Loading...
HomeMy WebLinkAboutPR 24455: ENTERGY TEXAS, INC., POWER THROUGH PROGRAM, BACKUP POWER, CIVIC CENTER Y, P.R. No. 24455 07/21/2025 AJS/TNR Memorandum City of Port Arthur, Texas Robert A. "Bob"Bowers Civic Center To: The Honorable Mayor and City Council Through: Ron Burton, City Manager From: Adam J Saunders, Civic Center Dir RE: Proposed Resolution No. 24455 The City of Port Arthur, and specifically the Civic Center Department, has been approached by Entergy Texas, Inc. of The Woodlands, Texas, to enter into an agreement to participate in their Power Through program. This program would provide the Robert A. "Bob" Bowers Civic Center with a natural gas generator large enough to power the building in full in case of a power failure. The City would initially share some costs of the generator and continue to do so in the long term. Entergy Texas would pay a larger portion of the cost, which will include, but not be limited to, the installation, preventive maintenance, complete maintenance, and repairs, the cost of the natural gas used, etc. This generator would be available to the Civic Center during any power failure, regardless of the length of time the power is out. In return, Entergy Texas will have ownership of the generator and full use of it as they deem appropriate during all other times. Regardless of the needs of Entergy Texas, Inc., the Civic Center's use of the generator during a power failure will take priority. The City Council requested approval for the City Manager to enter negotiations with Entergy Texas, Inc. In these negotiations, and exact cost to the City of Port Arthur will be determined. RECOMMENDATION It is recommended to approve the resolution to authorize the City Manager to negotiate a contract with Entergy Texas, Inc. of The Woodlands, Texas, for the City of Port Arthur to participate in the Entergy Texas Power Through program to have a natural gas generator installed at the Robert A. "Bob"Bowers Civic Center. BUDGETARY AND FISCAL EFFECT There is no budgetary impact at this time. Any future financial obligations will be evaluated and presented upon completion of contract negotiations. STAFFING EFFECT None P.R. No. 24455 07/21/2025 AJS/TNR RESOLUTION NO. A RESOLUTION AUTHORIZING THE CITY MANAGER TO ENTER INTO CONTRACT NEGOTIATIONS WITH ENTERGY TEXAS, INC., FOR PARTICIPATION IN THE POWER THROUGH PROGRAM TO PROVIDE BACKUP POWER TO THE ROBERT A. "BOB" BOWERS CIVIC CENTER, LOCATED AT 3401 CULTURAL CENTER DR, PORT ARTHUR,TEXAS 77642 WHEREAS, the City of Port Arthur has been approached by Entergy Texas, Inc., headquartered in The Woodlands, Texas, regarding participation in its Power Through Program, a distributed generation initiative designed to enhance critical facility resiliency in the event of power interruptions, attached hereto as Exhibit "A"; and WHEREAS, under this program, Entergy Texas proposes to install a utility-owned natural gas-powered generator at the Robert A. "Bob" Bowers Civic Center located at 3401 Cultural Center Dr, Port Arthur, TX 77642, sufficient to power the entire facility in the event of a loss of electrical service; and WHEREAS, the program contemplates a cost-sharing arrangement under which Entergy Texas will bear the greater portion of the costs, including, but not limited to, equipment installation, preventive and corrective maintenance, repair services, fuel (natural gas) supply, and general operational oversight; and WHEREAS, the Civic Center would be granted priority access to the generator during any electrical outage, regardless of duration, with Entergy Texas retaining ownership and the right to utilize the generator at all other times as deemed appropriate for grid support, provided such use does not interfere with the Civic Center's priority access during outages; and WHEREAS, in order to proceed, the City and Entergy Texas must negotiate and finalize several instruments, including but not limited to: A General Program Participation Agreement (proposed as Exhibit "B"); A Distribution Easement Agreement to permit infrastructure installation and access (proposed as Exhibit "C"), and A Utility-Owned Distributed Generation Rider or similar rate tariff agreement outlining cost allocations and responsibilities (proposed as Exhibit"D"); and P.R. No. 24455 07/21/2025 AJS/TNR WHEREAS, staff recommends that it is in the best interest of the City and its residents to authorize the City Manager to negotiate the foregoing agreements with Entergy Texas, Inc., subject to final approval by the City Council. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR,TEXAS: Section 1.The facts and opinions in the preamble are true and correct. Section 2. That the City Manager is hereby authorized and directed to enter into negotiations with Entergy Texas, Inc., for participation in the Power Through Program to install a utility-owned natural gas generator at the Robert A. "Bob" Bowers Civic Center, consistent with the terms outlined herein. Section 3. That any final agreement(s) resulting from said negotiations shall be brought before the City Council for review and formal approval prior to execution. Section 4. That a copy of this Resolution shall be spread upon the Minutes of the City Council. READ, ADOPTED, AND APPROVED, this day of 2025 AD, at a Regular Meeting of the City Council of the City of Port Arthur, Texas by the following Vote: AYES: Mayor: Councilmembers: NOES: Charlotte M. Moses, Mayor ATTEST: Sherri Bellard, City Secretary P.R. No. 24455 07/21/2025 AJS/TNR APPROVED AS TO • Roxann Pais Cotroneo City Attorney APPROVED FOR ADMINISTRATION: Ronald , C City Manager APPROVED AS TO FUND AVAILABILITY: /4,gry) Lynda Bos , .A., ICMA-CM Director of Finance Ii . . k . Clifton Jam Williams, CPPB Purchasing Manager P.R. No. 24455 07/21/2025 AJS/TNR EXHIBIT "A" wmcn0o / �� SW g (41 =.' C i * CD 0MNOCD N ,V CD 0 11 _Z = cn fo O CD Mill CD CD (Si' cn c 13 -1 CO P o O (C DIN ):21Pmil 0 O C in • • CD i I tea r 1 '0 , .11101111.1P:, i il • imp.: I A N v O0 O m - � CD cp < CD 3 _I-1 -I 9 or (4 CD 0 , If ' i R- E m" -0 o CO (D. p 0Crp ! 3 mug p v n mil v rn• " r o CD CD n 0 Ca . � v �. N rn � CD cn �^+' A CD CD CD Cn Q =� a `^ A 0000 v < � D cc cD Z o 0 -' S m 0 000o Q' CD rh III O 5. v III .i o v Co III '< � p D rn IT o D 1i I:al 0• • . • • • 0 • • . • . (D • 0� � a (D W • • • • • • • ( ) CO Z g Z 5 1-1 O Ro Z CU O p r+z ma - O O 0 c CD su C_ 'C 0-1 -i+ I-a C C z .< n ' O m (- 0 0 n 0 MI al fD 4 v fD (� 0 I.+ Q n. ' 0 0 C. C „t MI N ,.t —■ Q. CD 0 rD �G ( rf n p CD 0 rCU n+ CCD —• C N rt S C' I 4 D ID r-F A _ n N + n 0 ro — o 11) o n o 70 m ro c- 0 C 0 rD a o -I r) z EL o o EU a m C a A 49 ° C e rD � � o �_ - nj o r-• n v, rF (121 ,+ 0 �- co �G n CO �o rD CC rD -13 0 O 111� ea ,11 X: O O -P O N I-1 N Gl Co O - v 0 0 O r�-r p n N rDCD D m m n D to 0 O `+ CD N �l < D V 11) rr+ 0 -S -, r+ UU 0Q C• =- p n rDD v �• CO v `G -< -O - — rr -1 — 73 O 00 E NIN n u CD Q rcu-+ co x rt — _ v UU f D cc) can 0_,11 G7 3 co D �/' D G) m v) DJ O N - H ' I fD CD v)I CO N W ..'l +4 CD D rrt- CD CO CC *NI � cn o a o co m~ 0NJ d , O2o D1 o c a n O D a y o C 0 `■ G) z CD rD n O co z C -, a < �' do oO 1-1- 'VO c e3 oOD -0 �Q Di D.) o 7 o - : - ,. , nlaH ~ rr D rD -1 1 1 D m rnCID s D rD rD « a s ti S C n (1 n n ^y n O '1 rrri E c C c c C. �, o W x IA v, CA r- n ). RD n to O O O O d O_ 3 it O 0 _ n 3 m C S S z- S 3 ON N V 0 o o < < < v D O 3 no co cu co O _+ __ 3 a aOni n N N A d 3 3 n o ° o D o = rD to rD to o IA o o Z 1 co m S. 2 C S C O to iA to A Oo C LO O. m ? to V t PI V A 01 v 0 a 0 rp V NJ W al V N O lo V p O c .^,� o . V 3 Cl)a o ° Cl) ro 3 o °- c r+ c 3 y Dl H N 4'' O O p N O CD rD 0 H • • • • -0 -p C O Cn O —I CD FP E CDCH Cy ,CD• O CD -O D = O < 3 O n O O wCO O2 CD CD 3 A O D (7 O- -O D Q ODG0- O� OO ° CD `< N D m3 CD O N CD O .+a) co a) 3 C O �, CD O—CCD 0 (n O -0 O o O O = -o Fn. O 3 -O = 0 = v O < � - C<D (�D N CD ° O r+ > `< CD = CS CO CD O Cn) I h h = -o O O O 3 O O = C CS O O `� -0 < CD c �. < sv m 7j CD v (D o �' .0 , cn a cD m - m v 0 c� O v-a O - CD � __ � cn o ° off °ate' O ° -� (� O Q CD "O p Q O C� o � `� �' 0 CC v G) < rt (n Q CS CD 0 C m C 73 c,t .4.. 2 CD 4. r O n n DJ M i' c ¢ cif a lit; (a i` i x 4 1 1i ¢ tli x 4e,5 fr 4#� � t s $i t x9- a 1 J *e rp 49 CD D f'fi CD '^� (0 Cc F. V m cD C, _. su .. 1 cn ; 1 o1 n r i'r = CD ... 3 9.,,,,,, lop ci) 4 Oil IIMI i s CI)IN R ---- PSI MI mils gir pi i ail CD B i PI E AA11s i O—-' E _Fq f } 49 CD D t-F CD rn co C, r+ o ca f}dys g 3liCn N Ft r� _ 1} r . nF z __J. 2 t�. of.,,, i Mil it tg: oil CO Ll';'1 ei i`6 '2 ill 11 -. i 111 : it cco b E: 1 E' mil MK 61. F t 13 [ .,-. =is 0 C L Co - n 0 % N O MK C CD (fl (c CD X Cn CD 1 I- *t"i • ter!j c� CC 0) U1 -P W N 71 < m -0 m -0 :• > 10 N = X X D � , CD CD CD CD . O c =• fl.. CQ .C-r C—+ M C n -s S r-r a) O `< o —• < (/) C C O' CD CD 0 COD 0 0 co � <. U) CD CD -, 3 CD ,l --� ca 'i —i CD Q n C ,- 3 O O r v `< < O -, -o CD O < v C ' O ai CD CO C Cl) Q S OOa) D a_OOp N 0D v _. C O -, CD h nr 90 "0 v C 7J "0 -h O� CD O� a) Q O O CD C) CD < C -q - CD m m O c co m- yy O , 1 4 ---k y ii ..s+lIN . 