Rate Order. (a) The Authority has heretofore adopted a Rate Order that establishes fees, rates, and charges applicable to the Participants and, throughout the Contract Term, the Authority shall maintain such Rate Order in force and effect in accordance with the provisions of this Section 6.04. The Rate Order may include reasonable classifications of Participants for the purposes of applying fees, rates, and charges as deemed necessary by the Authority in its sound discretion, to implement and enforce the GRP and discharge its obligations under this Contract. The fees, rates, and charges adopted under the Rate Order shall be at all times the lowest which are: (1) consistent with good management practices by the Authority; (2) necessary and proper under subsection (d); (3) consistent with the Authority's statutory and constitutional duties and responsibilities; and (4) just, reasonable, and nondiscriminatory. (b) The Rate Order shall be amended from time to time to establish the prevailing pumpage fee for purposes of Section 6.02(a)(1) hereof such that, as nearly as practicable in the Authority's sound discretion (i)Authority’s reasonable determination (i) the Participants are neither benefitted nor penalized for utilizing groundwater from ▇▇▇▇▇, and (ii) reasonable allowance is made for the Participants' costs of operating and maintaining their ▇▇▇▇▇ (exclusive of any costs of depreciation, debt service, or similar charges in respect of the design, permitting, construction, reconstruction, rehabilitation, or redevelopment of such ▇▇▇▇▇). The prevailing pumpage fee for purposes of Section 6.02(a)(1) shall be equal and uniform among all Participants that pump groundwater. (c) Prior to placing the Project in service, and at all times after the Project is placed in service, the Rate Order shall be amended from time to time to specify the Authority's prevailing rate for Water delivered to Participants for purposes of Section 6.02(a)(2) hereof such that, as nearly as practicable in the Authority's sound discretion, (i)Authority’s reasonable determination (i) the Participants are neither benefitted nor penalized for being required to take Water from the Project under the GRP, and (ii) reasonable allowance is made for Participants' costs of operating and maintaining On-Site Facilities, as well as operating and maintaining their ▇▇▇▇▇ (exclusive of any costs of depreciation, debt service, or similar charges in respect of the design, permitting, construction, reconstruction, rehabilitation, or redevelopment of such On-Site Facilities or ▇▇▇▇▇). The prevailing rate for Water for purposes of Section 6.02(a)(2) shall be equal and uniform among all Participants that receive Water. (d) In its Rate Order, or any separate written order, the Authority shall adopt such fees, rates, and charges, including those identified in Sections 6.02 and 6.03 hereof, that are sufficient to: (1) achieve and maintain compliance with the Plan, the Rules, and the GRP; (2) develop, implement, or enforce the GRP; (3) recoup any losses, damages, costs, interest not to exceed the interest rate permitted by Section 2251.025, Texas Government Code, or expenses incurred by the Authority resulting, directly or indirectly, from anyAuthority’s performance under this Contract, from Participant’s breach or violation of this Contract or other Participants’ breach of similar Participant contracts, the GRP, the Rules, the rules of all regulatory and permitting authorities with jurisdiction, or any other applicable rules, laws or regulatory requirements, by a Participant, or any losses, damages, costs, interest, or expenses incurred by the Authority resulting, directly or indirectly, from its performance under this Contract, related to Participant’s System, except in an instance of (i) Authority’s failure to perform or breach of this Contract or of similar Participant contracts or (ii) Authority’s negligence, gross negligence or willful misconduct on the part of the Authority; ; (4) accomplish the purposes of this Contract and the GRP; (5) purchase, lease, reserve, option, or contract for alternative water supplies by, through, or with third parties or the Authority for the benefit of the Project and the GRP; (6) meet administrative, operation, maintenance, repair, and replacement expenses relating to the Project and the GRP; (7) pay the principal of, interest on, and redemption prices or costs of any Bonds or other obligations of the Authority issued or incurred, or to be issued or incurred, in connection with the Project or the GRP; (8) satisfy all rate covenants relating to any Bonds or other obligations of the Authority relating to the Project or the GRP; and (9) establish, accumulate, maintain, or replenish one or more operating, (not to exceed 3 months), debt service, contingency, or emergency reserve funds relating to the Project or the GRP, as deemed reasonably necessary by the Authority in its sound discretion. (e) The fees, rates, and charges of the Authority shall at all times be established and imposed in order to equitably apportion the costs of the implementation of the GRP among the Participants, as nearly as practicable on a uniform basis, such that no special advantage or disadvantage is realized by any of the Participants because of proximity or access to the Project, other alternative water supplies of the Authority, geographical location, the time of inclusion within the GRP, the