Document:

EXHIBIT
4.7.1(aaa)

 

Upon recording, return to:

Ms. Shawne M. Keenan

Sutherland Asbill & Brennan LLP

999 Peachtree Street, N.E.

Atlanta, Georgia 30309-3996

 

PURSUANT TO
§44-14-35.1 OF OFFICIAL CODE OF
GEORGIA ANNOTATED, THIS INSTRUMENT EMBRACES,

COVERS AND CONVEYS
SECURITY TITLE TO AFTER-ACQUIRED PROPERTY OF THE GRANTOR

 

	
   

  	
   

  	
   

  

 

OGLETHORPE POWER CORPORATION

(AN ELECTRIC MEMBERSHIP CORPORATION),

GRANTOR,

 

to

 

U.S. BANK NATIONAL ASSOCIATION,

TRUSTEE

 

FIFTY-SECOND
SUPPLEMENTAL

INDENTURE

 

Relating to the

First Mortgage Bond, Series 2009 CoBank

(Clean Renewable Energy Bond)

 

Dated as of December 30, 2009

 

FIRST MORTGAGE OBLIGATIONS

 

	
   

  	
   

  	
   

  

 

NOTE TO CLERK OF THE GEORGIA
SUPERIOR COURT AND GEORGIA TAX COMMISSIONER:  BECAUSE THIS
INSTRUMENT SECURES A BOND AND NOT A LONG TERM NOTE, THIS INSTRUMENT IS EXEMPT
FROM THE INTANGIBLES RECORDING TAX PURSUANT TO GEORGIA ADMINISTRATIVE CODE
§560-11-8-.14(D).

 

 

THIS FIFTY-SECOND
SUPPLEMENTAL INDENTURE, dated as of December 30, 2009, is
between OGLETHORPE POWER CORPORATION (AN
ELECTRIC MEMBERSHIP CORPORATION), formerly known as Oglethorpe Power
Corporation (An Electric Membership Generation & Transmission
Corporation), an electric membership corporation organized and existing under
the laws of the State of Georgia, as grantor (the “Company”), and U.S. BANK NATIONAL ASSOCIATION, a national
banking association, as successor to SunTrust Bank, formerly known as SunTrust
Bank, Atlanta, as trustee (in such capacity, the “Trustee”).

 

WHEREAS, the Company
has heretofore executed and delivered to the Trustee an Indenture, dated as of March 1,
1997 (the “Original Indenture”), for the purpose of securing its Existing
Obligations and providing for the authentication and delivery of Additional
Obligations by the Trustee from time to time under the Original Indenture
(capitalized terms used herein and not otherwise defined shall have the
meanings assigned to them in the Original Indenture);

 

WHEREAS, the Company has
heretofore executed and delivered to the Trustee fifty-one Supplemental
Indentures (the Original Indenture, as heretofore, hereby and hereafter
supplemented and modified, the “Indenture”) and the Original Indenture and the
fifty-one Supplemental Indentures have been recorded as set forth on Schedule 1;

 

WHEREAS, the Company is
entering into that certain Bond Purchase Agreement, dated as of December 30,
2009 (as it may be amended, modified or supplemented from time to time, the “Bond
Purchase Agreement”), with CoBank, ACB (“CoBank”) pursuant to which CoBank has
agreed to purchase from the Company that certain First Mortgage Bond, Series 2009 CoBank (Clean Renewable Energy
Bond), in the face principal amount of $16,165,400 (the  “Series 2009 Clean Renewable Energy Bond”),
the proceeds of which will be used by the Company to finance an efficiency
enhancement project to the Rocky Mountain Pumped Storage Hydroelectric Facility
located in Floyd County, Georgia;

 

WHEREAS, the Company
has complied or will comply with all provisions required to issue Additional
Obligations provided for in the Original Indenture;

 

WHEREAS, the Company
desires to execute and deliver this Fifty-Second Supplemental Indenture, in
accordance with the provisions of the Original Indenture, for the purpose of
providing for the creation and designation of the Series 2009 Clean Renewable
Energy Bond as an Additional Obligation and specifying the form and provisions
thereof;

 

WHEREAS, Section 12.1
of the Original Indenture provides that, without the consent of the Holders of
any of the Obligations, the Company, when authorized by a Board Resolution, and
the Trustee may enter into Supplemental Indentures for the purposes and subject
to the conditions set forth in said Section 12.1, including to create
additional series of Obligations under the Indenture and to make provisions for
such additional series of Obligations; and

 

WHEREAS, all acts and proceedings
required by law and by the Articles of Incorporation and Bylaws of the Company
necessary to secure under the Indenture the payment of the principal of (and
premium, if any) and interest on the Series 2009 Clean Renewable Energy
Bond, to make the Series 2009 Clean Renewable Energy Bond to be issued
hereunder, 

 

 

when executed by the Company, authenticated and delivered by the
Trustee and duly issued, the valid, binding and legal obligation of the
Company, and to constitute the Indenture a valid and binding lien for the
security of the Series 2009 Clean Renewable Energy Bond, in accordance
with its terms, have been done and taken; and the execution and delivery of
this Fifty-Second Supplemental Indenture have been in all respects duly
authorized by the Company;

 

NOW,
THEREFORE, THIS FIFTY-SECOND SUPPLEMENTAL INDENTURE WITNESSES, that, to
secure the payment of the principal of (and premium, if any) and interest on
the Outstanding Secured Obligations, including, when authenticated and
delivered, the Series 2009 Clean Renewable Energy Bond, to confirm the
lien of the Indenture upon the Trust Estate, including property purchased,
constructed or otherwise acquired by the Company since the date of execution of
the Original Indenture, to secure performance of the covenants therein and
herein contained, to declare the terms and conditions on which the Series 2009
Clean Renewable Energy Bond is secured, and in consideration of the premises
thereof and hereof, the Company by these presents does grant, bargain, sell,
alienate, remise, release, convey, assign, transfer, mortgage, hypothecate,
pledge, set over and confirm to the Trustee, and its successors and assigns in
the trust created thereby and hereby, in trust, all property, rights,
privileges and franchises (other than Excepted Property or Excludable Property)
of the Company, whether now owned or hereafter acquired, of the character
described in the Granting Clauses of the Original Indenture, wherever located,
including all such property, rights, privileges and franchises acquired since
the date of execution of the Original Indenture, including, without limitation,
all property described on Exhibit A attached hereto, subject to all
exceptions, reservations and matters of the character referred to in the
Indenture, and does grant a security interest therein for the purposes
expressed herein and in the Original Indenture subject in all cases to Sections
5.2 and 11.2 B of the Original Indenture and to the rights of the Company under
the Original Indenture, including the rights set forth in Article V
thereof; but expressly excepting and excluding from the lien and operation of
the Indenture all properties of the character specifically excepted as “Excepted
Property” or “Excludable Property” in the Original Indenture to the extent
contemplated thereby.

 

PROVIDED, HOWEVER, that if, upon the
occurrence of an Event of Default, the Trustee, or any separate trustee or
co-trustee appointed under Section 9.14 of the Original Indenture or any
receiver appointed pursuant to statutory provision or order of court, shall
have entered into possession of all or substantially all of the Trust Estate,
all the Excepted Property described or referred to in Paragraphs A through H,
inclusive, of “Excepted Property” in the Original Indenture then owned or
thereafter acquired by the Company, shall immediately, and, in the case of any
Excepted Property described or referred to in Paragraphs I, J, L, N and P of “Excepted
Property” in the Original Indenture (excluding the property described in Section 2
of Exhibit B in the Original Indenture), upon demand of the Trustee or
such other trustee or receiver, become subject to the lien of the Indenture to
the extent permitted by law, and the Trustee or such other trustee or receiver
may, to the extent permitted by law, at the same time likewise take possession
thereof, and whenever all Events of Default shall have been cured and the
possession of all or substantially all of the Trust Estate shall have been
restored to the Company, such Excepted Property shall again be excepted and
excluded from the lien of the Indenture to the extent and otherwise as
hereinabove set forth and as set forth in the Indenture.

 

2

 

The
Company may, however, pursuant to the Granting Clause Third of the Original
Indenture, subject to the lien of the Indenture any Excepted Property or
Excludable Property, whereupon the same shall cease to be Excepted Property or
Excludable Property.

 

TO HAVE AND TO HOLD all such property, rights,
privileges and franchises hereby and hereafter (by a Supplemental Indenture or
otherwise) granted, bargained, sold, alienated, remised, released, conveyed,
assigned, transferred, mortgaged, hypothecated, pledged, set over or confirmed
as aforesaid, or intended, agreed or covenanted so to be, together with all the
tenements, hereditaments and appurtenances thereto appertaining (said
properties, rights, privileges and franchises, including any cash and
securities hereafter deposited or required to be deposited with the Trustee
(other than any such cash which is specifically stated in the Indenture not to
be deemed part of the Trust Estate) being part of the Trust Estate), unto the
Trustee, and its successors and assigns in the trust herein created by the
Indenture, forever.

 

SUBJECT,
HOWEVER, to (i) Permitted Exceptions and (ii) to the extent
permitted by Section 13.6 of the Original Indenture as to property
hereafter acquired (a) any duly recorded or perfected prior mortgage or
other lien that may exist thereon at the date of the acquisition thereof by the
Company and (b) purchase money mortgages, other purchase money liens,
chattel mortgages, conditional sales agreements or other title retention
agreements created by the Company at the time of acquisition thereof.

 

BUT IN
TRUST, NEVERTHELESS, with power of sale, for the equal and
proportionate benefit and security of the Holders from time to time of all the
Outstanding Secured Obligations without any priority of any such Obligation
over any other such Obligation and for the enforcement of the payment of such
Obligations in accordance with their terms.

 

UPON
CONDITION that, until the happening of an Event of  Default and subject to the provisions of Article V
of the Original Indenture, and not in limitation of the rights elsewhere
provided in the Original Indenture, including the rights set forth in Article V
of the Original Indenture, the Company shall be permitted to (i) possess
and use the Trust Estate, except cash, securities, Designated Qualifying
Securities and other personal property deposited, or required to be deposited,
with the Trustee, (ii) explore for, mine, extract, separate and dispose of
coal, ore, gas, oil and other minerals, and harvest standing timber, and (iii) receive
and use the rents, issues, profits, revenues and other income, products and
proceeds of the Trust Estate.

 

THE
INDENTURE, INCLUDING THIS FIFTY-SECOND SUPPLEMENTAL INDENTURE, is intended to
operate and is to be construed as a deed passing title to the Trust Estate and
is made under the provisions of the laws of the State of Georgia relating to
deeds to secure debt, and not as a mortgage or deed of trust, and is given to
secure the Outstanding Secured Obligations. 
Should the indebtedness secured by the Indenture be paid according to
the tenor and effect thereof when the same shall become due and payable and
should the Company perform all covenants contained in the Indenture in a timely
manner, then the Indenture shall be canceled and surrendered.

 

AND IT IS HEREBY COVENANTED AND DECLARED that the Series 2009
Clean Renewable Energy Bond is to be authenticated and delivered and the Trust
Estate is to be held and applied by the Trustee, subject to the covenants,
conditions and trusts set forth herein and in 

 

3

 

the Indenture, and the Company does hereby covenant and agree to and
with the Trustee, for the equal and proportionate benefit of all Holders of the
Outstanding Secured Obligations, as follows:

 

ARTICLE I

 

THE SERIES 2009 CLEAN RENEWABLE ENERGY BOND AND

CERTAIN PROVISIONS RELATING THERETO

 

Section 1.1            Authorization
and Terms of the Series 2009 Clean Renewable Energy Bond.

 

There shall be created and
established an Additional Obligation in the form of a bond to be known as and
entitled the “First Mortgage Bond, Series 2009 CoBank (Clean Renewable
Energy Bond)” (the “Series 2009 Clean Renewable Energy Bond”), the form,
terms and conditions of which shall be substantially as set forth in or
prescribed pursuant to this Section and Section 1.2 hereof.  The principal face amount of the Series 2009
Clean Renewable Energy Bond is limited to $16,165,400.  The Series 2009 Clean Renewable Energy
Bond, when duly executed and issued by the Company, authenticated and delivered
by the Trustee and received by CoBank, will be secured equally and
proportionately under the Indenture with all other Outstanding Secured
Obligations.

