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Exhibit "B." Likewise, the Franchise Agreement between the Town and the City expressly <br /> requires that the City only charge "reasonable" rates for the electric services it furnishes to the <br /> Town and its citizens. Ex. A, Franchise Agreement, § 5. <br /> 30. The City has engaged in improper rate-making practices that require the Plaintiffs <br /> and other Non-Resident Customers to unfairly subsidize City operations that are not related to <br /> the furnishing of electric service to customers. For example, upon information and belief: <br /> a. The City has diverted electric utility revenues to the City's general revenue fund <br /> to cover non-utility costs, including propping up the City's unfunded pension <br /> obligations to current and former employees that had nothing to do with the <br /> operation of the City's electric utility or the furnishing of electric service; and <br /> b. Under the pretense of eliminating a 10% surcharge on the Plaintiffs and other <br /> Non-Resident Customers, the City actually adopted an aggressive inverted rate <br /> which resulted in a net increase in base rates that disproportionately affected Non- <br /> Resident Customers. <br /> As a result of these improper rate-making practices,Non-Resident Customers are being forced to <br /> subsidize approximately 24% of the City's total budget. These and other improper rate-making <br /> practices of the City have resulted in unreasonable and excessive rates, which the Plaintiffs and <br /> other Non-Residential Customers are being forced to pay. <br /> 31. In order to protect against unreasonable rates, the City has a legal duty to the <br /> Plaintiffs and its other electric customers to operate and manage its municipal electric utility with <br /> the same degree of business prudence, conservative business judgment and sound fiscal <br /> management as is required of private investor owned electric utilities. State v. City of Daytona <br /> Beach, 158 So. 300, 305 (Fla. 1934). <br /> 7 <br /> bOZ <br />