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1 MAGNOLIA POWER PROJECT
<br />2 POWER SALES AGREEMENT
<br />3 (Project A)
<br />4 1. PARTIES. This Magnolia Power Project Power Sales Agreement, made and entered into as of this
<br />5 fust day of , 2002, by and between Ihe SOU77-IERN CALIFORNIA PU$LIC POWER
<br />6 AUTHORITY, a joint powers agency and a public entity organized under the laws oF the State of
<br />7 California, hereinafter designated as "SCPPA," created under the provisions of the Act, and the City
<br />8 of [CITY NAME], California, a[charter city and] municipal corporation organized and existing
<br />9 under the laws of the State of Califomia, hereinafter designated as "[CITY NAME]," each sometimes
<br />] 0 hereinafter referred to individually as "Party" and together as "Parties."
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<br />RECITALS. This Agreement is made with reference to the following facts among others:
<br />2.1 SCPPA was created pursuant to provisions contained in the joint exercise of powers act
<br />found in Chapter 5 of Division 7 of Title 1 of the Government Code of Califomia, as
<br />amended from time to time (the "Act"), by its members, which are municipalities and an
<br />irrigation district that supply or will supply electricity in the State of Califomia, for the
<br />purpose of joindy and cooperatively undertaking planning, financing, development,
<br />acquisition, construction, operation and maintenance of projects for the generation or
<br />transmission of electric energy in accordance with the Act.
<br />2.2 Pursuant to the terms of the Act, SCPPA has the power to plan, develop, finance, own,
<br />acquire, design, construct, operate, maintain and repair electric generation or transmission
<br />projects or cause such projects to be planned, developed, financed, designed, constructed,
<br />operated, maintained and repaired, and to provide by agreement with a public agency of the
<br />State of Califomia to perform s�ch activities.
<br />23 SCPPA and certain of its members have investigated the feasibility of the construction and
<br />operation of a generating facility to be located on the existing generating site in Burbank,
<br />Califomia, including all necessazy and appurtenant facilities thereto, the applicable portion of
<br />any common facilities, interconnection facilities and all related facilities (the "Project", as
<br />more fully described in Appendix D of the Construction Management and Operating
<br />Agreement and Appendix C hereof, each entitled "Description of Generation Station and
<br />Interconnection Facilities"), in order to, among other things, provide generating Capacity and
<br />Energy for the Project Participants.
<br />32 2.4 SCPPA des'ues to proceed with the design, financing, acquisition, construction, operation and
<br />33 maintenance of the Project.
<br />34 2S [CTT'Y NAME] has need For an economical, reliable sowce of ekctric capacity and energy to
<br />35 meet the demands of its current and/or future customers and, as such, has determuied that it is
<br />36 desirable to enter into this Agreement to purchase electric capacity and energy of the Project
<br />37 from SCPPA.
<br />38 2.6 SCPPA will take or cause to be taken all steps necessary to secure such govemmental
<br />39 permits, licenses and approvals as aze necessary for, and will then prceeed as appropriate
<br />d0 with final design, financing, acquisition, conswction, operation and maintenarece of those
<br />41 facilities herein described and designated as the Project for the supply of electric capaciry and
<br />42 energy to [CITY NAME] and to all other Project Participants contracting with SCPPA
<br />45049822.I8 (PSA Projat A)
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