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3. A "minimum take" of the base capacity of 85 MW. <br />4. OUC would have a one-time option to terminate the PPA, no <br />earlier than 2020, with 2 years' notice. If OUC gives notice, <br />OUC and the City would agree to negotiate in good faith toward <br />a renewal and extension based on then -current market <br />conditions, but neither party would be obligated to agree to <br />such a renewal or extension. <br />5. OUC would have a one-time option to acquire Vero Beach's rights <br />to the output of the St. Lucie Project through a power purchase <br />agreement. <br />6. OUC would be allowed to permanently retain the gas <br />transportation rights that are presently assigned to OUC under <br />the 2008 PPA. <br />Additionally, although not reflected on the term sheet, OUC's <br />senior management have indicated that they would be happy to receive <br />and process employment applications from any City employees whose <br />positions would be terminated upon retirement of the Power Plant. <br />Timing Considerations <br />The Capacity Payment reductions and the Peaking Capacity <br />purchase -and -sale are a "package deal." Thus, these reductions can <br />only be implemented when necessary transmission arrangements are in <br />place to accommodate delivery of the peaking capacity from OUC to <br />Vero Beach. The Electric c Utilities Director is in regular <br />communication with FPL regarding necessary transmission studies and <br />potential upgrades. In a best -case scenario, i.e., if no upgrades <br />were required to accommodate delivery of the peaking capacity, the <br />City and OUC may be able to implement the Amended PPA in early 2015 <br />(allowing for preparation and approval of the Amended PPA by the OUC <br />Board and the Vero Beach City Council). If significant transmission <br />upgrades are required, it is difficult to say when the Amended PPA <br />pricing will be implemented. <br />Net Effect on City's Rates Compared to Other Florida Utilities <br />If and when the City is able to reduce its bill for 1,000 kWh <br />of Residential service to $113.93 per 1,000 kWh, the City's rates <br />would be lower than those of Duke Energy Florida, Gulf Power <br />Company, and both divisions of Florida Public Utilities Company, <br />while remaining above those of FPL and Tampa Electric Company. (All <br />comparisons here are on the basis of actual rates, excluding <br />franchise fees and gross receipts taxes.) The City's rate for 1,000 <br />kWh of Residential service would also be lower than 25 of the other <br />3 <br />