 

The Series 2009 Clean
Renewable Energy Bond shall be dated the date of its authentication.  The Series 2009 Clean Renewable Energy
Bond shall mature on December 20, 2024 or such later maturity date as
provided in the Bond Purchase Agreement. 
The Series 2009 Clean Renewable Energy Bond shall bear interest as
provided in the Bond Purchase Agreement, and interest shall be calculated as
specified in the Bond Purchase Agreement and shall be payable at the times
provided in the Bond Purchase Agreement. 
If any Payment Due Date (as defined in the Bond Purchase Agreement) is
not a Business Day (as defined in the Bond Purchase Agreement), then the
payment due thereon shall be due and payable on the next Business Day (as
defined in the Bond Purchase Agreement) and, in the case of principal, interest
shall continue to accrue thereon until paid.

 

All payments, including
prepayments, made on the Series 2009 Clean Renewable Energy Bond shall be
made as provided in, and pursuant to the terms and conditions of, such Series 2009
Clean Renewable Energy Bond and the Bond Purchase Agreement (and shall not be
governed by the provisions of Section 1.14 or Article XIV of the
Original Indenture), and shall be made in lawful money of the United States of
America which will be immediately available on the date payment is due.

 

Section 1.2            Form of the Series 2009
Clean Renewable Energy Bond.

 

The
Series 2009 Clean Renewable Energy Bond and the Trustee’s certificate of
authentication for the Series 2009 Clean Renewable Energy Bond shall be
substantially in the form set forth in an Officers’ Certificate to be delivered
to the Trustee by the Company, which shall establish the terms and conditions
of such Series 2009 Clean Renewable Energy Bond pursuant to Sections 2.1
and 3.3 of the Original Indenture, with such appropriate insertions, 

 

4

 

omissions, substitutions and other variations as are required or
permitted in the Original Indenture.

 

Section 1.3            Grace Period.

 

A default in the payment of any interest upon the Series 2009
Clean Renewable Energy Bond within  five (5) Business Days
(as defined in the Bond Purchase Agreement) of when such interest becomes due
and payable shall constitute an Event of Default under Section 8.1A of the
Original Indenture.  A default in the
payment of the principal of (or premium, if any, on) the Series 2009 Clean
Renewable Energy Bond and the continuance of such default for a period of five (5) Business
Days (as defined in the Bond Purchase Agreement) shall constitute an Event of
Default under Section 8.1B of the Original Indenture.

 

ARTICLE II

 

MISCELLANEOUS

 

Section 2.1            Supplemental
Indenture.

 

This Fifty-Second
Supplemental Indenture is executed and shall be construed as an indenture
supplemental to the Original Indenture, and shall form a part thereof, and the
Original Indenture, as heretofore supplemented and as hereby supplemented and
modified, is hereby confirmed.  Except to
the extent inconsistent with the express terms hereof, all of the provisions,
terms, covenants and conditions of the Indenture shall be applicable to the Series 2009
Clean Renewable Energy Bond to the same extent as if specifically set forth
herein.  All references herein to
Sections, definitions or other provisions of the Original Indenture shall be to
such Sections, definitions and other provisions as they may be amended or
modified from time to time pursuant to the Indenture.  All capitalized terms used in this
Fifty-Second Supplemental Indenture shall have the same meanings assigned to
them in the Original Indenture, except in cases where the context clearly
indicates otherwise.

 

Section 2.2            Recitals.

 

All recitals in this
Fifty-Second  Supplemental Indenture are made
by the Company only and not by the Trustee; and all of the provisions contained
in the Original Indenture, in respect of the rights, privileges, immunities,
powers and duties of the Trustee shall be applicable in respect hereof as fully
and with like effect as if set forth herein in full.

 

Section 2.3            Successors
and Assigns.

 

Whenever in this
Fifty-Second Supplemental Indenture any of the parties hereto is named or
referred to, this shall, subject to the provisions of Articles IX and XI of the
Original Indenture, be deemed to include the successors and assigns of such
party, and all the covenants and agreements in this Fifty-Second Supplemental
Indenture contained by or on behalf of the Company or by or on behalf of the
Trustee shall, subject as aforesaid, bind and inure to the respective benefits
of the respective successors and assigns of such parties, whether so expressed
or not.

 

5

 

Section 2.4            No
Rights, Remedies, Etc.

 

Nothing in this Fifty-Second
Supplemental Indenture, expressed or implied, is intended, or shall be
construed, to confer upon, or to give to, any person, firm or corporation,
other than the parties hereto and the Holders of the Outstanding Secured
Obligations, any right, remedy or claim under or by reason of this Fifty-Second
Supplemental Indenture or any covenant, condition, stipulation, promise or
agreement hereof.

 

Section 2.5            Counterparts.

 

This Fifty-Second Supplemental
Indenture may be executed in several counterparts, each of such counterparts
shall for all purposes be deemed to be an original, and all such counterparts,
or as many of them as the Company and the Trustee shall preserve undestroyed,
shall together constitute but one and the same instrument.

 

Section 2.6            Security
Agreement; Mailing Address.

 

To the extent permitted by
applicable law, this Fifty-Second Supplemental Indenture shall be deemed to be
a Security Agreement and Financing Statement whereby the Company grants to the
Trustee a security interest in all of the Trust Estate that is personal
property or fixtures under the Uniform Commercial Code, as adopted or hereafter
adopted in one or more of the states in which any part of the properties of the
Company are situated.

 

The mailing address of the Company, as
debtor, is:

 

2100 East Exchange Place

Tucker, Georgia 30084-5336

 

and the mailing address of
the Trustee, as secured party, is:

 

U.S. Bank National
Association

Attention:  Corporate Trust Services

1349 West Peachtree Street,
NW

Suite 1050, Two Midtown
Plaza

Atlanta, Georgia  30309

 

[Signatures on Next Page]

 

6

 

IN WITNESS
WHEREOF, the parties hereto have caused this Fifty-Second Supplemental Indenture to
be duly executed under seal as of the day and year first written above.

 

 

	
  Company:

  	
  OGLETHORPE POWER CORPORATION  (AN ELECTRIC MEMBERSHIP CORPORATION), an
  electric membership corporation organized under the laws of the State of
  Georgia

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Thomas A. Smith

  
	
   

  	
   

  	
  Thomas A. Smith

  
	
   

  	
   

  	
  President and Chief Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signed, sealed and delivered

  	
  Attest:

  	
    /s/ Patricia N. Nash

  
	
  by the Company in the presence of:

  	
   

  	
  Patricia N. Nash

  
	
   

  	
   

  	
  Secretary

  
				

 

	
  /s/ Thomas J. Brendiar

  	
   

  	
  [CORPORATE SEAL]

  
	
  Witness

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ Lynn Lester

  	
   

  	
   

  
	
  Notary Public

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  (Notarial Seal)

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  My commission expires:

  	
  October 1, 2013

  	
   

  	
   

  
				

 

[Signatures Continue on Next Page]

 

 

[Signatures Continued from Previous Page]

 

 

	
  Trustee:

  	
  U.S. BANK NATIONAL ASSOCIATION, a national
  banking association

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jack Ellerin

  
	
  Signed
  and delivered

  	
   

  	
  Authorized
  Agent

  
	
  by
  the Trustee in the

  	
   

  	
   

  
	
  Presence
  of:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ Felicia Powell

  	
   

  	
   

  
	
  Witness

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ Sonia S. Henry

  	
   

  	
   

  
	
  Notary
  Public

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  (Notarial
  Seal)

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  My
  commission expires:

  	
  July 21, 2012

  	
   

  	
   

  
				

 

 

Exhibit A

 

All property of the Company in the Counties
in Appling, Burke, Carroll, DeKalb, Floyd, Hart,  Heard,
Monroe, Talbot, Toombs, Warren and Washington, State of Georgia.

 

A-1

 

Schedule 1

 

RECORDING INFORMATION

FOR

                          
COUNTY, GEORGIA

 

	
  DOCUMENT

  	
   

  	
  RECORDING

  INFORMATION

  	
   

  	
  DATE OF

  RECORDING

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Original
  Indenture

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  First
  Supplemental Indenture

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Second
  Supplemental Indenture

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Third
  Supplemental Indenture

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Fourth
  Supplemental Indenture

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Fifth
  Supplemental Indenture

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Sixth
  Supplemental Indenture

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Seventh
  Supplemental Indenture

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Eighth
  Supplemental Indenture

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Ninth
  Supplemental Indenture

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Tenth
  Supplemental Indenture

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Eleventh
  Supplemental Indenture

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Twelfth
  Supplemental Indenture

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Thirteenth
  Supplemental Indenture

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Fourteenth
  Supplemental Indenture

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Fifteenth
  Supplemental Indenture

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Sixteenth
  Supplemental Indenture

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Seventeenth
  Supplemental Indenture

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Eighteenth
  Supplemental Indenture

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Nineteenth
  Supplemental Indenture

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Twentieth
  Supplemental Indenture

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Twenty-First
  Supplemental Indenture

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Twenty-Second
  Supplemental Indenture

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Twenty-Third
  Supplemental Indenture

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Twenty-Fourth
  Supplemental Indenture

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Twenty-Fifth
  Supplemental Indenture

  	
   

  	
   

  	
   

  	
   

  

 

 

	
  DOCUMENT

  	
   

  	
  RECORDING

  INFORMATION

  	
   

  	
  DATE OF

  RECORDING

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Twenty-Sixth
  Supplemental Indenture

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Twenty-Seventh
  Supplemental Indenture

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Twenty-Eighth
  Supplemental Indenture

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Twenty-Ninth
  Supplemental Indenture

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Thirtieth
  Supplemental Indenture

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Thirty-First
  Supplemental Indenture

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Thirty-Second
  Supplemental Indenture

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Thirty-Third
  Supplemental Indenture

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Thirty-Fourth
  Supplemental Indenture

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Thirty-Fifth
  Supplemental Indenture

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Thirty-Sixth
  Supplemental Indenture

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Thirty-Seventh
  Supplemental Indenture

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Thirty-Eighth
  Supplemental Indenture

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Thirty-Ninth
  Supplemental Indenture

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Fortieth
  Supplemental Indenture

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Forty-First
  Supplemental Indenture

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Forty-Second
  Supplemental Indenture

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Forty-Third
  Supplemental Indenture

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Forty-Forth
  Supplemental Indenture

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Forty-Fifth
  Supplemental Indenture

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Forty-Sixth
  Supplemental Indenture

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Forty-Seventh
  Supplemental Indenture

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Forty-Eighth
  Supplemental Indenture

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Forty-Ninth
  Supplemental Indenture

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Fiftieth
  Supplemental Indenture

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Fifty-First
  Supplemental IndentureEXHIBIT 10.8.8

 

WHOLESALE
POWER CONTRACT

 

BETWEEN

 

OGLETHORPE
POWER CORPORATION

(AN
ELECTRIC MEMBERSHIP CORPORATION)

 

AND

 

FLINT ELECTRIC MEMBERSHIP CORPORATION

 

DATED AS OF

 

November 1,
2009

 

 

TABLE OF
CONTENTS

 

	
  1.

  	
  DEFINITIONS

  	
  2

  
	
  2.

  	
  PURCHASE AND SALE OBLIGATION

  	
  2

  
	
   

  	
  2.1 

  	
  Purchase and Sale

  	
  2

  
	
   

  	
  2.2 

  	
  No Dedication of Resources

  	
  2

  
	
   

  	
  2.3

  	
  Purchaser’s Unconditional Obligation to Pay

  	
  2

  
	
  3.

  	
  PERCENTAGE CAPACITY RESPONSIBILITIES

  	
  3

  
	
   

  	
  3.1 

  	
  Percentage Capacity Responsibilities; Power Sales Resources

  	
  3

  
	
   

  	
  3.2

  	
  Change of Certain Purchaser Obligations

  	
  3

  
	
   

  	
  3.3

  	
  Future Resources and Resource Modifications

  	
  4

  
	
   

  	
  3.4

  	
  Cost Responsibility

  	
  6

  
	
  4.

