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POWER SALES AGREEMENT <br />THIS AGREEMENT is made and entered into as of the day of , <br />1999, by and between the City of Colton, California, a municipal corporation, (hereinafter <br />known as "Colton') and American Utility Network, a California corporation and registered <br />Energy Service Provider No. 1158, (hereinafter known as "AUN"), and Sempra Energy <br />Trading Corporation, a Delaware corporation, said corporations being sometimes referred to <br />collectively as "Parties" and individually as a "Party". <br />RECITALS <br />This agreement is made with reference to the following facts: <br />WHEREAS, Colton, California, is engaged in the generation, transmission, distribution <br />and sale of electric power in the State of California, and is interconnected to the transmission <br />and distribution system of the Southern California Edison Company and to transmission <br />facilities under the control of the California Independent System Operator, (hereinafter known <br />as "ISO") and, <br />WHEREAS, Colton has surplus energy resources available and, <br />WHEREAS, American Utility Network, is engaged in the sale of electric commodity <br />and related services to retail electricity customers in the State of California, and, <br />WHEREAS, the Parties desire to establish terms and conditions under which electrical <br />energy shall be sold by Colton to AUN, and, <br />WHEREAS, the Parties desire to establish terms and conditions under which certain <br />information pertaining to provision of electric commodity and related services shall be <br />provided by AUN to Colton, <br />Page 1 of 16 <br />Power Sales Agreement <br />Colton and American Utility Network <br />