipation of the Inuaew of Bands and the Interet theron heve been paid or provisionfor payment shall have been made In accordance with the provisions of the BeooA Resolution

* or until iuch Ums as the Project ahall be ret"ed frm'srv•c, dacomm.ssloned or disposed ofby the Authorit, whsha&av ts later.

ection. 102. DeMllUona and EZplsatloa'of Terma.

Asused harein:(a) "Act" shall mean that certain Act of the 1371 ausloa of the Gneral Assaeebly of the

State of Gtorgia compiled and pubUWhed In I Ga, L 1975, p. 107, as the sme shas be here-tofore'or way. be bereafter amended

(b) "Anual Project Co4at" Ahal mean. with rspect to a Power Sappt T"er, to the -.ten not paid as a part of the Costs of Aequistoon and Conuct~on. all Costa aud Mpof the Authorit paid by the Authority for each of the generating facilits8 end the tnasmi.don totems facilities comprtsing the Project during such Power Supply Year alocable to theProject Including, but not limited to, those It•ems of cost and expenss referred to in Iecton806(b) snd Cc), hereof, as Annual Project Generation Jkxed Cha•res, Otr Anzusl ProjectGeneration Cost, Ainnual Project Trsanmilsson Fixed Cbargf, and Otbr Annual ProjectTranidiston Cas-"

. (el "Aocual Supplemental Costa" hall mean t0oa costs and expanse O the AztbarlIy.aliocabla to the purchaslng or fuzrnlshing ol Supplmentl Blvb Power Supply to the ParFc/-pants.

(d) "Aunual Sysitm Budgift' shall mean, with respect to a Power Supply Yenz, the budg-et. adopted bW the Authority not less than thirty prior to the bejinaiar of such PowerSupply Year Welcb budget shall Itemize eatimtsts of Annual Project Ccits and An=ual Sup.pk=nRl Cueb add Alt revenues, Income, or other fands to be applied to such Coas, rurpec.Uvely, for and Oppliable to such Power Supply Year or, In the case of an amended a'ich Budg-et, for and appUcable to such Year lot the remaluder of such Power Supply Yar.

2

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(e) "Biling Statemmnt' shal mean the wrIttan staetment prepard or cased to be pre-pared monthly by the Authority that shall be based upon the Annual Syatem Budget or uponthe amended Annual Syutem Budget adopted by the Authority paenant to Secton 202 hereof,and that shall shaw the monthly amount to be paid to the Authority by the Participant In ac.cordanc. with the provisions of Sections 207 and 40U herof.

(f) '!onds' aha•l mean the bonds Issued by the Authority pursuant to the provisions of-the Bond Reuolution to finance or refinance the Codt of Acquialtion sad Construction of thePrfect. whether or not any issue of euch bonds shall be uTordiniated as to payment to anyother issue of such bovdi, lnd sball Include ddjtiUonal Bonds issued pursusat to the prowl-glons of Section 801 hereof and refunding Bonds Issued pursoant to the provisions of Sec.tion 502 hereof

(E) "Bond Rv'olution" ahall mean the Power Revenue Bond Resolution and sny Supple.mental Power Revenue Bond Resolution to be adopted by.the Authority and accepted by theTrustme end the Coar~hwe.(lf any) thereunder faithe benefit of the owners of the Bonds whichshell provide for the lasusnceeof such Bonds, a copy of which PowerRevenue loand Resolutionend Firt Supplemental lower Revenue Bond Resolution In subitauti•aly the form to be adoptedby the Authority chMll be on mie In the records of the Pudcinnt.

(h) "Bulk Power Supply' shall mean, with respect to a Participant, all eleteic powerand ener57 required by such Partipyant In excess of that amount (I) supplied by any gener-ation and transm1rso =' rasources owned by such Participant on the effective date of this Con-tract. (h) 'received by euch Participant trom the Smzlheastern Power AdmIqlstratiun(SEPA). and (111) procured by such Farticpant flrom alternate blk power supply resourcesIn accordance wi the provisions of Section 04. hereof.

(I) "Commerdal Operation Date" ablU mean, with reapecd to each facility of the Projectýthe bealgnnnr of the day on which such facility of the Project is, In the opfnion of the Author,Ity, ptoduclur sand delivering electric power end entrgy for commercial u•, provided, how-.erar, In the event any such faciUty Is producing end delIlvering electric pop. and energyfor commeria use on the date of acquisitfon of the Authorites Interest theiind, the Author.Ity may aestelish a Commercial Operation Date for sroch facility which date shafl be within arasenable time of the effective date of euch acqutsiton.

(j) "Consulting Enrineer" sda meun an engineer or engizearlg firm of nationa repe.tation having demonstrated epertise In the field of electric power zeierstlcq tran.=Mulmpower suPly, electric utlity'paratfoow, rata, and feasbility.

(M) "Contract" snd "Power Sales Coitacts" shall mean, respectively, this Contrictwith the PUc€lpstk and eli Power SuLJ Contract, includig this Contact, vubetantlailyidentical hereto entered inta by the Authority and a Pcrtcipýet; In esch cae as the

-same may be amended from time to time.(1) "Cot of Acquisition and' Construction" shall mean, to te xtant not included Ln An.

nnal Project Cost%, all costa of and expenses of planning, designing, aquixlno, constructing,fntalling, and financing the Project, placing, the Prolect tn operation, deconmmissonrng, ordisposal of the Fro.ect, sad obtaining gtvernmental approvals, certificatac permit andIca-ns- v[* respect therelt heretoore or hereafter paid or Incurred by the Authority Lad

'may Include, In addition and without llamtatlon, the following.(1) woridug capital and rucervl in such amounts u ma be establIshed prsur . t to

the Bond Resolution.(2) Interest sedrulng In whole or in put an Bonds prior to end during construction

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a(q) 'Tower Supply Year" shall mtin the calendar year, except that the first Power Sup-ply Year shall baeon on the date the Authority has an obligation to provide electric powe indenergy as determined In accordance with the provisions of SecUon 10, hereo.

(r) '"Proportionate Share" shall mean, with rsped to a Participant and s Power Sup-ply Year, that percentage of the kilowalft or kilowatt hours, as the case may be, of iach typeof service Included In Supplaineutal 3olk Power Supply which such Participant Is entitled toreceive and for whieb such Participant is obligated to paY In each mopth of a Power SupplyYear. With reapect to kiowats, rsch percentag shall be obtained for each month by dividingthe maximum one-hour integrated coincident syatam demand of such Participant's Supple.mental Bulk Power Supp* provided by the Authority durIng the particular mouth by the ma:-imum one-hour integrated colunddent system demands of Supplemental Bulk Powir Supplyprovided by the Authority to aU the Participants during that month. WIth respet to kilowatthours, such percentage for each month shall be obtained by dividing the kilowatt hours of Sup-pleentatl Bulk Power Supply delivered by the Authority to euch Participant during theparticular month by the total kilowatt hours of Supplemental Baslk Power Supply delivered bythe Authority to all of the Participants during that month.

(s) "Prolect" shall mean those electric gaenration and related transmission facilitieswhich are Identified In the Description of Project and those trmasmdu lon aysten faqlUtle towhich reference Is made In the Description of Troje~t to be acquired and constructed by theAuthority during the time prior to the Commercial Operation Date of the last of the gentrat.air facillUes of the Project to be completed in order to meet the Authority'a Investment respon.

slbilHty during such time in connection with any agreamentfor an Integrated tranmhinkon eye-tem to which the Authority may be a party in accordance with the provisions of Section 802hereof, together with. (1) any mnjor renewals, replacement4 repairs, additions, bettarmentsand Imorovements necassary, in th o'pinion of the Consuiting En&eein, -to keep the Prbjectin good oaperatin condition or to prevent a lass of revenues Uterefronm, (Hi) any major addi-tions, improvement& repairs and modifications to the Project and any decommiulonlnp or'disposals of the Project. required by any governmental agency having Jurisdiction over theProject or for which the Apthority shall be responsible by virtue of any obligation of the Au.thority arising oat of any contract to which the Authority may be s party relating to owner-ship of the Preject or any facility thereof, (iU1) those trurmaluson system facilities to whichreference Is made in the DacripUon of Project and which are required, in the opinion of theConsulting Engineer, to be acqured and constructed by the 4uthoriky on or after the Com-mercial Operation Date of the last of the generation facilities of the Project to be completedin order to meet the Authority'a Invutment responsibility after such Commer-al Op•etfot"Date in connection with any agreement for an Integrated transmisslon system to which theAuthority shall be a party In accordance with the provisions of Section 802 hereof, and (IT)workigu capital required by the Authority during construction af the Project and for theplac.Ing of the Project In operation for providJng Bulk Power SuppIX, inrcluding SupplemantakBulk Power Bapply, to the Participsat.

(t) "Prudent Utility Practice" at s particular time shall mean any of the practices,methiod and acts engaged In or approved by a significant portion of the electric utility In.dustry prior to such tins, or any of the practices, methode and acts which, in the exercise ofreasonable judgment In light of the facts know* atthe time the decision was made, could haveben expected to accomptlah the dsired result at the lowest rteasonable cost consistent withrood busines practfce, reliability, safety and e.pedtlon. Prudent UtItty Practice Is notintended to be limited to the optimum practice, m'ethod ot act to the exclusion of all others,but rather to be a spectrum of possible practices, methods or acts bavinr due retard formanufactureri Warranties and the reqnuinents of guvernmetal agencies of competent

a

arisd/etlu. Zn evaluating whtber' any.act or proposal conforms to Pradent Utlyt Prac-tic. the p"rUe shall take into account the obAjective to achieve optimum utilization d the'Authority's "sourcus.

(u). "Supplemental Bulk Power Saype shall mea, with ruapect to a Par•ipsnt, thatportion of Bulk Po*er Supply required IV iuch Partidpant in excess of that supplled fromthe Project and, uWaes otberwise'provided, from amy future projects bwned or controUed by,the Authority from which the Participant contracts with ths. Authoty to purchase eectricpower and enerzy and 4i excess of the grneratlnic upsacty resevt service. a, trnmldon Air,vice, sceuled, emrentcy, or economy Interchange service, and subh other sTices Assoclatedwith the Project as ahali be aipplied by the Authority in accordance with the proirslons ofsection 108, hereof.

(v) "Uucoutrollable Forces" means any cause beyoud the control of the Authority whichby the exercise at due diligence this Authorty Is unable to prevent or overcome, including butnot limited to, failure or refusal of any other peawn or entity to comply with theu exsincontracts with the Authority or with a Particlpant. an act of God. Are. flA eplosion.strike. mabotsgw, petllencep, an act of the public enemy," dvl and mi•tary authority Includingcourt orders, Injunctions, and orders of tovurnmental agencies with proper juriadletison In.surrectlon or rlo, an act of the elements, faiure of equipmant. or CU-liUty of the Authorityor Any Contractors mngsgvd In work on the Project t6 obtain or shp mathrials or equipmentbotaucs of the ffect of similar causes on mupplfes or cearrion, or Inabilltr f.the Authority tosell or Limue its bonds or notes.

(w) "Uniform System of Accounts" means the Uniform System of Acrounts for Class A-and B Public Utillttm and Licensees as prescribed and; from time to time, as amended ormodified or subasttutif therefor made by the Fedenl Power Commission or.its successor.

A.I•CLE 11

CERTAIN OBLIGAI1O2?S OF TEE AUTHORITY

AID THE PARTXCIPANT

Section all Wulk Power Supply.

Thq Authority'shbel provide or cause to be provided and the Paetacipant shell tak froimthe Authority the Bulk Power.Supply of the Pa•tllpant. The Authorityr will be respo-smulmfor planning, negotiating, designing, financing, acquirng or constructla, contrecting for,admialsterring operatin, and maintaining all generation and tranemf•a6n armigmentsand /ciftie nmcssary to effect the dealyery apd sale of rsch alk Power 8upply to the Par-Utcpana, provided, howveer, that the Partcipant imay procure alternate bulk poww, supplyresoer. pursuant to the terms of Section 404, hervof.

v(SectlnnzO2. Anznual-SysteeaRtudget.

The A uthority will prepire and submit to the Participant an Annual System Budget atleast ninety days prior to the beginning of eacb Power Supply Year. T1a Partidpaat maythen submit to the Authorlitr at any time until such budget Is adopted.' any mattenr or auf.greatona relating to the budget which the Participant may care to pres-,t. The Anthorltyshall than proceed with the consideration and sdoptign of mach Budget pzot les than thirty normore than forty-five days prior to the begio"ing of such Power Supply Tear and &hW1l camecopies of much adopted Budget to be delivered to the Parddpant, provined. however, the Budg-et for.the first 'Power Supply Year shal be prepered, consldered, adopted and delivered In

6

the m•t practicable manner available In the discretion of the Autharity. As required fromtime to time dur•in any Power Supply Year aftar thIrtY days notice to the Participant, the* AuthUwlty may adopt a• amemded Annual System Boaget for and applicable to such Year forthe rumaInder of much Yes.

Setloa 101. Reports.Th2 Auithrity will ptitpaTe and issue t the Paetidpants the following reports each

month of the Power Supply Year(2) Fiaandal and Operating Statement relating to the Project and to the Supplemental

Bolk.waar Sonly,

(2) Status Of Annual System Budget.

(3) Sta•ts of construction budget of the Project during consbtctio,

(4) Analysis of operations relatfur to the Project sad to the Supplements) Bulk Power

Sectlon*104. Records and Accounts.

The Avthority wil keep accurate records and accounts of ech of the facilities campr(tangthe Project and of the bansactions relating to the Supplemental Bolle Power Supply as wellas of the operations kf the Authorlty in accordance' with the Uniform Sytaem of Acounts.Said secauts shell be subjKe to an annuil audit by a firm of independent certified publicaccountants experienced In electric utUity accounting and of national reputation to be sub-mitted to the Authority within skly days after the close of any Power Supply Year. 'Alltransactions of the Authority relatinir to the Project end to the Supplemental Bulk PowerSopply with rupect to each Power.Supply Yer shiall be subject to ouch an audit.

Secion 1a0. Consulting Rnag,,ee.

(a) The Authority will' iatin a onsult=ing nsiner to sslkt. advie nd Mn z s recou-mendations to the Authority on matters relatinr to electric power generaaton, ranaizalnon,power ipply, electric utility operat• o. n rates end cbrps, fetAibiUty and budgets and aWalipuse such consulting tnslneer to proyur within oe hbndred and twenty ae follwwl theclame of ewh Power Supply Year an annual comprahanslve engineering report with rapect tothe Project and. to the Supplemental Bulk Power Supply for the imme•dJatly preceding PowerSuppleYur which shall containa copy of the annual audit and which shall Includa:

(2) A report 0n the operations of thh Authority;

(2) A report on the management of the .Project;.

(3) A isport on the sufficlncr of rates and chargs for searices

(4) A repor# on reqwrements for future btu power IuPplya

(5) Reeonmepmdetlua as to changu In operation and the maknlg of repar3, renew-&l% replacements, wduston.s, betterments end Improvements; and

(6 A projection of the Authority's Costa of puvildiag the Bulk Power Supply to allParticipants for the ensuing live year period.

(b) 'he Aothoorit lh" causie a copy at 1a1d engineering report to be deivered to sachParticipanL

7

Section 206. Power Supply Planning.The participant will keep the Authority advised on sU zzatters relating to th Particl-

pAntWs power supply plauning including but not limited tA load forecast, proped trans.mission and generation Additions eA new delivery points.

Section207. Diligence.

The Participant will exercise diligence in the operation of ib electric system with Ubsview of securinr eftiiency In keeping 'with Prudent Utility Practce will construct Its fad1i-tlis In accordance with spect•ication1 at lout eqaial to those prtcribed by the National Elec-

tric Safety Code of the U. & Bureau of Standards, will Maintain its Uss At eAl times In a1afe opirating condition, and will operate aid lines in suckb manntr A not to Interfere un-

duly with the operations of others. The Participant will use electric asrvce equally-from tUthree phuu a nearly as possible and will maintain a power factor of 89.47o 'lagging or such

greater power factor as ny be asred upon by the Participant In the llgbt of any other con-tract between the Authority and Any other party, and such aIgeemnft by the Participantshall not be unreasonably withheld.

Section 20L Access.

Parkiclpaut will live all neclsary permiltalon to enable the agnts of the Aathority 'tocamr out thWs Contract and will otherwise be subject to applicable taeus and condition setforth I those tarifs which affect the Partiaipaut and which are filed with the Feeral Paw.or Coamm•slaon. The Authority and the Participant each wil give the other the right to enterthe premises of the oher at a0l reasonable.tima fqr the purpose of repairing or removingfacilitias, reading moeters and performing work Incidental to dellvery and receipt of BulkPower Supply.

SecUon 205. AdjusltoentafBlliUng.

At the end of eact Power Supply Year the Authorty ehseU determana If the agragateamount paid by the PartkIpant under Sections 307 and 403, hareof, to provide recovery ofall the Authorfty's cots during such Power Supply Year was in the proper Amount. a id,upon the makinlr of such determination, any amount found to have beeo paid by the Par-ticipant in emxes of tbe anfount which thould have been paid by the Participant shall be erdit-ed on the Bl1ing Statements to the Participant for the remsining month or months of thepower Supply Year next succeedingr the Power Supply Yeaw for which Bull adjutment wasdatermined to have been necessary. Ten pament of the Amount of any ddldency.shall beadded to each of the nL.t tan Billing Statsments. In tWe event that the falure of a Particf-pant to po ItsEatltintment Share of Annual Pigoet Costa in accordanc with- its PowerSales Contract shall have rsualted In the application of amounts In any ruerve or worhingfund under the Bond Resolution ta the payment of co•ts payable from auch reserve or work.ing fund and the othe Participants shall have made up the deficiency creaked by such apl.cation or paid additlonal amounts.into snch reserv or worWW• fund, Amounts thiae•ter paidto the Authority by such noupaying Pa•t•cpant for application to such past due payments Ahlbe credited on th Blling Statements of such other Participants In the next month or monthsas shall be appropriate.

Section 290, Disputed bMonthly Buling Statement.

Xn case any portion of any monthly. BiMlng Statement received by the Participant fromthe Authority, shall be In bons fide dispute, the Particfpant shali pay the Authority the fullamount of such toonthly Bfling Statement. and, upon determination of the corect amount.

0* S

the difference betweem such correct amount and such full amount, if ItS, will be credited tothe Participant by the Authority after such determination. In the event such monthly BlIlorStatement Is In dispute, the Authority will give consideration to such disputa and will advisethe Participant with regard to the Authority's position relative thereto within thirty daysfollowing writto notification by the Participant of rich dieputi.