  	
  SCHEDULING AND SYSTEM OPERATIONS

  	
  7

  
	
   

  	
  4.1

  	
  Scheduling

  	
  7

  
	
   

  	
  4.2

  	
  Right to Designate Agent

  	
  8

  
	
  5.

  	
  RATES

  	
  8

  
	
   

  	
  5.1

  	
  General

  	
  8

  
	
   

  	
  5.2

  	
  Periodic Review

  	
  8

  
	
   

  	
  5.3

  	
  Functional Unbundling

  	
  8

  
	
   

  	
  5.4

  	
  Reasonable Rates

  	
  8

  
	
   

  	
  5.5

  	
  Allocation of Payment Defaults

  	
  8

  
	
   

  	
  5.6

  	
  Covenant of the Purchaser

  	
  9

  
	
  6.

  	
  DELIVERY POINTS AND GENERAL TERMS AND CONDITIONS OF
  SERVICE

  	
  9

  
	
   

  	
  6.1

  	
  Delivery Points

  	
  9

  
	
   

  	
  6.2

  	
  General Terms and Conditions

  	
  9

  
	
   

  	
  6.3

  	
  Seller and Purchaser Duties

  	
  9

  
	
  7.

  	
  RIGHTS OF ACCESS, RECORDS AND ACCOUNTS

  	
  10

  
	
   

  	
  7.1

  	
  Rights of Access

  	
  10

  
	
   

  	
  7.2

  	
  Accounting Records

  	
  10

  
	
   

  	
  7.3

  	
  Access to Books and Records

  	
  10

  
	
  8.

  	
  REORGANIZATIONS, TRANSFERS AND SALES OF ASSETS BY
  THE PURCHASER

  	
  11

  
	
   

  	
  8.1

  	
  Dissolution or Liquidation

  	
  11

  
	
   

  	
  8.2

  	
  Permitted Transactions

  	
  11

  
	
   

  	
  8.3

  	
  Service Territory and Distribution System

  	
  12

  
	
   

  	
  8.4

  	
  Specific Performance

  	
  12

  
	
  9.

  	
  ASSIGNMENTS

  	
  12

  
	
   

  	
  9.1

  	
  General

  	
  12

  
	
   

  	
  9.2

  	
  Assignment for Security

  	
  13

  
	
   

  	
  9.3

  	
  Corporate Reorganization

  	
  13

  
	
   

  	
  9.4

  	
  Receiver or Trustee in Bankruptcy

  	
  14

  
	
   

  	
  9.5

  	
  Express Rejection of Implied Limitations

  	
  14

  
	
  10.

  	
  EVENTS OF DEFAULT AND REMEDIES

  	
  15

  
	
   

  	
  10.1

  	
  Payment Default

  	
  15

  
	
   

  	
  10.2

  	
  Seller’s Failure to Deliver

  	
  16

  

 

i

 

	
   

  	
  10.3

  	
  Performance Default

  	
  16

  
	
   

  	
  10.4

  	
  Remedies

  	
  16

  
	
   

  	
  10.5

  	
  Member Purchaser Approvals

  	
  17

  
	
  11.

  	
  REASONABLENESS OF RATES

  	
  17

  
	
   

  	
  11.1

  	
  Fixed Rate Contract

  	
  17

  
	
   

  	
  11.2

  	
  Formulaic Rate

  	
  17

  
	
   

  	
  11.3

  	
  Regulatory Review

  	
  17

  
	
  12.

  	
  EFFECTIVENESS AND TERM

  	
  18

  
	
  13.

  	
  AMENDMENTS, ENTIRE AGREEMENT AND CONFLICTS

  	
  18

  
	
   

  	
  13.1

  	
  Amendments

  	
  18

  
	
   

  	
  13.2

  	
  Entire Agreement

  	
  18

  
	
   

  	
  13.3

  	
  Conflicts

  	
  18

  
	
   

  	
  13.4

  	
  Counterparts

  	
  19

  
	
  14.

  	
  SEVERABILITY

  	
  19

  
	
  15.

  	
  GOVERNING LAW

  	
  19

  
	
  16.

  	
  MEDIATION

  	
  19

  
	
  17.

  	
  PURCHASER’S WITHDRAWAL FROM SELLER

  	
  19

  
	
  18.

  	
  MISCELLANEOUS

  	
  20

  
	
   

  	
  18.1

  	
  No Retail Sales

  	
  20

  
	
   

  	
  18.2

  	
  Indemnification

  	
  20

  
	
   

  	
  18.3

  	
  No Restriction on Revenue Allocation

  	
  20

  
	
   

  	
  18.4

  	
  Corporate Documents

  	
  20

  
	
   

  	
  18.5

  	
  Information Requirements

  	
  21

  
	
   

  	
  18.6

  	
  No Third Party Beneficiaries

  	
  21

  
	
   

  	
  18.7

  	
  Rules of Construction

  	
  21

  
	
  19.

  	
  NOTICES

  	
  21

  
	
   

  	
   

  	
   

  	
   

  
	
  SCHEDULES

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Schedule A - Rate Schedule
  A

  	
   

  
	
   

  	
  Schedule B - Form of
  Subscription Agreement

  	
   

  
	
   

  	
  Schedule C - Definitions

  	
   

  

 

ii

 

WHOLESALE
POWER CONTRACT

 

THIS
WHOLESALE POWER CONTRACT, dated as of November 1, 2009 (together with
permitted amendments hereto, this “Agreement”),
is entered into by and between Oglethorpe Power Corporation (An Electric
Membership Corporation), an electric membership corporation organized and
existing under the laws of the State of Georgia (the “Seller”), and Flint Electric Membership
Corporation, an electric membership corporation organized and existing under
the laws of the State of Georgia (the “Purchaser”).

 

R E C I T A L S:

 

WHEREAS,
the Seller’s existing Members are 38 electric membership corporations doing
business in the State of Georgia, each of which joined with the others,
beginning in 1974, to form the Seller in order to share the benefits and costs
of ownership of an entity that would engage in providing electric capacity and
energy for the benefit of its Members; and

 

WHEREAS,
the Seller currently owns and operates electric generation plants and in the
future may construct additional electric generation plants or purchase or
otherwise obtain electric capacity and energy for the purpose, among others, of
supplying electric capacity and energy to its Members, several of which are
borrowers from the Rural Utilities Service, as successor to the Rural
Electrification Administration (the “RUS”),
and others; and

 

WHEREAS,
the Seller has financed the construction of such generating plants in whole or
in part through loans, and may in the future obtain additional loans, evidenced
by mortgage notes (collectively, the “Notes”)
made or guaranteed by the United States of America (the “Government”), acting through the Administrator
of the RUS (the “Administrator”)
and loans made by, or securities issued to, or obligations undertaken to,
others; and

 

WHEREAS,
the Notes and certain of the loans made by, or securities issued to, or
obligations undertaken to, others (collectively, with the Notes, the “Secured Obligations”) are or may be secured
by that certain Indenture, dated as of March 1, 1997, made by the Seller
and U.S. Bank National Association, as successor to SunTrust Bank, formerly
known as SunTrust Bank, Atlanta, as trustee, as it has been supplemented or may
hereafter be amended, supplemented or restated, from time to time (the “Indenture”); and

 

WHEREAS,
this Agreement and payments due to the Seller under this Agreement are pledged
and assigned to secure the Secured Obligations as provided in the Indenture;
and

 

WHEREAS,
the Government and the other holders of the Secured Obligations are relying on
this Agreement and other wholesale power contracts between the Seller and the
Other Purchasers (as hereinafter defined) to assure that the Secured
Obligations are repaid and the purposes of the Rural Electrification Act of
1936, as amended, are carried out, and the Seller and the Purchaser, by
executing this Agreement, acknowledge that reliance; and

 

1

 

WHEREAS,
the Purchaser was previously a Member but terminated its membership pursuant to
the terms of that certain Withdrawal Agreement, dated October 1, 2004, and
now seeks to be re-admitted as a Member;

 

WHEREAS,
as a condition precedent for the Purchaser’s admission as a Member, the
Purchaser is undertaking to purchase from the Seller, and the Seller is
undertaking to sell to the Purchaser, certain amounts of electric capacity and
associated energy on the terms and conditions herein set forth;

 

NOW,
THEREFORE, in consideration of the premises and the mutual undertakings herein
contained, the Seller and the Purchaser hereby agree as follows:

 

1.                                       DEFINITIONS.  All capitalized terms used herein shall have
the respective meanings set forth in Schedule C attached hereto, unless
the context in which such term is used clearly requires otherwise.

 

2.                                       PURCHASE AND
SALE OBLIGATION.

 

2.1                                 Purchase and
Sale.  The Seller shall sell and
deliver to the Purchaser, and the Purchaser shall take and pay for or pay for,
even if not available, delivered or taken, at the rates provided for in Section 5,
all electric capacity allocated to the Purchaser as reflected in the Purchaser’s
Percentage Capacity Responsibilities set forth in the Exhibits to Appendix 1 to
“Rate Schedule A” (as amended from time to time in accordance with Section 3).  The Seller shall sell and deliver to the
Purchaser, and the Purchaser shall pay for, at the rates provided for in Section 5,
any associated energy that the Purchaser shall determine to purchase for its
own use or for resale pursuant to this Agreement.  The Purchaser’s payment obligations
associated with its PCR in any Resource shall continue until all costs of such
Resource are paid in full notwithstanding the occurrence of any event, or the
taking of any action permitted by this Agreement, with respect to such
Resources, including, without limitation, any event or action described in Section 2.3.

 

2.2                                 No Dedication
of Resources.  Neither the
establishment of a PCR for the Purchaser with respect to a Resource nor the
sale by the Seller to the Purchaser of electric capacity and associated energy
under this Agreement shall constitute either (i) a sale, lease, transfer,
dedication or conveyance of an ownership interest in or to any Resource or (ii) an
entitlement to the electric capacity or associated energy from any specific
Resource.  The Seller shall have the sole
authority, which it may exercise in its discretion, to manage, control and
operate all of its Resources, subject to the Seller’s obligations to provide
available electric capacity and associated energy to the Purchaser pursuant to
this Agreement.

 

2.3                                 Purchaser’s
Unconditional Obligation to Pay.  The Purchaser shall make all payments that
are required pursuant to this Agreement in a timely manner, whether or not: (i) electric
capacity and energy has or is being provided to the Purchaser hereunder, (ii) Resources
or any part thereof are completed, delayed, terminated, available, operable,
operating, retired, sold, leased, transferred, or otherwise disposed of, (iii) the
construction or operation of the Resources or any part thereof is suspended,
interrupted, interfered with, reduced, curtailed or terminated, (iv) the
Seller is able to purchase or otherwise obtain electric capacity and energy 

 

2

 

from any source, or (v) any similar
contract with any of the Other Purchasers is invalid, in each such case for any
reason whatsoever and whether or not due to the conduct, acts or omissions of
the Seller.  Such payments by the
Purchaser shall not be subject to any reduction, whether by offset, recoupment
or otherwise, and shall not be conditioned upon performance by the Other
Purchasers or the Seller under this Agreement or any other agreement or
instrument.  This Section 2.3 shall
not be construed to release the Seller from the performance of any of its
obligations expressed in this Agreement or, except to the extent expressly
provided in this Agreement, prevent or restrict the Purchaser from asserting
any rights that it may have against the Seller or any other person under this
Agreement or any other agreement or under any provision of law or prevent or
restrict the Purchaser, at its own cost and expense, from prosecuting or defending
any action or proceeding against or by third parties or taking any other action
to secure or protect its rights under this Agreement.

 

3.                                       PERCENTAGE
CAPACITY RESPONSIBILITIES.

 

3.1                                 Percentage
Capacity Responsibilities; Power Sales Resources.

 

3.1.1                        The Seller shall at all times maintain Exhibits to
Appendix 1 to “Rate Schedule A” which identify all Resources, all
Percentage Capacity Responsibilities for the Purchaser and all Other Purchasers
with respect to each Resource and the Seller’s projected useful life (as may be
changed by the Seller from time to time) for each Generating Resource.

 

3.1.2                        The Seller shall at all times maintain Exhibits to Appendix
1 to “Rate Schedule A” which identify all Power Sales Resources and the
allocations with respect thereto.