4 : s r/ I A es 0 0 .J CD O l J G O N e F O CD 0,)CD C rF 0) D O CD p o CD 0 3 C _■ O O —h O 3 -11 O -1 CO n O 2 • rF 0 ■') V) C) a) 0 ■ ■ El I e a co ..111.161 o • • r ▪ ■ ■ 1 b . 0y1_ Ala Ia. (.7) .11 0 Cn CD CD r-t- CD (0 \ \ / \ ( 7 \\D 0.-0 I8g ( 05 • ca \\ } \ § ! - ( g.\\• \ \ \ g #� ] t / 0. k ( 11119 / } 7, g \ / C » > / 0 (ID : \ -A ( (\ l § ( I a" CD ( f; / - 2 (0 ifl cc: § \\ 3 - \\ ET) ® # ƒ $ } ) a 3 5. }\ \J ( \\ \ «& i 3a0 P.R. No. 24455 07/21/2025 AJS EXHIBIT "B" SECTION IV RULES AND REGULATIONS Page 18.1 ENTERGY TEXAS, INC. Sheet No.: 39 Electric Service Effective Date: Proposed Revision: 0 Supersedes: New Schedule AGREEMENT FOR Schedule Consists of: Four Sheets and BACKUP ELECTRIC SERVICE FROM Attachment A CUSTOMER-HOSTED U11LITY-OWNED DISTRIBUTED GENERATION AGREEMENT FOR BACKUP ELECTRIC SERVICE FROM CUSTOMER-HOSTED UTILITY-OWNED DISTRIBUTED GENERATION ENTERGY TEXAS. INC. Host Customer Mailing Address Point of Service Page 18.2 This Agreement for Backup Electric Service from Customer-Hosted Utility-Owned Distributed Generation N ("Agreement") is made and entered into on 4/30/2025 by and between H.E.B. Groceries, a Texas [corporation] ("Host Customer") and Entergy Texas, Inc., a Texas corporation ("Company") (collectively referred to as "the Parties" and individually as a "Party") and will become effective on the date the Agreement is executed by both Parties ("Effective Date"). WHEREAS, [the Parties have entered into an Agreement for Electric Service]{or}[Host Customer takes electric service from Company pursuant to(list applicable rate schedule(s))],wherein Company provides to Host Customer electric service in accordance with the terms and conditions set forth therein; WHEREAS, Host Customer has agreed with the Company to host Facilities other than those normally furnished for like levels of service to similar customers; WHEREAS, Company has agreed to install the Facilities, subject to the terms and conditions of this Agreement and consistent with the terms set forth in the Company's Rate Utility-Owned Distributed Generation Rider("UODG Rider"); WHEREAS, Customer has established credit deemed satisfactory by the Company; NOW, THEREFORE, for and in consideration of the mutual covenants set forth herein, the Parties agree as follows: ARTICLE I. APPLICABLE RATE SCHEDULE Host Customer will pay for backup electric service from the Facilities in accordance with the UODG Rider, attached hereto as Attachment A,such other rate schedules as are ap plicableand may become applicable, Company's Terms and Conditions Applicable to Electric Service,' and the terms and conditions set forth in this Agreement.Company will have and expressly reserves the right to change,modify,expand and amend rate schedules from time to time, without the consent or approval of the Host Customer, subject to appropriate action by the Public Utility Commission of Texas (`DUCT')or such other regulatory authority having jurisdiction. In the event that UODG Rider is superseded, subject to the provisions in Article V (Monthly Charges)the successor rate schedule will apply hereto without any additional need for revisions to this Agreement. ARTICLE II. LOCATION AND OPERATION OF ADDITIONAL FACILITIES The Facilities will be installed to provide backup electric service as described herein to Host Customer's facilities located at TX. The Facilities will be installed at and will include the facilities listed on Attachment B(the"Facilities'). Without reimbursement or any cost to the Company, Host Customer will furnish a right-of-way, servitude, license, or other suitable land use arrangement(pursuant to Attachment C, if applicable) necessary or incidental to installing,maintaining,and operating the Facilities on the Host Customer's premises and will continue to permit Company in the use and occupancy thereof. In the event Company is unable to secure and/or maintain from Host Customer an adequate right-of-way, servitude,license,or other suitable land use arrangement upon terms satisfactory to Company, Company's obligations under this Agreement will cease, and the Agreement will terminate subject to Articles IX and X. Company will construct and maintain the Facilities in accordance with the one-line diagram attached hereto as Attachment B,Exhibit 3. In the event the configuration of the Facilities is modified,Company will provide a revised one-line diagram to Host Customer. See Entergy Texas Terms and Conditions,available at https://www.entergy- texas.com/userfiles/content/price/tariffs/eti terms_and_conditions.pdf. 2 Page 18.3 If the Host Customer's operations and corresponding electric requirements expand at some future date and N would exceed the capabilities of the Facilities that were calculated based on the Host Customer's load profile when the Facilities were installed, then Host Customer must notify Company within a reasonable time period, and no later than two weeks,prior to any such change taking effect. Host Customer is solely responsible for costs associated with designating and integrating the components of its updated load(e.g., designating"critical load"circuits)that are capable of and will continue to be supported by the Facilities. Without guaranteeing that Company will provide continuous,uninterrupted service to Host Customer and without waiving,amending or modifying any of the rights or obligations as set forth in Company's Terms and Conditions Applicable to Electric Service, Company acknowledges that the Facilities will be available to provide kW of backup electric service to Host Customer in the event Company is unable to serve Host Customer's load through its transmission and/or distribution system. Company acknowledges that the Facilities have been configured to automatically engage at such time as Host Customer's electric service needs are not met by Company's transmission and/or distribution system. The Facilities will be available for dispatch by the Company either by(1)the Facilities supplying power to the grid; or(2)temporarily disconnecting Host Customer from the grid and supplying power solely to Host Customer. Such dispatch, both in terms of frequency and duration, will be within the Company's sole discretion, subject to the limitations in the preceding paragraph. ARTICLE III. FUEL RESPONSIBILITY Company will obtain natural gas service, including a natural gas meter and infrastructure of adequate capacity,to supply the Facilities, and the cost of doing so will be included in the Total Installed Cost2 of the Facilities. Fuel procurement and delivery associated with the operations and maintenance of the Facilities will be the Company's responsibility,and the associated costs will flow through the Fixed Fuel Factor and Loss Multipliers rate schedule (Schedule FF). ARTICLE IV. PERMITS Company will obtain and comply with any license or permit required to be in Company's name to enable it to install, operate, and maintain the Facilities. Host Customer will obtain and comply with any license, permits,and/or approvals from proper authorities required to be in Host Customer's name in order for the Host Customer to host the Facilities. Each Party agrees to cooperate with the other Party and to assist the other Party in obtaining any required permits. ARTICLE V. MONTHLY CHARGES The monthly charges for backup electric service from the Facilities will be billed in accordance with the UODG Rider and the Terms and Conditions Applicable to Electric Service, as approved by the duly authorized regulatory body,and as amended, superseded and modified from time to time,and consistent with the provisions of this Agreement. Monthly charges will commence once the Facilities are ready for service, as described in Attachment B, Exhibit 4 (the "In-Service Date"). Company reserves the right to include the UODG Rider charges on the Host Customer's bill for electric service or bill Host Customer separately for its UODG Rider charges. Host Customer has selected a Recovery Period of[]year. Host Customer's monthly payment during both N the Recovery Period and Post-Recovery Period (defined below)will be based on the percentages identified in Schedule UODG associated with Host Customer's selected Recovery Period multiplied by a portion (determined by the formula in Schedule UODG) of the Total Installed Cost of the Facilities minus any applicable Energy Value. As specified in UODG Rider,the Capacity Value used to determine the amounts billed to HostCustomer underthe UODG Rider is fixed according to the version of the UODG Rider in effect when this Agreement is executed, as reflected in Attachment A. It is acknowledged that the Energy Value 2 Capitalized terms not otherwise defined this Agreement correspond to the defined terms in UODG Rider. 