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April 21, 2006 draft <br />3.01 ,-- Deleted: Demands <br />Cost Sharing. _ All design, construction, operation and maintenance costs -"-- <br />of facilities in Portion A, shown in Exhibit A will be done by the City. The annual costs <br />of the facilities in Portion A will be based on peak demands at the Elk River~l4 Station "" Deleted: North <br />Bank 2 substation, and shall be the ratio of the Connexus Energy peak demand and City <br />peak demand divided by the sum of the Connexus Energ, a~~peak demand times <br />the annual costs (see example). The cost ratio for Connexus shall be limited by the 6 <br />MW firm load limit divided by the 28 MW substation capacity (***Note to Bryn - <br />Since Connexus usage is limited to 6 MW, our cost sharing responsibility should likewise <br />be limited. ***). The Monthly peak demands of the City, and Connexus Energy cannot <br />be less than the previous month's peak. However, the demand of Connexus Energy and <br />the City shall be adjusted upward or downward as appropriate to reflect the City's <br />acquisition of Connexus Energy customers when such event occurs. Monthly demands <br />"- Deleted: substation <br />shall be the one hour coincident demands at the time of the,GRE peak, unless both parties ""-"" <br />aeree to another method. As the load served by Connexus Energy is reduced due to <br />territory acquisition by the City, Connexus Energy, at its option, may convert the <br />interconnection from "normally closed" to normally open" resulting in no further <br />monthly payments except for the minimum charge. <br />Examples of Monthly Charges: <br />Month 1 City = 3,000 KW <br />Connexus demand = 2,000 KW <br />Sub demand + 5,000 KW <br />Month 2 City = 3,500 KW <br />Connexus demand = 1,800 KW <br />Sub demand + 5,300 KW <br />Month 3 <br />City <br />Connexus demand <br />Sub demand <br />= 2,700 KW <br />= 2,100 KW <br />+ 4,800 KW <br />Month 4 <br />City <br />Connexus demand <br />Sub demand <br />= 3,400 KW <br />= 1,800 KW <br />+ 5,200 KW <br />Month 5 City acquires 500 KW load <br />from Connexus Energy. Re-adjust <br />Connexus Energy pays 1/12: <br />2,000 K *Annual Cost <br />[3,000 + 2,000 <br />Connexus Energy pays 1 / 12: <br />2,000 KW *Annual Cost <br />[3,500 + 2,000 <br />Connexus Ener y pays 1/12: <br />2,100 KW *Annual Cost <br />3,500 + 2,100 <br />Connexus Ener y pays 1 / 12: <br />2,100 KW *Annual Cost <br />,500 + 2,100 <br />Connexus Ener y pays 1/12: <br />C 1,600 KW~*Annual Cost <br />