 

3.2                                 Change of
Certain Purchaser Obligations.

 

3.2.1                        Without the prior written consent of the Purchaser, the
Seller may not modify the Purchaser’s PCR for any Resource, except as follows:

 

(a)                                  the Seller may modify the
Purchaser’s PCR in accordance with Section 3.3.2(d) in connection with a
Discretionary Resource Modification made in accordance with Section 3.3.2(c);
and

 

(b)                                 the Seller may modify the
Purchaser’s PCR in a Resource in connection with the termination of all or any
portion of the Purchaser’s PCR in the Resource in accordance with Section 10.1.2.

 

3.2.2                        Any modification to an Exhibit to Appendix 1 to “Rate
Schedule A” made under the circumstances described in Section 3.2.1
shall be prepared and approved by the Seller in accordance with this Agreement
and shall be conclusively established by a resolution duly adopted by the Board
of Directors of the Seller:

 

3

 

(a)                                  in the case of a
Discretionary Resource Modification, concurrently with the Board’s
authorization of the Discretionary Resource Modification; or

 

(b)                                 in the case of a termination
of all or any portion of the Purchaser’s PCR in a Resource pursuant to Section 10.1.2,
upon the execution and delivery by one or more non-defaulting Member Purchasers
of an agreement or agreements to accept a PCR in the Resource in accordance
with Section 10.1.2.

 

The
Purchaser’s obligations shall be effective as to any allocation with respect to
any PCR allocated to the Purchaser in such modified Exhibit, and the Purchaser
shall make all payments required pursuant to this Agreement with respect to
such obligations.

 

3.3                                 Future
Resources and Resource Modifications.

 

3.3.1                        The Seller shall not (i) make any expenditure, or enter
into any binding contract obligating Seller to make expenditures, for
construction or acquisition of a Future Resource that is a Generating Resource
other than a Discretionary Resource Modification or (ii) enter into an
agreement for a Future Resource that is a Power Purchase Resource unless:

 

(a)                                  Purchasers have subscribed
for PCRs in such Future Resource totaling one hundred percent (100%) in
accordance with Section 3.3.3; and

 

(b)                                 such Future Resource has
been approved by (x) at least seventy-five percent (75%) of  the Seller’s Board of Directors, (y) at
least seventy-five percent (75%) of the Member Purchasers and (z) Member
Purchasers having patronage capital in the Seller equaling at least
seventy-five percent (75%) of the accumulated patronage capital of all Member
Purchasers in the Seller as of the end of the most recently completed fiscal
year of the Seller.  The approval of the
Member Purchasers referred to in clauses (y) and (z) must be
evidenced by resolutions of the boards of directors of such Member Purchasers
specifically approving such Future Resource.

 

3.3.2                        Subject to the provisions of this Section 3.3.2, the
Seller may, in its sole discretion, undertake from time to time capital
expenditures for a Resource Modification. 
The parties recognize that a Resource Modification may change the
capacity or the term or useful life of a Resource.  In such event, a change may be required to be
made with respect to an existing Exhibit, or a new Exhibit may be
required, to Appendix 1 to “Rate Schedule A.”

 

(a)                                  A Minor Resource Modification
shall not affect the Purchaser’s PCR with respect to such Resource (even though
such modification may change the electric capacity and associated energy
available to the Purchaser or the contract term or useful life of the
Resource).

 

(b)                                 If the Board of Directors of
the Seller determines that a Resource Modification is a Required Resource
Modification, such Required Resource Modification shall not affect the
Purchaser’s PCR with respect to such Resource (even though such modification
may change the electric capacity and associated energy 

 

4

 

available to the Purchaser or the contract term or useful life of the
Resource).  A determination that a
Resource Modification is a Required Resource Modification shall be made only by
the vote of at least seventy-five percent (75%) of the Board of Directors of
the Seller.

 

(c)                                  The Seller shall not make a
Discretionary Resource Modification unless

 

(i)                                     Purchasers have subscribed
for PCRs in the Discretionary Resource Modification totaling 100% in accordance
with Section 3.3.3; and

 

(ii)                                  either (A) in
the case of a Discretionary Resource Modification to a Generating Resource with
respect to which the Board of Directors of the Seller determines that
expenditures to make the Resource Modification are not expected to exceed the
lesser of $200 million or 50% of the original book value (as adjusted annually
for additions, retirements and replacements, but without reduction for
depreciation) of the affected Resource, all such amounts to be adjusted
annually according to increases or decreases in the annual Gross National
Product Implicit Price Deflator as published by the U.S. Department of
Commerce, more than fifty percent (50%) of the Member Purchasers approve the
Discretionary Resource Modification (as evidenced by resolutions of the boards
of directors of such Member Purchasers specifically approving such
Discretionary Resource Modification); or

 

(B)                                in the case of a
Discretionary Resource Modification not described in clause (A), at least
seventy-five percent (75%) of the Seller’s Board of Directors and at least
seventy-five percent (75%) of the Member Purchasers approve the Discretionary
Resource Modification (as evidenced by resolutions of the boards of directors
of such Member Purchasers specifically approving such Discretionary Resource
Modification).

 

(d)                                 In connection with any
Discretionary Resource Modification to any Resource, the Seller’s Board of
Directors may:

 

(i)                                     modify the
Purchaser’s PCR with respect to such Resource,

 

(ii)                                  modify the
description of such Resource on the Exhibit to Appendix 1 to “Rate
Schedule A” with respect to such Resource, and

 

(iii)                               add a new Exhibit to
Appendix 1 to “Rate Schedule A” with respect to the Discretionary
Resource Modification,

 

5

 

in each case to the extent, if any, required to allocate the increased capacity or
extended life or term and the corresponding cost responsibility resulting from
the Discretionary Resource Modification solely to the Purchasers that have
subscribed for PCRs in the Discretionary Resource Modification.  Such additions or modifications of an Exhibit to
Appendix 1 to “Rate Schedule A” may specify that all or any portion of
the Discretionary Resource Modification will be treated as a separate
Resource.  Any addition or modification
of an Exhibit to Appendix 1 to “Rate Schedule A” made pursuant to
this Section 3.3.2(d) shall be based on the report of an independent
consultant who is a licensed or certified professional engineer.  If the Purchaser does not elect to subscribe
for a PCR in a Discretionary Resource Modification that extends the useful life
of a Generating Resource, the Seller’s Board of Directors shall also determine,
based on such report, the date on which the PCR of the Purchaser shall
terminate, based on the expected useful life of the Resource prior to the
Discretionary Resource Modification.

 

3.3.3                        The Seller shall establish and maintain procedures for
administering a subscription process pursuant to which Purchasers may elect to
be allocated a PCR in any Future Resource or Discretionary Resource
Modification.  Such procedures shall
provide that any Purchaser with a PCR in a Resource shall have a right of first
refusal to have the same PCR in any Discretionary Resource Modification of such
Resource.  The PCR of the Purchaser in
any Future Resource or Discretionary Resource Modification shall be established
only by the Purchaser entering into a Subscription Agreement with the Seller
with respect thereto substantially in the form specified on Schedule B.  The Seller shall assure that the PCRs in any
Future Resource or Discretionary Resource Modification are accurately reflected
in an Exhibit to Appendix 1 to “Rate Schedule A.”

 

3.4                                 Cost
Responsibility.

 

3.4.1                        In the event of a Payment Default by one of the Purchasers,
the Seller shall allocate the unrecovered costs resulting from the Payment
Default to each Resource with respect to which such defaulting Purchaser has a
PCR, and each of the non-defaulting Purchasers that has a PCR with respect to
each such Resource shall bear the otherwise unrecovered costs resulting from
such Payment Default in the proportion of its PCR to the aggregate of the PCRs
of all non-defaulting Purchasers in each such Resource.

 

3.4.2                        In the event any Purchasers do not have a PCR with respect
to an Existing Resource and there is a Payment Default by all Purchasers that
have a PCR with respect to such Existing Resource, the Purchasers that do not
have a PCR with respect to such Existing Resource shall become liable for a pro
rata share of the costs and expenses of such Existing Resource.  The term “liable for a pro rata share” shall
mean that each of the non-defaulting Purchasers shall have its liability based
on the aggregate of Rated Capacity allocated to each of such Purchasers
pursuant to its PCR with respect to all Resources of the Seller divided by the
aggregate of such Rated Capacity of all non-defaulting Purchasers that share
such pro rata liability.  Such pro rata
liability shall extend to any Resource Modification of an Existing Resource
except to the extent that such Resource Modification is treated as a separate
Resource under Section 3.3.2(d).  To
the extent that a Resource Modification to an Existing Resource is treated as a
separate Resource under Section 3.3.2(d), such separate Resource
constitutes a 

 

6

 

Future Resource and liability of
Purchasers that do not have a PCR with respect to such Future Resource shall be
governed by Section 3.4.3.

 

3.4.3                        In the event of a Payment Default by all Purchasers that
have a PCR with respect to any Future Resource, the Purchasers that do not have
a PCR with respect to such Future Resource shall become liable for a pro rata
share of the costs and expenses of such Future Resource if, and only if, such
Future Resource was constructed, acquired or entered into in accordance with Section 3.3.1
or 3.3.2(c), as applicable.  Such pro
rata liability shall extend to any Resource Modification of a Future Resource
except to the extent that such Resource Modification is treated as a separate
Resource under Section 3.3.2(d).  To
the extent that a Resource Modification to a Future Resource is treated as a
separate Resource under Section 3.3.2(d), such separate Resource
constitutes a separate Future Resource and liability of Purchasers that do not
have a PCR with respect to such separate Future Resource shall be governed by
this Section 3.4.3.

 

4.                                       SCHEDULING AND
SYSTEM OPERATIONS.

 

4.1                                 Scheduling.

 

4.1.1                        Scheduling Policies and Procedures.  The Purchaser’s
determination to purchase energy associated with its PCRs shall be made in
accordance with written policies and procedures for scheduling of Resources,
which the Seller shall at all times maintain or cause to be maintained pursuant
to a contract with Georgia System Operations Corporation (“GSOC”)
or another Person.  Such policies and
procedures shall treat on a comparable basis the utilization of the Resources
for such purposes by the Purchaser and the Other Purchasers.  “Comparable basis,” as used in this
Agreement, refers to the legal standard then employed by FERC for determining
that there has been no undue discrimination as among the owner of a facility
and others that have a right to use such facility.

 

4.1.2                        Ancillary Services Policies and Procedures.  Subject to the
Seller’s obligations to the Other Purchasers under Section 4.1.1, the
Seller shall at all times maintain or cause to be maintained pursuant to a
contract with GSOC or another Person written policies and procedures regarding
Ancillary Services.  Such policies and
procedures shall treat the Purchaser and the Other Purchasers on a comparable
basis.  “Ancillary Services” shall
include services capable of being provided by a Generating Resource in addition
to capacity and energy, to the extent commonly used or usable from time to time
in the reliability region or control area in which the Generating Resource is
located.

 

4.1.3                        Sale Transactions.  The Purchaser shall be entitled to resell for
its own account, or may request in writing that the Seller sell for the
Purchaser’s account, all or any part of the capacity and associated energy
purchased, or entitled to be purchased, hereunder to any Person and to schedule
for its own account such energy in accordance with the policies and procedures
established and maintained pursuant to Section 4.1.1 as in effect from
time to time.  If the Seller elects to
make such a sale for the Purchaser’s account, the sale shall not affect the
Purchaser’s PCR with respect to any such Resource (even though such sale may
reduce or eliminate the electric capacity and associated energy to the
Purchaser during the term of the 

 

7

 

sale).  The Seller shall at all times maintain in “Rate
Schedule A” allocations with respect to any such sale that provide that the
Purchaser shall bear all of the costs and receive all of the benefits of such
sale.

 

4.2                                 Right to
Designate Agent.  Whenever
this Agreement requires or permits the Seller to provide information,
schedules, notice or the like to, or to take direction from, the Purchaser the
Purchaser may by written notice to the Seller, require the Seller to provide
such information, schedules, notice or the like to, or to take direction from,
the Purchaser, its agent or both.  The
provisions of this Section do not create any right to assign this
Agreement, such matters being governed exclusively by the provisions of
Sections 8 and 9.

