CUSTOMER LOCATION:
06817500
AGREEMENT FOR PURCHASE OF
POWER
WITH
NORRIS PUBLIC POWER DISTRICT
THIS
AGREEMENT made and
entered into this 20 day of March ,
2006 , by and between Norris Public Power District, a
public corporation and political subdivision of the State of
Nebraska, hereinafter called the “District”,
and
Address: 501 Main, Adams, NE
68301
hereinafter
called the “Customer”.
WITNESSETH: The District agrees to sell and to deliver to
the Customer, and the Customer agrees to purchase and receive from
the District, all of the electric power and energy which the
Customer may need at a mutually agreed point on the
Customer’s premises located in the Center of
Section 17 , Township 6 North ,
Range 8 East , of the 6th Principal Meridian in the,
Gage County , Nebraska upon the following terms and
conditions:
1. SERVICE
CHARACTERISTICS
Service
hereunder shall be alternating current, 3 phase ,
sixty cycles, 277/480 volts and in a capacity of
approximately 10,000 kVA.
a. During the
construction phase, the Customer shall pay the District for service
hereunder at the rates and upon the terms and conditions set forth
in Schedule 6 attached to and made a part of
this agreement. After testing and upon start-up of the ethanol
plant, the Customer shall pay the District for service at the rates
and upon the terms and conditions set forth in
Schedule 15 attached to and made a part of this
agreement. The conversion to Schedule 15 will occur
based on a mutual understanding between the Customer and the
District to insure the Customer is placed on the best available
rate based on the Customer’s load profile. Not withstanding
any provision of Schedule 15 ; however, and
irrespective of the Customer’s requirements, the Customer
shall pay the District not less than $ 30,000.00 per
month for service or for having service available hereunder,
commencing with the first full billing period.
b. The
initial billing period shall start when Customer begins using
electric power and energy, or thirty (30) days after the
District notifies the Customer in writing that service is available
hereunder, whichever shall occur first.
c. Bills for
service hereunder shall be paid or mailed to the area offices or
District office in Beatrice, Nebraska.
d. The
Customer agrees that if, at any time, the rate under which the
District purchases electric energy at wholesale is modified, the
District may make a corresponding modification in the rate for
service hereunder.
e. This
contract is subject to the requirements of Section 70-655,
R.R.S., 1943, requiring the District to fix, establish and collect
adequate rates and charges which shall be fair, reasonable,
nondiscriminatory, and so adjusted from time to time in conformity
with the Nebraska State Law.
As per the
attached projection sheet, your estimated highest monthly bill will
be $136,000 . To secure this monthly credit amount,
the Customer agrees to provide one of the following within six
months of the plant start-up:
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The Customer
shall agree to provide a consumer deposit equal to the estimated
highest monthly bill to be held in the District’s Consumer
Deposit Fund. The deposit will accrue interest at the District
approved rate adjusted annually on January 1
st based on the U.S. Government’s five-year
Treasury note rate. Interest will be credited to the
customer’s bill annually. The deposit will be applied to the
final billing and any remaining balance will be returned to the
customer.
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The Customer
shall provide a Letter of Credit from the customer’s bank
equal to the estimated highest monthly bill.
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In the event
that future monthly bills exceed the estimated highest monthly bill
used in calculating the initial deposit or Letter of Credit by 20%
or more, the District may require the customer to supplement the
initial deposit or increase the Letter of Credit by the amount of
the increased bill.
4.
CONTRIBUTION IN AID OF CONSTRUCTION
The Customer
shall make a contribution in aid of construction in the amount of
$0.00 due to the investment necessary to make service
available. Such payment to be made before construction
begins.
The District
shall use reasonable diligence to provide a constant and
uninterrupted supply of electric power and energy; but if such
supply shall fail or become defective through an act of God, or the
public enemy, or by accident, strikes, labor troubles or by action
of the elements, or inability to secure right-of-way, or other
permits needed, or for any other necessary cause, the District
shall be under no duty to give notice to the Customer prior to such
failure or interruption and shall not be liable
therefore.
The Agreement
shall become effective on the date first above written and shall
remain in effect five (5) years following the state of the
initial billing period and thereafter until terminated by either
party giving to the other six (6) months notice in
writing.
This Agreement
shall be binding upon and inure to the benefit of the successors,
legal representatives and assigns of the respective parties
hereto.
IN WITNESS
WHEREOF, the parties
hereto have caused this agreement to be executed by their duly
authorized representatives all as of the day and year first above
written.
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