5.2a ERMUSR 04-13-2021 - Laserfiche WebLink

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Repair and Replacement Accountinto which shall be credited from the Operating Account such portion of the Net Revenues in excess of the current requirements of the Debt Service Account and the Reserve Account (“Surplus Revenues”) as the Commission shall determine to be required for replacement or renewal of worn out, obsolete, or damaged properties and equipmentof the Electric System. Money in the Repair and Replacement Account shall be used only for the purposes above stated or, if so directed by the Commission, to pay Operating Expenses, to redeem bonds which are subject to redemption according to their terms, to pay principal or interest when due as required by the Awarding Resolution, to restore a deficiency in the Reserve Account, or to pay the cost of improvements to the Electric System; provided that, in the event additional improvements or additions to the Electric System are financed other than from bonds payable from the Debt Service Account, Surplus Revenues from time to time received may be segregated and paid into one or more separate and additional accounts for the repayment of such indebtedness andinterest thereon, in advance of payments required to be made in to the Repair and Replacement Account. Net Revenues in excess of those required for the foregoing purpose may be used for any proper purpose. Additional Parity Bonds Additional obligations may be issued on a parity of lien with the Series 2021B Bonds and the Outstanding Bonds so long as the Net Revenues of the Electric System for the audited fiscal year immediately preceding the issuance of such Additional Bonds, adjusted as described below, are not less than 125% of the average annual principal and interest due on all Outstanding Bonds and the Additional Bonds to be issued, during the remaining term of the Outstanding Bonds. For purposes of the coverage test set forth above, the Net Revenues for the last audited fiscal year immediately preceding the issuance of such Additional Bonds may be adjusted for such fiscal year as follows: (i) the Gross Revenues for such audited fiscal year may be increased to reflect the Gross Revenues which would have been received had any rate increase placed in effect after the commencement of the audited fiscal year been in effect for the entire audited fiscal year; and (ii) by including the additional revenues reasonably determined by the Commission to be likely to result from the acquisition and construction of the facilities to be financed by such Additional Bonds, provided that the debt service on the proposed Additional Bonds is funded until the estimated date of completion of such facilities. The Commission also reserves the right to cause the issuance of Additional Bonds if and to the extent needed to refund maturing Series 2021B Bonds payable from the Debt Service Account in case the money on hand therein is insufficient to pay thesame at maturity, which refunding revenue bonds may be on a parity with the Outstanding Bonds, but shall mature subsequent to all Outstanding Bonds which are not to be refunded by such Additional Bonds. The Commission also reserves the right to cause theissuance of Additional Bonds payable on a parity as to both principal and interest with the Outstanding Bonds to refund bonds if the maximum amount of principal and interest payable on the Outstanding Bonds and such Additional Bonds in the then current orany future calendar year is not increased by more than 5.00%. - 13 - 278