 

5.                                       RATES.

 

5.1                                 General.  The Purchaser shall make payments to the
Seller in accordance with the rates and charges and on the terms and conditions
set forth herein and in “Rate Schedule A,” which Seller may amend
from time to time.  Except as provided in
Section 3, the Seller may not change the Purchaser’s PCR in any Resource
without the Purchaser’s consent.

 

5.2                                 Periodic Review.  The Seller at such intervals as it shall deem
appropriate, but in any event not less frequently than once in each calendar
year, shall review the rates and charges under this Agreement and under the
wholesale power contracts with the Other Purchasers and, if necessary, shall
revise such rates and charges so that such rates and charges shall produce
revenues that shall be sufficient, but only sufficient, with the revenues of
the Seller from all other sources, to meet all of the Seller’s costs, to cover
all payments on account of indebtedness of the Seller, to provide for the
establishment and maintenance of reasonable reserves, and to comply with all
financial requirements contained in the Indenture or in any indenture,
mortgage, or contract relating to any indebtedness or other financial
obligations of the Seller as they may exist from time to time.

 

5.3                                 Functional
Unbundling.  The Seller
shall account for its direct and indirect costs so that the rate for each
Resource and the charge for each service that the Seller provides to one or
more Purchasers recovers all direct costs and a share of indirect costs for
each Resource and service, including administrative and general expenses and
margins, allocated in accordance with Accounting Requirements.

 

5.4                                 Reasonable
Rates.  The rates and charges and
terms and conditions of service provided by the Seller hereunder, including
changes from time to time in “Rate Schedule A,” shall be just and
reasonable and not unduly discriminatory, but shall at all times be sufficient
to comply with the requirements of Section 5.2.

 

5.5                                 Allocation of
Payment Defaults.  The Seller
shall at all times provide in “Rate Schedule A” a mechanism by
which the Seller shall allocate all unrecovered costs resulting from a Payment
Default by the Purchaser or a Payment Default by any of the Other Purchasers to
each Resource with respect to which such defaulting Purchaser has a PCR and a
mechanism for recovering such costs from the Purchasers that also have a PCR
with respect to such Resource in accordance with the provisions of Section 3.4.1.  Such rate provision shall further ensure that
if the Purchaser has no PCR with respect to a Resource, the Seller shall not 

 

8

 

seek to recover from the Purchaser any of the
amounts attributable to that Resource otherwise unrecovered as the result of a
Payment Default by any of the Other Purchasers unless each of the Other
Purchasers that has a PCR in such Resource has defaulted.  In the event of Payment Defaults by all
Purchasers that have PCRs with respect to a Resource, the Seller shall recover
the otherwise unrecovered costs resulting from such Payment Defaults in
accordance with Sections 3.4.2 and 3.4.3.

 

5.6                                 Covenant of the
Purchaser.  The
Purchaser covenants and agrees to establish, maintain and collect rates and
charges for the service of its electric system, and to conduct its business, in
a manner which shall produce revenues and receipts at least sufficient to
enable the Purchaser to pay to the Seller, when due, all amounts payable by the
Purchaser under this Agreement  and
to pay any and all other amounts payable from, or which might constitute a
charge and a lien upon, the revenues and receipts derived from its electric
system, including all operation and maintenance expenses and the principal of,
premium, if any, and interest on all indebtedness related to the Purchaser’s
electric system.

 

6.                                       DELIVERY POINTS
AND GENERAL TERMS AND CONDITIONS OF SERVICE.

 

6.1                                 Delivery Points.  Subject to Section 6.3, the Seller shall
furnish the electric capacity and deliver the energy purchased by the Purchaser
under this Agreement to the Purchaser at (i) the high side of the step-up
transformer at each Resource with respect to capacity and energy that is
produced by a Resource that is interconnected with the Georgia Integrated
Transmission System (the “ITS”)
and (ii) the interface of the ITS at which capacity is furnished and
energy is delivered to Seller from a Resource that is not interconnected with
the ITS.  Title and risk of loss of such
energy shall pass from the Seller to the Purchaser at such delivery
points.  As between the parties hereto,
the Seller shall be deemed to be in exclusive control (and responsible for any
injury and damage caused thereby) of the electric capacity and energy prior to
each delivery point, and the Purchaser shall be deemed to be in exclusive
control (and responsible for any damages or injury caused thereby) of the electric
capacity and energy at and from each delivery point.

 

6.2                                 General Terms
and Conditions.  The general
terms and conditions of service (which reflect implementing details of this
Agreement) provided by the Seller to the Purchaser hereunder are established in
the General Terms and Conditions in “Rate Schedule A.”

 

6.3                                 Seller and
Purchaser Duties.

 

6.3.1                        The Seller and the Purchaser shall use reasonable diligence
to deliver and receive a constant and uninterrupted supply of electric capacity
and energy purchased under this Agreement. 
If such supply of electric capacity and energy shall fail or be
interrupted, or become defective, as the result of an event of force majeure or
its adverse effects, the Seller shall not be liable therefor or for damages
caused thereby.  “Force majeure”
shall mean the occurrence or non-occurrence of any act or event that could not
reasonably have been expected and avoided by exercise of due diligence and
foresight and such act or event is beyond the reasonable control of the Seller.  In the event of an interruption of service,
the Seller and the

 

9

 

Purchaser shall use all due
diligence to restore their respective systems to enable the delivery and
receipt of electric capacity and energy. 
In the event of a power shortage, or an adverse condition or
disturbance, the Seller may, without incurring liability, take such emergency
action as, in the judgment of the Seller, may be necessary.  Such emergency action may include, but shall
not be limited to, reduction or interruption of the supply of electricity to
some points of delivery in order to compensate for an emergency condition on
the system of the Seller, or on any other directly or indirectly interconnected
system.

 

6.3.2                        The Seller covenants and agrees that it will use its
reasonable best efforts to operate, maintain and manage its Resources in
accordance with Prudent Utility Practice. 
For purposes of this Agreement, “Prudent Utility Practice”
shall mean any of the practices, methods and acts engaged in or approved by a
significant portion of the electric utility industry during the relevant time
period, or any of the practices, methods and acts that, in the exercise of
reasonable judgment in light of the facts known at the time the decision was
made, could have been expected to accomplish the desired result at lowest
reasonable cost consistent with good business practices, reliability, safety,
and expedition.  Prudent Utility Practice
is not intended to be limited to the optimum practice, method, or act, to the
exclusion of all others, but rather to include a spectrum of possible
practices, methods, or acts generally acceptable in the region in light of the
circumstances.

 

7.                                       RIGHTS OF
ACCESS, RECORDS AND ACCOUNTS.

 

7.1                                 Rights of
Access.  Duly authorized
representatives of either party hereto shall be permitted to enter the premises
of the other party hereto at all reasonable times in order to carry out the
provisions hereof.

 

7.2                                 Accounting
Records.  The Seller shall keep accurate
records and accounts in accordance with Accounting Requirements.  Promptly after the close of each fiscal year
(and not later than 120 days after the end of each fiscal year), the Seller
shall cause such records and accounts of all transactions of the Seller with
respect to such fiscal year to be subject to an annual audit by a firm of  independent certified public accountants
experienced in electric utility accounting and possessing a national reputation
in accounting and auditing.  The Seller
shall without delay provide a copy of each such annual audit, including all
written comments and recommendations of such accountants to the Purchaser.

 

7.3                                 Access to Books
and Records.  The
Purchaser shall at all times have reasonable access during business hours to
examine any and all of the books, records and supporting worksheets and data of
the Seller as may be appropriate to determine the accuracy of any charges or
payments required to be made by the Purchaser to the Seller.  If such books, records and supporting worksheets
and data of the Seller contain information about one or more Other Purchasers,
the Seller shall excise any identification of specific Other Purchasers or
provide such information to an independent certified public accountant or other
independent representative of the Purchaser under a confidentiality
agreement.  If, after such examination of
Seller’s records, there is still a dispute as to the accuracy of any charge and
the Purchaser proceeds with mediation, arbitration or litigation, only
requirements of confidentiality imposed by a mediator, arbitrator or court
shall be applied.

 

10

 

8.                                       REORGANIZATIONS, TRANSFERS AND SALES OF ASSETS BY THE PURCHASER.

 

8.1                                 Dissolution or Liquidation. The Purchaser
shall not dissolve, liquidate or otherwise wind up its affairs without the
approval in writing of the Seller.

 

8.2                                 Permitted Transactions.  The Purchaser shall not consolidate or merge
with any other Person or reorganize or change the form of its business
organization from an electric membership corporation or sell, transfer, lease
or otherwise dispose of all or substantially all of its assets (each, a “Purchaser Transaction”) to any Person (or
make any agreement therefor), whether in a single transaction or series of
transactions, unless either:

 

(a)                                  Such Purchaser
Transaction is expressly approved in writing by the Seller; or

 

(b)                                 All of the following
conditions are satisfied:

 

(i)                                     The Transferee shall be an
entity organized and existing under the laws of the United States of America or
any State or the District of Columbia; and

 

(ii)                                  No default or breach of this
Agreement shall have occurred and be continuing; and

 

(iii)                               If the Transferee is not the
Purchaser, the Transferee shall execute and deliver to the Seller an instrument
supplemental hereto in form reasonably satisfactory to the Seller containing an
assumption by the Transferee of the performance and observance of every
covenant and condition of this Agreement required to be performed or observed
by the Purchaser; and

 

(iv)                              A firm of independent
certified public accountants shall prepare for the two calendar years
immediately preceding the Purchaser Transaction a set of pro forma
financial statements that assume the consummation of the Purchaser Transaction
throughout the applicable determination period and that are prepared in
accordance with generally accepted accounting principles.  Based on such pro forma financial
statements, such accountants must certify that:

 

(A)                      the
Transferee’s Debt Service Coverage Ratio is at least 1.25 and Times Interest
Earned Ratio is at least 1.50 for each of the two immediately preceding
calendar years (assuming such Purchaser Transaction had been consummated at the
beginning of such two-year period);

 

11

 

(B)                        the
Transferee’s Equity equals at least 27% of its Total Assets after giving effect
to such Purchaser Transaction; and

 

(C)                        the ratio of
the Transferee’s Net Utility Plant to its Long-Term Debt is at least 1.0 after
giving effect to such Purchaser Transaction.

 

The specification of conditions in subsection 8.2(b) shall not be
construed to establish minimum standards under which the Purchaser may effect a
Purchaser Transaction, the purpose of such conditions being to establish when
the Seller’s approval need not be obtained. 
In the event the Purchaser seeks the Seller’s approval of a Purchaser
Transaction, the Seller may withhold such approval only upon a determination by
the Board of Directors of the Seller that the Purchaser Transaction could
reasonably be expected to have a material adverse effect on the Purchaser’s
ability to perform its obligations under this Agreement.

 

8.3                                 Service Territory and
Distribution System.  The
Purchaser shall not convey, transfer, lease, or otherwise dispose of any part
of its electric distribution system or assigned service territory or
voluntarily transfer or assign to another Person any customer of the Purchaser
(each, a “Conveyance”) if such
Conveyance, considered together with (i) all prior Conveyances, and (ii) all
prior additions (by construction, conveyance, transfer or lease to the
Purchaser) to its electric distribution system, assigned service territory or
customers could reasonably be expected to have a material adverse affect on the
Purchaser’s ability to perform its obligations under this Agreement.

 

8.4                                 Specific Performance.  The Purchaser and the Seller agree that the
failure or threatened failure of the Purchaser to comply with the terms of this
Section 8 will cause irreparable injury to the Seller, which cannot
properly or adequately be compensated by the mere payment of money.  The Purchaser agrees, therefore, that in the
event of a breach or threatened breach of this Section 8 by the Purchaser,
the Seller, in addition to any other remedies that may be available to the
Seller, shall have the right to obtain from any competent court a decree
enjoining such breach or threatened breach of this Section 8 or providing
that the terms of this Section 8 be specifically enforced.

