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• To the extent additional information is needed to perform the above procedures, R3 will provide a written request to PGS. Task 17.2 Rate Calculation R3 will utilize the rate model developed in the prior rate review to recalculate the return on equity in accordance with the requirements of the Agreement. Task 17.3 Rate Negotiations with PGS Upon completion of the review of the data and information received by PGS, R3 will initiate negotiations with PGS. This will include the following subtasks: Task 17.3.1 Meetings with City staff Prior to initiating the rate negotiations, R3 will prepare and submit a brief memorandum to the City summarizing the conclusions of Tasks 17.1 and 17.2 and the points that R3 recommends to be negotiated with PGS. Task 17.3.2 Negotiations with PGS R3 will facilitate a series of meetings with City staff and representatives of PGS to evaluate the results of the Rate Review and discuss the proposed rates. R3 will also provide necessary support and documentation to substantiate the rate review findings. Finally, R3 will utilize the Rate Review financial model to provide sensitivity analysis capability during negotiations with PGS. Deliverables Task 17 includes the following deliverables: • Thorough review of PGS financial data, projected operating costs, projected revenues, capital items, etc.; • Preparation and submittal to the City of an updated rate model in electronic format that incorporates the relevant financial and operational data received during the Review. • Preparation and submittal to the City of a memorandum summarizing the results of the review of the PGS rate application, including outstanding issues, recommended discussion points, etc. • Meetings with City staff to review the findings of the review of the PGS rate application; • Negotiation meetings, as necessary, with PGS and City staff to discuss the Rate Review and reach consensus on the proposed rate structure. Page 3