3 Page 18.4 and the percentages identified in the UODG Rider may be revised in rate setting proceedings,and those new values will be applied in calculating the monthly payment under this Agreement. It is further acknowledged that the initial monthly payment(s)will be based on the estimated installed costs of the Facilities in the amount displayed in Attachment B. At such time as Company has calculated the actual costs associated with the total installed cost of the Facilities, the Company will provide to Host Customer a revised Attachment B to reflect the actual costs without the need for an amendment to this Agreement or a new Agreement. Company will adjust the Host Customer's monthly payment to reflect such actual costs following Host Customer's receipt of the modified Attachment B. In the event Host Customer fails to tender payment in full for all charges associated with the UODG Rider, Company reserves the right to discontinue Host Customer's electric service in accordance with the Terms and Conditions Applicable to Electric Service. Regardless of whether Company discontinues the Host Customer's electric service for any reason, Host Customer will owe and Company reserves the right to pursue and secure payment of all past due amounts through any other lawful means. Host Customer will be liable for all court costs, attomey's fees and other costs associated with the collection of all past due amounts. ARTICLE VI. SUBSEQUENT MODIFICATIONS, ADDITIONS, AND REPLACEMENTS During the Agreement Term, defined below, subsequent capital modifications of, additions to, or replacement of the Facilities required to maintain the operational status of the Facilities due to equipment failure, equipment damage, or new regulatory requirements will be made solely at the Company's discretion. If the Company elects not to make any necessary modifications,additions,or replacements necessary to maintain the operational status of the Facilities under those or like circumstances, the Agreement will terminate unless the Host Customer agrees to pay the necessary costs in advance that the Company is unwilling to incur. Customer may also elect to identify modifications or additions that it would like to be made to the Facilities by the Company. Subject to Company's written approval in advance,such modifications or additions will be made at Customer's expense,which will be paid in advance and separate from the monthly charges described in Article V. ARTICLE VII. INDEMNITY AND LIABILITY Company will have exclusive ownership,control,and access to the Facilities. HostCustomerwill not permit its employees or agents to come in contact with the Facilities; provided,however, that Host Customer may access the Facilities in an emergency situation that affects the operation of the Facilities, such as a fire, to take remedial action to protect Host Customer's property, including engagement of an emergency shut-off switch, if an emergency shut-off switch is a component of the Facilities. Host Customer will immediately notify Company in the event it takes any such emergency actions and,to the extent possible,in advance of taking such emergency actions. Host Customer will assume all liability associated with the Facilities as set forth in the"Liability"provisions of the Terms and Conditions Applicable to Electric Service. ARTICLE VIII. AGREEMENT TERM The initial term of this Agreement("Agreement Term")will begin with the Effective Date and continue for twenty (20)years from the In-Service Date. The Agreement Term will continue thereafter on a year-to-year basis until termination of this Agreement is sought by one or both Parties.Subject to Company's right to discontinue service in accordance with the terms herein and Company's right to remove the Facilities pursuant to Article X herein, this Agreement can be terminated by the mutual written agreement of both parties or, once the Agreement Term has been fulfilled, by the written notification of the Party wishing to terminate to the other Party not more than six(6)months nor less than three(3)months in advance of the 4 Page 18.5 desired termination date, whether such termination notice occurs in the initial Agreement Term or during a N year-to-year extension of the Agreement. The "Recovery Period"of this Agreement will be the number of years selected by Host Customer under Article V, commencing with the In-Service Date. The"Post-Recovery Period"of this Agreement will be any and all periods following the expiration of the Recovery Period. ARTICLE IX. TERMINATION CHARGES In the event Host Customer terminates this Agreement prior to the condusion of the Agreement Term, fails to make payments in accordance with the terms of this Agreement,ceases to take electric service from Company at the above location before the end of the initial term,if Host Customer is relieved of its obligation under any Agreement for Electric Service as a result of the commencement of retail open access for similarly-situated customers in Company's Texas service territory or for Host Customer's participation in the effective Retail Open Access Pilot program, if any,before the end of the initial term, or if the Agreement terminates pursuant to Article VI, Host Customer must still pay the applicable Monthly Charges (either monthly or in a single payment equivalent to the sum of the Monthly Charges)for what would otherwise be due during the remaining Recovery Period,provided that the remainder of the Recovery Period isf our years or less. In the event the remaining Recovery Period is longer than four years,Host Customer must make a single payment equivalent to the sum of the Monthly Charges that would otherwise be due during the remaining Recovery Period.A single payment would be due no later than 30 days after the date of receipt of an invoice from the Company. Upon termination, and regardless of whether Host Customer continues to pay Monthly Charges under what would have been the remaining Recovery Period, Host Customer will no longer receive backup electric service under Rider UODG and this Agreement and would likewise not be obligated to pay Monthly Charges associated with what would have been any remaining Post-Recovery Period. ARTICLE X. REMOVAL CHARGES In the event the Host Customer terminates this Agreement prior to the conclusion of the Agreement Term or fails to make payments in accordance with the terms of this Agreement, in addition to all other rights of recovery allowed herein or in accordance with common law, Company reserves the right to remove the Facilities at Host Customer's expense at any time after this Agreement is terminated. In the event Host Customer satisfies the full Agreement Term, terminates the Agreement in accordance with the terms of this Agreement, and requests in writing the removal of the Facilities, Host Customer will pay to Company in advance the total estimated cost of removing the Facilities, subject to true-up when actual costs are calculated. In the event Host Customer terminates this Agreement in accordance with the terms set forth herein at the conclusion of the Agreement Term and Company,at its option,elects to remove the Facilities, Company will bear all costs associated with the removal of the Facilities. 5 Page 18.6 ARTICLE XI. NOTICE N Any notice given by either Party to the other pursuant to this Agreement will be deemed validly given if deposited in the mail properly stamped with the required postage and addressed to the last known office address of the respective addressee. Either Party hereto will have the right to change any address or addressee it may have given to the other Party by giving such other Party due notice in writing of such a change. Until so changed, notices will be given to the addressees at the addresses set forth below. ARTICLE XII. OWNERSHIP OF FACILITIES Title to all Facilities will at all times remain in the Company, its successors and/or assigns. ARTICLE XIII. APPROVAL This Agreement is contingent upon approval by Company's designated representative. ARTICLE XIV. MISCELLANEOUS This Agreement will bind and inure to the benefit of the Parties hereto, their successors and assigns, but the Host Customer will not assign any of its rights under the Agreement without first obtaining written consent of the Company,which will not be unreasonablywithheld. This Agreement, upon its Effective Date, will supersede any previous Agreement for Backup Electric Service from Customer-Hosted Utility-Owned Distributed Generation between Company and any of its predecessor companies,and Host Customer. No agreement or representation made by a representative of Company or Host Customer, unless reduced to writing or incorporated herein, will