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The model assigns a percentage of revenue set aside for Reserve Balance. This fund is used to <br />upgrade the network over time. <br />Figure 1.1,5. Pease .1 &2 Total Reserile Balances <br />Total Reserve Balances (Millions) <br />I tiCI <br />Figure 116, Pease I & 2 Annual Capital Spending <br />Annual capital spend <br />0ing (Millions) <br />MN � <br />