 

9.                                       ASSIGNMENTS.

 

9.1                                 General.

 

9.1.1                        This Agreement shall be
binding upon and inure to the benefit of the permitted successors and permitted
assigns of the parties, except that this Agreement may not be assigned by
either party other than pursuant to Section 9.2, Section 9.3 or the
Withdrawal Agreement (as defined in Section 17) unless prior consent to
such assignment is given in writing by the other party and, if either party is
then an RUS borrower, the Administrator. 
Any assignment made without a consent required hereunder shall be void
and of no force or effect as against the non-consenting party.

 

12

 

9.1.2                        No sale, assignment,
transfer or other disposition permitted by this Agreement shall affect, release
or discharge either party from its rights or obligations under this Agreement,
except as may be expressly provided by Section 17 of this Agreement.

 

9.2                                 Assignment for Security.

 

9.2.1                        Notwithstanding any other
provision of this Agreement, a party, without the other party’s consent but, if
such assigning party is then a borrower of the RUS, only with the consent of
the Administrator, may assign, transfer, mortgage or pledge its interest in
this Agreement as security (an “Assignment
for Security”) for any obligation secured by any indenture, mortgage
or similar lien on its system assets without limitation on the right of the
secured party to further assign this Agreement, including, without limitation,
the assignment by the Purchaser or the Seller to create a security interest for
the benefit of the Government, acting through the Administrator, or for the
benefit of any third party.

 

9.2.2                        After any Assignment for
Security to the Administrator or other secured party (including any indenture
trustee under any indenture securing the obligations of the Seller), the
Administrator or other secured party, without the approval of the other party to
this Agreement, may (i) cause this Agreement to be sold, assigned,
transferred or otherwise disposed of to a third party pursuant to the terms
governing such Assignment for Security, or (ii) if the Administrator or
other secured party first acquires this Agreement, sell, assign, transfer or
otherwise dispose of this Agreement to a third party; provided, however, that
in either case the party who made the Assignment for Security is in default of
its obligations to the Administrator or other secured party that are secured by
such security interest.

 

9.3                                 Corporate Reorganization.

 

9.3.1                        The Seller may assign any or
all of its rights and delegate any or all of its duties under this Agreement in
connection with any reorganization, merger or consolidation of the Seller with
another entity in which the Seller is not the surviving entity if

 

(a)                                  such merger or
consolidation (i) is approved by at least seventy-five percent (75%) of
the Board of Directors of the Seller and at least seventy-five percent (75%) of
the Member Purchasers (as evidenced by resolutions of the boards of directors
of such Member Purchasers specifically approving the merger or consolidation),
or (ii) is approved by a majority of the Board of Directors of the Seller
and a majority of the Member Purchasers (as evidenced by resolutions of the
boards of directors of such Member Purchasers specifically approving the merger
or consolidation) if a payment default under the Indenture shall have occurred
and be continuing and

 

(b)                                 if the Seller
is then an RUS borrower, the Seller shall have obtained the consent of the
Administrator to the extent required by the Amended and Restated Loan Contract,
dated as of March 1, 1997 (as amended, supplemented or restated, the “Loan
Contract”); and

 

13

 

(c)                                  the surviving
entity shall expressly assume by written agreement executed and delivered to
the Purchaser, the performance and observance of the provisions of this
Agreement required to be performed or observed by the Seller.

 

9.3.2                        The Seller
shall not retire, sell, transfer, lease, terminate or otherwise dispose of any
Resource (each a “Seller Transaction”)
to any Person (or make any agreement therefor), whether in a single transaction
or a series of transactions, unless:

 

(a)          such seller Transaction is
either:

 

(i)                                     approved by at least
seventy-five percent (75%) of the Board of Directors of the Seller and at least
seventy-five percent (75%) of the Member Purchasers that have a PCR in such
Resource (as evidenced by resolutions of the boards of directors of such Member
Purchasers specifically approving the Seller Transaction), or

 

(ii)                                  approved by a majority of
the Board of Directors of the Seller and a majority of the Member Purchasers
(as evidenced by resolutions of the boards of directors of such Member
Purchasers specifically approving the Seller Transaction) if a payment default
under the Indenture shall have occurred and be continuing; and

 

(b)         if the Seller is then an RUS
borrower, the Seller shall have obtained the consent of the Administrator to
the extent required by the Loan Contract.

 

9.4                                 Receiver or Trustee in
Bankruptcy.  The parties
intend that the obligations of the Purchaser under this Agreement shall not be
affected by a receiver, a trustee in bankruptcy, a mortgagee or an indenture
trustee taking charge of the assets or business of the Seller, and that such
receiver, trustee, mortgagee or indenture trustee may exercise all of the
rights of, and make all of the determinations provided to be made in this Agreement
by, the Board of the Directors of the Seller.

 

9.5                                 Express Rejection of Implied
Limitations.  The parties
intend that this Agreement shall be assignable in accordance with the
provisions of this Section 9 without regard to any other provisions of
this Agreement, the nature of the Person to which this Agreement is assigned,
or the issues raised in the case, In the
Matter of Wabash Valley Power Ass’n., Inc., 72 F.3d. 1305 (7th
Cir. 1995).  Consequently, the parties
agree that this Agreement may be assigned to any Person (including any receiver
or trustee in bankruptcy) pursuant to this Section 9 without regard to the
fact that (i) such Person is not a cooperative; (ii) the Board of
Directors of such Person, if any, is not chosen by a vote in which the Purchaser
participates; or (iii) such Person is not operated on a not-for-profit
basis.  Further, no other provision of
this Agreement shall restrict the assignment of this Agreement pursuant to this
Section 9.  In the event an
assignment is made to a Person that is not an electric membership corporation
(or other form of electric cooperative), all provisions of this Agreement
requiring approval of the Purchasers  or of the Board of Directors of the Seller
shall cease to be applicable, and in such instances the Seller may act in its 

 

14

 

discretion.  References in this
Agreement to an assignment of this Agreement shall mean and include either or
both of an assignment of rights or a delegation of duties.

 

10.                                 EVENTS OF DEFAULT AND REMEDIES.

 

10.1                           Payment Default.  If the Purchaser fails to make full payment
to the Seller when required to be made under the provisions of this Agreement,
and such failure continues for a period of ten (10) business days, the
Seller shall give or cause to be given written notice to the Purchaser.  If the Purchaser does not, within ten
(10) business days from the date of the mailing of such notice, pay the
full amount then due to the Seller, together with interest thereon, up to the
maximum rate of interest permitted by law, from the date it became due, and all
costs of collection incurred by the Seller with respect to such amounts due,
then such failure shall constitute a “Payment
Default” on the part of the Purchaser.  The Seller shall promptly provide written
notice to the Other Purchasers of the Payment Default.

 

10.1.1                  Upon a Payment Default, the Seller may
suspend service to the Purchaser for all or any part of the period of
continuing default.  During any
suspension of service, the Purchaser shall have no right to any electric
capacity or associated energy from any Resource or to exercise any other rights
hereunder.  The Seller’s right to suspend
service shall not be exclusive, but in addition to all other remedies available
to the Seller at law or in equity.  No
suspension of service or termination of this Agreement or recovery of
additional revenues from Other Purchasers pursuant to Section 5.5 shall
relieve the Purchaser of its obligations hereunder, which are absolute and
unconditional.  The Seller shall credit
the obligations of the Purchaser during any suspension of service with the
monies actually received by the Seller from sales of capacity and energy that
would have been available to serve the Purchaser, but the Seller shall not be
responsible for failure to mitigate the consequences of the Purchaser’s failure
to pay in absence of gross negligence or willful misconduct.

 

10.1.2                  If a Payment Default shall have occurred and
be continuing, then upon approval by at least seventy-five percent (75%) of the
Seller’s Board of Directors and at least seventy-five percent (75%) of the
Member Purchasers (as evidenced by resolutions of the boards of directors of
such Member Purchasers specifically approving such actions), the Seller may
offer to the non-defaulting Member Purchasers PCRs with respect to one or more
Resources, the sum of which PCRs with respect to each Resource is less than or
equal to the Purchaser’s PCR in such Resource. 
Each non-defaulting Member Purchaser wishing to accept such a PCR shall
execute and deliver an agreement with the Seller, in form and substance
satisfactory to the Seller, prospectively accepting and agreeing to be
responsible for a PCR with respect to the applicable Resource.  In the event that any non-defaulting Member
Purchasers accept such PCRs in any Resource, the Seller shall terminate the
Purchaser’s PCR in the Resource without the consent of the Purchaser to the
extent that non-defaulting Member Purchasers have accepted such PCRs in the
Resource.  In the event the Purchaser’s
PCR in any Resource is terminated in whole or in part pursuant to this
Section 10.1.2, the Purchaser shall be relieved of its prospective
obligations under this Agreement only to the extent that one or more of the
non-defaulting Member Purchasers have accepted PCRs in such Resource equal to
the terminated PCR, and the Purchaser shall otherwise remain absolutely and
unconditionally obligated with respect to all obligations under this
Agreement.  The Seller’s Board of
Directors 

 

15

 

shall establish the procedures and terms and conditions upon which the
provisions of this Section 10.1.2 shall be implemented.

 

10.1.3                  The Seller may terminate this Agreement if
(i) a Payment Default shall have occurred and be continuing and
(ii) such termination is approved by at least seventy-five percent (75%)
of the Seller’s Board of Directors and at least seventy-five percent (75%) of
the Member Purchasers (as evidenced by resolutions of the boards of directors
of such Member Purchasers specifically approving the termination).

 

10.1.4                  The fact that Other Purchasers have paid
increased rates and charges shall not relieve the Purchaser of its liability
for the amount owed by it to the Seller, and any of the Other Purchasers,
either individually or as part of a group, shall have such right of recovery
from the Purchaser as may be provided by law. 
The Seller or any of the Other Purchasers as their interests may appear,
jointly or severally, may commence such suits, actions or proceedings, at law
or in equity, including suits for specific performance, as may be necessary or
appropriate to enforce the obligations of the Purchaser under this Agreement.

 

10.2                           Seller’s Failure to Deliver.  If the Seller fails to deliver electric
capacity and energy as a result of the breach of the duties imposed on it under
Section 6, the Seller shall promptly reimburse the Purchaser for the cost
of electric capacity and energy required to replace such capacity and energy,
but the Purchaser shall not be entitled to terminate this Agreement or to
withhold payments required to be made pursuant to this Agreement.

 

10.3                           Performance Default.  If either party fails to comply with any of
the terms, conditions and covenants of this Agreement (and such failure does
not constitute a Payment Default by the Purchaser), the non-defaulting party
shall give the defaulting party written notice of the default (a “Performance  Default”).  The
defaulting party shall have a period of thirty (30) days after receipt of such
notice to commence reasonable efforts to cure such Performance Default, and it
shall have an additional thirty (30) days to cure such Performance
Default.  Thereafter, if such Performance
Default is continuing, the non-defaulting party, subject to the provisions of
Section 10.4.1, shall have all of the rights and remedies provided at law
and in equity, other than termination of this Agreement.

 

10.4                           Remedies.

 

10.4.1                  No remedy conferred upon or reserved to the
Seller or the Purchaser under this Agreement is intended to be exclusive of any
other remedy or remedies available hereunder or now or hereafter existing and
every such remedy shall be cumulative and shall be in addition to every other
such remedy, provided that no Performance Default by the Seller shall permit
the Purchaser to terminate this Agreement or relieve the Purchaser of its
obligation to make payments pursuant to this Agreement, which obligation shall
be absolute and unconditional.

 

10.4.2                  No waiver by either party hereto of any one
or more defaults by the other party hereto in the performance of any provision
of this Agreement shall be construed as a waiver of any other default or
defaults, whether of a like kind or different nature.

 

16

 

10.4.3                  Any determination made by the Board of
Directors of the Seller as provided in Sections 3.2.2, 3.3.2(b), 3.3.2(c),
3.3.2(d) and 8.2 of this Agreement shall be conclusive and binding as to
the Purchaser and all Other Purchasers.

 

10.4.4                  To the fullest extent permitted by law,
neither party shall be liable to the other for any indirect, consequential,
multiple or punitive damages unless such damages are the result of the party’s
bad faith, gross negligence or willful misconduct.