nature or extent of a Participant's water demands, or the source of water supply to a Participant. (f) The fees, rates, and charges imposed by the Authority under the Rate Order shall be reviewed and adjusted from time to time (but not more frequently than annually) by the Authority in order to ensure that they are not in excess of the needs of the Project and the GRP. The Authority further agrees that it shall engage an independent rate analyst to review and prepare a written report regarding the fees, rates, and charges to be adopted by the Authority pursuant to this Contract; provided, however, that (i) the Authority shall not be obligated to do so if such an analysis has been performed within the previous five (5) years, whether such prior analysis was initiated by the Authority or undertaken at the request of the Review Committee pursuant to Section 2.11(b) hereof, and (ii) the Authority may, but shall not be obligated to, undertake an analysis, including review of the fees charged by the Authority to reserve raw water for the benefit of the Participants, or the rate(s) at which such raw water has been or may be sold by the Authority for use in connection with the Project; provided, however, that unless the Authority is obligated to do so more frequently under Section 2.11(b), the Authority shall not be obligated to do so if such an analysis has been performed within the previous three (3) years. Before the Authority adopts fees, rates, or charges that exceed such written report, the Authority shall provide all Participants a written explanation for its intended action via email (if available) and regular mail at least 60 days prior to the date the Authority adopts same. The Authority agrees that the fees, rates, and charges (including fees for reservation or purchase of raw or untreated water) imposed by the Authority under the Rate Order, or imposed in any other manner by this Contract, shall be calculated consistent with the “Cash Basis,” as defined by the American Water Works Association, without profit or loss to the Authority. The Authority agrees that, except as otherwise expressly provided in this Contractspecifically provided in Section 9.01(d)(1) with respect to sales of excess water and in subsections (a) and (b) of Section 9.03, the fees, rates, and charges imposed by the Authority under the Rate Order, or imposed in any other manner by this Contract, shall be used for the purposes described in this ContractProject and GRP and not for any other corporate purpose of the Authority.
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Rate Order. (a) The Authority has heretofore adopted a Rate Order that establishes fees, rates, and charges applicable to the Participants and, throughout the Contract Term, the Authority shall maintain such Rate Order in force and effect in accordance with the provisions of this Section 6.04. The Rate Order may include reasonable classifications of Participants for the purposes of applying fees, rates, and charges as deemed reasonably necessary by the Authority in its sound discretion, to implement and enforce the GRP and discharge its obligations under this Contract. The fees, rates, and charges adopted under the Rate Order shall be at all times the lowest which are:
(1) consistent with good management practices by the Authority;
(2) necessary and proper under subsection (d) and compliant with subsections (b), (c), and (e);
(3) consistent with the Authority's statutory and constitutional duties and responsibilities; and
(4) just, reasonable, and nondiscriminatory.
(b) The Rate Order shall be amended from time to time to establish establishspecify the prevailing pumpage fee for purposes of Section 6.02(a)(1) hereof such that, as nearly as practicable in the Authority's sound discretion (i)Authoritydiscretion’s reasonable determination (i) the Participants are neither benefitted nor penalized for utilizing groundwater from ▇▇▇▇▇, and (ii) reasonable allowance is made for the Participants' costs of operating and maintaining their ▇▇▇▇▇ (exclusive of any costs of depreciation, debt service, or similar charges in respect of the design, permitting, construction, reconstruction, rehabilitation, or redevelopment of such ▇▇▇▇▇). The prevailing pumpage fee for purposes of Section 6.02(a)(16.02(1) hereof shall be equal and uniform among all classes of Participants that pump groundwater.
(c) Prior to placing the Project in service, and at all times after the Project is placed in service, the Rate Order shall be amended from time to time to specify the Authority's prevailing rate for Water delivered to Participants for purposes of Section 6.02(a)(2) hereof such that, as nearly as practicable in the Authority's sound discretion, (i)Authority,’s reasonable determination (i) the Participants are neither benefitted nor penalized for being required to take Water from the Project under the GRP, and (ii) reasonable allowance is made for Participants' costs of operating and maintaining On-Site Facilities, as well as operating and maintaining their ▇▇▇▇▇ (exclusive of any costs of depreciation, debt service, or similar charges in respect of the design, permitting, construction, reconstruction, rehabilitation, or redevelopment of such On-Site Facilities or ▇▇▇▇▇). The prevailing rate for Water for purposes of Section 6.02(a)(26.02(2) hereof shall be equal and uniform among all classes of Participants that receive Water.
