ASSOCIATION OF BAY AREA GOVERNMENTS DIRECT ACCESS ELECTRIC AGGREGATION

• 14. Credit Reserve: Based on the size of the aggregation, ABAG will establish a Credit Reserve for the purpose of meeting CPUC established credit requirements for ABAG as an ESP. Public Agency will pay a portion of the Credit Reserve in a ratio in which the numerator is the total estimated usage for all its Accounts and the denominator is the total estimated usage for all accounts in the aggregation (Credit Reserve Surcharge). The timing of the Credit Reserve Surcharge payment(s) (e.g. up front lump sum or staggered even or uneven monthly amounts) will be determined by ABAG. 15. Invoices/Actual Charges: For each Account, ABAG will include in each monthly invoice Public Agency the meter cycle, actual usage during the meter cycle, and fees for actual electricity consumed based on the Rate Schedule plus an allocated portion of Contingent Charges incurred, if any, plus any applicable late payment charges (Actual Charges). The invoice will also identify the prior balance, any payments since the previous invoice, cumulative Invoiced Amounts, cumulative Actual Charges, and credit balances as calculated pursuant to Paragraph 17. Contingency Reserve Surcharges and Credit Reserve Surchazges will either be sepazately invoiced or included in one invoice based on ABAG's decision regarding the timing of such surcharges and its agreement with the billing agent. 16. Pa ment: Invoices will be directed to and payment is to be made by Public Agency directly to the escrow account designated pursuant to Pazagraph 21 of this Agreement. Payment of the Invoiced Amount is due immediately upon receipt of the invoice. Late payment charges at the rate of one and a half percent (1.5%) per month calculated daily on the outstanding balance will be imposed commencing on the thirty-first (31st) day after the mailing date of the invoice. Late payment charges may, at ABAG's sole discretion, be debited against Public Agency's Credit Account as defined in Pazagraph 17. 17. Credit Account: For each invoice, ABAG will calculate (a) the difference between the Invoiced Amount and the Actual Charges for the meter cycle, and (b) the difference between the cumulative total of the Invoiced Amounts and the cumulative total of Actual Charges (Credit Account). Public Agency recognizes that the Credit Account is a calculation of payments, credits, debits and charges made pursuant to this Agreement and that ABAG will not be required to establish actual separate fund accounts with monies on behalf of, or in the name of Public Agency. Unless. the parties otherwise agree, ABAG will refund to Public Agency an amount equal to the Credit Account plus a portion of interest earned on all Credit Accounts in the Electric Program, said portion to be determined by the Electric Program Committee of ABAG POWER, within ninety (90) calendar days after termination or cancellation of this Agreement. 18. Contin~ency Reserve Fund: Public Agency acknowledges that during the term of this Agreement ABAG has the right to use monies in the Contingency Reserve Fund to pay Actual Charges incurred by Participants in the Electric Program as such Actual Charges become due. ABAG will deposit into the Contingency Reserve Fund~any Invoiced Amount payment, or portion thereof, which would, absent draw on the Contingency Reserve Fund described in the preceding sentence, have been applied towards payment of the Actual Charges described in the preceding sentence. Within the Contingency Reserve Fund, ABAG will maintain a separate accounting of Public Agency's cumulative 6