 

10.5                           Member Purchaser Approvals.  At any time that a Payment Default exists,
the Purchaser shall not have a right to vote on any proposed action that
requires approval of a specified percentage of Member Purchasers or of Member
Purchasers having patronage capital equaling a specified percentage of the
accumulated patronage capital of the Seller. 
The determination of whether the specified percentage of Member
Purchasers, or Member Purchasers having patronage capital in the Seller equaling
the specified percentage of the accumulated patronage capital of the Seller,
approved any proposed action shall be calculated on the basis of the total
number of Member Purchasers entitled to vote on the proposed action.

 

11.                                 REASONABLENESS OF RATES.

 

11.1                           Fixed Rate Contract. 
The Seller was organized by the Purchaser and 38 other
electric membership corporations in Georgia to provide collectively for their
electric capacity and energy requirements. 
This Agreement was established between the parties hereto, taking into
account the present and projected needs for electric capacity and energy of the
Members of the Seller, the costs of the facilities subject to and contemplated
by this Agreement and the alternatives thereto. 
The parties agree that the rates established hereunder are just and
reasonable under the current circumstances and reflect their determination of
what would be just and reasonable under future conditions reasonably
contemplated by them.  The rates take
into account specific benefits achieved by the parties through this Agreement
and not otherwise available to the parties, and reflect the sharing of those
benefits without undue discrimination against any current or future customer of
the Seller.

 

11.2                           Formulaic Rate.  The charges to be paid by the Purchaser to
the Seller for electric capacity and energy provided under this Agreement are
intended to be adjusted only pursuant to and in accordance with the formulaic
rates specified in “Rate Schedule A,” as such formulae may be
revised from time to time pursuant to the express terms of this Agreement.

 

11.3                           Regulatory Review.

 

11.3.1                  Nothing contained in this Agreement shall be
construed as affecting in any way the right of the Seller unilaterally to file
an application for a change in any part of “Rate Schedule A” to any
governmental authority having jurisdiction, including the FERC under
Section 205 of the Federal Power Act and pursuant to the FERC’s
rules and regulations promulgated thereunder, upon approval of the change
by the Seller in a manner consistent with this Agreement.  Other than an initial application filed by
the Seller with the FERC to provide service pursuant to “Rate Schedule A,”
the Seller agrees that the Purchaser may 

 

17

 

protest or contest the filings referred to in this Section 11.3 or
any filings made by any of the Other Purchasers to change the formulary rate
mechanism contained in “Rate Schedule A,” and the Purchaser does not
waive any rights it may have with respect to such filings.

 

11.3.2                  Absent the agreement of all parties to the
proposed change, the standard of review for changes to this Agreement,
including “Rate Schedule A,” proposed by a party, a non-party or the
Federal Energy Regulatory Commission acting sua sponte shall be the
“public interest” standard of review set forth in United Gas Pipe Line Co. v. Mobile Gas Service Corp., 350
U.S. 332 (1956) and Federal Power Commission
v. Sierra Pacific Power Co., 350 U.S. 348 (1956) (the “Mobile-Sierra”
doctrine).

 

11.3.3                  If the Seller’s rates are not established
pursuant to a formulary rate mechanism, such as “Rate Schedule A” as
changed from time to time, the Purchaser shall have the right to file any
applications relating to rates as may be permitted by law.

 

12.                                 EFFECTIVENESS AND TERM.  This Agreement is dated as
of the date specified in the introductory paragraph and shall become effective
upon (i) execution and delivery by the Seller and the Purchaser of this
Agreement, and (ii) the approval in writing by the Administrator. 
This Agreement shall remain in effect until
December 31, 2050, and from year to year thereafter unless terminated on
December 31, 2050, or any succeeding December 31, by either party’s
giving to the other not less than three years’ prior written notice of its
intention to terminate.

 

13.                                 AMENDMENTS, ENTIRE AGREEMENT AND CONFLICTS.

 

13.1                           Amendments.

 

13.1.1                  No amendment to this Agreement shall be
effective unless it has been approved or accepted for filing and permitted to
go into effect by each governmental authority having jurisdiction.

 

13.1.2                  This Agreement may be amended by agreement
between the Seller and the Purchaser, but no such amendment to this Agreement
shall be effective unless it is in writing, executed by both parties; provided,
however, that changes to “Rate Schedule A” shall be effective when made
in accordance with the express provisions of this Agreement.

 

13.2                           Entire Agreement.  This Agreement constitutes the entire
agreement between the parties hereto relating to the subject matter
contemplated by this Agreement and supersedes all prior agreements, whether
oral or written.  “Rate Schedule A”
and Schedule C are incorporated herein by reference.

 

13.3                           Conflicts.

 

13.3.1                  The form of Subscription Agreement attached
hereto as Schedule B may be modified from time to time by the Seller’s
Board of Directors.  In the event of any 

 

18

 

conflict between the provisions of this Agreement and the form of
Subscription Agreement, the provisions of this Agreement shall govern.

 

13.3.2                  The provisions of this Agreement and “Rate
Schedule A” incorporated by reference shall be interpreted to harmonize as
a single instrument.  In the event of any
conflict between the provisions of this Agreement and the provisions of any
amendments to “Rate Schedule A” or any future exhibits, appendices or
schedules attached thereto and incorporated by reference herein, the provisions
of this Agreement shall govern.

 

13.4                           Counterparts.  This Agreement may be executed in multiple
counterparts to be construed as one.

 

14.                                 SEVERABILITY.  If any part, term, or provision of this
Agreement is held by a court of competent jurisdiction to be unenforceable, the
validity of the remaining portions or provisions shall not be affected, and the
rights and obligations of the parties shall be construed and enforced as if
this Agreement did not contain the particular part, term, or provision held to
be unenforceable.

 

15.                                 GOVERNING LAW.  Except to the extent governed by applicable
federal law, this Agreement shall be governed by, and construed in accordance
with, the laws of the State of Georgia.

 

16.                                 MEDIATION.  If a dispute arises out of or relates to this
Agreement, including all attachments hereto, or the breach thereof, the parties
shall first in good faith seek to resolve the dispute through negotiation.  If such dispute cannot be settled through
negotiation, the parties agree to try in good faith to settle the dispute by
mediation under the Commercial Mediation Rules of the American Arbitration
Association, before resorting to arbitration, litigation, or some other dispute
resolution procedure; provided that a party may not invoke mediation unless it
has provided the other with written notice of the dispute and has attempted in
good faith to resolve such dispute through negotiation.  Notwithstanding the foregoing, any party may
seek immediate equitable relief, without attempting to settle a dispute through
mediation, in any case where such party is entitled to equitable relief by the
terms of this Agreement or otherwise.

 

17.                                 PURCHASER’S WITHDRAWAL FROM SELLER.  In the event the Purchaser elects to withdraw
as a Member, the Purchaser shall execute a copy of the Withdrawal Agreement
(the “Withdrawal Agreement”) in
the form attached to the New Business Model Closing Agreement, dated as of
January 1, 2003, to which the Seller is a party, and deliver the same to
the Seller along with its Notice of Intent to Withdraw, including all required
attachments to such Notice, as required by the Seller’s bylaws.  Such existing provisions of the Seller’s
bylaws and the form of the Withdrawal Agreement are incorporated by reference
into this Agreement, and no amendment of such provision of the Seller’s bylaws
or the form of the Withdrawal Agreement shall reduce the rights of the
Purchaser (without its consent) as provided therein.  The Purchaser agrees that in the event of its
withdrawal as a Member, the performance by the Purchaser in accordance with the
terms of the Withdrawal Agreement shall be required in order to satisfy its
obligations to the Seller under this Agreement. 
The Purchaser, by executing this Agreement, hereby stipulates and agrees
that any Other Purchaser may satisfy its obligations 

 

19

 

to
the Seller, to the Purchaser and to all other Members (current and former) by
performing in accordance with the terms of the Withdrawal Agreement.

 

18.                                 MISCELLANEOUS.

 

18.1                           No Retail Sales.  The Seller shall not, during the term of this
Agreement, without the consent of the Purchaser, (a) provide retail
electric service in the State of Georgia within the Purchaser’s assigned
geographic area established in accordance with the Georgia Territorial Electric
Service Act, as such statute may be amended or replaced, or (b) offer to
provide retail electric service to any existing customer of the Purchaser.

 

18.2                           Indemnification.  The 
Purchaser shall indemnify and hold the Seller harmless from and against
any and all losses, costs, liabilities, damages and expense (including without
limitation attorneys’ fees and expenses) of any kind incurred or suffered by
the Seller pursuant to, as a result of or in connection with any resale by the
Purchaser of capacity, energy or both in the exercise of the Purchaser’s rights
under Section 4.1.3 except for losses, costs, liabilities, damages and
expenses (including without limitation attorneys’ fees and expenses) incurred
or suffered by the Seller as a proximate cause of any action of the Seller that
is not Prudent Utility Practice or is a breach of this Agreement.

 

18.3                           No Restriction on Revenue
Allocation.  The
Purchaser’s PCR and that of Other Purchasers for any or all Future Resources
may be different from their respective percentages set forth on Exhibits to
Appendix 1 to “Rate Schedule A” with respect to Existing Resources, and
may also vary among Future Resources or be zero as to any Future Resource.  Recognizing the potential for such variation,
and notwithstanding anything in any other agreement or document existing on the
date of this Agreement, the Purchaser agrees that the Seller shall not be
restricted in its ability to apply revenues received from the Purchaser or
other amounts received by the Seller from the Purchaser and others from or on
account of the ownership or operation of its system or through or on account of
the financing thereof, in such manner as the Seller shall determine to be in
its best business interest.  Likewise,
the Purchaser agrees that the Seller shall not be restricted in the Seller’s
ability to secure any and all indebtedness it may incur under instruments
conveying security title to or creating a lien or other security interest in
any or all of the Seller’s assets, without regard to the purpose for which the
indebtedness has been or may be incurred or the purpose for which the assets
are used or are to be used, but the Purchaser’s contingent liability in the
event of a Payment Default shall be governed by Section 3.4.

 

18.4                           Corporate Documents.  Whenever this Agreement authorizes the Seller
to amend a schedule hereto, to develop and implement policies or to make other
decisions or do other acts or things, at its sole discretion or otherwise, the
Seller shall do so substantially in accordance with the applicable provisions
of its duly adopted Articles, bylaws and corporate policies.  Any failure on the part of the Seller to
comply with this Section shall not relieve the Purchaser of any obligation
under this Agreement, but the Purchaser shall not otherwise be prevented or
limited in asserting any other rights it may have against the Seller in respect
of such failure.

 

20

 

18.5                           Information Requirements.  The Seller and the Purchaser shall each
furnish to the other promptly upon request any and all information about
itself, its financial condition, business and properties which may be necessary
or desirable to facilitate any financing undertaken by the requesting party or
any continuing disclosure obligation incurred by the requesting party in
connection with any such financing.  The
supplying party shall be responsible only to the requesting party for the
accuracy and completeness of the information furnished and shall have no
responsibility or liability for the manner in which such information is used or
its appropriateness for such use.  The supplying
party shall have no liability to any third party to which the requesting party
may furnish this information or any excerpt therefrom or summary thereof, and
shall be entitled to receive appropriate assurances and indemnities from the
requesting party to that effect as a condition to providing such information,
provided that no such assurance or indemnity shall relieve the supplying party
of liability to the requesting party for the accuracy and completeness of the
information supplied.

 

18.6                           No Third Party Beneficiaries.  The Seller and the Purchaser agree that no
Other Purchaser or any other third party is an intended third-party beneficiary
of this Agreement, except as may be provided in a separate instrument executed
by each of the Seller and the Purchaser.

 

18.7                           Rules of Construction.

 

(a)                                  The descriptive
headings of the various articles, sections and subsections of this Agreement
and the Schedules attached hereto have been inserted for convenience of
reference only and shall not be construed as to define, expand, or restrict the
rights and obligations of the parties.

 

(b)                                 Wherever the
term “including” is used in this Agreement and the Schedules attached hereto,
such term shall not be construed as limiting the generality of any statement,
clause, phrase or term.

 

(c)                                  The terms
defined in this Agreement and the Schedules attached hereto shall include the
plural as well as the singular and the singular as well as the plural.