(d) In its Rate Order, or any separate written order, the Authority shall adopt such fees, rates, and charges, including those identified in Sections 6.02 and 6.03 hereof, that are sufficient to:
(1) achieve and maintain compliance with the Plan, the Rules, and the GRP;
(2) develop, implement, or enforce the GRP;
(3) accomplish the purposes of this Contract and the GRP;
(4) recoup any unrecovered losses, damages, costs, interest, or expenses incurred by the Authority, together with interest thereon at a rate not to exceed the interest rate permitted by Section 2251.025, Texas Government Code, or expenses incurred by the Authority resulting, directly or indirectly, from anyAuthority’s performance under this Contract, from Participant’s anyParticipant's breach or violation of this Contract or other Participants’ ' breach of similar Participant contracts, the GRP, the Rules, the rules of all regulatory and permitting authorities with jurisdiction, or any other applicable rules, laws or regulatory requirements, by a Participant, or any losses, damages, costs, interest, or expenses incurred by the Authority resulting, directly or indirectly, from its performance performanceacts or omissions under this Contract, related to Participant’s System, except in an instance of (i) Authority’s failure to perform or breach of this Contract or of similar Participant contracts or (ii) Authority’s negligence, gross negligence or willful misconduct on the part of the Authority; ;
(4) accomplish the purposes of this Contract and the GRPas otherwise provided in Section 11.01 hereof;
(5) purchase, lease, reserve, option, or contract for alternative water supplies by, through, or with third parties or recoup (i) the reasonable costs incurred by the Authority for the benefit of the Project and the GRP;
(6) meet administrative, operation, maintenance, repair, and replacement expenses relating to the Project and the GRP;
(7) pay the principal of, interest on, and redemption prices or costs of any Bonds or other obligations of the Authority issued or incurred, or to be issued or incurred, in connection with the Project or the GRP;
(8) satisfy all rate covenants relating to any Bonds or other discharge of its obligations of the Authority relating to the Project or the GRP; and
(9) establish, accumulate, maintain, or replenish one or more operating, (not to exceed 3 months), debt service, contingency, or emergency reserve funds relating to the Project or the GRP, as deemed reasonably necessary by the Authority in its sound discretion.
(e) The fees, rates, and charges of the Authority shall at all times be established and imposed in order to equitably apportion the costs of the implementation of the GRP among the Participants, as nearly as practicable on a uniform basis, such that no special advantage or disadvantage is realized by any of the Participants because of proximity or access to the Project, other alternative water supplies of the Authority, geographical location, the time of inclusion within the GRP, the nature or extent of a Participant's water demands, or the source of water supply to a Participant.
(f) The fees, rates, and charges imposed by the Authority under the Rate Order shall be reviewed and adjusted from time to time (but not more frequently than annually) by the Authority in order to ensure that they are not in excess of the needs of the Project and the GRP. The Authority further agrees that it shall engage an independent rate analyst to review and prepare a written report regarding the fees, rates, and charges to be adopted by the Authority pursuant to this Contract; provided, however, that (i) the Authority shall not be obligated to do so if such an analysis has been performed within the previous five (5) years, whether such prior analysis was initiated by the Authority or undertaken at the request of the Review Committee pursuant to Section 2.11(b9.03(a) hereof, and (ii) the Authority may, but shall not be obligated to, undertake an analysis, including review of the fees charged any actual costs incurred by the Authority that are associated with the development of the WRAP (except to reserve raw water the extent Authority has already received funds for the benefit of WRAP), the ParticipantsGRP, or the rate(s) at which such raw water has been or may be sold by the Authority for use in connection with the Project; provided, however, that unless the Authority is obligated to do so more frequently under Section 2.11(b), the Authority shall not be obligated to do so if such an analysis has been performed within the previous three (3) years. Before the Authority adopts fees, rates, or charges that exceed such written report, the Authority shall provide all Participants a written explanation for its intended action via email (if available) and regular mail at least 60 days prior otherwise specifically pertain to the date the Authority adopts same. The Authority agrees that the fees, rates, and charges (including fees for reservation or purchase subject matter of raw or untreated water) imposed by the Authority under the Rate Order, or imposed in any other manner by this Contract, shall be calculated consistent with the “Cash Basis,” as defined by the American Water Works Association, without profit or loss to the Authority. The Authority agrees that, except as otherwise expressly provided in this Contractspecifically provided in Section 9.01(d)(1) with respect to sales of excess water and in subsections (a) and (b) of Section 9.03, the fees, rates, and charges imposed by the Authority under the Rate Order, or imposed in any other manner by this Contract, shall be used for the purposes described in this ContractProject and GRP and not for any other corporate purpose of the Authority.;
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