Common use of O&M EXPENSES FOR INTERCONNECTION FACILITES Clause in Contracts

O&M EXPENSES FOR INTERCONNECTION FACILITES. The Interconnecting Customer shall be responsible for operation and maintenance (“O&M”) expenses, property taxes, and insurance costs associated with the Connecting Transmission Owner’s Interconnection Facilities in accordance with Article 4.1 of the Agreement. Such payment will be predicated on the O&M, Property Tax, and Property Insurance rates calculated using data included in the Connecting Transmission Owner’s most recent annual report to the Federal Energy Regulatory Commission or such other sources as the parties may agree upon. Such rates shall be subject to annual modification effective July 1 of each calendar year. The O&M expenses will be based on the final actual installation costs. O&M The Interconnection Customer shall pay for O&M expenses each month during the term of this Agreement an amount equal to 1/12 of the product of 2.86% and the actual total cost of the Connecting Transmission Owner’s Interconnection Facilities. This cost is calculated as follows: Average Electric Transmission Plant in Service - $396,203,666 Total Transmission O&M Expense - $ 11,312,130 O&M as a % of Gross Plant - $11,312,130 / $396,203,666 = 2.86% Property Tax Estimated Monthly O&M calculation: 1/12 x O&M rate x Total CTOIF 1/12 x 0.0286 x $1,118,000 (to be adjusted by final actual costs) Estimated Monthly O&M payment = $2,660.03 The Interconnection Customer shall pay for property taxes each month during the term of this Agreement an amount equal to 1/12 of the product of 2.69% and the actual total cost of the Connecting Transmission Owner’s Interconnection Facilities. This cost is calculated as follows: Average Electric Plant in Service - $1,488,140,443 Total Property Tax Expense - $39,973,906 CTOIF 1,325,000 Estimated Property Tax Rate - 2.69% 2-4 SERVICE AGREEMENT NO. 2547 Estimated Monthly Property Tax calculation: 1/12 x Property Tax Rate x Total CTOIF 1/12 x 0.0269 x $1,118,000 (to be adjusted by final actual costs) Estimated Monthly Property Tax payment = $2,502.61 Property Insurance The Interconnection Customer shall pay for property insurance each month during the term of this Agreement an amount equal to 1/12 of the product of 0.18% and the actual total cost of the Connecting Transmission Owner’s Interconnection Facilities. This cost is calculated as follows: Average Electric Station & Structures Plant in Service - $341,716,752 Total Insurance Expense - $ 630,532 Property Insurance as a % of Gross Plant $630,532 / $341,716,752 = 0.18% Estimated Monthly Property Insurance calculation: 1/12 x Property Insurance Rate x Substation CTOIF 1/12 x 0.0018 x $1,118,000 (to be adjusted by final actual costs) Estimated Monthly Property Insurance payment = $171.91 SERVICE AGREEMENT NO. 2547 Attachment 3 One-line Diagram Depicting the Small Generating Facility, Interconnection Facilities, Metering Equipment, and Upgrades [CONTAINS CEII - THIS PAGE REMOVED FROM PUBLIC VERSION] SERVICE AGREEMENT NO. 2547 Attachment 4