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RESOLUTION
WHEREAS, the City Council of the City of Georgetown has carefully considered two letters
dated November 21, 1975 from Charles Herring, General Manager of Lower Colorado River
Authority, the first with reference to the under -recovery of fuel costs through operation
of the Fuel and Purchased Power Clause of Rate Schedule WP -1 as included in the Whole-
sale Power Agreement dated as of June 25, 1974, a copy of which letter is attached hereto
as Exhibit A, and the second with reference to the individual recalculation of this City's
share thereof, a copy of which letter is attached as Exhibit B, and
WHEREAS, said letters contemplate the institution of a temporary surcharge as an
addition to Exhibit C-1 of said contract, and
WHEREAS, said letters also contemplate a change in the procedure for determining
the estimated current cost of all fuel used by the Authority in its.generating plants for
immediate application to each wholesale customer's invoice for the month for which the
fuel cost was incurred with a final adjustment when the final cost is known, and
WHEREAS, the Advisory Committee of the wholesale customers of Lower Colorado River
Authority has also carefully considered the above mentioned matters and has expressed
approval thereof by unanimous action of the Committee subject to certain action by the
authority, no therefore
BE IT RESOLVED by this Council that Exhibit C-1 of the Wholesale Power Agreement
dated as of June 25, 1974 be amended to include the following:
3. For all energy delivered on and after November 25, 1975, until the total amount
.— assessed under this provision is equal to $41,199.42(as shown in Exhibit B).
CO 1.7 Mi I Is per Kwh
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If the foregoing assessment does not equal the total assessed amount by June 25,
1976, the balance remaining shall be due and payable in a lump sum on June 25, 1976.
BE IT FURTHER RESOLVED that this Council endorse and approve the change in
the time of the determination of the final fuel cost adjustment as set forth in Exhibit A.
BE IT FURTHER RESOLVED that said amendment, endorsement and approval be
subject to the following conditions which are precedent to this resolution:
1. That the effectiveness of said amendment, endorsement and approval is contingent
upon adoption of a like resolution by a majority of all other wholesale power customers of
the Authority, both cities and cooperatives, and further that the Lower Colorado River Authority
Board will take such action as necessary to collect any like due amounts from any and all
of the remaining wholesale customers who, for one reason or another, refuse to furnish the
Authority with a like resolution.
2. That the provisions of Wholesale Power Rate Schedule WP -1 appearing as the first
paragraph on page 5 of 5 of Exhibit C will apply to any and all costs billed to and paid by
this City as a result of the modification of Exhibit C-1 and the modification in the method
of determining the current cost of fuel. This provision reads as follows:
"Any costs which are billed to and paid by Authority's customers under this Fuel
and Purchased Power Clause and which are subsequently recovered by the Auth-
ority from others will be credited to the Authority's customers on a pro -rata basis."
3. That the Authority agree to allow a suitable discount to those wholesale customers
who choose to prepay the assessment provided for by paragraph 3 of Exhibit C-1. Such
applicable discounts to be at a uniform rate and to be separately negotiated with any of
said wholesale customers so desiring to make prepayments of all or portion of the individual
wholesale customer's total assessment.
4. That the Authority agrees to undergo a management analysis and operational review
to be conducted by an independent consultant. The analysis and review shall commence on
or before February 1, 1976, or such later date as may be agreed upon by the Authority
and the Advisory Committee of wholesale power customers of the Authority (the "Advisory
Committee"). The cost of the analysis and review is to be borne by the Authority. A copy
of the consultant's report shall be delivered to the Advisory Committee and to each Distri-
butor requesting a copy. The Authority shall report to the Advisory Committee in writing
what action the Authority plans to take in response to any recommendations made in the
consultant's report. The Advisory Committee shall participate in and have equal voice with
the Authority in the selection of an independent consultant to conduct the review and
analysis. In the event of failure to agree on a consultant, the Authority shall select a