Non-Cash Settlement Consideration. Santee Xxxxxx will provide a rate freeze for the benefit of Class Members consistent with the rates projected in the Reform Plan, beginning in 2020 upon approval of this Agreement and extending through the end of 2024 (the “Rate Freeze Period”). Specifically, with respect to Central, during the Rate Freeze Period, the rates and charges shall be as set forth on Schedule A attached hereto, and with respect to Santee Cooper’s retail customers, the rates and charges shall be as set forth on Schedule B attached hereto. Central’s bills to the Electric Cooperatives shall reflect the energy costs billed to Central in accordance with this Section. Santee Xxxxxx shall use Good Utility Practices3 for operation and maintenance that are consistent with past practices and applicable accounting methodologies and allocations. Consistent with being a rate freeze, Santee Xxxxxx agrees not to defer any costs and expenses incurred or otherwise appropriately attributable to any year during the Rate Freeze Period to any other year or years during or after the Rate Freeze Period, except that Santee Xxxxxx may defer to rates charged in years after the Rate Freeze Period just and reasonable costs and expenses incurred during the Rate Freeze Period directly resulting from the following circumstances: • Change in Law4 (not initiated or advocated for by Santee Xxxxxx). • Named storm events, acts of God or the public enemy, flood, fire, strike, or catastrophic failure of equipment for reasons beyond Santee Cooper’s control. • Significant cyber security attacks or other security attacks outside of Santee Cooper’s control. • Changes in regulatory or governance requirements imposed by the Act 95 legislative process. • Deviations in Central’s actual loads (used for allocation of demand costs) as compared to Central’s billing determinants used in the Reform Plan if such deviation exceeds +/- 4% on an annual (calendar) basis. For the avoidance of doubt, any exercise of Opt-Out rights by Central under the Coordination Agreement shall not be deemed to result in a change in load for purpose of this provision. • If Santee Cooper’s costs incurred after the date of execution of this Agreement are increased above those in the Reform Plan because Santee Xxxxxx is not permitted to engage in forward hedging of fuel price solely by reason of restrictions imposed by the Act 95 legislative process and 3 Good Utility Practices for purposes of this Agreement is as defined in the Coordination Agreement.
