CT2015-174 Feasibility Study

• Contract/PO #: CT2015-174
• Contractor Name: Uncompahgre Valley Water Users Association
• Contract Type: Loan
• County: Montrose
• Loan Projects - Doc Type: Feasibility Study

time payment of fifty percent(50%)of the balance in the Reserve Account and,thereafter
and until the termination of this Agreement, as payment of the exercise price for such
option, the Rent shall be zero. Other that the above payment or any other obligations of
DMEA provided hereunder, the water shall be delivered to DMSA without charge, cost
or payment.
(a) If(x)all amounts under clauses (ii) and (iii)of the definition of"Debt"in paragraph
1 (c)have been repaid,(y)the amounts under clause(i)of the definition of"Debt"in
paragraph 1 (c) have not been repaid and (z) DMEA is current on the debt service
(including interest,principal and any other amounts due thereunder)as to the amounts
under clause (i) of the definition of"Debt" in paragraph 1 (c), then DMEA shall
deposit any Net Profits in an account (the "Reserve Account"). Amounts in the
Reserve Account may be invested by DMEA in Permitted Investments. At any time
when there is a balance in the Reserve Account, if there are Losses, DMEA may
withdraw an amount(up to the amount of such Losses) from the Reserve Account to
repay DMEA for such Loses (and such amounts shall not be restricted thereafter by
this Agreement). Upon either the expiration or timely exercise of the option
described in paragraph 3 of the Option Agreement, any balance remaining in the
Reserve Account(after paying the Rent specified in clause(i)of the first sentence of
paragraph 5 (a) or the Rent specified in the second sentence of paragraph 5 (a))may
be withdrawn by DMEA and such amount shall not be restricted thereafter by this
Agreement
(b) It is the intent of the Parties that the Water Users Association will make the water
flows available to DMEA and the Facilities in exchange for, amount ancillary
matters, a rental payment from DMEA equal to that described in paragraph 5 (a),
which is deferred until the Debt is no longer outstanding,and that,once the Debt is no
longer outstanding,through the Option Agreement,the Water Users Association may
elect to allow DMEA to retain full ownership of the Project Property and,in electing
to allow DMEA to retain full ownership, to receive the rental payments described in
paragraph 5(a).
The funds or price paid for power produced from these facilities is derived from power
that DMEA does not have to purchase from Tri-State Generation(the wholesale provider
for DMEA)or a Purchased Power Reduction. The price paid last year was$74.00/MW.
There is also a price paid for the sale of renewable energy credits sold each year. The
following is the financial statement showing the cash transactions from the facilities last
year from DMEA.
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