Section 221. Sources of Puricdpa~na Payments.

'lbs oblirstiona of the Participant to make the Dayments to the Authority under thisContract shall constitute general obligations of the Participant for tha payment Of whichthe full faith Lnd credit Of the Participant shall be and the same hereby Is pledged to providethe funds required to fulfil all obligations arising under thli Contract. Unle susch pamentsor provisions for such Payments s all have been made from the raeymnus of the electric yas-tem oa tifi ParUctpant or from other funds ithreofd thi Participant will annually in ach andevery fiscal yer douring the ternm of this Contract Include in its geueral.ravenue or appro-pristion measure, whether or not any other Items are Included, sums sufficient to saUtey thepayments required to be made In each year by this Centkrt until all payments required in-der this Contract have been paid in full. In the event for any itaxon any such provision orappropriation Is not mcde for a fiscal, year of a Participant. then the chef fiscal officer ofthe Participant shAll, In actardance with the provisions of the Act In affect an of th date ofthis Contract, set up u an Appropriation on the accounts of the Participant In each fiscalyear the smounts requlred to psa, the obligation's called for under this Contract. The amount ofthe appropriation in such fiscal year to meet the obligations of this Contract shall be due andpayable and sMU be expanded for the purpues of paying and m ting the obligations providedunder the terms and conditions of this Contrat, and suck appropriation shall have the 'sameI eal Status u If the Participant had Included the amount of the appropriation In Its generalrevenue or appropriation measure.

Section ZZ. .Rate CAvnt.The Participant will utsabiah. maintain and collect rates and charges for the electrc

service of Its electric sstem so as to provide revenues sufficient, together wfth a-raiable elec-tric system reserves, to enable The Paztcipant -to pay to the Authority all amounts payebleunder this Contrsit and to pay all other amounts payable from and all lawful charge againstor liens on the revenues of Its eletic smtu

*tARTICLE III

SLECTRIC POWER AND ENER6YFROM TEE PROJECT

Section 301. Ownera•ipof Project.The Authority will Issue the bonds In series from time to time under the Bond Ra"olu.

tion to finance and shall own the Project consisting of the Authoritys' ownersup Interest inthe generstion and transRMssion facilities described in the Description of Project asahedUo this Contract and will cause to be delivered to te. Participant during c month of eachPower Supply Yur its Entitlement Shars of the output and Services of uch facility of theProject for the useful Ufa of each euch facility of t4e Projeqt.Section 302?. Costs of Generaton and Ttanmission Faclitfas Comprising the Project.

(a) Those teUnration and "ran.s=|sfon facilities comprising the Project vwl, for purposes

0

of accounting for the Authority's costs and charges to the Partfipants, be separated Into (ifgeneration .mci related trauntls.(on facilitle, and (U) transmislon system facii•tes;

(b) "The Authority,'costs of providing to" the Partcipasnts their ru, Ufsaet UhaMes of* such generation xnd reated transimalaon'fcWtnu eu are included in ths Project wM be ac-

counted for um described In Section 808(b) bereo, sod

(c) The Authodkiy' 'coest of providing to the Participants their Entitlement Sheus of suchtaneulsuton stem facilities u u s.e Included In the Project wM be accounted fores desc•ibed InSecton 306(c) hereof, and will be deotiraned am follows-

(1) Such tranemlalon system faicillUs um us inclu~de in the trojeck will he acquired' by the Authority from time to time foa the term of this Contact throujh p-tlclpatton

In GA 1nses.ed transamision system %reomment with other utilities. The Authority'sinvestment reponmibUity In such tmnamlislon system tasciltias for any Power Su-iplyYear wiM be that perlentage of the total invutment In the combined tnsmimssloumytem failcWites of the Authority and such other utw es obtained by dividing thedemand of total -Bulk Power Supply provided by the Authority to rathe Participantsduring such Power Supply Year by the combined demands of the Authority and suchother utilities during such Power Supply Year a"d eitmpaolng the rapmt as a percentage,Tbe Authority's responmibillty or annual capital costs relatig to renewals. raplace-ments, repars. additions, bettarmufa and imprbvsmnts to and for annual ope•atlzgcolts of such trammislaon s.stem falltleu for any Powir.&Spply Year will be the.annum capital end operating comb incurred by the Authority for such fscWtiea.

* (2) In the event the Authority wumnm responmibillty for ransm~alon of the Pai~cl-panta' allotments of 8PA power pursuant to armngemenats"*ar which provision Ismade in Sections 803 and 804 hereof, thi Authority'p ruoansiblllty kor Investment in,and AnnUal capital and operting costb of, such tnasmIulon asytm'fr-illtlc acquiredby the Authority from time to time though psrtlpeton In such Integrated trans-mbison s•ytm agreement may be mcreaed. The Authority's Investment resporsflityIn such inamed transruislon system facilties foa any Power Supply Yesr wMl be thatpercentap 'of the totid Investment 1n the combined tnsmvision facUlties of theAuthority and such other utilities obtained by dividing, the demand of such SEPApower plus the demand of total Bulk Power Supply provided by the AUthority to allthe Partcipsats during such Power Supply Yea by the combined demands of theAuthoxitY add such other utilities during such Power Supply Year m•d espreamulg therumat a a perctntap. The Autho•ity' responalbLity for annualcspiltalcasa relating torenewals, tplacemefttv. repeis. additions,' betterments and Improvements to and forannual opersting coab of ouch Inrased btanrnmalon syitem faclities fec any PowerSupply Yer will be the. annual iapital and opetatIng coats Incurred by the Authorityforcuchfacilltez,

Section 303. Inteconneetion Arraneuments,

The Authottywill purchase or provide such generating capacity reserve service. trans-missnonserict, maintenance service. emerggsc, service, ecocamy Interhan setrvias andother Interchange mrnics associated with the Project as may be nt•csuv for the neabla andeconomical supply of the output and servicelm of the Project Lnd will cause to be delivered tothe Particldant duriAn each month of the Power Supply Year Ite Enattieismt Shprt of suchoutput and saervices. The Authority may uze alectric energy from the Project which Ia eurploeto the requirements of the Participants, s much surplus may be avadlable from Uime to time,for the purpose of economy Int-rclhune service or other luterchange mervices with others.and iny not revenums received by the Authority for any much ser4ices shall be credlted tothe Participants by the Authority in proportion to their Entitlement Shares.

10

0 0

Secilan fL4. Operation and Mal nleanie.

The Authority covenants and agree that it will opetra, maint.ain and manage the Pm,-Ject or %swo ths same tb be operated, maintained a~d managed. in an efficient and econom.Wca! manner, cousfstnt with Prudent Utility Practce.

Secuton 310. iburance.

T7e Authority shall maint;an or euuie to be maintabaLd in force for the benefit of theparties heasto, u kteir interest shak appear. u Costs of Acquisiton and Conatruction or As-Sanu Projedt Coet such insurance with respect to the Project as shall be abailable and as Isuually curled by utilities constructing and opaeratin anratlns facilities but, in the Gus ofnuclear generating facilltiu, not less than will satitfy the requirements Of Federal and statelaw and the Nuclear Replatory Commission regulations and such other Insurnuce ns is uxu-ally carried by electric tilitles IAn conformity with Prudeat Utility Practife.

Section 806. Chasres and Billinp for the Project.

(a) The Anthority wilf establish fair and nopdicnrialnstory charges for all output andservic provided by the .Authority to the Participants relating to tubh facility of the Projectdesigned to recover e11 of the Authority's 6slte allocable to such facility cemmsnnrng with th1Commerdal OperaStIon Date of such facility or th, date to which Interest hUe been capitaliashon Bonds a-ocable to such facility. whlchrvek Is the eraler. ua st forth In the Annual SystsmBudget or the auended Annukl System Budget adopted by the Authority pursucant to Section202 hereof, and such costs shall Include Annua• Project Costs.

-(b) The Annual Project Costs allocable to the generation and related tanJlsauioz feel-flies of the Project shull fnrjude at aLus the iolowig Ite&Ws of Costs and expanoe:

(w) "A•nual Projet Generation Fized ChUae," whih: niens:

(A) the'amount -Phi& the Authority Is required under the BRud Rles•lvuoato p1y or deposit into any fund or account established by the Boad Resolution forthe payment of Debt Service and any reserve requusmenuts for Boand which armallocable to (I) the seneratlon and xelat•d bauin. ssion fa.tiUUa of the Project and(a) the worids Capital which Is required by the Authority for provid/nr Bulk Pow-er suply, Including Supplemental Bulk Power Supply to the Participants and whichIs allocable to the generation and related tramuial-on facilities of the Project;.

(3) the smount (not otherwise Included tunder any item, In thi Seclion 306(b))allocable to tha generation. and related trLarmisalom facilUti of ths Project whbihthe Authority Is required under the Bond Resolution to pay'or deposit doi•kg such-Power Supply Year Into any other fund or account stabUibed by the Bond holu.tioUM and shill Include, without litation, any such amounts required to uiahe upany deficiency In any reserve fund or workinr fund required or permitted by theBond Resolution resulting from a default In payments by any Participant a: Par.tidpante of amounts due under its or their Pawer Sales Contractswiththe Authority;

. (C) amounts. which the Authority Is required under the providons of the BondResolution to pay or deposit Into a reeruu for renewals and roplacmnts:

(D) amounts which must be zeasred ýy the Authority for coverage of DNbtSerylce as msy be required by the Bond Resolution;

a3) amounts which must be set aside by the Authorltyfor the retirement from

11

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put !Awpqjuy sq; in "jup 11(350 j3flPu013 03i a p5iqvI Alziuid sasuaftsX151(0 UN Pat 183)&=~ MR1l ?"t -BuIzavultZU WrI2so "a; -Fair" '3 tsulpnluj AM1*301130y gi; 30 sauaplqanq wo lu1n3uspuom Pat BuJpuisdo 543 03 psqtjia v3t01 51115003-apna pug uoppundo TIN CuT) put Injscoz sip qln UOS=UuG3 ul A!aqlny sqi Lq pes*itn2uj rms1.u sautwqzsuj istposo ieoo~ Lusun'sLnuslam 'Mps"u512 ;a v3902 ; (11)~0I0.Zjl wq; ;o ;fldo Mn qjpL von al .41ioiny mg cq vjqvAvd iwlizap Its

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ST 4wroz i 0npj av asgu1v;cnnual sip. Ja Iwhdaip is0 'Bn iolfquflomap S2)LtS

0

*I 0

(B) the amount (not othrwise Included under any itetr of thisSection BOB (c))allocable to the tbanamilalon system fci••Utes of the Project which the Authorlty Isrequired under the Band Resolution to pay or deposit during awh Power SupplyYear Into sny other fund or account astabliabed by the Rand Ruesolution, and shalltnclude, without limitation, any such analots required to mines up deficulduencin any roe•rve land or worklair fund required or permitted by the Boud Resolutionresulting from a default in payments by ny Participant or Participante of amountsdue cude its or their Power S-ea Contracts with the Aathrity;

(C) the a•nout wblvh the Authority is xequlred under the proauisbns of theBond Re.olutlon to psy or deposit Into a reserve for ranewals and replacements; Lod

(D) amounts which must be realized by the Authority for coverage of DebtService as may be required by the Bond Resolution; uad

(2) "Other Annual Project Transmission Costs," which means:

(A) smounts for ordinarT opiration and maintenance coets, administrative andenrantl costs, Inaurane.e, overhead, and any other cbsrgu payable by the Authority

in connection with such tranwsmisfon system tacilitie, Including at| credits due toPa.,i/ipants with respect.to delivery point transtission fauiities; and

(B) amounts required of the Authority by the piovislons of the Bond Resolu-tion to pay the coats af or to Vrovide reserves for (I) txtraordinuy operation andmaintenance cosat, facluding the prevention or correction of any unnald Io• or dam-ase to keep the tranislsulon syntem fascilities of the Project in good operating con-dition, or to prevent. a loss of revenue therefrob. (ill any major renAwals, ZOplAce-.mants, repairs, additions, betterments and Improvements ecemary, In the oplulon ofthe Consulting Ensixeer, to kIp the tranmIssion system facileites of the Project •in good porating condition or to prevent a loss of revenue therifroum and (ill) anymajor, additions, Improvements. repairs or modifIcations to any such tranmzssifoofacility required by any governmental agency having Jurlisdictia over the Project orfor which the Authority sball be responsible by virtue of any obligation of the Au.thorlty exisrld out of any contract ta which the Authority may be a party relatingto ownership of the Project or mny facility theteo to tha Letcat •hat the Atithorityis not raLmbursed therefor trom the proceeds of Insurance or funds for. such par.want aft not avLaable to the Authority thurefor from say fundi or accounts estab-lished under the )lond Resolution, or fuods for such payment are not provided bythe issuance of additionsa Bonds pursuant to Article V of this Coutat.

(d) Tb.e Authority @hall bill the Participant such month during rich Power Supply Yerby provIding the Purtllpant with a Biiingr Statement fir each mouth in acsordance withthe charges established prsunet to the provisions of this Section g0o. Such BlUi/ng Stotementshall sit forth. among other things. the sum to be paid for auch month by the Participantfor its Entitlement IBare of the Project output and sarvices, and such sun shalt equal theParst¢lpaivo EniUement Share of that amount of Annual Project Costs, as esUmted in thethen current Annual Systamni Budget which the Authority Is required pursuant to the Bond.

LauUaaon to accroe, par or set aside during esch mooth'. Such monthly BflUing Stateariantshall Include a credit for such delivery paint tranmisnion faciUtaues o "t ownad, flasnued,or operated by the Participant, and such BilUng statement shall Ue paid by the Participanton or before the tenth day from the date of such hbi. Amouutx due and not paid by the Par-tfp ant on or before a-id day shall l•au an additional eharge of one and one.balf percent Permonth until the amount due Is paid In full. At the end of each Power Supp Yeare. adJust-zets of bililng shall be made In accordance Vith Section 209 hueoL If the Participant pays

ku than the full anwunt due with respect to a BILanr Statement, the partial payment so M-cei.ed Aball be applied first In discharge of the P&rtidpants obligaton to pay Uts htitmentShul of the Annual Project Costs ev provided In this Art•de I11 before aY fund fruu suchpartial p4•yment are applied to. the discharge of the Puticipant's obllgations undor the pro-vious. of Articl* IV hereof.

Ce) At'such times as the Authorlty Issues addtonal l onds In accordance with te pro-visions of Article V, hereof, the Authority will increae auch elements of Annual Project Coet5as are necessar7 and tle Partlcpant shall pay. ib Entitlement Share of such fncreasedcharge puziuant to the provisiuon of Section 807 hereal.

Section 807. ProJSect Entillazteni and Payme.t Obtinllons.

(a) The Particip'nt shall be entitled to receive Its Enutitleutlnt Sba of Ihoutput andtranVOiSSon aerfvice of the Prolect and of all* aeelca provided by the Autblority In so-cordasce with the provislion of Section 308 heref as may be available for the umeful lUfeof the Project.

(b) The Part•acpant shall pay lt Eutitlawent Shan of Annual Project Costs set f•oz&In the monthly 3lliny" Statements submitted by the Authoriktyto the Part•tIpant In accord-ance with the provlsiosu of Section 306 hereof, whether or not the Project or aor paut there-of has been completed, Is operating or opefable or its output Im suspended, Interrupted, In-trf ered with, reduced or curtailed or terminated In whole or In part, And such paymentsshall not be subject to reduction whether by offset or otherwise and ablell not be condltion.*"l upon the pedormAosce or nooperform.ance by eny party of any agreement for any causewhatever.

Sectiun IU, DetermLnation of Putlclpant' Entitlement Sham of•.Transaaloa System Fs-dlUtll. Included InAtho Poeject.

(a) With respect to trORumElSoan systsm faclilties Included In the Project, the Entitle-nmet Share for each ParticIpant to be determined by the Authority for each Pow' er S-iVql7Year ehafl be the petrentage alotable to the Peaztdpait of th tbrnL• ulonsawrdt providedby tke Authorilty and of the costs Incozzed by t/s Authorit elating to such tze ulsdslon ys.ten facilities as are acqulred by the Authority f om time to time fok the term of thNm Contractthrough particpation IU an Integrated transmission system agreement with other uUtfe.Such percentagl ihaLU be determLned by the Authority by dividing the avruage of the opa"OurIntegrated coincident s•atem demands for Bulk Power Supply provided by the Authority tosuch Participant during each month of such Power Supply Year by tbe average of the on*-hour Integrated.colucident syru.an, damanda of total Bulk Power Supply provide"f by ta An-thoritylto all of the Partidpants duringt esh month of such Powar Supply Year and epraetangthe result as a percentnge so that, when nll of such Entitlement Sham N compted by theAuthority uae Added together, thetr sum ehallbe one bunded. For the purposua of such co=-.putation. the one-hour Interval shall be the hour during which there 4al occur the ma-fmumone-hour Integrated coincident system demands of total Bulk Power Suppy powuided by theAuthority to alt of the Partlcipants

(b) In the event the Autharity asumn respousbility for tra.nsmuison of the Partc'-pants' aUobtmnts of SEPA power purmuml, to arrangements for which provision In sade InSections 803 and 304 8 herof, sad such responalbity results In an luctemae to the InvestmentIn and annual operatinr costa of such tranmnlslon systanm fKIacles, the EnUtIement Sha-for each Particlopnt to be deturmined by the AuthorftY for each Power Supply Year ehall bethe percentage allocable to the Partielpait, of the transmission sericia provided by the Au-

14

0

theorty and of the coti incurred by tbý Authority reistinr to such increased responiibillty.Such percentage s•s)l be daterirned by the Authority bW dividing the averrae of the one-hoarIntegrated coincident systam demands of such SEPA power plus the demands of Bulk PowerSupply provided by the Authority to such Partclpant during each month'oi such Power Sup-pIT Year W the average one-hour Integrated coincldont s7putm demands of $EPA power anddemandA of.total Bulk Powpr Supply provided hy the.Authority to all of the Partidlsnts duringthe same one.hour Interval of ach month of such Power Supply Year and expxesatng the re-suit u a percentage so that, when all of such utltleement Shares ao computed by the Authorityare added together. their sum ahaLl be one hundred. For the purpose of'suchcomputatlan. theone-hoor interval shall be the bout during which there stell occur the maximuM ounehoor Inte-grated coinddent system dMands of SEPA pow'er and demands of total Bulk Power Supplyprovided by the Authority to all of the Partidpants.

