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Chimney Hollow <br />Reservoir Project <br />NOTICE TO WGFP ALLOTTEES OF NEED TO INCUR COMPLETION C&E <br />To: City of Louisville <br />From: Jeff Drager, P.E. <br />Date: May 29, 2024 <br />Under the Windy Gap Firming Project (WGFP) Allotment Contracts, and using the definitions therein, the <br />WGFP Enterprise has determined that the Initial C&E will be depleted, and Completion C&E must be <br />incurred to complete construction of the WGFP. This letter serves as the WGFP Enterprise's Notice under <br />Section 6.2.2 of the Allotment Contract of the need to incur Capital C&E Funding Obligations for <br />Completion C&E. The total amount of Completion C&E to be incurred is $65,000,000. Because <br />interest earned on Initial C&E differed for Cash Allottee funds versus Loan Allottee funds, the WGFP <br />Allottees' Capital C&E Funding Obligations for Completion C&E accordingly differ. The original Cash <br />Allottees' Completion C&E portion totals $32,536,281 (-$715.08/cash unit) and the Loan Allottees' <br />Completion C&E portion is $32,463,719 (--$729.52/loan unit). The WGFP Enterprise is offering the option <br />for all Allottees to participate in a WGFP Financing to satisfy the Completion C&E, regardless of each <br />Allottee's method of paying its Initial C&E. <br />Pursuant to 6.2.2, by August 27, 2024, Allottees shall elect in writing, by returning this form to the WGFP <br />Enterprise through mail or email to ihernandez@northernwater.ora, with cc to bralev@troutlaw.com, to <br />pay its Capital C&E Funding Obligations for such Completion C&E through a Capital C&E Funding Cash <br />Payment, participation in a WGFP Financing, or a combination thereof. If either no such election is made <br />by August 27, or to the extent a cash payment is not received by August 30, 2024, then that Allottee <br />shall be obligated to participate in a WGFP Financing under Allotment Contract Section 6.2.2.2. <br />Construction of Chimney Hollow Reservoir is projected for completion late Summer 2025. According to <br />the current budgets and the project's risk register, $65,000,000 is deemed adequate for the successful <br />completion of the project. However, considering the inherent uncertainties associated with construction, it <br />is important to note that additional Completion C&E may be required in the future. If so, the WGFP <br />Enterprise will provide a separate notice pursuant to Allotment Contract Section 6.2.2. <br />Louisville's Completion C&E Funding Obligation for its 2,835 Units = $2,068,194 <br />Means of Completion C&E Payment: <br />❑ Capital C&E Funding Cash Payment (# of units) $ <br />❑x WGFP Financing 2,835 (# of units) <br />Signature U <br />Mayor August 6, 2024 <br />Title Date <br />$ 2,068,194 <br />Total Units = 2,835 (# of units); Total Amount = $2,068,194 <br />