be binding upon either Party. PARTICIPANT ENTERGY TEXAS, INC. By: By: Signatory Title Signatory Title Attest: Approved: Signatory Title Signatory Title Date of Signature Date of Signature 6 Page 18.7 Agreement for Backup Electric Service from Customer-Hosted Utility-Owned Distributed Generation Attachment B (Illustrative) The following itemizes the facilities, equipment, and actions to be performed by the Company and/or its contractors for the installation of a dispatchable distributed generator(s) at the following location: (the "Facilities"). Following successful system acceptance testing("SAT")and commissioning described in Exhibit 4,the distributed generator(s)will bed eemed"ready for service"for purposes of establishing the"In-Service Date" of the Agreement for Backup Electric Service from Customer-Hosted Utility-Owned Distributed Generation ("Agreement"). Equipment, Materials and Unit of Measure Quantity Amount(a) Activities 1. Distributed Generator Model(b) 2. Transport and Logistics 3. Equipment Siting (crane)for generator and ATS(c) 4. Civil Site Work:(°) -Equipment Concrete Pad -Dirt Work -Fencing -Permitting 5. ATS Installation 6. Electrical Wiring and Conduit from ATS to Generator") 7. Electrical Wiring and Conduit from Generator to Utility Electric Serviced) 8. Mechanical Piping and Trenching for Natural Gas to Generator(c) 9. Labor Costs -Mechanical -Electrical 10. SAT and Commissioning(e) TOTAL INSTALLED COST Notes: (a)Amounts are initially estimated and will be updated following completion of construction and successful commissioning. (b)See Exhibit 1. (c) See Exhibit 2. (d)See Exhibit 3. (e)See Exhibit 4. Page 18.8 Exhibit 1 N Customer Specific Data and Corresponding Distributed Generator(s) Selection Customer's Estimated Load Profile Kilowatt Load (at peak) XX kW Amp Load (at peak in-rush current) YY amp Customer Circuits Covered Whole Premise *or* Critical/Priority Circuits Listed Based on these estimates,Company has determined that the distributed generator(s) detailed below is best suited for this installation: Customer's Distributed Generator(s) Specifications Make Generator Mfg XX Model Generator Model YY Output Voltage 120/240 Maximum Kilowatt Output* XX kW Maximum Amperage Output* XX amps Dimensions 38" (height) x 48" (depth)X 97" (length) Additional Information Mfg. cutsheet link * Estimated based on weather and ambient temperature normalization at Host Customer's location. Host Customer is responsible forensuring circuits covered bydistributed generator(s)remain within operating capabilities of the generator. DG Capacity The Distributed Generation Capacity* (DG Capacity)for purposes of populating the XX MW "DG Capacity" variable in Rate Schedule UODG * The capacity value applied is adjusted by the effective customer load factor for smaller units that are not capable of parallel operations. Calculation of Host Customer Allocation of Total Installed Cost The Levelized Real UODG Value* kW-year Host Customer Allocation Percentage** Host Customer Allocation of Total Installed Cost** $ * See Exhibit 1A ** See Rate Schedule UODG for calculation formula Page 18.9 Exhibit IA — Levelized Real UODG Value Calculation OpCo Property tax Book depreciation rate Equity:debt ratio Cost of equity Cost of preferred stock Cost of debt Composite income tax rate WACC/RORB Inflation Date in-service End date Property Tax Annual Growth Rate Generator Inputs:Capital Costs&O&M Generator size(kW) DG Capacity(kW) Total capital costs Fixed O&M contract(annual) Results: Levilized Costs&Total UODG Value Levelized revenue requirement charge($/kw-year) Levelized O&M costs($/kw-year) Total levilized real UODG value($/kw-year) Capital curves XXX kW PV(20XX$) Capital Investment[$] $ Unrecovered Invesment(Net Book)[$] $ Book Depreciation[$] $ Tax Depreciation[$] $ Depreciation Difference $ Deferred Tax[$] $ ADIT[$] $ Rate Base[$J $ Equity Return[$] $ Prefered Stock Return[$] Debt Return[$] $ Net Income[$] $ Income Taxes(Book)[$] $ Carrying Charge[$] $ Property Taxes[$] $ Acquisition Fixed Charge Revenue Requirement $ Fixed O&M $ Total Fixed Charge $ Levelized Real Fixed Charge Revenue Requirement $ O&M Schedule $ Levelized Real Fixed O&M $ Levelized Real Total Fixed Charge $ Levelized Real Total Fixed Charge($/kw-year) $ Levelized Real UODG Value($/kw-year) I $ pe Page 18.10 N Exhibit 2 - Site Plan Page 18.11 N Exhibit 3 Simplified One Line Diagram ' Nemo* tcg..xko.Nons ENT la$itv ), RA.TION PIT PA0143.141,111 newspreutvos Mb liklA It S.L477,01., ' ItL•1.440,1MV ,,77..; !IASI.,tteAvKir ILIIMA.00 AM"' 4%4 helk WV..1,41.1.12t.CIF.4111,016 ATI i4.1.0lr An YAW LIM AVICTLCOOMIt t'attty LA,CLAitt,L I ' ..," 41: 1,1111•41. C - r-,-,%ow WM.,.fitt.?MCA f,AteU!TS MOM.ittZ ; Vetelentlft WV ttINVOra.LAD IMP. ATS 2000-200043341-532-C1 ergo ,. AWN WV..(0.1-5ENER,ORti flt 010Y,31),410,6314Z.2000A,ISKAIC otos Wit e.g.,.raanstm SA3 WOO A ....-, )°° I, 011i n i IOU I ma 'A '1) ,Ma 1 CAS 9)Wfa4 $ 0 1 1 r!-,..) Customer —lc/ , 1 Existing Moo 4.,... 403 Ittt ti•MY I ....Pa 480/217 v 7,:til , .1.1/TV Standby as per ISO 8528 8 3046 r , 52„, ,52432 '52-G3 ---P".1—_, Generation System Capadty#PS.004-10014 taxing. Generator CGT: XV./KVA Standby .1 MN/KVA Spnthrontious 1 , ma/Sle too r Soo y 40 2 896/1120 , 800/1000 1.,q a UM/itail f, noolisoo AIM 0.11.I Om I 4 1722/MO 1600j 2000 Page 18.12 Exhibit 4 N System Acceptance Testing and Commissioning Customer Number Commissioning Date ATS Serial Number Generator Serial Number Engine Serial Transformer Serial Number Number Generator commissioning will be in accordance with OEM Recommendations. At a minimum, the following will be verified and recorded before completion of product commissioning. Upon successful completion of System Acceptance Testing and Commissioning,the system is determined to be ready for service for purposes of establishing the In-Service Date. ❑ 1. Safety inspection completed ❑ 2. Record Gas Meter El 3. Verify all control components wiring and proper operation E 4. Verify all generator output breaker control functions and interlocks C 5. Verify all generator protective trip circuitry wiring and proper function ❑ 6. Verify all local indication reading correctly C 7. Perform pre-startup valve and switch lineup ❑ 8. Verify proper generator start a. Record Engine Running Speed _ b. Record Generator Frequency c. Record Generator Output Voltage • Phase A • Phase B • Phase C d. Record Generator Phase Rotation e. Record Bus Voltage • Phase A • Phase B • Phase C ❑ 9. Verify proper generator shutdown C 10. Visually inspect for signs of leakage or defect C 11. Record Battery Voltage C 12. Verify remote communications connectivity El 13. Verify connectivity with Operations Center ❑ 14. Verify emergency generator start functionality ❑ 15. Verify ATS proper operation ❑ 16. Shutdown generator locally ❑ 17. Startup generator remotely ❑ 18. Shutdown generator locally Page 18.13 N For synchronous generators only: LI 19. Startup generator remotely C 20. Validate voltage and frequency are matched C 21. Parallel and load the generator to 50% rated capacity C 22. IF multiple generators will be paralleled, repeat steps 19-21 above until all generators are operating C 23. Record generator reactive load settings 24. Reduce load and shutdown generators P.R. No. 24455 07/21/2025 AJS EXHIBIT"C" NOTICE OF CONFIDENTIALITY RIGHTS:IF YOU.ARE A NATURAL PERSON,YOU MAY REMOVE OR STRIKE ANY OR ALL OF THE FOLLOWING INFORMATION FROM ANY INSTRUMENT THAT TRANSFERS AN INTEREST IN REAL PROPERTY BEFORE IT IS FILED FOR RECORDING IN THE PUBLIC RECORDS:YOUR SOCIAL SECURITY NUMBER OR YOUR DRIVER'S LICENSE NUMBER STATE OF TEXAS § COUNTY OF(COUNTY NAME) § RIGHT-OF-WAY INSTRUMENT-ENTERGY TEXAS,INC. KNOW ALL MEN BY THESE PRESENTS THAT: (Grantor Name),a (state and type of legal entity), by and through its authorized representative, acting for and on behalf of its successors, assigns and any other person claiming the ownership to the property hereinafter described, collectively"Grantor", for and in consideration of One Dollar, in hand paid, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, does hereby grant, assign, convey unto and warrant and defend Entergy Texas, Inc., whose address is 9425 Pinecroft Dr., The Woodlands, Texas, 77380, and its successors and assigns,collectively"Grantee",a right-of-way,servitude and easement(Width)feet in width("Right-of-Way")for the location, construction, reconstruction, improvements, repairs, operation, inspection, patrol, replacement and maintenance of electric power and communication facilities("Grantee Facilities"),or the removal thereof,now or in the future, including,but not necessarily limited to poles, cross arms, insulators, wires,cables, conduits, hardware, transformers, switches, guy wires, anchors and other equipment, structures, material and appurtenances, now or hereafter used, useful or desired in connection therewith by Grantee over, across, under, along or on that land of Grantor in the County of(County Name),State of Texas described as follows,to-wit: Being a(No. of acres ) acre tract of land situated in the ( Survey Name) Survey, A-( No.) and being recorded under Clerks File#(No.)of the Deed Records of(County Name) County,Texas.