(ea Such EnUtisment Shares of transminslon systm facUlties Included In the Projectshall be estiated by the Authprity prior to the beginming of any Power Supply Year andsuch eastmates 'shall be set forth In the Annual Systea BudgeL lavislonw o4 such etamtadEntitlement Shares shall be made by the Authority at the end of auch Poter Supply Yearbaed upon such system demands as actually expersenced and the billings foinch Power Sup-ply Year shall be adjusted by the Authority according•y.

Section 509. Pledge of.Paymntst...

All payments required to be made by the Psaricipsnt pursuant to the proa'ruios o thisArticle il, and ell other payments attributable to the Project or to the Annual Project Coststo be made in accuodinre with or pursuant to any ottar provision of this Contrack shell bepledged to secure the payment of the Authority-a Bands.

Section 310. Paymant as OparaUnlg Espess.

So long as electie power and enary shall actually be received by a Paricipant from anyfacility or facilities of the Project, 1he Paritdpantua Eutitlement Share of Anunal PzojectCosts shall be paid by th.e PartJcpant as a cost of purchased electric power and energy forParticipant's electric system and as an expense of operation and maintenance thereof.

Section 8ll. Cre•ia to Annual Project Cost.

The Authority may, pursuant to the Schedule of Entitlement Shares and partIcpation Inanilturat.d transmalsfon system agresment with otWhar for whic provision •,amed In Sec.tion 80z(ci, hereof, sell the output and services uf facillutes [ncluded In the Project to otherutilities. The anticipated proceeds from such sala shll be estimated in the Annual SystemBudge, and any net reveuues actual17 recelvqd by Usa Authority as the result of much sales toother utlUites during aioy month of the Power Supply Yeas- shall be credited to the Partci-pants in proportion to their Lntltament Shares In the monthly Billing Statement for thefo~owlnkr month.

Section 312. Sale of Excesa Participant's Ematilement Share.

In the evpnt the Participant shal determine that all or any part of the Pricipant'sEnutieimnt Share of the output and services of the gentratIngr facilities of th"Project are In.mes of the requirements of the PaFrilpant, the .Authorlty may. sell and trander for any

period of time al or any part of such excess output and services to such other Participsatsan abll agree to take such ax.ess output and sereices. provided, 'however, that In the eventthe other Participants do not Agree to take the entire amount of such azcus,. the Authority

shaU haye the. riht to dispose of such es•cu to other offluitjil If all or any portionof suchanceM of the Part$dpant's Entitlement $hare of output and service is mold purmuant to this

section, the Participant's Entitlement Share shall not be reduced, aid the Participant shall

remain liable to the Authorlty to pay the full amount of Its 81114 Statement as It such sale

had not been made; mocept that such liability shLIl be discharged to the .rent that the Auathori.ty shall receive payment for such :ctM output and servcue from the purchaseur or purchasers

thereof.

ARTICLS lY

SUPPLEMENTAL BULK POWERSUPPLY ARPANGE17S

Section 401. Supplemental Bulk Por Supply Provided b7" the Authority.

The Authority will provide or cause to be provided to the Participant its Supplemmntal

BuLk Power Supply during each month of each Power Supply tsar. Such Supplemental BulkPower Supply may Include, but sball not be' limited to, partfal And full requirem-ent. firmpower purchases, Lnd unit power service, firm and notafrm capacity mnd energy urvye,transmislson ervice sad other laturciangse nrvice made available so a result of tt aC-."tions with other utilitie. The cosb to the Authority of electric Power and energy parchaseby tke Authority from other utflities based upon tarxtf flied by such other utilities with theFederal Power CommLsalon will be directly reflected in the monthl' RVAti44 Statement to the

.*artldpant. Such monthly Bflling Statement will Include a credit for such delivery pointbungza uIon facilities as are owned, financed., or operated by the Participant.

Section 402. Charges for Supplanen.tl Bulk Power Supply.

' (a) The Authority will establish fair sad nondiscrimlnatory charum for all servicesprovided by the Authority to the Participants relating to the Supplemental Bulk Power Sup.ply of the Pa~rtcfpants designed to recover all of the Authority's coats of acquir,•r, firtancig,operating and maintaignin auch Supplemental Bulk Power Supply as such costs are stt'forbIn 6a Annual System Budget or any amended Annual System Budget adopted by the Au-thority pursuant to Section 202 hereof, and such coasts shail inclue Annual Supplemental Costaas defined in Section 1D (a), hereof; mud

(b) The Authority ahal bill the Participant macl. mouth during each Power Supply Yearby providing the Pordclpant with a Rling Statmant acc~ org to the chazge estbflabedpursuant to the provisions of -this Section 4M, for the service eupilled to the Participant bythe Authority " set forth In Section 408 hereof,, and for the coats incurred by the Authorityas set forth in this Section 402, and such bill shall be paid by the Participant on or before thetenth diy trom the date thereof. Amounts due and not paid by the Ps.rtlelpaMt on or before saidday shall bear an additional charge of one and one.half percent per month until the amountdue Is paid In full. At the end of each Power Supply Yesr, adjustments of billngs hal! bemade in o.ccordance with the provisionas of Section 209 hereof.

Section d03. Supplemental Bulk Power Supply Taken by the Participant:

%%b Partidpant ahall take all of I'tf Supplemental Bulk Power Supply from the Authority.and sball paY to t0e Authority the PertlcIpant's Ptoportionata Share of Annual upplementaCoats set forth In the monthly Bl]ing Statement submitted by the Authority to the Psr&l.panL

SecUon 404. Al-trneLe Supplenentsl iulk Power Supply Reources.

U the Peut•dpat deslrm to procmre oz alternate source of supplement.1 bolk power m1p.-ply other thau that provfded by the Autbority, the Participant mayqdo so under thu followingt-ma and condhin.:

(a) in io e Mt viai the Participant's Entieemmnt Shal of the Prplect be reduced, and'the Participant w. continue to U oblipted to pay its Entitlment Share of Annual ProjectCoats;•

(b) The Participant will enter Into an interconnection agreement with the Authority forreserves, emergency, economy, scheduled and other inlerchange service, the terma and condf-tions of whichi vil be similar to those contained In Interconnection arrangements betweentm Authority and othme;'nd

(c) The Partldpani -will give uotice to the Authority of its luteation to procure suchelatrnete source which will relieve the Authority from fIt otbptlaon to provide eerce eqquv-sltut to such alternate source. Such notIce Will be at least the following:

(1) Two years if such alternate source equals 20% or less of Partipant's total peakdemand Iae SEPA power and Participant's ZnutlUement Share of the output and serviceof the generatin fadlite of the Project;

(2) Three years If such alternate sources equals more than 20% bqt not gester thano0 6 of Partiipant'e total peak ddmand lea SZPt powver wid Psrtidpant's Entitlement

Shaxe of the output end seriycu of the generating ficfliti.tincluded Mn the Project;(3) Five yaln if such alternate source eques] more then 30% but not sreater than

40% of Participant's tohu peak demand lees SEPA power and Particlumnt'i EntitlementShlr of the output.and serWvcu of the generating fdliteis of t.he roject;

(4) Seven years If such alternate source equals more than 40 but not greater than60% of Participat's total peak demand less SEPA power end lartiipeaut EnUtitement'Share of the output and services of the generating feiliUes of the Pro|jet;

(5) W•fn years Jf such alternats source equas more than 60 % of Partfcidant' totdpeak demand las SEPA power and Participants Entitlement Share of the output enmdservices of the generating facilities of Me Project;

Provided, however, that the Authorlty and the Participant mey mutually ap" to a noticeshorter than any of thou provided above If no burden or coat would be Imposed upon theAuthority a the result of such Shorter notIce.

Section" dOS. IntrcnectnnioArringeruenaU.The Avthrity -and the Participant may mutuilly agree to enter.nta fnterconnectdon ar.

ratgements for ruervt4 •margencY, economy, ech•duled &ad other Inteathanga eervice forgeneration and benetmselon fcilities owned by the Participant on the effective date of thisContrtek the tanu and conditions of which arraunements shaD not be Itconwd•s•i with theprovlasons of this ContraeL

ARTICLE V

AJDDITZONAL :BONDS

SeUon s0l. Issunce, of Additional " Ad".(a) Adltional Bonds may be sold and issued by the Authority In accordanc' with the

provisions of the Bond Resolution at any time and from time to time in the evntt, for amy

ruon, the proceeds derived fro" the ilse of the Don" 1irst vaidated pursaunt to the pro-.vidons of the Act and of this Contnct shall be Insuilkiont for the purpose of completing theinitial ff sltles of the Project and placizg each facility thereof In Commerdal Operation in-cludinr the completion of thos stem facltes to be acquired and eoustrutsdby the Authorit prior to the Commeral Operaion Date of the lest Of the VAHtin.1f'4clli-ties of the Projeoc t be completed In order to meqt the Authorlty's Investment rtpo6riffllrt

*durig such period in connection with any agreement for an Integrated tansmuinion system towt•ch the Authority may be L Party in accordauce with the provisions of•--ction 802 hereof.

(b) Addittoua Bonds B maybe sold and Issued by the Authority-in accordance with thi pr.visdons of the Bond Ruolution at any time and from time #A time In the• Mat funds ran Xe.qul5d to Pay the oaot of (I) SAW major ranowals• teplacements, repaors, iaddiftio, better.

oents or improvesmets, to the Project necasa, In the opinion df the Consulting Eng•insr,to keep the ProJect to good opersdunr condition or to prevent a oss of rrevnues thmefaz .(il) any major additiens, Improvements, rep•irs, or odtllfcations to the Project. or any de-cmznsluAolnp or dlspoLls of the Projsect required by an Emtnm•al a9ecy havingJurisdiction over the Project or for wh/ch the Authority shell be rupousible.by virtue of anyobUgation of the Authority arising out of any contract to which the Authority may bo a partyrelating to ownership of the Project or any facility thereof, or (iii) ?iosd f el for each guner-ation f scity of the Project In Lay Power SuVPpy Year to the izidet that sufflcent funds arenot available In san reserves ustabllehad by the Authorlty for Fud Conat;'provided homever,that no such additional Bonds may be Issued for the purpose of sdAig addltional zonarettliaunits to the Project.* (c) At such time as funds may be required to provide funds in exceu of those providedfroms the sale of the 3ondh first yalidated pursuant to the Act and this Contract to meet theAuthority's Investuant raponalbllly In tonnoction with the &gieemmt to which the Authbro-ty may be a pacty providing for an integrated traI•miIfon system, In accordance with theprovisions of Section 802, hereof, the Authority .may provide such funds a may be necessarytherefor by the Isruance of additional Bonds.

(d) Any such additional Bonds shalt be secured by assigrnent of the payments to bemade by the Parttdpants pursuant to the pravislos of Article III of the Power Sales o-tract, Including payment& required to be made under ArUcle I3 of this Contract and all oth-er payments attributable to the Pruject or to the Annual Pzoject Costs to be made In accord-ance with or pureusit to a•W other provision of- tWi Contract, and such other Power SaolContracto, as such paymentn may be Increased and extsnded by reason of the iuance of eachadditional Bonds, and such additisoal Bonds -may be Issued to amounts suMclent to pay thefull amount of such costs and suffiduat to provide -uch reserves u may be reasomsbly de-'

tarruinad by the Authority to be desrale. Any such additional Bonds Ismaed In accordancewith the provisions of this Section 501 and secured by asslr•nnmnt of payments to be madeIn accordance with the provisions of this Section, may rank parl pamu an to t securlty atf-forded by the proyblons ot- this Contract and of all other Power Salea Cout•cts between theAuthorlty and the Participan•s ralting to the Proiect and to the Issuance of Bonds thereforwith all Bonds theretofore Issued pursuant to and secured In accordance with the provisotlsof this Contract.

SecItio 502. Issuance of Eafun dlar Bonds.

In the Ivaen the AnnuaL Project Costs to the Parttcipants o electric power Ad energy fromthe Project may be reduced by Use refunding of any of the Bonds then outstanding or In theevest It shall o*t*uw(Ie be advantageous, In the optilon of the Authority, to refund any Doeds,the Authority. may isle and seU refundlig Bonds to be secured by asulImenl of the payments

18

to be made by the Partdicpants pursuint to the provisons of Article 1U of the Power SalesContracts, Including paymens required to be made under Aticoe MU of this Contrct, end -11other payments attributsble to the Project or to the Annual Project Cosio to be made In acor-dane with or puruant to any 6ther provislon of this Conta-t and such other Poaer SalesCont•stJ. Any such zefundlnr Bonds Iuued to accordance with the prevbtons of this Section andsecured by urig nt of such payments may rank parl pun au to the secrty aforded by thegovislons of this Conbtact and of all other Power Sales Contact betwm the Authofrty and the

articipants rlsiting to the Project Lad to the Issuance of Bonds therefor with LU bonds thereto.ftre issued purinat to aW secured In accordance. wth the pvowtaons of th" Contzct.

Section 103. Adlustmeqt of A'nual' Project Costi.

In thu evTnt the procuds derived from the sale of any Boads lEased pursuant to the pro-visions of thi Contzact, the paymnit of which to secured by uslirnmaft of payments madepuanaunt to the provisions of thWe Contract and ot all other Power Sales Contracts betweenthe Authority and the 2aHrtq•oants ralatln to the Project and to the fausna of Bonds there-for, exceed the aggragate amount required for the purpooes for whIch such Bonds were to-'ued, t.Ur amount of such excess shal be used to vahe up any defidency 1tu Weyting Inany fund or account under the Bond Resolution In tba mannar tharein prowiled, and anybalance shall be used to ratira by.vurchse or all and redeptlou, Bonds in advace ofmaturity, and 'In such event the Authority will reduce such damients Of Annual Project Costsas re Isecasary and appropriata to ftflact such accelerated retirement.

AR77CLE VIi

DBFAULT

Bectima 601, Event of DefaulLFailure of the TlaUdpaatto make to the Authority any d-the payments for which pro-

vialon la.made In this Contract ishal constitute a default on the part of the Paipat.

Bedkt 602. Continudng Obgatlon, Right.to Discontinue ServIC..In the event of aWn uch default, the Participant shall not be relived of its lHaistly for

payment Of the amounts In d&alts, and the Authority shWl hbe" the right to recover from thePartlelpant any a=ount Iu default. In eaforceamet of any nth right of ruaoars, the Au-thoritt onay bring any suit, action, or proe•edlug In law or in equity, fncludlng uandamundaction f or speciflc ptrfoomzans as may be nacassu7 or appropriate to anore an covenant,asgremeznt or oblgsation to make any payment for wh/ch provIsian Is rade In tWde Contactagainst the Participaut, and the. Awthority may, upon drty days written notUeN to the Par-tcipant, ceue and discontinue providing all or any portion of the PutcIpant's Bulk PowerSupply.-

Section 603. Levy of Tax for PnimeneL. In the e2ent of such dafault by the Participant, the Participant shall provide for tihe z.

sesament and -o]Uecton Of an annual tax smauftfdat In amount to provide funds annually tomake aU parmanta due under the provisions of this Contract In each year over the reanmnderof the lfe*f this Contract and the Authority akJnU have the right to bria so uit, Lation, orproceediln Iu law or In e it, fncludignmdamua and actlonforspifl c orm tncuo n-.force the uauseant and colluctlon of a continuing direct nnual tax upon all th taxableproperty within the boundarles of such Participant suffciont in amount to provide such fundsannually In each.yaLr of the ra aridar of the life of thu Contract.

19

&ctfan 604. 7T Wfr of Power and Enerry Puruangt to DaviL.

in th evet of a default by a Partldpaan, the Aithority shall treanfor on a pro rtabasis to all other Partkaputs which am not in default, the defultin Partielvnt'a Xntltle-zment Share of the output md servcu of the Project wvlcb shall have been dsoautinued byreas of such default, and the pro rata portion of such ntilement Sh•n of tUs def ult-Ing Parlctpant so ransfirred &hIal become a part of Lad shall be added to thi ZNtitlamontftare of esch. such trndeuu Partldtopnat, and *@ transderee Peaudpant sha"l be obligatedto pay for ifs EntitZbea-,t Share; Increaed as aforaslI su If the Intlalcent -'hare of- thetransfree Partilpant, i .crued as oforss-ld, bad been stated orignlly as the aiUttemuftShare Of thge htn sf Participant In Its Power Wales Contract with the Authority, provided,bo-wever, that in no avent sball any tramsfer of &M part of a d•e•ulting Prtidpsant'l Entitle.mont Share reult In an obligation of a tbmsnaree Patidcpant to buy output sad services ofLbs Project from the h Jtorlty in aces of fLf percent of the m=Wt recently established mar..itnum annual houriy peak demand of vcb traunfere Participant and provided, ftrtlfer, thatthe obligation of the defaultine Participant to pay the Authority ahill be rediuced to the4.%teat that psymmtab shel) be received by the Authority for that portion of thse defasultuirpArtcdpant' Entitism eat Share which may be transferred as eforuesd.

Section 605. other.Default by Pa&rti!pant.In the event at a failure of the Participant to establius, malata/I, or collect sates or

charges. adequate to provde r.evenue sufficient to enable the Participant to pay all amountsdue to J6 Authority under this Contrad or in the event of a f al•ur of the Partfipant totake from tha Authairty Jit Bulk Power Supply In accordance with the provubalo of this"Oourack, or in the event of Lay default by the Participant under say other mvnant, agreet-ment or obUL0Aton of te Contrut, the Authority may brlg say sult, action, or proces.aUnlgIn law or In equity, Includin.mandamus, Injunction sad actifn for epecflc performance,. asmay -be necessary or appropriate to enforce any eoaeasn', agresmet or obligatiou, of thisContract egelnat the Partiipant.

Sectlon G06. Defslt by Authority.

In the event of an7 default by the Authority under any covenant, agrebient or obligatlonof this Contract, the Participat may bring any sulk action1 or proceedlig •n law or In equity,iniluding mandamus, Injuntlion, and action for spec€c performance as may be necessery orappmpriate to entroe any cove-ant, apeement, or obliption oa "hs Contrct csga/st thaAuthority.

Sectlon 5o0. Abeniomament of Remedy.

In cue any proceedlnr taken-on account of any default shall hive been discontinued orabtadoned for anq resson, the parties to such procuedtn all be restored to "their formerpositiens and rsights hareuder, resPeeUvely. and all rts, ra•ind•i, poweram a duties ofth. AuthorftY and. the Participant shall continue as though uo saieb proceedings had beentaken.

