During the Term of this ILA, EPMI shall be entitled to be paid a fee for f=
or=20
performance as follows:=20

i. EPMI shall be paid a fee equal to the sum of 1) the Incentive Fee which=
=20
shall not be less than $12,500 and 2) a fee of $1/MWhr above the delivered=
=20
price for purchases of Off-Peak Power (the fee of $1/MWh shall not be=20
included in the calculation of Savings), and 3) payment for the delivered=
=20
cost of market power purchased to serve MDEA=01,s and the Cities Native Loa=
d in=20
accordance with the transaction Confirmation. Individual transactions will=
=20
be confirmed by written confirmation to be acknowledged and signed by EPMI=
=20
and jointly by MDEA, YCPSC and CPUC..
ii. In the event that this ILA is terminated early, the minimum monthly=20
Incentive Fee amount shall be $12,500 divided by thirty (30) and multiplied=
=20
times the number of days in May in which this Agreement was in effect.=20
iii. The Incentive Fee shall consist of forty percent (40%) of the Total=20
Daily Savings. Total Daily Savings is the product of (1) the Savings per M=
Wh=20
calculated for the day, times (2) the total MWh for the same day of market=
=20
power purchased to serve system load.=20
iv. Savings per MWh is calculated as the positive difference between (a) th=
e=20
MDEA Target Production Cost for units that would have run if market power=
=20
were not purchased to serve system load, and (b) the delivered cost of mark=
et=20
power purchased to serve system load.