 

19.                                 NOTICES.  All notices, requests, statements or payments
provided for, required or permitted by this Agreement shall be sufficient for
any and all purposes under this Agreement when transmitted by facsimile, first
class United States Mail, hand delivery, or a private express delivery service
to the facsimile numbers or addresses provided below.

 

21

 

Seller:

 

Oglethorpe Power Corporation

2100 East Exchange Place (30084-5336)

P. O. Box 1349 (30085-1349)

Tucker, GA

Attention:  President and Chief
Executive Officer

 

FAX:  (770) 270-7872

 

Purchaser:

 

Flint Electric Membership Corporation

3 S. Macon Street

P.O. Box 308

Reynolds, GA 31076-0308

Attention: 
President and Chief Executive Officer

 

FAX:  (478)
847-5173

 

(Signatures
on next page)

 

22

 

IN WITNESS WHEREOF, the Seller and the Purchaser have caused this
Agreement to be executed, attested, sealed and delivered by their respective
duly authorized officers as of the day and year first written above.

 

	
   

  	
   

  	
  SELLER:  

   

  OGLETHORPE
  POWER CORPORATION (AN ELECTRIC MEMBERSHIP CORPORATION)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  [CORPORATE
  SEAL]

  	
   

  	
  By:

  	
  /s/ Thomas A. Smith 

  
	
   

  	
   

  	
   

  	
  Thomas
  A. Smith 

  
	
   

  	
   

  	
   

  	
  President
  and Chief Executive Officer

  
	
   

  	
   

  	
   

  
	
  ATTEST:
  

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ Patricia N. Nash 

  	
   

  	
   

  
	
  Patricia
  N. Nash 

  	
   

  	
   

  
	
  Secretary

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  PURCHASER:  

   

  FLINT ELECTRIC MEMBERSHIP CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  [CORPORATE
  SEAL]

  	
   

  	
  By:

  	
  /s/ Robert
  Ray, Jr.  

  
	
   

  	
   

  	
   

  	
  Robert
  Ray, Jr.

  
	
   

  	
   

  	
   

  	
  President/CEO

  
	
   

  	
   

  	
   

  
	
  ATTEST:
  

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ Neal L. Talton 

  	
   

  	
   

  
	
  Neal
  L. Talton 

  	
   

  	
   

  
	
  Secretary-Treasurer

  	
   

  	
   

  

 

23

 

Schedule A and Schedule B to the Wholesale Power Contract are not filed
herewith; however the Registrant hereby agrees that such Schedules will be
provided to the Commission upon request.

 

 

SCHEDULE C

 

All
capitalized terms used in this Agreement, including in this Schedule C, in “Rate
Schedule A” and in Schedule B, and not otherwise defined shall have the
respective meanings set forth below.

 

“Accounting Requirements” shall mean the requirements of any system of
accounts prescribed by the RUS as long as the Government is the holder, insurer
or guarantor of any indebtedness of the Purchaser or, in the absence thereof,
the requirements of generally accepted accounting principles applicable from
time to time to companies similar to the Purchaser.

 

“Administrator” shall be as defined in the third Recital.

 

“Agreement” shall be as defined in the first sentence of this
Agreement.

 

“Assignment for Security” shall be as defined in Section 9.2.1.

 

“Conveyance” shall be as defined in Section 8.3.

 

“Debt Service Coverage Ratio” shall mean the ratio determined as
follows:  for each calendar year add

 

(1)                                  Patronage Capital or
Margins,

 

(2)                                  Interest Expense, and

 

(3)                                  Depreciation and
Amortization Expense and divide the total so obtained by an amount equal
to the sum of all payments of principal and interest required to be made on
account of Long-Term Debt during such calendar year;

 

provided, however, that in the event that any
Long-Term Debt has been refinanced during such year, the payments of principal
and interest required to be made during such year on account of such Long-Term
Debt shall be based (in lieu of actual payments required to be made on such
refinanced debt) upon the larger of (y) an annualization of the payments
required to be made with respect to the refinancing debt during the portion of
such year such refinancing debt is outstanding, or (z) the payment of
principal and interest required to be made during the following year on account
of such refinancing debt, all as computed in accordance with Accounting
Requirements.

 

“Depreciation and Amortization Expense” shall mean an amount
constituting the depreciation and amortization, as computed pursuant to
Accounting Requirements.

 

C-1

 

“Discretionary Resource Modification” shall mean a Resource Modification
that is not a Minor Resource Modification or a Required Resource Modification.

 

“Equity” shall mean the total equities and margins (or, if not a
cooperative, equity), excluding Regulatory Assets, as computed pursuant to
Accounting Requirements.

 

“Existing Resources” shall mean the Resources as set forth in Exhibits
1 through 10 to Appendix 1 to “Rate Schedule A” as of January 1,
2003, as changed as a result of any Resource Modification except to the extent
that such Resource Modification is treated as a separate Resource under Section 3.3.2(d).

 

“FERC” shall mean the Federal Energy Regulatory Commission, or any
governmental agency succeeding to its powers and functions.

 

“Force majeure” shall be as defined in Section 6.3.1.

 

“Future Resource” shall mean any Resource of the Seller that is not one
of the Existing Resources (and shall include any Discretionary Resource
Modification to the extent that it is treated as a separate Resource under Section 3.3.2(d)).

 

“Generating Resource” shall mean the Seller’s interest in and to any
existing, additional or repowered generating facilities that are owned (jointly
or individually), leased for a term of greater than one (1) year or
otherwise acquired, as changed as a result of any Resource Modification except
to the extent that such Resource Modification is treated as a separate Resource
under Section 3.3.2(d).  Any portion
of a Resource Modification to a Generating Resource that is treated as a
separate Resource under Section 3.3.2(d) shall be considered a
separate Generating Resource.

 

“Government” shall be as defined in the third Recital.

 

“GSOC” shall be as defined in Section 4.1.1.

 

“ITS” shall be as defined in Section 6.1.

 

“Indenture” shall be as defined in the fourth Recital.

 

“Interest Expense” shall mean an amount constituting the interest
expense on Long-Term Debt, as computed in accordance with Accounting
Requirements.

 

“Legal Requirements” shall mean:

 

(1)                                  obligations of the Seller
under all laws, codes, ordinances, orders, judgments, decrees, injunctions, licenses,
rules, permits, approvals, regulations, and 

 

C-2

 

requirements of every governmental authority having jurisdiction over
the matter in question, whether federal, state or local, which may be applicable
to the Seller;

 

(2)                                  obligations of the Seller
under an existing joint ownership agreement or other existing contract with
respect to Existing Resources;

 

(3)                                  requirements pursuant to
Prudent Utility Practice to keep Existing Resources in good operating condition
during the remaining useful life or contract term of such Existing Resources;

 

(4)                                  obligations of the Seller
under a joint ownership agreement or other agreement with respect to a Future
Resource, which agreement has been approved by (x) at least seventy-five
percent (75%) of the Seller’s Board of Directors, (y) at least seventy-five
percent (75%) of the Member Purchasers and (z) Member Purchasers having
patronage capital in the Seller equaling at least seventy-five percent (75%) of
the accumulated patronage capital of all Member Purchasers in the Seller as of
the end of the most recently completed fiscal year of the Seller (the approvals
referred to in clauses (y) and (z) must be evidenced by resolutions
of the boards of directors of such Member Purchasers specifically approving
such agreement); or

 

(5)                                  requirements pursuant to
Prudent Utility Practice to keep a Future Resource in good operating condition
during the useful life or contract term of such Future Resource, if such Future
Resource has been approved in accordance with Section 3.3.1 or 3.3.2(c),
as applicable.

 

“Long-Term Debt” shall mean an amount constituting long-term debt, as
computed in accordance with Accounting Requirements.

 

“Member” shall mean a member of the Seller.

 

“Member Purchasers” shall mean, from time to time, the Purchasers that
are then Members.

 

“Minor Resource Modification” shall mean any Resource Modification that

 

(1)                                  is not expected to result in
an increase in the Rated Capacity of a Resource by five percent (5%) or more,

 

(2)                                  does not result in the
extension of the projected useful life of a Generating Resource by five percent
(5%) or more of the projected useful life for the Resource then shown on the
applicable Exhibit to Appendix 1 to “Rate Schedule A,” and

 

C-3

 

(3)                                  does not extend the contract
term for a Power Purchase Resource by more than one (1) year beyond the
original term.

 

“Notes” shall be as defined in the third Recital.

 

“Other Purchasers” shall mean, collectively, each Person other than the
Purchaser that is party to any of (1) an Amended and Restated Wholesale
Power Contract with the Seller entered into on or about January 1, 2003 or
(2) another wholesale power contract with the Seller that is substantially
similar to this Agreement.

 

“Patronage Capital or Margins” shall mean the amount of net patronage
capital and  margins (or, if not a
cooperative, net income), as computed in accordance with Accounting
Requirements.

 

“Payment Default” shall be as defined in Section 10.1 or, where
the context requires, similar payment default by any of the Other Purchasers.

 

“Percentage Capacity Responsibility” or “PCR” of the Purchaser and of
each Other Purchaser shall mean the percentage allocation with respect to a
Resource, including the allocation of electric capacity, cost responsibility
and revenues, if applicable.

 

“Performance Default” shall be as defined in Section 10.3.

 

“Person” shall mean an individual, partnership, limited liability
company, corporation, cooperative, business trust, joint stock company, trust,
unincorporated association, joint venture, governmental authority or other
entity of whatever nature.

 

“Power Purchase Resource” shall mean a purchase of capacity and energy
or energy by the Seller with a contract term greater than one (1) year, as
changed as a result of any Resource Modification except to the extent that such
Resource Modification is treated as a separate Resource under Section 3.3.2(d).  Any portion of a Resource Modification to a
Power Purchase Resource that is treated as a separate Resource under Section 3.3.2(d) shall
be considered as a separate Power Purchase Resource.

 

“Power Sales Resource” shall mean all Power Sales Resources identified
in Exhibits to Appendix 1 to “Rate Schedule A” on the date of this
Agreement and any future sale of capacity and energy or energy made by the
Seller under Section 4.1.3 with a contract term greater than one (1) year.

 

“Prudent Utility Practice” shall be as defined in Section 6.3.2.

 

“Purchaser” shall mean the electric membership corporation identified
as such in the first sentence of this Agreement, or its permitted successor or
assignee.

 

C-4

 

“Purchasers” shall mean, collectively, the Purchaser and the Other
Purchasers.

 

“Purchaser Transaction” shall be as defined in Section 8.2.

 

“Rated Capacity” shall mean the capacity rating of a Resource
determined from time to time for the purpose of reserve responsibility
calculations.

 

“Regulatory Asset” shall
mean the sum of any amounts properly recordable as unrecovered plant and
regulatory study costs or as other regulatory assets, as computed in accordance
with Accounting Requirements.

 

“Required Resource Modification” shall mean a Resource Modification
that is required to comply with Legal Requirements.

 

“Resource” shall mean one of the Generating Resources or Power Purchase
Resources.

 

“Resource Modification” shall mean an addition, improvement, repair or
modification to a Generating Resource or modification or extension of a Power
Purchase Resource.

 

“RUS” shall be as defined in the second Recital.

 

“Secured Obligations” shall be as defined in the fourth Recital.

 

“Seller” shall mean Oglethorpe Power Corporation (An Electric
Membership Corporation), or its permitted successor or assignee.

 

“Seller Transaction” shall be as defined in Section 9.3.2.

 

“Times Interest Earned Ratio” shall mean the ratio determined as
follows:  For each calendar year add
(i) Patronage Capital or Margins and (ii) Interest Expense on Long-Term
Debt, and divide the total so obtained by Interest Expense on Long-Term
Debt, all as computed in accordance with Accounting Requirement.

 

“Total Assets” shall mean an amount constituting the total assets, but
excluding any  Regulatory Assets, as computed
in accordance with Accounting Requirements.

 

“Transferee” shall mean the Person formed by any consolidation or that
is the survivor of any merger or reorganization or the Person that acquires or
leases all or substantially all of the electric assets of the Purchaser.

 

“Withdrawal Agreement” shall be as defined in Section 17.

 

C-5

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