A=RTCLE VII

hfISCELLAMOU8 GENERAL PROYVISION

Sectio 101. Clazasctie and Continulty of SearvIce.(a) Tht Authority may temporarily Intempt or reduce deliveries of electric eners, to

the P•trdpant If the Awthaoity determzine that such Interuption or QedacUou [a necessaryIn ceue of emerge•dea or In order to Install equipment tn or make repairs to or replacements,

g0

" *,*O

Inveatfgatou, and h especUons of or to perform other mlantmnancs rork on Its generation ortransdmsaio farcflifes uad rdeaed spparatuses. After Wnforming the Participant reu-rdlng.any each planned' Interruption or reduction, gTinig the r.san tbrdeor, and stating the prob-able duration thereof, the Authority wi to the best of Its ability schedule such fnterruptIonor reduction at A time which will cause the least Interfuence with the operations of the

(b) The Authority shall not be reque&d, to -provide, or be liable for failtur to prov(4e,@ervleo =nder this Cantract when such failure olr the cessation or. curtAllmett of o" Inter-felares with the service Is caused by Uacontrolabhe Forces or, with respect to the sarticusto be provided for Suppleuentsl Bulk Power Sapply, Is caused by the failure or rdusal of anyother bulk power sgpplitr to enter Into reasonable contracta with the Authority or by theInability of the Auithtriy to obtain any required governmental sppmveb to enable the Au-thority to acquIre or canstruct any facIlIties.

Section 702. Metering.

() .Tb Authority reserves the right to provie for installation of meters and will pro-vide or came to be provided aln necessary meterlnag equipment for ditarru-nlng the quentityand conditions of the supply of eJectrio power and energy delivered by the Authori•t undlerthUs Cantrat.: provided however that the Partfdpant may at Its own cost nostall additionalmetersinr ~unipment to provide a check an that of the Authority. The Participant sall supplywithout cost to the Authority a suitable place for Iwtlllng the Authorttyas matoring eqql.-went.

(b) 1; any meter used for blhla f ails to register or 13 found to be Iaccurate, the An.thority saDl repair or replace such mater or cause It to be repaired or replaced, amd anAppropriate bilin shall he miade to the Participant by the Authority bued upon the bestInforMatuon availble for the period, not exceeding alty days, during which an metering oc-curid. Any meter tted and found to be not, more than two percent above or below borma.eshell be considered accurate Insofar as correction of bO -igs econcerned. If. us a result ofany test, a meter Is found to register In excess of twu percent above or below normal, thenthe reading of such meter previously taken for bilfin purposes thall, be ormacted for thepriod daring which It Is established the mtter was luccurstaebut uq correction shall be madefor any period beyond tixty days prior to the date on which an Inaccuracy Is discovared bysuch tet

(cj rn addition to such tests as are deemed neceesa•y by the Authority, the Aathoritrsh a hare any meter taited at any tims upon written request of the Prtlcipasit And, If suchmetr proves accurate within two percent aboveor bew normal; the exspnsa of euch testshill be.borne.by the PartIcpant.

(dj The Authority shall notify the sPrticipant In advance of the time of any meter testso that i reprueenrAtIve of the Partlcpant may be presenL.

Section 101 Power Deliveries."Power and eneryj, f urnised to the Petlclpaunt under thie Contract shall be In the fprm

of three phase current. alternating at a frequency of apprximat•dy 60 aerts.

Station 704. LiabiLty of Parties.

'The Authority and the Participant sholl assume full responslb•l and liability for themaintensuce sad operation of their respective properties and each shell Indamnify and saveharmless the otheW from all liability and exens on account of any and ell diamsn, cLaims,

21

or actions, Including Izzury to or death of persons arbing from any act or aeddeat In con-nection with th- Installation. presence. maintenance and operation of the property and equip-ntud of the Indamnifying party rmd not eased In whole or In part by the neglIgence of theother party; provided that any liability which.Is Incurred by the Authority through the gper-ation and mzinte•nnce of the Project and not covered, or ant covered su.fidetly, by Insur.ance shall be paid solely from the revenue. d.obe Authority, and n7 paymeat made by theAuthority to satisfy• such liability aha. beome part of the Annual System Budget

Section 705. Other Terms and Condtions.

Service hereunder mhel be In accordance with such other terms end conditonsa as arevstiblIshbed u pat af the Authors suarer rules and reguations, which slull n$ be in-consistent with the provisions of this Contact.

Section 755. A~aslgnsol Of Coniruct.

(a) This Cqntract shall Inure to the beneft of aW shall be blidinr upo; the rspectivesuccinors and assigns of the parties to this Contrack; provided, however, that ctpt as pro-vided in the event of a default, and, except for the asslgnment by the Authority authorispidhereby. neither this Contract nor any itterut herein shal be transferred or assigned byeither party hereto except with the consent In writing of tih other z ha-ereto, proided.howrver, that such consent shall not be withheld unreaso~bly. No assignmint or tanderof this Contract sha-l relieve the parties ot an obligation hereundar.

(b) The participant scawwledges and agires that the Authority may assign arnd pledgeto'the Trustee end Co-Trustee designated In the ]ond Itsolatlon all. Its •, titl and In-tertst In and to all payments to be msda to the Authority under the pro•vios of Azteile 3Iof Uts Contract and all payments attributsbla to the Fsoaect or to thi'Aznual roujed.Costeto be made in accordance with or purubta, to w other provision of this Contct as aecurtt.farthepeym tnt ofthepvrludpal (Including slnldng fund btnsiemte) of, and pavzolum Ifany, and interest on all the Bonds, Lod, upon the execution of such assigment and •p•idge,much Trustee shall have all r1ights and remedies heretin provided to the Auth•rft,. and anyreferene berein. to tOi Authority ahel he demed. with the necssary changs In detal], toincude such Trustee which shall be a third party benefi•ary of the covenanbe and apSe-mate of the Partipant herein contained.

Section 707. TermirsaUon or Amendment of Contacl.(a) This Contract &l not be terumdted by estber Varty under any dc"mstan

whether based upon the default of the other party under this Contract or any other Inatru-meat or oth.rw(se except as speqfflcay prolded In this Contract.

'tb) This Coitract shall not be emended, modified, or otherwise altered in ay mannrthat will svm ,ely affect the security for the Bonds afforded b7 the provusio. af this Con.trad covering the purchus and "a of power hereunder upon which the oInma froa tiEmto time of the Pods shall have rdled u an lnducement to parches and hold the Band Solong u any of the Bonds are outstandi•g or unti adequate prlovekem for the pqrmust thereofhave baaA made In accordance with the p;rovisona of the land Ruslution, this Coanact shallnet be amended, modified, or otherwise sitard In any mauer which will Isdace the pay-=ent, pledged as securty for the Bands "r et=end fhe time of such ;eyzmente provided here.in or which will in any manner Impair or adversely affect the rights of the owners -romtime to time of the Bonds.

(e) Wone of the Power Sale Contracts'may be amended as to any one or mare Prtispanta

23

0 0

so as to provide terms and conditiots diffarent from thoae beroin contaned except upon wfit-ten notice to and written consmnt or waiver 1y &Lch of the other Putadpanka. mad upin WiMflramendment beair made to the Power SWs Contract of any boter Pa•ticpant requeeinr suchamendment after tecdipt by such Purtlelpat of notice of such emanhlment.

TVP FROJEMTM UNDERTAKWNBY TIM LUTHORITW

ectlc•a 80L "Futore Projects.The AMthcaft'. may from time to time conduct tudileu and nusottatintui with respett to

;a-n ra, daiguloir, finaclnr, constrnctinr, dminsterinl, operatiln, end mmalAlnLn'r orotherwise acquiring' future. ganrsrion and trxnasamlou fsclUitie or rights to the outputthurtof In addit4on to Athost coutemplated for the Project, and m=a muls reommmnaloau tothe Prtielpant that sbch future fsicllue. be undertken 'by the Authority. If thu Partclpantwshes to part~lvpate n. and the Authority wishs to ndertake any iuchfutarefacULtiu, thePa•rtpmnt @ban axecutt a contract t .erefor with the Authority.

Section 802. Future Paruclpias.It Is expm ly understood tat noting herein fL1 preclude ote future p•ilclpente

from contracting with the Authority far planing. procuring, "d proid•ig Such other fu-ture partieipmnts' )ulk power suppl7, Includior jadtipUon In other proIecti unda kak bythe Authority.

Section 601.: ChIame In .Eztmllng SEPA A gzuemnts.•"The Authority may aegotiate bulk power sup7ly arrangvmeant with the outheastr.

Power AdmlnJistraton and the GeorgIa Power Compmar for changes In the currently ed-tingcontracts between the Parthipasto end Soutthearn PowarAdalnltston adbetween Geur.gla Power Company and Southemtean Power Adduistration wldrch.c/gm" are for the ea.p•aied purpose of lowering the iuJdpsnat' overull bulk power oupply costs by acquisitionby the Particliants of their fdl lawful allotments of Southeastern Powr. Admlnlstratioupower. If such cxpreased purpose is achieved end the Authority wlihu to. mnertake suchanvcunreuts, the Partficput may execute a conutrat therefor with the Autkor*tj In.wW&ch.the Paricipant may afign Its allotment of South teran Power Adoolditratimn power to the.Authority for delivery by the Authority to the ParticIpant.

Section 804. Other SEPA Arrangmean • . •The Authority may negotiata other bulk power supply arrea•gaman with t4e Southeast-

ern Power Adogniatration relating to other project@ of the Bouthoutern Powen Aiafnifrsa.don zo% now lunluded. In the currtly eistin.g contacts between th Partcicipat and theSoutheastern Power Ad1in0stratIon for acquisition by the Participants of their fut lwful.ltotmeot of such other projects. Te Partcipant may asign fSt milotmeat of such otherpru9tcjd to the Authority for delivery by the Authority to the ?rtlciparnt'

Rection 10fa. -AlUocafon of Costs.Until the Authority &ball undertake a future piolect or until t provisos of Sections

8= or 804 here relatinr to SEPA arrgennmats axe [znplerxnted, ag operating end main-teance costs e lated to the operating and conducting of the boolnosh of the Authority shallbe treated LA. Annual ProJect Cosat and, upon the undertaking by the Authority of a futureproject, or upon Inplementation of the provisions of Sections 303 or 104 heeout, the XutborL.

23.

ty shall LlocAte an appropriate mhare of its admlnstr st ma .,d secaml e•xp•ns to much fai,-project and auck arranrements under SecUon 80, and 804.

ARTICLE Ix

In cue any one or mor of the provieloni of this Contract shall for Ay reson be holdto ba.flliegjal or Invalid by a court of compmteut Jurisdictian, It is the intention of .wh ofthe parties hereto tbat such Illegallty or invalsdity shall aot affect an other provtason lar-of, but this Contract ahell be construed and enforced u If sas" Ifllegal or Invalid provisionhed not been contkined her"i, and this Contract shall be costrued to adopt, but not to 01.lxzrgp upon. all the applicable provislons of said Act, and all the appUcable previsous of theConitibttion end general laws of Georgiso and, if any provisions haw conflict with anWapplIcabla provislon of said Constitution or.lawn, the lattar - soptl& by the logislat-re andas interpreted by the courts of thin atate shal prevail In lieu of any provision hereof In con.flict or not in harmony therewith.

IN WITNESS VWHREOP, the Municipal Electric Authority of Guors, hute' c¢ausedthis Contract to be aecuted to Its corporate name br itr duly authorized officers and, by theexecution )aed it to acknowledged that payments made under this Couitract my be assigned,mi provided In Sartion 706(b) hereof, by the Authorft to the 7rwtum and Co-Trutee to bedesignated In any Suppluezmtal Bond Peioiution u security for the payment of ell Bonds ofthe Authouty, u aet forth In maid Section 706(b) heresf. and ths Authority has cansed Its

.corparata seal to be hereunto ImpreJsed and attested; the Particdpant haa caused this Con-traef to be executed In Its corporate name by Its. duly autboozed ditf•Xrs and Itm corporateseal to be tereunto Impresed and attested, and delivery heredf by the Autborit7 to the Par.tldpsat is hereby acknowledged, all as of the day and yur first 0bove.writteu.

MUNICIPAL EECLE=IC A=02KO=RrTOF GEORGIA

BY ..................................

AT: ........... *....................

MCAYOR

ATT:................................

SU

O~:

JEScRisrioK Or PROjcr

luilthl FaUiltiw.

Tbe Ilt facilities of the Prolect' hail be thie fulowint:

L Initl!Seer Gojtion end Related Trenemlamlon Facitfu Zncluded In The Pvject.

(a) Plait gat&h ..

A evenasen and s-ven-tenths percent undivided. Interut in the two 807 MW. nominallyrated nuclear pnaoariig units ta be known u the .Awin 1. Hatch Nucliaz Units, Numbesn Oneand Two, (ingivually designated &a Hatch Unit No. I and Hatch Unit Nog. 2 Lad ccaictivulydesignated as Mlnt Hatchi to be located near Baxley in Appling County, Omorst,, Including forsuch units (1) WA dteLieated ad duscrbed In the records of the Clerk of the Superior CodA ofAppliUng County, Georgia, In Flat Book 8, page 3S, snd in the rocords of the Clark of the SuperiorCourt of Toombe County. 0e=ri in Plot Book 11, pge 84, and mU lad rights pertainingthereto. (Hi) the nuclear power reactors, the turblneBenaeazors, the builoingp housing the n.e.tti g .atad au•UlWa aend equipmenk and the related itbenlsslon facilities all a more pull-ciularly described tb the Application, and amendments thereto, by the Geor&ia Power Companybefors the Atomic Enarly Commisson in Docket Not. so-s21 and 50-386 and the PrwllmnlaySafety Anadys Report, Lad amendments thereto, whih costtuta a part of such Applicston,(I1] Inventatlet.f msterias, supplies, fuel, tool and equipment for usa In conection with PlantHatdh, and (I1) the Plant Hatch KaILsuad detincated and described in the records of the Clark ofthe Superior Court of ApplIng County in Plst BookS, keges 86. 87, and 36.

(b) Plant vogtue. .

A thUrty percent undlvided Inte4nt Inthe two U50 MW. mitimuin rated nuclear genendagunits to be known as the Alvin W. Vohtle Nuclear Unit.. Numban; One uad Two (bidlrlduillydesignated as Voga0l Unit No. I and Vogte Unit No. 2 and collectively designated U PanVoxUe) to be located near Waynebo ro In Burke County, Oeorgia; Including for such units (I)elad delinsted and described In Gooqrf Power Company Map File M-1-8. to be recovded in V,

zecopd of the Clark of the Superior Court of Burke County, Georgia and all land sigbts pa/n-bug thmto. (0) the nuclear power reator, the txblne-otgnataat, the building housing the-rmn, the sasoditd auxiliartes and equipment, and the elated tu•sa hu&in facildes iEl s morepartculaly, dscribed In the Application, and azamd•ndents theasto, by the Goorgla PQWe Coar-piny before the Mtowli Znagy Commlsslon hi Docket NOL "50-424 and 50-425 and the Pre-lmin•ay Sdety Analysis Report, and amendments Uthto, which contitutee a port of muchApplcation. ad (IM) inventoruf of materdals, suppliw, fuel, tools and equipments far use Inconnection wtb Plant VotfIe, providead however, In the event for any reason Bands are nottrued for that pordon of the Poject designated as Plant Vogtla, the facilities deacribed. In thissubparaugaph (b) shalt not be a put of the Project.

(c) Warlding CAPI t1J.Woridog Capital required by the Authaolrt during cunstuct•on of the Project and for

the plasing of the ProJect In operatlon.for providlnr Bulk Power Supply, Including Supple."mental Bulk Power Supply, to all the atzddpsts.,

25

n

ZL Initt Trammiwselon Fucl~lties 7ncluilad In The ProjectL

Those bmrnmulaalca f adlitieu to be scqmIre mAn camtrcted by the Authority dpizig the'time priiDE to the Commercial Oeation Date od the last df the guaratims Imadiths gf theproject to be complatid In order to raegt Its Invabnamat rupoua~hlky during eurh time inconnectivu with any asreament for an. Integrated trundsiaan eye&= to which the An,.thority. =y. be a party In accodance *vfth the prou~vilns of Section 801 of the Contruc*.

Additional FpeWtIma.

7th additiocal facilittax of tbi Project chill be tdoes cdditious and improvwnut to theelectric PvezittonL and related tranumisalou fac~dsmlc and to the treaamlsafon system facilitiusof the rlretdprovdednf or i chamms (1). (11) and (liil of aecdon 202(s) of the Chntract.

SCHEDULE Of ENTITLEMNT~ 9HAP.S&

i. ?AETJIMPAMTS' E1I7ITL~bNT H.AE3 or iOT1T131u AIND mvicm orTHE GUIIWATItiG FACULIIE (UfCLUDI~iG RELATED TRAN3IUMSI0KFACEE~rUM)IN1CLUDED IN TEE PBOJEQZ

* The Particpants' -Eatitlemont, ilbaes df the output and senvict of the pnemunzg fecal.tige (Andudfrt related transmlalssin facilities) of the Project, which Project indudei asm&teen and uvvan-enthei paecent undivided interest In Pleat Natch end a thirty percet undivfdedlnttmat in PLant Vogthm both of which "r more particularly deseribed In the- Description ofprjet and of tUe aerice protdded by the Authority In mcordomnc with the provivione ofSBectiom 101 of the Contract. shall for each Particlpaut be those Enttiament Shares adt forthin, the idiawtow ackedule:

-ACWOR7X* ADEL

* BLAXETTOWN OF BRDISýONBUFORDCAIROCAL1lOW

CAMILS VLA

CCLTZGE PARK

COY1IfOTOp.ftm~p COMITYDOBRUflDOuGLASEAST PamIIELISEItTN

LIM11

0.5202.'13

2Q.510.5660.9320.085

.1.818

0.790243952.5480.1292.3057.4821.815

2=411mot.lInt

0.964

0.035U&'

.1.5802.6m81.103Bm.27Izra0.6929.6m'8.1550.245Luc45.4681.35

Skami AJ1W

1.15220.41k

0.8360.033

IJ07Z.767

7.4090.545

9.1192.6q7

SBar Ahme

0.418

D.093 *

L793

5.178,

2.617

0.1113.509

1.350

is

0

ELJAVILW 47 2V268 0291 0306:

FAnRunmx 0594 0.126 .0.86 0.564flWZGR.AID 2.252769 2.99s 2.93raiwyr . CA .70 0,951 0.3985FORT *ALICY 1.147 1.616 2.562 I564GRAM1(Lo o.090 0.089 0.085 0.082GRUTU( &600 8.010 2.954 2.152HOGANIvL 0.U1 0j0os 03-6 0.94TACESON 0.542 0U17 0.499 0.436LPAYOM 2r11 1.618 3.604 2.601LA.. GRAI•GE 42,0 8339 8.801 5.198LAWRDNCXVILLD 1.527 109 2.0n 2.148?A 1)LD 0.051 0.086 0.028 0.021mamIEZTA 10.561 .11.619 12.448 12.688MONROE 1.506 1.422 1."44 1.453MONMcELL9 036? 0.814 0.99 0.402MOULTRIE 2.919 23 8,01 8.061NEWNAN 1.609 1.%45 1.U88 1A96NORCROss 0.58P 0.788 0.8o0 o041PAL =TrO 02J2 0,29 012a 0.029PUTAN 0.141 0.165 0.62 0.630sAmDNRBvULLE OJT o $18 0.179 0.175BYLVA ,UA 1.717 2.59 '3.042 &0998YLVENTE• 0.144 0.887 0154 0.978TROXASTOI 1.29 -i217? 13216 .21=•0TaOMASVIT.z 1,588 4.894 4.09 d.saWASWflNMTON 1.013 O.34 .0S9 L052WEST POn4T 0.561 0.544 0.444 0,42A

0.086 0.109 0321 0.124

TOTAL •100.000 .100.000 100.000 100.000

The WpJtWa Entftlemet bure get.forth above Shaln be the Entitemmnt Rhau for the.pariod Commencing with" the CamoeJvfi Operation Dale of Hatch Unit No. 1 and endingwith the Commaerdlh Opernton Date of Hstch nit No. 2 arDecmber 31, IMS, wblebeverIs the sarar. "

.Thea Enitl-ent Shame After FIt Adjust.ment BUDll be the Eutnlmm She" for theperiod ammerlcfis with the Co-m-dsl Opeastlon Data at Batch Unit Heo, at lanvary 1I1979, *Jicbuelr Is tbu eAr1Je,, and ending ri•th the CammnUZL Operation Date of VogilaUnit No. I or Decamber 12, 13983 whichever Is the earlier."