("Property") The Right-of-Way granted is in the area as shown by the attached Exhibit A hereto attached and made a part hereof Unless otherwise herein specifically provided, the center line of the Grantee Facilities initially constructed on this Right-of-Way shall be the center line of the Right-of-Way;together with the right of ingress and egress to and from the Right-of-Way across the adjoining land of the Grantor.Grantee shall have the right to install and maintain gates in all existing and future fences crossing the Property where same intersects the Right-of-Way to provide access to and from the Grantee Facilities,provided such gates will be installed in a manner that will not unreasonably weaken such fences. Grantee shall have the full and continuing right,but not the obligation, to clear and keep clear vegetation within or • growing into the Right-of-Way and the further right to remove or modify from time to time trees, limbs, and/or vegetation outside the Right-of-Way which is dead,decaying or in danger of falling or leaning on Grantee Facilities, by use of a variety of methods used in the vegetation management industry. Grantor shall not construct or permit the construction of any structure,obstruction or other hazard within the Right- of-Way, including but not limited to, house, barn, garage, shed, pond, pool or well, excepting only Grantor's fence(s)and the Grantee Facilities. Grantor shall not construct or permit the construction of any buildings or other structures on land adjoining the Right-of-Way or change the grade or elevation of the Right-of-Way in violation of the minimum clearances from Grantee Facilities as provided in the National Electrical Safety Code or other applicable state and local laws,regulations and ordinances. [SIGNATURE ON NEXT PAGE] ETI Distribution Easement—West—Legal Entity Rev.2/2021 IN WITNESS WHEREOF, Grantor, by and through its authorized representative, has executed this Right-of-Way Instrument on this_day of ,20_ GRANTOR: Signature Printed Name Title ACKNOWLEDGMENT STATE OF TEXAS § COUNTY OF(COUNTY NAME) § This instrument was acknowledged before me on this day of ,20 by , as the and authorized representative of [Grantor]. Notary Public, State of Texas Stamp Or Commission expires: Seal Space Below Reserved For County Clerk's Recording Information WR# DD AFTER RECORDING, RETURN TO: Entergy Texas, Inc., Right-of-Way Department, 9425 Pinecroft Drive,The Woodlands,TX 77380 ETI Distribution Easement—West—Legal Entity Rev.2/2021 -2- SECTION IV RULES AND REGULATIONS Page 18.1 ENTERGY TEXAS, INC. Sheet No.: 39 Electric Service Effective Date: Proposed Revision: 0 Supersedes: New Schedule AGREEMENT FOR Schedule Consists of: Four Sheets and BACKUP ELECTRIC SERVICE FROM Attachment A CUSTOMER-HOSTED UTILITY-OWNED DISTRIBUTED GENERATION AGREEMENT FOR BACKUP ELECTRIC SERVICE FROM CUSTOMER-HOSTED UTILITY-OWNED DISTRIBUTED GENERATION ENTERGY TEXAS, INC. Host Customer Mailing Address Point of Service Page 18.2 This Agreement for Backup Electric Service from Customer-Hosted Utility-Owned Distributed Generation N ("Agreement") is made and entered into on 4/30/2025 by and between H.E.B. Groceries, a Texas [corporation] ("Host Customer")and Entergy Texas, Inc., a Texas corporation ("Company") (collectively referred to as "the Parties" and individually as a "Party") and will become effective on the date the Agreement is executed by both Parties ("Effective Date"). WHEREAS, [the Parties have entered into an Agreement for Electric Service]{or}[Host Customer takes electric service from Company pursuant to(list applicable rate schedule(s))], wherein Company provides to Host Customer electric service in accordance with the terms and conditions set forth therein; WHEREAS, Host Customer has agreed with the Company to host Facilities other than those normally furnished for like levels of service to similar customers; WHEREAS, Company has agreed to install the Facilities, subject to the terms and conditions of this Agreement and consistent with the terms set forth in the Company's Rate Utility-Owned Distributed Generation Rider("UODG Rider"); WHEREAS, Customer has established credit deemed satisfactory by the Company; NOW, THEREFORE, for and in consideration of the mutual covenants set forth herein, the Parties agree as follows: ARTICLE I. APPLICABLE RATE SCHEDULE Host Customer will pay for backup electric service from the Facilities in accordance with the UODG Rider, attached hereto as Attachment A,such other rate schedules as are app licableand may become applicable, Company's Terms and Conditions Applicable to Electric Service,'and the terms and conditions set forth in this Agreement.Company will have and expressly reserves the right to change,modify,expand and amend rate schedules from time to time, without the consent or approval of the Host Customer, subject to appropriate action by the Public Utility Commission of Texas (`DUCT')or such other regulatory authority having jurisdiction. In the event that UODG Rider is superseded, subject to the provisions in Article V (Monthly Charges)the successor rate schedule will apply hereto without any additional need for revisions to this Agreement. ARTICLE II. LOCATION AND OPERATION OF ADDITIONAL FACILITIES The Facilities will be installed to provide backup electric service as described herein to Host Customer's facilities located at TX. The Facilities will be installed at and will include the facilities listed on Attachment B(the"Facilities"). Without reimbursement or any cost to the Company, Host Customer will furnish a right-of-way, servitude, license, or other suitable land use arrangement(pursuant to Attachment C, if applicable) necessary or incidental to installing,maintaining,and operating the Facilities on the Host Customer's premises and will continue to permit Company in the use and occupancy thereof. In the event Company is unable to secure and/or maintain from Host Customer an adequate right-of-way, servitude,license,or other suitable land use arrangement upon terms satisfactory to Company, Company's obligations under this Agreement will cease, and the Agreement will terminate subject to Articles IX and X. Company will construct and maintain the Facilities in accordance with the one-line diagram attached hereto as Attachment B, Exhibit 3. In the event the configuration of the Facilities is modified,Company will provide a revised one-line diagram to Host Customer. See Entergy Texas Terms and Conditions,available at https://www.entergy- texas.com/userfiles/content/price/tariffs/eti terms_and_conditions.pdf. 2 Page 18.3 If the Host Customer's operations and corresponding electric requirements expand at some future date and N would exceed the capabilities of the Facilities that were calculated based on the Host Customer's load profile when the Facilities were installed, then Host Customer must notify Company within a reasonable time period, and no later than two weeks,prior to any such change taking effect. Host Customer is solely responsible for costs associated with designating and integrating the components of its updated load(e.g., designating"critical load"circuits)that are capable of and will continue to be supported by the Facilities. Without guaranteeing that Company will provide continuous,uninterrupted service to Host Customer and without waiving,amending or modifying any of the rights or obligations as set forth in Company's Terms and Conditions Applicable to Electric Service, Company acknowledges that the Facilities will be available to provide_kW of backup electric service to Host Customer in the event Company is unable to serve Host Customer's load through its transmission and/or distribution system. Company acknowledges that the Facilities have been configured to automatically engage at such time as Host Customer's electric service needs are not met by Company's transmission and/or distribution system. The Facilities will be available for dispatch by the Company either by(1)the Facilities supplying power to the grid; or(2)temporarily disconnecting Host Customer from the grid and supplying power solely to Host Customer. Such dispatch, both in terms of frequency and duration, will be within the Company's sole discretion, subject to the limitations in the preceding paragraph. ARTICLE III. FUEL RESPONSIBILITY Company will obtain natural gas service, including a natural gas meter and infrastructure of adequate capacity,to supply the Facilities, and the