ASSOCIATION OF BAY AREA GOVERNMENTS DIRECT ACCESS ELECTRIC AGGREGATION

This Direct Access Electric Aggregation Agreement, hereinafter "Agreement", is made and entered into as of thisl6thday of Octo6er1997, by and between the Association of Bay Area Governments (ABAG), a California joint powers agency, and CITY OF PLEASANTON (Public Agency), a California Municipal Corporation. The parties hereby agree as follows: Eligibility: Public Agency is a member or cooperating member of ABAG. ABAG will provide directly, or at its option, will contract to provide for the purchase and management of a direct access electric aggregation program (Electric Program) for members and cooperating members of ABAG participating in said program Participant(s). 2. Authorities: All parties understand and agree that the legal authority for the Program is granted by and subject to the California Public Utilities Commission (CPUC), as initially authorized by CPUC Decision No. 97-OS-040 and as it may be modified and/or augmented through subsequent CPUC decisions, orders, rules, regulations, tariffs and rulings of the CPUC administrative law judges (collectively, Decision). 2.1 Public Agency is a customer of Pacific Gas & Electric (Utility) under the jurisdiction of the CPUC. Public Agency appoints ABAG as its exclusive agent to coordinate its participation in the Electric Program, on behalf of Public Agency for the accounts listed in Exhibit A (Accounts), which is attached hereto and incorporated herein. Public Agency represents and warrants that any prior agreement(s) for the purchase of electricity for the Accounts from a supplier other than the Utility, which Public Agency may have executed, will be terminated effective upon Commencement of Service as defined in Paragraph 31. 2.2 ABAG has reviewed the Decision and other materials developed by, or under the auspices of the CPUC. ABAG believes that the transactions set forth, or contemplated, in this Agreement will comply with CPUC requirements for direct access by electric consumers set forth in the Decision and current guidelines: ABAG has, simultaneous with this Agreement, commenced the process of creating an independent joint powers agency (ABAG POWER) to aggregate the Accounts of Participants for the purpose of direct access. 3. Back round: The CPUC requires that all Utility customers be eligible for direct access by January 1, 1998. The regulatory requirements for customers to engage in direct access and for Electric Services Providers (ESP) to offer direct access to customers are under development as of June 25, 1997. In Paragraphs 4 and 5 ABAG has listed all such conditions of.which ABAG is actually aware. ABAG has used its best good faith effort to enumerate in said paragraph all such conditions which might ultimately be imposed on direct access customers and ESP's. However, ABAG cannot represent or warrant that the enumerated conditions represent all conditions currently contemplated by the CPUC or