The tzn: mnt 6hare After Second Adjustment &W be the EotUi ment Shus, forthe vesiod wommendng with the Commercial Opention Date of Voltte UsIt No. 2 or Januay71, 1952, Whichever is the usrli., and ending with the Commuercd Operation Date of Yeogto.Unit No. I or Decenber 31, 1988. whdchever I. the eArlir,

The EntItlement Sharn Atrtu Third Adjustment shell be the Entitlment Sbhre for theperiod ceomendir with the Commarclil Operation Date of YVgIr. Unit No. 2 or " saerY 2,1984, whbebever Is the sar.U-, and ending with the bast day of the team o the Contract;

27

providd however. that 16 the event Plant Vogti, b nog constructed, the Entltltemnt ShMu AniaSacand t ubitmnt and the En"lhatmwt Share Aftr Thhrd Ajuwztment shall not be alplicable,sd tJ Ei-hutt Shr After Flat Adjustment h spply for the paioad commencing withthe Commedclai Oputlon'Date of Hatch Unit No. 2 or January 1, 1979. whheCtr Is the eaier,and ending with the last day of the tar. of the Contract-, and provided Awthor that tLheAuthority, in accordance with'the "puvWdoc 61 Section 311 of the Contact% will sell the outputand sar••ts of such und.vidd Intearsa In Plant Hatch and Plant VoCtIa to Oeorga PowerCompany ln accowd ace with the following schedules:

(a) Eatch Unit No. I and Hatch Unit No. L

9

11

P."e SSp~lT yTur

That PorMon f the PcUr Supply Y"erItining After the Coamereai O ramtlanDate of a Unit of the Project

Flir FVl Power Supply YearFollowlng Commercial Opestion Data

Second Full Power Supply Ye•rFollowing Commerclal Operation Date

Third Ful Power.Supply YearFilJowing Comme.al Owpatron Date

Fourth Full Power SpUMW YearFolowingr Cozmedal Operation Date

Fibh Foal Power Supply YearFollowing Cammzrdal Operation Date.

Bunth Fa Powe 8uy* YearFollowing 6momatieal Operation Date

Seventh AA Power Supply YearFollowing Commerde Oyeatlou Date

Ga. owaV. C&.

250.0%.

50.0%

22.5%

28

(b) VGote Unit No. 1 and Vogue Unit No. 2.

cc 0e81:0d Wioa

That Fortion of the Power Supply Year"iaamr-logAfter the Camuerdcla OperationDate•of aUunit a the Project

Jprat Ful] power Supply yuarFollowing CoMnnrril-l OPeration Date 50.0%

Second Full Powr Supply YearFollowing Comxnew"a Opyersaeon Date "8.5%

'Third Full Power Supply YearFolloWii0 ComnMer'al OP•rat O Data 87.5%

Fourth Full Powr Supply YearFollowlair Camm ral Operation Date 25.0%

Fifth Full Power Sauly YearFollowing Commercdl Operation Data 25*0%

Sixth Full Power Supp)y YearFollwrinz Ccaimela Operation Date 12.5%

Suveto.tFhUl Power Supjy Year

Following Cmmerclal Operation.Data. l.u5r

Prov€iled, however that for the prpose O determln.1ng the pu rntage of output and serylfm:to be sold to Georgia Power Company, tag First M Power Supply YTsa FTonwing Cnamer.cial Opertion Date, with gapect to Vo0tl6 Unit No. I hAd be o kter than the aglmnsa 7uw1984 and with r"pect to Vogite VUlt No. 2 #hal be no later than the calendar your 1885, andthe pemcentage of output and services to be sold (when such output and amdas rj a•easa ablefor such ale) aha be taken from the foregrorng schedule for, the appropriate year baed uponthe oancl•dve presumption that the rommercial Operdt.o Date of Voglt/ Unit No. 1 is nolste than the Year 19U. 9Md that ths Commar-ial Operation Date of Vasge Unit Ne. 2 to nolatar them the yea 1504, end provided. fthý , that the amount of much capacity mold to Gear.*gla Power Company#hull not ezcued 25T of the Authmioit' awnanalhp share of the capacityof Vostle Unib Noo. 1 md 2'over the usnful Hlf of such usIts.

It is understood that there shall not be =W reduction In Entitlement Sbares of the Per-tiiU as ua resultof euch sales of output and wevtc to Gto Pver Company'und achParticipant aall remain liable for JAs full EnUtlienmt Bbare exept much liability shall bediachrked to the extent the Authoi-ity recelves payment fr'm Georgia Power Company.

13. PARTICWANT8' E•NTLEMEN.NT SHARES OF SEIVICES4OF TRANSMIXSSIONSYSTFM FACILITIES INCLUDED IN T7EZ PREO==

lhe pzttcpanbt' Ebtltiement Shares of Bucua of 2hinanlalon Syrtam Facilitiestncluded

In the ýroJect'shall be detlermined by th4 Authority during inch Power 9upp*y Yea• In eccor.dance with the pinovonz of Section a0f of the Contract

29

POWER SALES CONTRACT

Bstwavn

MVNICIPAL ELECTRIC. AUTIOUfTY OF GEORGIA

qnd

THE MUN RS1GE PARTICIANT

Tbb Awndmant of Camt-t 1 made ead'onteed hto as of Much 1. ,1NG, ly and betwethe Id J Elctrc Authodty of eOvrgla, a public body c€rpoiate and polile and s publiccorportitao of the Sstie of Goqrh, bhareoafter sasedca du•snpufd u the Authoifty, createdby the priuvwlia of I C. L 1915. p. 101,. amended, and the undeazined politica ubdivisionof the Sta•t of Greas. uetnhftor sntmeati dadpatped as th Pultdpent.

WITNRSSZTB

TEATt

11 it romm/Lt d that a Power Sales Contract dated a of October 1, 1905, has beenprevocumly eamcuted by und between the Authority end Cho Paticipang. and

W2IZ S. the p",lem deak, to a:mend sd Can tract In ceitdn rfel'ctý

NfOW THEFORE.B

For and Ei coaldeartlon of the premisee and the mutual eavasozt anid apeement hebain-aft get forth. it is seed by and betweenst t Partiu hegto U follows.

"Se.con 1. Sqld Power Bel Coafrack &W be dted u of M-ch 2,1970.

Section 2. Secton 102 0) 1B) of mid Contzact I deleted In Its entiety and the fofla*dgnew SEction 102 1) (3) is sebtndtud In Uqu thareof?

"(8) esqublteion df UnMWl fuel or fuel inventory for any snaaloa feclity of tha Project andwording caitad and meovi thtrefor and worklng capital and reservs for taload fuel and addi-tional fuel hauntorieu." •

' SectonS. Sectipo 10i ia) 6f said Cotoaic Is amended by daletzfr the word "Outpot-int6e fourth iSM ther'act

Section 4. Becton 102 (a) of maid Conbitct Is deleted in Its entirety End the following newSecUon 102 (a) Ia sutatitvtd to Hsu thereof:

"(a) 'FMEI Cost- aW meo all costa Incured by the Authority during any Power SupplyYear tbat ie allocable to the sciula1Uon, proosmaeng tartiaoau, buaportaUlm, dallver"n,roprocesan4. dorage. and depoisa of nucler wateAmi end of fong meb~tLk retqred for Lay ofthe genaratloa t.c~it of Oew Ploject, Inc.ud~ng tain•den to resova es tablib]he bythe Aeithod-

I

9. 0

ty for ouch coast related to future Power Supply Years, lea odlts related to such costs applieda appropriate in the discredon of the Authority.

Section R. Section 102 (a) of sald Contract Is deleted in Its entirety end the following newSection 102 (a) Is substituted In lieu thereof:

'(a) Project' ahald mean those electric generation and related iranmbsion facilities whichare Identfied in the Ducription of Ptoject end those transmiuon syrtem facltes to whichref erence b made In the-Description of Project to be acquired aed ouartructad by the Authorityduring the time prior to the Coromarci Operation Date of the lat of the generating facilities ofthe Project to be completed In oider ao meet the Auority'e lnvuennt responsibility duringsuch time I|i connection with any agreement for an intelgated ttrairmisulon lystem to which theAuthority may be a party In accordance with the provisions of Section 802 harof, together with(I) any major renewals, replacements," repairs, additions, bettsamets and Improvements nece-nary, in the opindon of the Conrulting Engineer, to keep the Project In good operating conditionor to prevent a loss of revenue therefrom, (U1) any sajor addition, Improvements, repilre endmodiflcadonoe to the Project ard any decommisaionngp or disp.osal of the Prolect. requiýed byany govemmenall agency having juriadiction over the PioJect or for which the Authority shell beresponsible by vtirne of any obligation of the Authority a•ising out of any conutrat to which theAuthority may be a party re"ating to ownership of the Project or any, facility thereof, and (Lit)worling capital required by the Authority during construction of the Project and for tae.plsacngof the Project [n operation for providing Bulk Power Supply, Including Supplemental Bulk PowerSupply, to ft Prtrti/pent"

Sectloon . Section 401 of add Contract Is deleted in Its entirety ard the following new

Section 401 Isaubstitutd in lieu -hzreol:

"Section 401. Tb. Authority will provide or caswe to be provided to the Paztdcpant its

Supplemental BuLk Power Supply during each month of each Power Supply Year. buch 'uppls.mental Bulk Power Supply may Include, but shall not be lieited to, partial and M requfrementapower pmichases and unit power service. generuating capacity nrawve service, firm and nonflrwcapac•ty and energy eirvice, transmiseon aerric (iuncluding tranusblon service purchased by theAuthority to eupplement the Purtidlpmnt's Eatitlenset Share of rano•uia.n seavion provided by.the Authority from those tzannmlslon systems fadltes Included in the Project) -ad otherInteahngee service made avlrasble u a result of bansactiona with other uttim. 114, acosts to theAutbority of.electirc power and energy puichased by the Authority from other uatlitiul basediupon tariffs LEd bty such other utilities with the Federal Power Commtsalon will be dfructlyrec-ded in th monthly BLiang Btatement to the Porticipeat. Such monthly Bdi Statementwil include a credit for such delivery point traneaclion faclltles as are owned. fknnced, oroperated by the Participant."

Section 7. "ecton 501 (b) of said Contract Is deleted in Wi entirsty ard the follow•ij nowSection 501 (b) is eubtituted In lieu thereof:

"(b) Additional Bond. may be sold arnd Issued by the Authority in accordance with theprovhdos of the Bond Resolution at any tsme and frm time to time la'the event funds urrequired to pa .the cost of (|) any nmjor renawel, replacements, repakes, additions, betterments,or Improvements, to the Project neceary, In the opaou of the Consultng Engtneer, to keep.theftol-ct bo good opertting condition or to prevengt a )Mo of revenues therefrom, (U) 017 majoraddlttons6 Improvemients, repairs or modifIcations to the Project, qr any dsoomalsoninp ordisposals of the Pc. ect, retuired by any goverrimantal agency having Jursdiction over the Project

2

w -.. * : .

or foi which the Authorit hall be iwpons)ble by virtue of any oblijton of the Authorityazrsing out of any catnact to which the Authority may be a pszty relatng to owniuztdp Of sheProject or .yn yfsality hgureaf, or (311) reload fuel or additions] fuel inventory for any generationfavtLty of the Project In any Fowe Supply Yew to the extent that auffclent funds am act.ava•labe ii any resve establshed by the Authouity for Fuel Costa; provided bowever, that nosuch additional Bonds may be imued for the purpose of d4dlng additional gnetmingunits to the.Project.

Secton L. Section OM1 (c) is deleted In the its entirty, and Section 501 (d) is renumberedSection.501 (c).

Section 9. 7be fttecbmnt to- aid Contract entitled "Deacripton of Project".and"Scbeduls of Entitlement Shama" conitina of five page is deeted in Its anUmLy and thiDeription of Frojli and Schedule Of ~ntitlement Shares attached hereto It aubsituted In Ueu

*thaeoL''

Section 10. Said Conbeib&Udha remain in flul force and elfect except as herein amndewd.

IN WTrIE WHEREOF, The Municipal Elecr. Authority of Georgis and the P'aetianthave' mused t" Amandmrent of Conbact to be executekd in thei corporate na by their dulyauthorized officar ad theak eorpcat smils to be hereunto tmpresied and atteaad, all as of the.day nd yew •"r• boav written.

- ~~MUNICIPAD XLEUW AR1 9AfJ9RITY

BY:4~AT . .. ..........

ARY-TRZABURU

CIrTY or

• v7,~ ~ ~ ~ . .........'€.•.....

7r brOR9 .1 .h

.. I

TMI PACE D4TErONUL i LZP IMAMK

"4

DLSCRTn-ON OF PROJECT

initial 7Yc•zd,.

The initial fciliUa of the Poajgct shail be the following:

,I. Inlets VeittZ Concuon and Related TzunusmLufoan FTailiius lud4d n The Project.

(a) Plant Hatch

A seventeen and seven-tantba patent undivied Interest In the two 50' MW. nominallyrated nuclear uenermtb units to be known s the Zdwln 1. Hatch.Nuclear Unilta, Numbers Oneam Two. (Individuslly degmnated Hatch Unit Ho. 2 and Ilateh Unit No. a and coflhtlyelydondgnatd as Plant BLtch) to be located near Bailpy hi Appling County. Georga, I.ludlng faesuch units (1) land delineated and descrLbed In the records of the ark of the Superior Court ofApplirg County. GeOtlk, In Plat Boolt 8, pe" 36, sad hn the ecoado ot the Cak of the SuperiorCourt of Toombe County. Gear&, in Plt Book 11, page 84, and a.l lna rights peitalngthereto, (U) the nuclear power ractms, the Uuone-lgnaratore. the buildisp houeiq the samn,the uasociatad suzilradss and equipmnt. and the related tranmtiarion fafulis all as moml p"U-cubAry dicribed in the Appllatfon, e"r amendmants thereto, by the Oetrgla Power Companybefore the Atomic Snev Comman l on In Docket N~os. 50.321 mid 60-w sad the PftlmidnaySaety Analyslr Raport,.and amendments thereto, which conasdbto a put of each Application,(111) btVantoden of maerdal, vupplas, fuel. tools ud equipmentfor 4'10n connection with FlmatHatch, and (Jv) thm Plant Matcb RaDroad delineated mad described in the mnorda of the Clark ofthe Superior Court of Appling County in P6g Book 8, page 36, 87. and 88;pmvldod, however,the Authority shallrwe the zaht and power to sell to any oag oa mors of Ub political mubdivi-slons listed In the following; S•qduWl of EZutUllamant Shrr .whcb shall not aecmb a PowerSae Con••act .with thi Authority such portion of Its uisndW d Intoart tn Plat H114 u theAuthboty h•al be IawA obligated by vkftw of any contractuag obligation of the Autbort tosenl to such political sffubdLWluouu to stisy the licene conittons petann to Plant Hath.

(b) Flat Voge.

A sevanteoa and even-ternImh peccent undivided Interest In the two '1150 4We maxsamamrated nuclea generating units to be kowna u the Alvin W. Vogtlt Nues Unit., Number OnePnd Two, (L dividi dualpated u Yogtl Unit No. 1 a ond "o6ga" Unit No. ad collectivelydedlmed u PFlat Vol6&e) to be located near Waynesboro in Burk County.C ,Gorgb Indudingfor luck tonts (J) land delbaated and descrbed a Goeoria Power .Company Map M U4-•,1dated March AS 1976, to be recorded In the rcosdr of the Oak of the Supealo Court of BurkeCounty, Geok arnd all land rdbia pertainin thereto, (II) the nucimr poae rw'ctoa, thetuzbine*tnenrtou, the buldlnp housangthe aimen, the asoc•atWd aumfiazlmo ed iqulponat, andthe toeated OUualmutn facdllti fll u mbor particularly damribed In- the Appliftiop, andamendments thereto, by the Geola Power Company batln thi Atomic Earb Cobmiq" I0'Docket Noe. 50424 mnd 60428 and the Preliminary Safety Ame JSipy imt d amandmenatthereto, which ccistituts a purt of ouch Appication, and (W) fntototie of me*aleo m ppli4,tual, toob and equipmentb for use In connection with Plant Vogte, proided,. hawever, C theevent for any sluam Bonds aue not Issued for that portion of the PAoje* designated u PlantVogte, the facilities debd In ths subparagrapb (b) shell not be a pert of t•.meuject.

(c) PAnt Wanoley.