cost of doing so will be included in the Total Installed Cost2 of the Facilities. Fuel procurement and delivery associated with the operations and maintenance of the Facilities will be the Company's responsibility,and the associated costs will flow through the Fixed Fuel Factor and Loss Multipliers rate schedule (Schedule FF). ARTICLE IV. PERMITS Company will obtain and comply with any license or permit required to be in Company's name to enable it to install, operate, and maintain the Facilities. Host Customer will obtain and comply with any license, permits,and/or approvals from proper authorities required to be in Host Customer's name in order for the Host Customer to host the Facilities. Each Party agrees to cooperate with the other Party and to assist the other Party in obtaining any required permits. ARTICLE V. MONTHLY CHARGES The monthly charges for backup electric service from the Facilities will be billed in accordance with the UODG Rider and the Terms and Conditions Applicable to Electric Service, as approved by the duly authorized regulatory body,and as amended, superseded and modified from time to time,and consistent with the provisions of this Agreement. Monthly charges will commence once the Facilities are ready for service, as described in Attachment B, Exhibit 4 (the "In-Service Date"). Company reserves the right to include the UODG Rider charges on the Host Customer's bill for electric service or bill Host Customer separately for its UODG Rider charges. Host Customer has selected a Recovery Period of[]year. Host Customer's monthly payment during both N the Recovery Period and Post-Recovery Period(defined below)will be based on the percentages identified in Schedule UODG associated with Host Customer's selected Recovery Period multiplied by a portion (determined by the formula in Schedule UODG) of the Total Installed Cost of the Facilities minus any applicable Energy Value. As specified in UODG Rider,the Capacity Value used to determine the amounts billed to Host Customer und er the UODG Rider is fixed according to the version of the UODG Rider in effect when this Agreement is executed, as reflected in Attachment A. It is acknowledged that the Energy Value z Capitalized terms not otherwise defined this Agreement correspond to the defined terms in UODG Rider. 3 Page 18.4 and the percentages identified in the UODG Rider may be revised in rate setting proceedings,and those new values will be applied in calculating the monthly payment under this Agreement. It is further acknowledged that the initial monthly payment(s)will be based on the estimated installed costs of the Facilities in the amount displayed in Attachment B. At such time as Company has calculated the actual costs associated with the total installed cost of the Facilities, the Company will provide to Host Customer a revised Attachment B to reflect the actual costs without the need for an amendment to this Agreement or a new Agreement. Company will adjust the Host Customer's monthly payment to reflect such actual costs following Host Customer's receipt of the modified Attachment B. In the event Host Customer fails to tender payment in full for all charges associated with the UODG Rider, Company reserves the right to discontinue Host Customer's electric service in accordance with the Terms and Conditions Applicable to Electric Service. Regardless of whether Company discontinues the Host Customer's electric service for any reason, Host Customer will owe and Company reserves the right to pursue and secure payment of all past due amounts through any other lawful means. Host Customer will be liable for all court costs, attorney's fees and other costs associated with the collection of all past due amounts. ARTICLE VI. SUBSEQUENT MODIFICATIONS, ADDITIONS, AND REPLACEMENTS During the Agreement Term, defined below, subsequent capital modifications of, additions to, or replacement of the Facilities required to maintain the operational status of the Facilities due to equipment failure, equipment damage, or new regulatory requirements will be made solely at the Company's discretion. If the Company elects not to make any necessary modifications,additions,or replacements necessary to maintain the operational status of the Facilities under those or like circumstances, the Agreement will terminate unless the Host Customer agrees to pay the necessary costs in advance that the Company is unwilling to incur. Customer may also elect to identify modifications or additions that it would like to be made to the Facilities by the Company. Subject to Company's written approval in advance,such modifications or additions will be made at Customer's expense,which will be paid in advance and separate from the monthly charges described in Article V. ARTICLE VII. INDEMNITY AND LIABILITY Company will have exclusive ownership,control,and access to the Facilities. Host Customerwill not permit its employees or agents to come in contact with the Facilities;provided,however, that Host Customer may access the Facilities in an emergency situation that affects the operation of the Facilities, such as a fire, to take remedial action to protect Host Customer's property, including engagement of an emergency shut-off switch, if an emergency shut-off switch is a component of the Facilities. Host Customer will immediately notify Company in the event it takes any such emergency actions and,to the extent possible,in advance of taking such emergency actions. Host Customer will assume all liability associated with the Facilities as set forth in the"Liability'provisions of the Terms and Conditions Applicable to Electric Service. ARTICLE VIII. AGREEMENT TERM The initial term of this Agreement("Agreement Term")will begin with the Effective Date and continue for twenty(20)years from the In-Service Date. The Agreement Term will continue thereafter on a year-to-year basis until termination of this Agreement is sought by one or both Parties.Subject to Company's right to discontinue service in accordance with the terms herein and Company's right to remove the Facilities pursuant to Article X herein, this Agreement can be terminated by the mutual written agreement of both parties or, once the Agreement Term has been fulfilled, by the written notification of the Party wishing to terminate to the other Party not more than six(6)months nor less than three(3)months in advance of the 4 Page 18.5 desired termination date,whether such termination notice occurs in the initial Agreement Term or during a N year-to-year extension of the Agreement. The "Recovery Period"of this Agreement will be the number of years selected by Host Customer under Article V, commencing with the In-Service Date. The"Post-Recovery Period"of this Agreement will be any and all periods following the expiration of the Recovery Period. ARTICLE IX. TERMINATION CHARGES In the event Host Customer terminates this Agreement prior to the conclusion of the Agreement Term,fails to make payments in accordance with the terms of this Agreement,ceases to take electric service from Company at the above location before the end of the initial term,if Host Customer is relieved of its obligation under any Agreement for Electric Service as a result of the commencement of retail open access for similarly-situated customers in Company's Texas service territory or for Host Customer's participation in the effective Retail Open Access Pilot program, if any,before the end of the initial term, or if the Agreement terminates pursuant to Article VI, Host Customer must still pay the applicable Monthly Charges (either monthly or in a single payment equivalent to the sum of the Monthly Charges)for what would otherwise be due during the remaining Recovery Period,provided that the remainder of the Recovery Period is f our yeas or less. In the event the remaining Recovery Period is longer than four years, Host Customer must make a single payment equivalent to the sum of the Monthly Charges that would otherwise be due during the remaining Recovery Period.A single payment would be due no later than 30 days after the date of receipt of an invoice from the Company. Upon termination, and regardless of whether Host Customer continues to pay Monthly Charges under what would have been the remaining Recovery Period, Host Customer will no longer receive backup electric service under Rider UODG and this Agreement and would likewise not be obligated to pay Monthly Charges associated with what would have been any remaining Post-Recovery Period. ARTICLE X. REMOVAL CHARGES In the event the Host Customer terminates this Agreement prior to the conclusion of the Agreement Term or fails to make payments in accordance with the terms of this Agreement, in addition to all other rights of recovery allowed herein or in accordance with common law, Company reserves the right to remove the Facilities at Host Customer's expense at any time after this Agreement is terminated. In the event Host Customer satisfies the full Agreement Term, terminates the Agreement in accordance with the terms of this Agreement, and requests in writing the removal of the Facilities,Host Customer will pay to Company in advance the total estimated cost of removing the Facilities, subject to true-up when actual costs are calculated. In the event Host Customer terminates this Agreement in accordance with the terms set forth herein at the conclusion of the Agreement Term and Company,at its option,elects to remove the Facilities, Company will bear all costs associated with the removal of the Facilities. 