A ten percent undivied interest In the two 8S6 MW nominally rated coi-flred Seneratinj

5

units to be =awra a te Hal Wenalay Steam Plant Units. Numbers One and Two, (tndWMAduallYdesinatd a Wandley Voit No. 1 and Wanslay Unit No. 2 and coDectively designated u PlantWwusky) to be located nea Ctntnhlbtcbee in Heard and Canmfi Counts, Georgia Induddln forsuch unit (1) land' deanted and described In Georgia Power Company Ap PlIn -X41 datedJune 5, 1972, to be recorded kb the records of the aeki of Superior Courts of Beard and Cenoll.Counties. Georgia. and all lad rslta pertaining tbhwto, tW the tusbint-gnartars, the bolles.' the buildinp shouiq the mse, the itack, the cooalin fedhitis, the zocdatad auillar endequipment, and te related tansmlaon facdlites an ma mme padiewly described in the oen-wtronmalzw tmpa-t Itabment Stlating to Plant Wwwsley, mild (CI) Invantotei of matmel;, rip-pUyas fuel, tool. mad equipment for use in connectian with Plant Wa•ly. pzavided,.however, inthe event foa any nseon Bonds as not naued for that paoron of the Project designated PlantWsnjey. the fraitia deacrbed in Oda mubpeurgrapb (a) baUl not be a part of the PxojeL,

() Ptt Sebm.

A ton perrnt. wvided lntenut ki the four 510 MW nomInally rsted cog-fired genraingunits to be khowu a the Robert W. Schuer Steam Plant Units, Numbes One, Two, Tbfee, andFour, (indhvd=mdl dedsnated u fcbewr Unit No. 1, Schever Unit No. 2, Scherer Unit No.8, andScherer Unit Ho. 4 and colectively designated ua Plant Scheur) to be loated nesa Fwwyth inMonroe County, Gootlia. Including far such units (I) land dlineated and desribed I GeorgiaPowr Company Mdap 78s.%85.9 dated December 19, 1974. contatintog ppro•im•ulm twenty.seven huAdred wtes, togetbar with such additional land if sppro-f-stely tan thouand a-esacquired or to be acqimrd fog ue Is connection with Plant Scherer, to be ecoded In th recordeof khe Clerk of Sapeict Court of Mocroe County, Georgia and al) Land right& pertalIlngthMerew.(C) the turblne-eunerata, the boer, the bufidings housing the ame@, the aebeb, t.e coalingfbciltka, the' uodat&d auxflaim end equiptent, and the related trinamlednun fdlitin &Z asan mor pertcuhLy described In the environmental Impact ntmtemezrt relating to Plant Schbar; nd(3) hventrAs of a=Wals% rupplies fuel tools and equipment for un W conectiom with PlantScherr, proetid bowwvar. tI go event for any nruon Bondi am not Issued for thA portion ofthe Project designated " Plant c.harer, the fadhitiei desarbed in ths ubU ph (d) shab notbe a p the Proje•"

(a) Wmkb• Capital.

Workug Ckpit required by the Authaot durin consruction of the Project end for theplacing of the Project hI operation for providing Mulk Powr Supply, Inchidlu* SupplemmntalBulk ftwu 8upply, to all the PhrddpantL

M,. ,nital nu nlon FudlU'u Included In The Project.

'roee twwalsdao fac.Wuie ta be acquired and: constucted by the Authaot during thetme • d•r to the Comnmu l operagon Dati of th Lat of Me genratig filitifm of tUe Projectto be compieted In order to meet Its Invesment respoadbl[ty durinr asu ding in connectionwith wy reenmat for an Integrated -ttrunnion Vsitma to whbich the Authwty may be a partyIn accordance with tbe prorvions of Section 302 of the Contact.

Additional f-WttLea,

The additional faci•iote of the Prolec shall be those ddWlopa and improvemena to theeleckile gersion.end Ydtted trustemeson fciatUia'nd to the trkanwrialon ysytem imdlities ofthe PtoJect provded for In cmus. (ft end (UI) of Section 102(s) of the Contract.

a

SCHEDUE OF EMrFJLEMZ SHARIM

L PARTICIPANTS' ErNTILEMM1T SHARES Of THE OUTPUT AND SER.VICIM OFTHE ODEL&TX1ING FACELITIES (INCLUDING RJLAT11D TURASMSSION PAaMrnzSINCLUDZID IN THE PROJECTr

The PazttcfPanbt' Eni~tlement Shorn of the output mnd smavimas of the ienaatl faldH ee(includinig related bunmmissian facilltles) of the PFaject and of the services provlded b? theAuthority to accordance with the provisions of 'Section 808 of the Contract. shall for eachPaticipsat be thase Entitlmeant Shares set forth In the fallawlng scuhedule; 1payoviad however,that In no event "hl the Entitement oham of many Participant be lug then that met faith In thefaollowing schadula and provided. Aisther, that In the gvent oay one or man' of the poltIcalsubdivbkmalisted fIn the faollowing schedule shal not meiamte a Power Was. Coonbuct with theAuthority. the Entitqwoot Shames of the zuiemahig Participmnts. as such Entitlment Shaesm enset foaih to each caliiinf of the following snchedule, may be Inaeaued pro rate by anj aounrt notexceeding flfteen percent of much Entitlement Mwas~ In order that ther= u of the ricmblnln

Etitlemnt Shoren In each of the following columum whan moamdjtuW shafll total 100'.00W:

ACWOflTHADELALBANY33ARNZFMIZ.BLhXELYTOWN OF SRISON

CAIROCAT OUNCAhULLA

WATBRSYUJZUCOLLZGE PAUX

COMM1GONCRISP COUNTY

EAST POINTELBERTON

ABLWA~L

FJ77GERALDFORm rrzFORT VALL=GRAHTVUJLGRFWT ,MOGANSIV1142

ruitial

0.674

11.151

0.740

0'.1295.271

Y.602

0.270015414

2.8290.1182

1.647

&.0000.331

0.644.2.220

12.4580.463oil..0.0w80.151L6802158,2.202oils6(.5~70,5322.688.1580.1252.1110B5.52L.8510.2"0.1262.759.0.J751.6160.1698.030Ojos3

I

Dabar At ia"4~

0.6152,]82

.10.413

0.386

0.0980.5w

.O072.7571.1045.1971.4000.6452.6678.3690.219

2,.607.'r.l~i

13410.298

0.5682.8960.96.T1.516t.0.053

0.296

noUdwim,tNhat After

7kw

1.15710.04M

0.033

1.772

1.08d5.1787.6580.6572.6"T34.100.118

2.6086.9761.60

0.5"42.982

2.1840.282(1.2941

0

LAFAYRM7L& GR.AN4GELAWRNEMMIXMiNSFLUMMAPETMAMONROEMOll'rcIUho.MOULTMINE WXANNORCEOSSPALbMTTOQurrMANWfDEBVýILSYLVANIASYLYFZ72XTBO"ATOlfTEOuAsvTLLEWA~IMGTONWPBT POINTWE7GHAM

TOTAL

0.5421.539diso

1.5030.3672.909

0.1470.8871.75709441.2fl

0.066100.000

0.03611.529.L4220.584

0.7330.290.786

.0.9152.5300.5811.2274.8940.9940-5440.109

100.000

0.d99

2.012

0.3982.031VMS30220,am30.5620.7783.0420.5512216

.dA091.0390.4440.22

200.000

O.Us -

0.405

1.6068.1982.268

1.4li0.4028.0611.5960.842O0290.6800.7758.0190.9731.204JO2L.0u0.4240.124

100.000

The Initi atl e42amnt Ubaw set forth abave &Mal be the Endilmeant Suan for the period2omzmm~ndfg with the Commsercial Operaton Dato of Batch Unaflio. 1 and~ wuft Dmcenber 31.

1978.

The Entitemmot Mhar After Fliet Mdjuasmect &bill be the Entitlexubat Swae for the periodcommandzg Janzaz7i 1, 1979, an~d edndin Decwnmber 81, 1982.

nip Entitlement Muam After Second Adjuatzbmt shal he the Wtlaenut Share for theperiod commendat Jmnuary 2,1951, and anding DectimbeW 81, 1983.

noe En~ftiemmnk Share Aftar Thir Adjwtment aha be thse Entitlement Share tog theperiod comzmeme~ngJanuar' 2, 1984, and imiding with the Jut day cilia. term of the Contract.

The Authoilty, Ina ccordance with the pruoviou of Soeeson 821 of the Conbi6, Vfi ll Uaportlon of the output endU~k of siuch wWadhdd fnbnsb to Plant Hot&a PWAb Vaktk. PlantWWandy. kad Plant Scherer to O*orgLa Power Cowyaoy ba icroifmnce with the following&cbadula;

.4.

Ii

0

rwerm Uvpp* Tmi

Tbxý FoztmW of the Fower 8wwl, ysarRemaalmic~M AtfflbC4=Madu PettIOUDated a init d tba i~mJot

FIZwVt Fi~fl rower SuP01. YearFuailwinf coma"na~ Owav"o Date

SMCA no FGll PouSUPly TMFolalwaS Camnm.add Operstica Date

Tufr *FuN Power so*i yearFoflawicr cmmarcle) opiwstio Date

Faurth.FU Powar 8.ppl YearFolhwtng Cnurd&I O~ ate

Fifth Full Power BujD1 YearFollowin C~M=EdE OPMUMo Diate

Sixth Fla Power SUN&b Yea7olloWIng cmawncal Opeantion DBUsevenith Full rower Supply YearFGluIngW Cinmsoe a OPMUMio Date

25-.0%

25.0%

12.5%

'yT aal not be my isdicdoa In ttiaUmmehazeek of the ruztdpmatm Ua RUAmIL of such.Naim of output and uNlcu to Georgia rower Compamny and acub Patid~pant shill tmalfn Bable

j" ts gfj Entitkamant Shm ne ezpt swch Habilty taW be diozb.od to the slat thetb Authodt#recavgm psyit bum Gtorulp Power Company.

LL PARrcrm4Ts, D21TL3nP4IN suARh or URIVICES OF TRAN~dMSIOt$YOMn PACMMMIZ RVCLUDID IN THR PRO=~C.

The Pvt~dpIMt Eti Ztlement MIum of Service oi Tnaoxmimiu Sywtaw Fmcitlido inludedbi the 7woject &*Ha be datazmlne4 by the Authoioty dozins ech Power Supply Yeor in a&-caglo with [be providoss of Sectdon 308 of thea Counact.

0

--p

0 .'SECOND AN19NDUM!1~

P'OWiM SALES CQNl7ACY

)tUNICIPM, ELECTRIC A~rYHORM Or' GEORGIA

and

*THE UNDEPJICNED PARFICIPAN"T

.This Second Ajaidaulneat uf Oj,:tmet. madc and nitceJd Into as or Slay 35. luau, by and bdwvethe~nd.%Iunicdpo EfccilefrAuthwity of Ccurgkk a public hody corpw2irsa an politi and a public. eurporatdon ofthu Ibtalol Cuurlb.lh~iinaltvt sominttesi dusilptwd as the Authority, erVnia bY di' peui8IwUj Of I GaL1, 19-15, p. 1IM, ov armdcnde atil tOw undersignedl ultIlal xm~olatiuun iii dia State r1 CoreIda. hLrinafter4Onirjjjnc dnlnatud um the PartidploL

*WITHESSETH:

HE it ,evaernbrred that aPoawr Wak Cajntractin wad n AnxvmgniLt both d ateI u of 11arch 1, 1971,have. bivc pr.-doully executed br and batween the Authority anvidi th articidpt. and!

%V1Il EREAS, the. padit desire to amenad said Gmborat In cettain mapect

NOW TkIEU'EFOREt

For "An in moufdwratio or the premies and the mutual wvenants and agr~nitment hevelnaftev infai16, Wi sulflduwary Of which Is hereby. selranviedgd, .It is affvcodby and bqibvwa the parti. herato

Section 1. Subktcten 102(r) Or sail Power Salas Contacrt wharrin 7rnpoudonat sham- is defiedks haebly dclated I to its "drly.

section L. Secton~ 403 of #oid Conbtrat is herebr arIuted to its mnttrty and thi Followail; new lecifao4M Is subilifuial In lVeu lhereoft

.$actiun 403. Supp'lementul Bulk Powc: Supplr Taben Bly PsiticlpA4no h Parddpaat Aiwl takaoil iii Its Supp'iecmaaI Bulk Power Supply from the Authority anl shall pay to &he Authority itszhare of Mnoumi Supplenicrital Cojis set fwih fit the Partifipanfis umotily 3111rg Statexont asdetoUMIoed In 199brdame with the foregoing PraisIons of this Arijcle INV u and w& by thAuithorwt to the Partilcljint.

Secton M Sald Amendmenat AhaI be drecti'-e for each hPadtcpant as o athe that of the M~ay. 31117.meltir teadings. The Authority Ui, IOwiw. outharfurd to malwe adjtabutent from woking capital for theperiod f rn Fabruawy 7.19Ms. to the affucthvs. date of this Amcindjnent to Oil-st the mrnma~t in- wbch thetatal of any Paiiildvants actual bUiilajp during suth peto d excaiied %%m@I the WOWao such bdulnp wouldhave hero 'under the WF'1-B ratc aaI4 adjustments to bq a. cost of Powsw Supply mnilopsman.

Sectioa 4. Said Contraz sloll remain In lull force and effect as herein aemelad.d

'-I

Ji, -*VZ'41 W,1Z.Q,, Tha ?,,irnicp, Z~tiq ,.dwtat; of 0"%u -A ,-. Puezlpst Cave'cused " Secozd Aumneat of Coubat k, cxocvt-d in their corpounta "am, by +r upy.auth'o4~.d dotcun Md tedd? cOrpore ueats to be bhecuato Impr•.icd Wed af•-vIarJ, %0i of the day an3dyeur fwt •b•ve wzuwmn

I MIUICIPAL ELEGMhCAVflTHORITY OFGEORGIA

4,eq

t~ DY:

7 #I24LAP~P,~,,

* TMRD A30WDMD

POM IR A113OMTACT

MMUI4I AL ELE MRC AurHoRITYo0 GEORGiA

AND

THE UNfDULS1C2I PART1apANT

7ýls Third ArnnAwol Of CORUiC1. inld ad entered Int or of lebmAay 3, 1971, by And belysan di.Lbankld Esstdc An ".dt of C~ooegs, & public b* od, Cmm,&i wad politic eand spub~ opontim of 6@m3matm of Geogqa. hssuftsr imadma daignotd a bhe Authodsy, crelatd by 1he poAd=011i nfl l. L M~S.lF. 07, u imddd; a~d the umbd~nded political mbdldma of toe Smia of Gehwula. bordulr owimomkn

* WITNESSETH:

Uit me~bs tbtus PNws Saks Conlisci and ta A audmav, toth dm1. as or Mu&sd 1 1976 sAi agocd A.4dmt doted a of 1may 25.1977. Lad bean puuvioagy sunlasd by sad bus... tks fth~l, sa"die Faatqmt sad

WHIRPAS. aid Coauu1 0ta911 gamsthatU uWd" opirojct may be undutakm by lb. Agtbodiy to ro-.dde a lwdm of disaPazllafs buk pporu Mqiuhmat, sad UIs now demand &miblo ad Ondabis by Ik61anldpmt aod thr Atsbnythaft ibmS Auaalhty acquire a tlm po~W n e tsang capmcft to p nWads apalfaq of

WHZREAS. th is 4o hok~mk aistmmlad to moup Into a Pojim Two Powi Slas Cmtlzsa of avs dthmvzsvtih thi de Aukbodty Ami Cdn# to enable Me. Authadiy to Lont Its m..us bond. s tovy tba com of 'w-Vaddn and cmut'LIAa 7uoJac Two nelemd to below mad to moble Psadpsat in madom ea~.ss sd miated.

WUZWEA% A ibqIs 9mbY sad dadebb t simm m uadlb sold Poeri an1 Coaft. On-avistwl & lbe BaodRja~dm,19 si.mble Wk Au'Sho to 10ubbU hises sod daspa. It doiduah to recoverc= oint a rmbleidbs*k fax Sopliemanlsl "lu Pow., 3"pb ad di outpu t suppliud from Pn~w Tw~o end s4 uydm pwjsftsfqa whic ?duptO Nasau'fl BQ onmoau ad to aneW. lthe AnthnzIIy to awba 4ddldslh trumcdom withaspect to Uma wtput and servss ofth *wsc Proen %bmadar.

*NOWIRFWORZ:

For end in cc=m dmtfb of Mhe ptrmalus said Um mutud alvem~sts mad spemirsasbdnalt, set fort. ft.maUftL7 of wbkhtskbenby saolmdpiv, It ls spid by MAd Wtwem~ them Forded harsto as fmlow

0.

5ec~~ 1 ThNWIjUCOIZW.U nde~1ahrcb~uluuuadeby addriat doecod oitecimt

102 di. folaukdef iallicarI(a) 7rnjecl Two" &di cum IMe Al'tharityli second project candiadn of additional vadirdid kwutefi

to.Fluits Wbni1ay Lad Schema.acquind piument tos in an p~a suwat with Cow&PwerNaCompafiy 4td atsof Angut 27, 1976. atvocaded U wkpawoct I lasewdbun Secdon 102,) a f W Pr*ct Two owet: uWa

W iwocc 7* ower Salas Ccmuur "e etat that mctain Cnntuectdeted a ofthde data hqvinf be.twain te Authatbnir and th eutk~pt u the smumay be sivandid Dom dme to dwe, Wttdnl to tba psovidofatattput sad reajted or"ke fam Pralan Two to die ?azrdpmt

Staciau2. Doe Pawer Sales Cotacts. U unended, 6 kuwubi ftiwshumindEd by diMSecd~ua 401 IsIteentdrey sead subsizufnj b, ieu tdueate dim fo~flqam~~ S"Unna 401:

Sedin 41.Sopplexualal ~I& PowSupply hoivdeI by the Autbodty.The AmthaftWO~ psuildo or cain to be pzmtldvd to the Pattkjent Its Si~pploentaat Bulk Power

during a month cf.6azkhPow Suppy Year. Such Supplamizntaha~7ower Supply izy la.clua.but Ad not be Ihalted to, paxWe and UlA aqiaimute Ow pant puubcewe, sad voll powtrurine, Batm and ritoo.Eu capacty and vasty. &ac~ts naninsidan wrair Oncludlq basmm~n1oseavce purchand by the Authodiy to.stpplerneat the Puzttdptnt's laitlsant Share aouf m~aoaaavhee pfatdidd by Wh Afthndt fraM dibm irmaundolm iyuftnn [adidee lo~ded In tQs Ptjct) andother intecheagg i,*g ae 59" a sflhha nazu of traamctlan with other utidmIL

Skcdoa 3. 7110 powtr MAN Cw1ac IS Iendid, Is hereby i' thu'nseaeded by dalelng Section 402 to lIemadisty uLad azbrdratdin to Hseu thai.! the tallovd. now Section 402:

* (a) T1he Authodltyinay comb~ae the Annual Supjdumsante Cotti wIth th annus) costs at anyN"~ur prtdac! uadal~aa by the Audiatity, balubdg Project Two, I01 wbl* Wh Panrt!pant heUewoused a combuit ror-the output ad reahted mlcsokn tbavor for theps.PUoaf UteaihW"aet"ee ndcharge. or the Auto y'nsa a atibith rir mnay of each combs. at carohlkali theMof "apints Mtn anddhaeap, $t the dinudic of tW Azztbdthy. la altma ctu to ecoordeflvia 3Wt piowdanet af Sectin402 (b) hereof.

(b). The Aesthaviy 3w eutaiblis and malnabln fib, and aond~ablnd okeny rift mid thwpa ubWiwil provlda rervanuei %hit ame sulldent, but only sullident, to pay the Annual lupplaeral Cuts,whether ot not much Caiz an catohlned with the annual cart of zvW &lots pgst Undee ametkrau by doeAutharit. tnduLngIProject Two. fair output and unI*ee of which Wh Pas*Ip', hai elmuufd a Gas-

* (c) The Autbodty "he biq dme lstklant eawh month ductal eauk Iooss, pply Yeastby praeld.Lag the NParat with' a Min Sleatoit fora:mbc month in accardmc. with the Wuasa t cherpiaautbtldsd pursuant to the foregleag pItrblaon of tisl lardort 402 for Its SupplnarrW %&, Pb*uS upply Suach rnmthly RkIn St~wational ta dude a credit tt nubh delawy POin W&nUnIaeI"dol~e as am owoned. hamd at apelated by doe Partcipwnt Such Wing 8.siement salla he paid by

CUth Perdalput an or WONaa the tenlk dqam b N daeta~ of such bLM.Anuaute duesd t" nt pai by thePajtikn~t manr befoue sacd dawshall boa an sddldasi charp oftone ad caeb~lf .I/2a) panexatgo sawatmd for subh mmiii at u Dania theut at, uni the mount thn Is paid hIs " At this end of eaciower suapply Yeear isjtueson amb bibp 4AD be amad in eccordance with the pmeounaaerfsacdam2 heataI.

(d) In the great that the Autuordty puiZ~ibIdI uates sod chaps pwuivst to Lectiw 44n (a) hereofto Inzrevr. an a :aroldd bask~ Annual Suppjdeaaasal coata sad annua coste orauay Asbu, Pijc"undertaken by lbe AuVthalY, lacluding 1o31 Two, fto tce, otput and aerfae, it 9)hi the fthics.

*pant ku azacutad a connru; the Aiuthoriy w'a Ideafti s. O Min SAawasang sciautaied by theAuthariy to the Pauticiptpusant min to ums 4o2 (c) hersof that mount or t*a ra'mue to be is.minrd by the Auaat Vhamt lan h Pankipant pusueant to maci "ise and charpe that le allocabie to dhmqayman af Monthly Arnnul Supplame mmi Coums Suh uwounuo Oab be fte ataus ua be received by

the Authority. from %he. Partklpsuii not dilcated bY the Av~iotriy to the payiumwt of ccxt Di mAy Bid

futue penWU pwu"sol to the Calnlr rejaung to weah projecut.&eu4. The1, Lam, i Coaetrt. us amnde~d, Is henfby j•njhs: ,mxndtd b7 ,enumberaal pg~ne Sec Urn

£ t&Smd•io€ Sl'i~le(), mad addi 'new Sact/an 31 Ilb)ta a~d a. foijows:

"(b)7%a Au •diyi AGh UIW[al, i11t, and uchanp eitlris cipsct U eanrd g rom tha PIEI.rti.p~at's fandidah at Sha ofFt*ctOw, whenever. in li discaeton, any Ouak inunadon can reauanblyb6 i••1td w rsuadlt 63 maomo m ibbbi a a, uenanlmkl ewnU Bulk ?own Supply to tba runltpnLL.Thr ou f, lsd pa hd• faineah ul or tva•sctlow aD. to the trusntpwactiablu, be nas,,,d kithe Anuja Sys(s it•d &W and y =I ml m• nua ,•'ay received by the Authoaity as a mull osudch

• ' . s OD A be ewdiled to doe Pmnduant's EaUdemenr hshan or Amnu Projt Cmiwunder mse

dcd S, Sao Congrut shall ;rmzah in rul force mid WIeet is heroin s manded.

IN.WJT1dl W1•Z.,I, TUh •usdFald actrik Authorly or Gemo sod tM he Fadpapt bave caused thwid Ammad g bf Conetrct to be enecud b ther corporoa, anmt by dib duly ,uLhadkfi 9rd a tra andr.wcnrpdwu sub to be bawunto huptcmd and otmtod, '1 ortha day and year •,t ab•a wdttmn.

MUNIC.IPALILECTRZCAUT)IOPITY

ATT,____________

CITY OF AELT,

BY:.

. .,.M a,\ A#'f

FOURTH AMPbq'DMENT

FO(WEE SALES CONTRACT

B&TWEKY

MUIhCIPAL ELICTRIC AMTHORITY OF GEORGIA

ANDTHE UNDERS1GNM PARTICIPANT

Thi Fourth Amendmmt of Cntr.nt , -ade and eniterdluto mi. of Wy 1, 1980, by andbetween the MuhJdpul Electric Authrity of Geargia, a public body corporate and pohutcand a juk worporation of the State of Ourgia, hatetaftar omiatima dedjp•d a theAutharty, treated by the proyvlonv of I Go. L. i, p. lei, aam an-ded, and the undudgmedpoliical wubdivoldm of the State of Georgia, beralnaftt sometimes, daedlgatd u the Pared-

WITNEBSETH:

Z: it r•ummbered *hat s Power Saoe Contmu and an Azuendment, both dated as ofMWanh Is 278, a Second Anmumdmt dated ea of May• 28, 1UM7, an4 a Third Azaendment datedFebruar7 , 131N have been previsly executed by and betweae the Authatfty and thePardnipan% and

. W2DQUWI the ParUcipant and the Authoity have detcmlned.that U in in their bertlnterests to sefl the Autbord/y'o Intrulsi in Scherer Unite 7breo end I'm in su•b of Pvoj-ct 0•q.and Project Two and to acquir additioaie genesiang capedlt vub"ib•t-fly ,qul to theintareme iv sold in accordance with the pmtaltna of the Project Three Paver Holes Contrectentered Into by the Parcipant aiod the Authority u of the data of thi Am dmd•ant; and

WHERUAS, It is necewarY and daalzle'to amend the aWid POwer Solve Contract, conaletent with the Bond Revolution, to (I) redaftl the Projoet ao'u" to excle the Interests tnSebhmu Units Tbree and Faur which ae to be dLapaed of by the Authoziy, and (U) to revoethe mchedule of aIts of output and cervIcas from Sdcsrer Units Ona and Two.

NOW 2mu2R•CTor and In eanalderatlon.oi the pren-1- and the zarhuil coveanms and asreement here-

toarter met forth, the eafficincy of which Is heraby aeknowledged, it IJ awree by and betweenthe pesUUo hereto as follows:-

Section L 2T attarament to ths Pawa Salea Contract entitled "DZSCREPTOl OFPEO,,CT"; us amended, is heeby Amuthor amended by dedmUn section 1(d) In its nU,,ety eneubeitu•tn g L Ien thereof the Moftwin sertian 1(d):

8(d) Plant oberer,A 'Ao paaent undvidea Interet In the two io h0W nominall7 rated coal-fired guenteng

umits IQ be known as the Robeut W. Sciere Stsam Plant Unito, Numbers One Lad TV* (in.divt•aely designated as Seharer Unit No. One andSe'ber Unit No. Two) to be locoted nearFor1,th i,' Mmroe County, eorgiaS, in ding for.ouch Units (i) I•ad delineated a do.-cruibed In OGorgia Power Company Map File X45-8 dated December 19, 1974 containing

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iN Wr=ZýZ WBIERMY, Tb% Municipal Eectuic AuthoritY Of Gleorgia end'the PartOei-

Paz% bave caused this Fourth Amendment of Contract to We executed Jz their corporal. namnby their ifuly authorized offlcera and their corporate 54a12 tO be hereunto imPreUSe and at-

t &ated elthe dayud yea iLrst abaves writen.-

M3ZIlC1PAL ELRCMhC AuTIOrnT'OF GEORGL4.

ATT. )

BY:ty~~ EIZ

* 2" S.0 0

IFIH AMNDMEaT

POWER SALES CONTRACrBETWEEN

UNXCAL ELECTRIC AUTHORITY OF GEO.GIA

AND*TM UNDERSIGUD PARftlngPA

This Filth Amendment of Conltact, made and enterd into As of Ncmcmber id, 1913, by andbetweeu the MIanldpal EMlaHC Authority of Georgia, a pablic body erpount and poIlld and a publiccroration of the State of CGeorgle, hereloaftor sometimu daillted is the Authority, created by theprovWona of Z Ga. L 197S. p. 107, u asna4ed (Tide 4&3-110 O.CO..). Lad the wderalluadpolitical subdlvisoA of the State ofOuorila. heelinafter ometimua desrignutad u the Participt•L

WITNESSETH:

121 it remembered gat a Power Sales Contract and it Amendmeat, both dated U of March 1,1976, a Second Amandment datad As of MAY 25, 1977, a Third Amecdmaent da td February 1, 1973.and a Fourth Ameadmeat dated May 1, 1910, have been previously exscutoi by amd between theAuthority mnd the Paisicipuat pd

WHEREAS. tie Participant and the Authority have determlned thai It is In their best Intereststhat the Authority uudegraM a foqh projcct In accordance with the provisin of the Project YourPower Sales Casitract eaterd Into by the Partipant and the Authority u of the data of this Amsnd-meat, which iz reasonably epected to result In a mare econom.call overall Bulk Power Supply to theParticpal and other poltical subdlviions contracting with the Authority theaefore by maktni theOutput Land related suvica of.PraJect Four aailable to dt hTdtIIpiak and by enbib.nl the Authority10 rearrag;e muran Aalu of the output at the Trojeet and Project Four to otbcr utfildca which isIntended to Improve subsatandtilly the matchin of ths output of both the Prqjca and Project Four tothe Pe:uidpaota Bulk Power Supply requirements; and

WHEREAS, It IU necuiary and dedrable to amend the said Power Sa•l Contract. consistentwith the Bond Resoludon, so auto revhe the schedule ofalud of output and iarV(ios from Vogdio UnitNo. I &Ad Vogpe Unit No. 2.

NOW THIUJ.OFor id In caulderatlon of the premises and &be mutual covenants BAU mlrameam harelnafter set

fonb, the sudicleacy of which bI hereby aelowledga4. h Is agee by mud bewee the paries heretothat taid Contract Is hither ameaded as follows;

Setlion 1. The ettachment to the Piowe Sales Coinract entitled "SCHEDULS OF ENTITLP-MENT SHARES", u amtened, Is berby further amended by dilutg the rdefsaee to Plant Voalefrom the schedule of sales. of outpW and saervcs to Geotrga Power Compay. and Adding a newschedule of tales of output end M.rvim to Georgia Power Company fum Plant Volgd u fllow,:

"The Authority, in accordancc with the provlsione ofSectlon 3 11 of the Power Sales Contraet, Asimended, aW subject to the pnuvicins of the Alvin W. Voatle Nuchler Units Number Ono and TwoPureJusse, Ameddment, Aslignment and Amumptloo Agreement. dated u or November 16. 1983,between GeOrIa Power Company sad thc Authorlty,. Itends to sell a portion of the output anda eikcr or its Project OnA ownaxnbIp entitlelcat In Vogtla Unita Numbera One end Two to Georgla

Power COmpanY in accordance with the following schedule:

"A. As to 77966%' of the output asociated wit, the Authorlty'a Prqject One ownership entitle.meet in Votlle Unita Numbers One and Two, such salU sball be as follows:

PmTo be M

h-oTr Sk Tar4 Tsi.... SLiV., ?.cwl'euw,

That PoFtion of the Power Supply Year2t.mainnI After the Commgrckl OperationDate of a Unit of Plant Vogtie 50.01Plat Fuj) Power Supply YearFollowing Commeroll Operadon Date . .0.0%

Second Fug Power Supply YearFoUDowlig Commeachl Operation Date 37.5%Th~jd FuU Power Sul Year .Foowing Commemrel petitfon Date 37.5Fourth Full Power Supply YeaFollowlng Commcid Operation Date 25.0,Fifth Full Power supply YearFollowing Courelal OI ertlon, Datc. 25.0%Slith Full Power Supply YeFallowInS Commercial Opatlaon Date 12.5%Seventh Full Power Supply YearFollowing Com ,neiial Operatima DJt 12.5%

."a As to 7J45% of the ouput ausocted with ihe Auttorlty'a Project OnD ownership entit-kment in Volute Units Numbin. One and Two. s44 sales to Georg& Power Company shall be equal to10o0 of the output and .•.ce bta•r nng with the Commercal Operation date Of a Unit of PlantVoltle and continuing until the antif thu fourteenth full Power Supply You Faolowiog the PowerSupply Year In which the Commq.lad Oper.tion ofa tu Unit occur.

"C. As to 14.6-15 of thu output associated with the Authority's Pra•ect One ownehip entitle.ment Io Voelde Units Numbes One and Two, su.h sales to Georgla Power Company shall boequal to100% of the output uad sarvicu beginning witfi the Commercial Operation Wte of a Unit or PlantVodt and shall catinous until th hlatr to ousof(I) retirment of sud-UIt. or (if) thi Ant to occurof the latest data stated for the payment of the pint pu io Bonds ad oof prelsion bcinj made for sebpycawnt to acrdaoe with Section 1201 of ths Band RiJollit(on.

"D. Tb. eastblihment of the foregolng schedule Is not intended to limIt thc 1,~ of the Author-ity granted in Section 311 to ecll and uchonge po.er and enary from Project O...';

Setdon 2. The following new section to be known u "Section 213" Is bueby added.

"Section 213. Resale Cov=L.The Parddpalt aret tait will not, without the exprea written conent of the Authority., enter

Into any contraot pursu'ant to which 5 noneeMPt person aSrme to take, oa to talk or pay for, powerpurchnsd from Pft*Jct One. For purposes of the prcccding wate. "nobexempt person" a munany cadi~ly wh]ich I not a state. territory.or, p i edva or the United Stato, the Dfjttret O: Conur'bla,or any political subdivinion of9t5 , and wedbb . Pt exemptfrom taxed= uod' Secton S0 or theInternal Reveinve code of 1954. as amended.,,

I

S. J."

IN WIVTNI. WhE.EOF, the buaaciwd Tje tric Autity of Geores uad the Pudipacthve ud thi FifhM Ameudment of Contra to be e dnS r w namcs by theirdul 'dulyauthorized off aud thir eorpokate asals to be h•.re'i Imprssed mnd attste, all of the date andY Bcar.art above Writta

MVNICIPAL EUCTRIC AUThlORITYOF GEORGOA

Apyroved As To Form

Atrm Counsel

Approvcd Ai Ta Porn

AT. 9K3. ,Saeret-y.Trceurce•

cit Adel.. _ _

3

HM~iCPAL EE1X~tRC A1flUSIM OPGO

This Saith Amndment of Cotracti, rads and --terad into ea

of Jan=ay 1, 1396, by and kesbn the MtIcipul Eetric AtlbrLty of

Georgia, a public body orporate and.politic and a pahl I crpoftticn

oa the State of Georgia, hereinafter sometimes referred to as the

Authority, created by the provisions of I Ga. L. 1975, p. 107, as

iamended (Title 46-3-110 O.C.A..} and the undaraIgned political

subdivision of the State of Geargma, eresnafter samaU designamted

".en the artllpant, .

FIT NES.S BTS,

BE It remenmb•ered. that a Power Cal- Contract an anf MAn-

xmnt, both dated as of Ikrzib 1,. 1976, a Second hmAiendart. dated as of

May'25, 1917, a Third Aainrmt6 dated Thhruazy 1, 1971, a 1burtb hmw-

mat dated "w 1, 1990# and a Fifth A=uwn&t dated u of Nbvudmr 1,

1963, have all been executed prrAamly by and babamn t he ft* rity

and the frtru yantz and

WMMM, the City of Qdord (oxfo"J) icth has prmvialy

reoaived its .holesale pover supply from the City of Coving ton has

requested to a Participant; and

'mms, it Is ia the best Interests of the Authority, the

Participants and Oxford for Oxford to be4m a Participant won the

ection of a If'or Salo Contzact.

ror and in conaldecatLon of the premises and the mutual

cvenants and agreamnte hereinaf tr set forth, the msfficiency of

which is hereby ackn o.€eded, t; Ls agreed by and bebtea the parties

bhareto that said Oontxact Is further amoded an follow:

Section 1. The Authority 19 hereby autborized to enter into

apower Sales ContracV with txor in~ subatintially thi foxm of this

pwr Sales Contract, ax ai'dad, with such wnses as may be required

to make such contract applicable to Ocbdrd, and to pW'ovi4~ oxford with

an Entitlemant Share.of 0.191#, and an appropriate Tranamission

Entitlement Share calculated in accordance with Sectla 308 of the

Power Sales Contract.

Section 2. iei Authority is authorlzed to pZTA& a portLon

of Chdord's Entitlement Share from this iparticipant's Entittlement

Share pro rata with the other .Participanta approving this Sixth

Aackfnt.

Bection 3. This Participant agrees to ccntliJe obligated

for its full Entitienent Share without deduction for the pro rata

portion assigned by the Authorfty to Oxfordta Provided •t•tsveu, that

the •thority heceby agrees that it will talý all neceasary action to

enforca the payment of all sums due by Oxford for .- ta -ntitlI ment

Oae, and this Participant shall receivý,e credit for its pro rata

sham of such payments.

Section 4 , This Sixth iA• nt shallU bern effeetw9 utl n

such amurmnt has bean approvd by Participants whose 1985. Tranamus-

slan Xjntitlemnt Shares represent, in the aggregate, not les than 751

of the toal PaztLclpanta' TranznLsmon Zntitlzaent 5hakes for 1985:

B a

ProvLded, Inowever, that the A uo'riCy may make service to Word

retroactive to January IA 1986,

i' WITNMS WMOMF, the Municipal' Electric Futhority of

Georgia and the Participant have caused this Sixth AmandMent of

Contract to. be exaztmd in their. orpornate ams by their duly author-

Isa- officers and Umei -corporate sals. to be hareunto LMr.sse, and

-attaitid, all as of the data and Y.Ar first ahm written.