5 Page 18.6 ARTICLE XI. NOTICE N Any notice given by either Party to the other pursuant to this Agreement will be deemed validly given if deposited in the mail properly stamped with the required postage and addressed to the last known office address of the respective addressee. Either Party hereto will have the right to change any address or addressee it may have given to the other Party by giving such other Party due notice in writing of such a change. Until so changed, notices will be given to the addressees at the addresses set forth below. ARTICLE XII. OWNERSHIP OF FACILITIES Title to all Facilities will at all times remain in the Company, its successors and/or assigns. ARTICLE XIII. APPROVAL This Agreement is contingent upon approval by Company's designated representative. ARTICLE XIV. MISCELLANEOUS This Agreement will bind and inure to the benefit of the Parties hereto, their successors and assigns, but the Host Customer will not assign any of its rights under the Agreement without first obtaining written consent of the Company,which will not be unreasonablywithheld. This Agreement,upon its Effective Date, will supersede any previous Agreement for Backup Electric Service from Customer-Hosted Utility-Owned Distributed Generation between Company and any of its predecessor companies,and Host Customer. No agreement or representation made by a representative of Company or Host Customer, unless reduced to writing or incorporated herein, will be binding upon either Party. PARTICIPANT ENTERGY TEXAS, INC. By: By: Signatory Title Signatory Title Attest: Approved: Signatory Title Signatory Title Date of Signature Date of Signature 6 Page 18.7 Agreement for Backup Electric Service from Customer-Hosted Utility-Owned Distributed Generation Attachment B (Illustrative) The following itemizes the facilities, equipment, and actions to be performed by the Company and/or its contractors for the installation of a dispatchable distributed generator(s) at the following location: (the "Facilities"). Following successful system acceptance testing("SAT")and commissioning described in Exhibit 4,the distributed generator(s)will bed eemed"ready forservice"for purposes of establishing the"In-Service Date" of the Agreement for Backup Electric Service from Customer-Hosted Utility-Owned Distributed Generation ("Agreement"). Equipment, Materials and Unit of Measure Quantity Amount(a) Activities 1. Distributed Generator Model(b) 2. Transport and Logistics 3. Equipment Siting (crane)for generator and ATS(c) 4. Civil Site Work:(°) -Equipment Concrete Pad -Dirt Work -Fencing -Permitting 5. ATS Installation 6. Electrical Wiring and Conduit from ATS to Generatoro) 7. Electrical Wiring and Conduit from Generator to Utility Electric Serviced) 8. Mechanical Piping and Trenching for Natural Gas to Generator(c) 9. Labor Costs -Mechanical -Electrical 10. SAT and Commissioning(e) TOTAL INSTALLED COST Notes: (a)Amounts are initially estimated and will be updated following completion of construction and successful commissioning. (b)See Exhibit 1. • (c)See Exhibit 2. (d)See Exhibit 3. (e)See Exhibit 4. Page 18.8 Exhibit 1 N Customer Specific Data and Corresponding Distributed Generator(s) Selection Customer's Estimated Load Profile Kilowatt Load (at peak) XX kW Amp Load (at peak in-rush current) YY amp Customer Circuits Covered Whole Premise *or* Critical/Priority Circuits Listed Based on these estimates,Company has determined that the distributed generator(s) detailed below is best suited for this installation: Customer's Distributed Generator(s) Specifications Make Generator Mfg XX Model Generator Model YY Output Voltage 120/240 Maximum Kilowatt Output* XX kW Maximum Amperage Output* XX amps Dimensions 38" (height)x 48" (depth) X 97" (length) Additional Information Mfg. cutsheet link * Estimated based on weather and ambient temperature normalization at Host Customer's location. Host Customer is responsible forensuring circuits covered by distributed generator(s)remain within operating capabilities of the generator. DG Capacity The Distributed Generation Capacity* (DG Capacity)for purposes of populating the XX MW "DG Capacity"variable in Rate Schedule UODG * The capacity value applied is adjusted by the effective customer load factor for smaller units that are not capable of parallel operations. Calculation of Host Customer Allocation of Total Installed Cost The Levelized Real UODG Value* kW-year Host Customer Allocation Percentage** Host Customer Allocation of Total Installed Cost** $ * See Exhibit 1A ** See Rate Schedule UODG for calculation formula Page 18.9 Exhibit IA — Levelized Real UODG Value Calculation N Inputs OpCo ETI Property tax Book depreciation rate Equity:debt ratio Cost of equity Cost of preferred stock Cost of debt Composite income tax rate WACC/RORB Inflation Date in-service End date Property Tax Annual Growth Rate Generator Inputs:Capital Costs&O&M Generator size(kW) DG Capacity(kW) Total capital costs Fixed O&M contract(annual) Results: Levilized Costs&Total UODG Value Levilized revenue requirement charge($/kw-year) Levilized O&M costs($/kw-year) Total levilized real UODG value($/kw-year) Capital curves XXX kW PV(20)0$) Capital Investment[$] $ Unrecovered Invesment(Net Book)[$] $ Book Depreciation[$] $ Tax Depreciation[$] $ Depreciation Difference $ Deferred Tax[$] $ ADIT[$] $ Rate Base[$] $ Equity Return[$] $ Prefered Stock Return[$] Debt Return[$] $ Net Income[$] $ Income Taxes(Book)[$] $ Carrying Charge[$] $ Property Taxes[$] $ Acquisition Fixed Charge Revenue Requirement $ Fixed O&M $ Total Fixed Charge $ Levelized Real Fixed Charge Revenue Requirement $ O&M Schedule $ Levelized Real Fixed O&M $ Levelized Real Total Fixed Charge $ Levelized Real Total Fixed Charge($/kw-year) $ Levelized Real UODG Value($/kw-year) I $ Page 18.10 Exhibit 2 - Site Plan Page 18.11 N Exhibit 3 Simplified One Line Diagram KEYEDMQTES A 0 mow.AA,wtT UMW AO TR... .0%%GrtNa x1AV.rr,.•. ..r. 0 4N»rs sprvaz unewl+s f� 1'�l n fasaour. em : /'�. (�E 1ltAtfl[TWMD 6.41112i.OTMT16M Fri 1APgLt 4R YVw�xG AY"iT[LTfGIe 1 1 1111N IAA CATpITS III /�t „'.a i f ®ara emac WAN Aft Mk CAW.FS MAY An • V ATE 2000-2000.83 E/SS2-C1 es. r rw.ruwr w.l,f.rew.rnn,m -4WOV.3P.4W.00912.2000A.&SKAM (A) Ris.sw..fL AAA iMt Y.fws C Awl A 3 ' 529 2000 A $ I S s Customer trustee I rr.Y . rr a $ . a.8 F Existing o ass r esfw Re F* ..COT. ry .z 4E01271 V Standby as per ISO 8528&3046 S2-t31:6. ,52G2 52C1 Getteratlon System Capacity®PI.8O%-100%Lagging. r_. 1. ... �.. T-, 1 i 7I Gtnera1 4Ty: KW/KY iStan04y KIN]KVA4 0/500 rtuow11 Y a t. 444 f 360 a01i7511G 1f``�TLe} 2 .--- _.,A9611120 Hit/70tk} arF, swr w, I 1144 j MO 12001 15043 4 179212240 1 _ 1600!2000 Page 18.12 Exhibit 4 N System Acceptance Testing and Commissioning Customer Number Commissioning Date ATS Serial Number Generator Serial Number Engine Serial Transformer Serial Number Number Generator commissioning will be in accordance with OEM Recommendations. At a minimum, the following will be verified and recorded before completion of product commissioning. Upon successful completion of System Acceptance Testing and Commissioning,the system is determined to be ready for service for purposes of establishing the In-Service Date. 1. Safety inspection completed 2. Record Gas Meter A 3. Verify all control components wiring and proper operation i 4. Verify all generator output breaker control functions and interlocks 5. Verify all generator protective trip circuitry wiring and proper function • 6. Verify all local indication reading correctly i 7. Perform pre-startup valve and switch lineup 8. Verify proper generator start a. Record Engine Running Speed b. Record Generator Frequency c. Record Generator Output Voltage • Phase A • Phase B • Phase C _ d. Record Generator Phase Rotation e. Record Bus Voltage • Phase A • Phase B • Phase C ❑ 9. Verify proper generator shutdown ❑ 10. Visually inspect for signs of leakage or defect ❑ 11. Record Battery Voltage ❑ 12. Verify remote communications connectivity ❑ 13. Verify connectivity with Operations Center ❑ 14. Verify emergency generator start functionality ❑ 15. Verify ATS proper operation ❑ 16. Shutdown generator locally ❑ 17. Startup generator remotely ❑ 18. Shutdown generator locally Page 18.13 N For synchronous generators only: ❑ 19. Startup generator remotely ❑ 20. Validate voltage and frequency are matched ❑ 21. Parallel and load the generator to 50% rated capacity ❑ 22. IF multiple generators will be paralleled, repeat steps 19-21 above until all generators are operating ❑ 23. Record generator reactive load settings ❑ 24. Reduce load and shutdown generators P.R. No. 24455 07/21/2025 AJS/TNR EXHIBIT "D" SECTION III RATE SCHEDULES Page 58.1 ENTERGY TEXAS, INC. Sheet No.: 162 Electric Service Effective Date: 3-3-25 Revision No.: 0 Supersedes: New Schedule SCHEDULE UODG Schedule Consists of: Two Sheets UTILITY-OWNED DISTRIBUTED GENERATION RIDER AVAILABILITY This Utility-Owned Distributed Generation Rider("UODG Rider") is available to customers served at Primary or Secondary voltage under rate schedules GS, GS-TOD, LGS, LGS- TOD, LIPS, and LIPS-TOD who enter into a contract with the Company for backup electric service from utility-owned, customer-sited, dispatchable distributed generators ("Host Customer(s)"). Such distributed generation will be installed in front of the Host Customer's electric meter. Unless otherwise expressly provided in a rate schedule, the UODG Rider is not available to customers who are served under the Standby and Maintenance Service Rider (SMS), Rate for Purchases from Qualifying Facilities Less Than or Equal to 100 kW(SQF), Nonfirm Energy Purchased from Large Qualifying Facilities(LQF), Competitive Generation Service (CGS), Economic As-Available Power Service (EAPS), and Rider to Schedule LIPS for Interruptible Service(IS). II. APPLICATION AND CONDITIONS Host Customers taking service under this UODG Rider will enter into an Agreement for Backup Electric Service from Customer-Hosted Utility-Owned Distributed Generation ("Agreement") and be responsible for paying a monthly fee designed to recover a portion of the cost to acquire, install, maintain, and operate the Facilities specified in Attachment B of the Agreement. At the execution of such Agreement, the customer will have a one-time election to select the Recovery Period that will be used to calculate the Host Customer's Monthly Charges applicable over the UODG Agreement Term (defined below). At the Company's sole discretion, the Agreement Term may be modified to a period less than 20 years. The Host Customer's selected Recovery Period must be less than or equal to the UODG Agreement Term. III. DEFINITIONS Capacity Value=$110.50/kW-year. For purposes of calculating the Monthly Charges,the Capacity Value will be the value included in the version of this Schedule UODG in effect when the Agreement is executed (such version will be attached for reference as Attachment A to the Agreement). DG Capacity=the capacity(expressed in kW)of the distributed generator(s)identified as DG Capacity in Exhibit 1 to Attachment B of the Agreement. (Continued on reverse side) Page 58.2 Energy Value = 27.47% of MISO margins earned by the DG Capacity (i.e., energy or ancillary service-related revenues less costs used to develop generation offers). Margins are subject to subsequent adjustment for MISO resettlements. Such adjustments will be applied to the Energy Value component in the Net Monthly Charge formula. Total Installed Cost = the total installed cost of the distributed generator(s) specified in Attachment B of the Agreement. Host Customer Allocation of Total Installed Cost is the portion of Total Installed Costs that has been allocated to the Host Customer for the costs that are in excess of the Capacity Value, represented by the formula: Host Customer Allocation of Total Installed Costs = Total Installed Costs x Host Customer Allocation Percentage Host Customer Allocation Percentage is determined by calculating the difference between the Levelized Real UODG Value and the Capacity Value. This difference is then compared to the Levelized Real UODG Value and the entire calculation is represented by the formula: Host Customer Allocation Percentage = (Levelized Real UODG Value—Capacity Value)/Levelized Real UODG Value Levelized Real UODG Value is the cost stream that when escalating the first year's cost annually at inflation over the useful life results in the same present value of the lifetime revenue requirement of the UODG asset divided by the DG Capacity, expressed as a $/kW-year amount and identified as Levelized Real UODG Value in Exhibit 1 to Attachment B of the Agreement. IV. MONTHLY CHARGES The UODG Rider monthly charge during the Recovery Period will be equal to: Monthly % During Recovery Period x Host Customer Allocation of Total Installed Costs The UODG Rider monthly charge to recover O&M expense after the Recovery Period will be equal to: Monthly% Post-Recovery Period x Host Customer Allocation of Total Installed Cost V. UODG RIDER ENERGY VALUE CREDIT The Monthly Charges defined in Section IV will be reduced by the Energy Value produced by the Host Customer's distributed generator(s), if any. SCHEDULE UODG (Continued on next page) SECTION III RATE SCHEDULES Page 58.3 ENTERGY TEXAS, INC. Sheet No.: 163 Electric Service Effective Date: 3-3-25 Revision No.: 0 Supersedes: New Schedule SCHEDULE UODG Schedule Consists of: Two Sheets UTILITY-OWNED DISTRIBUTED GENERATION RIDER VI. RECOVERY PERIOD Host Customers define in the Agreement the number of years(the"Recovery Period")that will define the appropriate monthly rates to be applied to the Host Customer Allocation of Total Installed Cost. The Recovery Period cannot be longer than 20 years. The following table specifies the monthly percentages for application during the selected Recovery Period and any years following the Recovery Period (Post-Recovery Period). Monthly% Monthly% Selected During Post- Recovery Recovery Recovery Period (Years) Period Period 1 9.144% 0.150% 2 4.817% 0.150% 3 3.377% 0.150% 4 2.659% 0.150% 5 2.230% 0.150% 6 1.944% 0.150% 7 1.742% 0.150% 8 1.591% 0.150% 9 1.474% 0.150% 10 1.381% 0.150% 11 1.306% 0.150% 12 1.244% 0.150% 13 1.191% 0.150% 14 1.147% 0.150% 15 1.109% 0.150% 16 1.077% 0.150% 17 1.048% 0.150% 18 1.023% 0.150% 19 1.001% 0.150% 20 0.982% 0.150% The Recovery Period selected in the Agreement cannot be changed,and Monthly Charges applicable during the Recovery Period cannot be accelerated or prepaid in order to transition to the Post-Recovery Period earlier than scheduled; provided, however, that a Host Customer may make a lump sum payment of any remaining financial obligations associated with the Recovery Period upon Host Customer's election to terminate the Agreement, as provided below. Under those circumstances (Host Customer termination), Host Customer would no longer receive backup electric service under this Rider UODG and would likewise not be obligated to pay Monthly Charges associated with what would have been any remaining Post-Recovery Period. (Continued on reverse side) Page 58.4 VII. AGREEMENT TERM The term of the Agreement("Agreement Term")will be for an initial period of 20 years and automatically will be extended thereafter for successive periods of one (1)year each until terminated by written notice given by one party to the other not more than six (6) months nor less than three (3) months prior to the expiration of the initial Agreement Term or any anniversary thereof. If the Host Customer ceases to take electric service from the Company or terminates the Agreement during the initial Agreement Term, as discussed above, the Host Customer must still pay the applicable Monthly Charges (either monthly or in a single payment equivalent to the sum of the Monthly Charges)for what would otherwise be due during the remaining Recovery Period, provided that the remainder of the Recovery Period is four years or less. In the event that the remaining Recovery Period is longer than four years, Host Customer must make a single payment equivalent to the sum of the Monthly Charges that would otherwise be due during the remaining Recovery Period. A single payment would be due no later than 30 days after the date of receipt of an invoice from the Company. VIII. PAYMENT The past due amount for service furnished for which payment is not made within sixteen (16)days of the billing date will be the monthly bill, including all adjustments under the rate schedule and applicable riders, plus 5%. The 5% penalty on delinquent bills will not be applied to any balance to which the penalty has already been applied. If the amount due when rendered is paid prior to such date, the monthly bill will apply. If providing service to the State of Texas or to municipalities or other political subdivisions of this state, Company will not assess a fee, penalty, interest, or other charge to these entities for delinquent payment of a bill. SCHEDULE UODG