CF GMMzA

Appvvud AS to TOrM r,?b n

Chm42

!

SEVENTH AJIENUENT

Po~lSALES CINfTRACr

'JNICIPAL ELECTRIC AUTMRI1TY OF GEOMGIA

AND

THE WCERSIGNED)PRITICPAIIT

This Seventh Amendment of Contract, made and entered Into as of

MIay 31, 19s9, by 'and between the gunicipal Electric Authority of Georgia, a

public bady corporate and politic and a public corporation of the Slate of

Georgia, herelinaftar sometimes refer red *to as the Authority, created by the

provleloila of 1975 Ga. Laws 107, as amended (O.C.C.A. 9 46-3-110. gt l".),

and the undersigned political subdivision of the State of Georgia, hereinafter

sometimes 'desighated as the Participant.I ITNESSETH

BE ii remiembered that a Power Sares Contract and an Amendment, both

dated as of March 1, 1976, a Second Amendment dated as of May 25, 1977, a

Third Amendmflt dated &I of February 1, 1978, a Fourth Amendment dated as of

May 1. 1980, a Fifth Aiendment dated as of November 10, 1963, and a Sixth

Amendment dated as of January 1, 1986, have all been executed previously by

and between the Authority and the Participant; and

WHEREAS, the Part.icip ant and the Authority have determined that the

financing of transision systm fullities after the commercial -operation of

Vogtlie Unit Wo. Two is to be continued as a pprt of Project One; -and

WHEREAS, a contractL with the Southeastern Power Adminltration (SEPA)

permits the Authority to Oheel SEPA allocations for municipal preference

customers within the State of Georgia.

10, T.EMORE

For and In consideration of the premises and the mutual covenants and

agreements hbre'inafter eat forth, the sufficiency of which Is hereby

acknowledged, .it is agreed by and between the parties hereto that said

Contract is further amended as follows:

PFOSED AUENWWS TOPOTER SALES CKTRACTS"

Section 1. T1ii Power Sales Contract, as amended, ia hereby further

amended by deleting subsection 102(s) In its entirety and substituting a new

subsection 102(s) to read ms followsa:

"(s) 'ProJect' shall mean those electric generation and related

transmission feclilti'as which are Identified in the Description of'Project

and those transmission system facilities to which reference Is made in the

Description of Project, together with (i) any major renewals,

replscements, repairs, additions, betterments and Improvements necessary,

In the opinion of the Consulting Engineer, to keep the Project In good

operating condition or to pre vnt a loss of revenue therefrom, (11) any

major additions, improvements, repairs and modificatro~A to thb Project

"d any. decommiseloning or disposals of the Pr'oject, required by any

governmental agency having Jurisdiction over the Project or for which the

Authority shall be responsible by virtue of any obligation of the

Authority arising out of any contract to which the Authority. may be a

party relating to ownership of the Project or any facility thereof, and

(ill) working capital required by the Authorlty during construction of the

Project and for the placing of the Project In operation for providing Bulk

Power Supply and SEPA power to the Partlclpan't."

Section 2. The Power Sales Contract, as amended, Is hereby further

amended by deleting 4ubsectlon 3Q2(c)(2) In Ito entirety

Sectiom 3. The Powir Sales Contract, as *amended, Is hereby further

amended by deleting subsection 308(b) In Its entirety and by substituting in

lieu thereof a new subsection 308(b) so that when so aumended subsection 306(b)

shall read as follows:

11(b) The Authority may a-ssume responsibility fo'r .triknaseeslon of SEPA'

power to Participants and other customers of SEPA, provided that the

Authority shall recover at least Its costs for such transmlsston service.'

During any Power Supply Year in which the Authority has responlibiljity for

transmission of SEPA power, such transmIls.lon service shall be provided by

the Authority to the Participants aMd other customers of 'SEPA by accepting

delivery of such SEPA power froui SEPA, for the accounts of the respeotive

Participants and other customers of SEPA,. and detivering such UFPA power

to -such Participants and-other customers through use of the transmission

syseam facilities Included In the Project, and the Authority i's authorized

to . inrCesse Its Investment in, and the annual operating costs of, such

transmission system facilities as may be required to provide such

transmlssion service. ' The charges for such service shall be calculated

and collected by the Authority as provided In Section 308A hereof. All

amounts collected by the Authority for such transaission sarvice shall be

appropriately credi ted to Annual Project Coats In the sase iWiner as other

credits pursuant to.Sectlon 311'hereof. 4

Section 4. The Power Sales Contract, as amended, Is hercby further

amende'd by adding a new section following Section 308 to be designated Section

3MOA to read as fol lows:

1Sebtlon 301A. Calculation of Charges for SEPA Transmission Service.

The Authority sheill establih a rate (expressed In dollars per

kilowatt per month and determined utilizing the annual doliJar costs and

billing determinants) for each month of the Power Supply Year for' purposes

of deliverIng SEPA power to the Participarfte and other customers of SEPA

which are not Part(cfpanta ('nopparticipant customers')* for each mdnth of

the Power Supply Year. Such rate shall be determined fpr each Power

Supply Year by dividing the sun of (I) the Annual Projec.t Transmission

FlxeO Charges, (1i) the Other Annual Project Transmission Costs, and (Ill)

amounts, If any, which must be paid by the Authority for the purchase of

transmlision services for the Project under its Integrated transmIsslon

•ysaem agreemen't with other utlItltes; In each case as budgeted or

est.linted to be Incurred for the Power Supply Year; by the sum of (a) the

highes't annual one-hour Integrated coincident system demnd of Bulk Power

Supply prdvlded by the Authority to all of the Participants, (b) the

highest annual SEPA capc.lty delivered by the Authority to the'

Participants and nonparticipant customers. and (;c) less dsmand ciedits and

transmisslon losses, if applicable, incurred by the Authority under its

Integrated transmrsslon system" pgretment with other utilities that ;re.

properly iliocabie to-the SEPA capacity delivered to the Participants and

nonpartilipalnt customers, in each.case to be' supplied dUring the Power

Supply Year'; with the rejult, further dividted by the number of months In

the Power Supply Year. The amount payable by each Participant and

nonparticipant. customer for each month of the Power Supply. Year shall be

the product of the rate, determined In accordance with the foregoing, and

the SEPA capacity delivered by the Authority to such Participant or

nonparticpant. customer of SEPA during the respective month of the Power

Supply Year, plus, In .th•e case of nonparticipant customers of SEPA, any

applicable surchaige."

Section 5. The attachment to the Power Sales Contfatt entitled

"Description of Project", as amended, Is hereby further amended by deleting

the paragraph designated "Additional Facilities" in its entirety and

substituting a new paragraph to read as follows:

"Additional Facilities.

The additional facilities of Uhs Project shall be those

additions and Improvements to the electric generatiori and related

trapslissiorn, facilities and to the transmlssion system facilities of the

Project provided for In clauses (I) and (ii) of Sectilop 102(s) of this

Contract; and those transmisslon system .facilities,. renewals,

repiacbuents. repairs, disposale, * and additions, betterments,

0

Improvements, and modifications tK'erbto, acquired or constructed by the

Authority subsequent to the Commercial Operation Date of the last of the

generating facilities of the Project to be completed in order to moet Its

Investment responsibility in connection with any agreement for an

integrated transmlisuon system to which the Authority may be a party.

IN WITNESS tlEREOF, the Munlcipaf Electric Authority of Georgia and the

Participant ,ha've caused this Seventh Amendment of Contract. to be executed intheir corporate nuas by their duly authorized officers and their. corporate

seals to be hereunto impressed and attested, all as of the date and year firstabove written.

.ICIPAL ELECTFIC ,AUTMOITY CF GEOROIA

APPI!OVEO AS TO IFORW: BY2 A:~

614ATTST: -lu onse Secret ry--Treasurer.

AFPVED AS TO Fr. '1:y:.

0 partl-cipsnt A reyv- r

AMENDM•EN TO POWER SALES CONTRACTSBETWMI.

MUNICIPAL ELECTRIC AUTHORITY OF EORGOIAAND

THE UNDER.SIGNED PAR"'CIPANT

This Axcadmez3w (the "AmeadmanO is smade and etulc'd into as of Jamnmy 14,

2005 by and between the Munldpal Electic Authority of Georgia, a public body

corporot mad politic and a public corporaton of the State of Geusnl hadula

sometims nefumd to as the Authdity, created by the provisions of 1975 OGapta Lx"v

107. u amended (O.C.O.A § 46-3-110. et seq.). and the undrsined political

subduson of the Sale of Georgia, ht•iala•asomdimes desilsied as the Particimnt

WITNESSETH:

WHEREAS, the A .utity and the Priclpant caterd Into a Powe Sales Coubact

dabod as of October 1, 1975, a First Amdzmadnt dated as of Mach 1. 1976. a Svocd

Amuitmcit dated s. of May 25. 1977, a Third Ammd enut dated as of Fbrmin 1, 1978,

a Fouiih Ame-dmmt dated as of May 1 . 9B0, a FM Am dment datd as ofNovunher

16. 1983, a SbMih Amwaid dated a of Jmnuay 1,. 1986. and a Seventh A rn

dated u of May 31,1989 (hO nafte"Poject One Powe Sale Contrac); mid

WHEREAS, the Authority and the Paticipant eaared into a Power Sale. Cwbvd

daed mas of February 1, 1971, a First Amcu4mDt dated as ofMay 1. 1980. m a Seoomd

Amamdnmt deed as of January I. 1916 (hmnafr "Project Two Power Saks

Coutail; eAM

Anam ,/IIMI

VW AS, ILb Autbority and the Participut eatA into aPower Sales Contmat

dated ss of May 1, 1980, and a FLYM Ameadmad datad as of Jamauy 3. 2986 (ha6inalw

"Project Te Powe Salcm Cummt"); mod

WHEREAS. the Aullionty Ind the Paticipant aterd into a Power Sales Coubut

datui as of Novamib'16. 1933 and a Fiat Amaendmet datnd a of Janiy 1, 1916

* (hrginaflr "0hojeet PFo Poow Sales Coubstnr); and

*WEREAS. the Authority and Lm Participant wial to eatald the lam of the

Project One Power Salem Cautict, ,the Project Two Power Sala Cimku the Project

Thw Power Salm Coofact end the Pwject Four Power Sale Contanct (bxviat

*ocetims reftnnd to coUKdvely .m the "Power Sales Cmixatw) to the mumizn

period allowed by IMa and

WHEREAS, he Autbauity bu datarmilnod ta it M mol extaed ex=iFs

gemtion debt. but excluding atdatnag debt prtaining to w6orin capitalanA unclear

fuel wot•ig capital debt compoama. beyond the exisating t=n of L Power Sales

Coubutg and

WMEAS, the Aufhfrcly and the Pmatidcpms wish to pin~de for a metdod of

alloctioa of tbe outm and swuma aid cota ralmali to PrOct Two, ProJect Three and

Project Four foribe peiod of the tam eutandoa of the Puwr Salve CAutracU prbin

to usih projects a well m prov-dlu for an atarndmat to the Schedule of Oblfigation

Sham petaining to Pstdect Pour.

NOW MRE, for ,-,nd in consideation of the prudal and mutual

covecants and sagnmots baeriMa aet fort, and in ordw to provide fAr ctain

-2-A'rWAlOV11 •

changes in the Power Sales Conatst, it Is ageed by and between the Aulhoity and the

Pa6ctpan that the tams of th Power Siles ontroct shl be amended as fbUows:

Sodeom 3. Xxtdslon of the Terr of the Power Sales Contracts.

The Authouity ad the 'Pordck€ l.harby Wtood the tkm of the Power Sales

Conuets follows: .

(B) The tem of the Pr"ajct Om Power Sales Cnt•u is hatty

extended om Much 1, 2026 umni Jumn 1. 2054 (baeinalmr, "Ptmjucd Ode Tam

•xtassIoo Pesod•).

(b) Thn tcmn bf the Fioject Two Power Sales Conbuct is hereby

eztknmdd fi•m Febmary 1. 2028 umni Tuwo 1. 2054 (hudindla ?ujuct Two Teem

Extaenion Perd").

(c) Tha tem of the Proiect Three Power Sales Contrat is hrty

cxtmadd hm May 1, 2030 utail Juno 1, 2054 (hrlnalfta "hoJect Tbmv Tam

ExtauuionPeriod").

(d) The term of tgo Project Four Power Sales Couterdt.-i hbeby

extmeded fo November 16, 2033 until m. 1, 2054 (hathafl. 'Trject Four Tarm

Exztemuia Paiod").

Seedon 2L Alloction of Projecl Two. Proied Three and PMoi•e Four,

(a) Prelec Two AflocWtm•

Section 308(s) of the PMaucd Two Power Sales Caoniur obligated the

AiWrhty to provide to cad Project Two Pm.fp= anid obligates msic Porticipmato

take from the Authori, the ouiput and services of Plojoct Two based upon the raes arid

chugcm establisbed by the AuIh6ty pwumat to Section 307(s) of the Preject Two Power

•rtdl-3-

Sales ConbwL The Authority asd the Paticiprtt herby agre that during the rqoed

Two Tamn Etuadon Pa'od the output and smicas mad coast of Proje Two "a be

alloated to each Project Two Poticipal buaed upon a prcinauge deived by dividing

the total paryant made by cish Project Two Particpant for debt srmvice and for capital

costs darig the maitray of the odginal tem of the PNject Two Poww Sales Coid,

adjusW to pzuas value, divided by the total payments made by all Project Two

Pertcipania for debt rvice and capital cons for the ezridty of the orjia tam of the

Project Two Poww Salea Contract. alma justed to pruot value (baler "Poject

Two Billihg Shint"). The *=cusat value calculstion slai be based upon a diwom

factor equal to toe weighted averge intat codt of debt Telating to Project Two dins

the m&rty of the original tam ofPtoject Two.

(b) Proi'etnrh• Aj~HLottn

Section 308(a) of the Project The Powcr Sales Contract obliUage the

Authoity to provide to each Project Three Participant. ind oblilates such PartcIpmt to

take ftom the Authority, the output anrd servies ofPeoject Three based upon themes and

chergem establiduhd by the Authority pu'rnant to Secti'n 307(a) of the Project Moe

Powe Sales amucn t. The Authority rod the Patidpant hereby "goe that during die

Project Three Term Extmaion Period dte outt and services mid costs of Project Three

&hall be allocnii to each Project Three PrticWmit based upon a pacnite derived by

dividing the total payments made by eacb Pvqect Three Pu•tcipmt Ir debt service and

for capital costs during the chtrity of the oriina term of th Project "haIw Power Salm

Contuct, adjusted to pauwt value, divided by the tal payments made by all Ptoect

Three Partidpants for debt service and capit costs for the cntity of the original tum of

-4-£TMAUII inl~

the Project 7he Power SAl. Contract, ad2t0 d to present value, (hg t "7reed

Th"m Billing SbmX"). The pnmenl value calculation sball be based upon a diacmint

fsal qqual to he avoMte wcl~ed intuiat coat of debt rlating to Project Thre during

the a trdy oftbe original taem ofPmjcct TUee.

(c) Project yur Allocation.

Section 308(a) of the Projat Four Power Sales Contract obligaes the

Authcrity to provide to aeh Project Four Pa.ticipant. mul obligates arx Participan to

tam ftm the Amhority. the output and service of Project Four based upon dom rmte end

charges etabliuhed by the Authority purmiaat to Section 307(a) of flt Project. Four

Power Sales Co"M The Authority and the Participat hereby ag tdud during thin

Project Four Tam Exteviin Period the output and wvioms and co ofPoJcoct Four

h be allocated to awl Project Four Pardcipant based upon a pVrematge derived by

dividing Ohe totau paIyman1 uade by cads Project Fovi Panicipaul for debt swt*e and

for cspit corn during an. catirty of the original tam of th Projet Four Powtr Sales

Cotct. jutad to prent value, 6divided by the total payments made by au Project

Four Participants for dcbtsevice and capital coasb for the ctirnty of the crginal tar of

the Pniaect Four Power Sales Cotract. adjuisd to prsnt value, (bachafier "Project

Four Biing Sharu.m)' The pmaul value calculation shall be based upoo a diwcrnt

fictor equal to the aveage weigted intart cost of debt rzeg to Proect Four during

the atreym of the oriS1 taUm of Poject. Four.

Additionally. effective u of Novemzbe 16. 2033. which is the expirstion dde of

the original taml of the Project Four Power Sales Coo-ict, the Scdule of PrJect Four

ATrUttt -5M-

Oblig•on Sham All be smazded so that each Project Pour Pu1cipaul's Obliation

Share abl be eqa to euch Paticipant's Project Four Bitting Sham

Secttoo 3. The Auhmirtyhnry tha" t "sll not extend the ttm of any

v ixting Saiutimi debt, exclusve of Gcizting debt prtaining to w=urlg cpitaJ and

micli fewM working cVa debt components, blyd tho fallowing dates: cxiting

Project One gpnaution debt dsall not be atended beyond Mmuuh 1, 202U; exi.tin Project

Two Soeradon debt sal aot be ctmndd beyond Febracy 1, 2028; existing Prudcat

Three generation debt sham cot be artanded beyond May 1, 2030. end cstig Project

Four generation debt "hall not be etendad beyond November 16, 2033.

Secdom 4. The Power Sals Contrwct as meded haby shall contimm in

efft and are uuanned by the partes. Tams not defned herin ae to be define a in

the Power Sake Comescu

Section 5. TI" Amemndmet shU become effective whbe duly approved ad

executed and declivered by thda Psicipank, and whm ex•.cted ad delimvcd by the

Autrity. The Auhority wiD only execut and dive the Amarmdm wben it hur

daemeincd that the Amaidman or simlau macadfets hbve been duly exeutad and

delivaod by ewab of'he cin 5:thrty-nine (49) Pua•cip•ats.

jSipabue Appear on Next Page]

-6-a~A"rnIwYI 1 ?O

IN WITNESS WHEREOF. the Municipal Electric Authority of Gergia has

caused this Ama•dntnt to be executed in its corporate nmne by its duly authorized

ofricers and, the Authority has caused its corporate seal to be hereunto impr•ed and

atrested; the Participant has caiused this Amendment to be executed in its corporate name

by its duly authorized officers and the corporate real to be hareitnm impressed and

attested, and delivery hereofby the Authority to the Participant is hereby acinowled8ed,

all of the date and year Firl above written.

MUNICIPAL ELECTJC AUTHORITYOF GEORGIA

Attested:

[SEALI]

9.

PARTI7CIPANT:CITY OP ADEL

Its:

Anestod~j

By.JI

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