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This Direct Access Electric Aggregation Agreement, hereinafter "Agreement", is made <br />and entered into as of this 15th day of September, 1997, by and between the Association of Bay <br />Area Governments (ABAG), a California joint powers agency, and The City of San <br />Leandro,(Public Agency) a California Municipal Corporation. <br />The parties hereby agree as follows: <br />Eli ig bility: Public Agency is a member or cooperating member of ABAG. ABAG will <br />provide directly, or at its option, will contract to provide for the purchase and <br />management of a direct access electric aggregation program (Electric Program) for <br />members and cooperating members of ABAG participating in said program Participant(s). <br />2. Authorities: All parties understand and agree that the legal authority for the Program is <br />granted by and subject to the California Public Utilities Commission (CPUC), as initially <br />authorized by CPUC Decision No. 97-05-040 and as it may be modified and/or augmented <br />through subsequent CPUC decisions, orders, rules, regulations, tariffs and rulings of the <br />CPUC administrative law judges (collectively, Decision). <br />2.1 Public Agency is a customer of Pacific Gas & Electric (Utility) under the <br />jurisdiction of the CPUC. Public Agency appoints ABAG as its exclusive agent to <br />coordinate its participation in the Electric Program, on behalf of Public Agency for <br />the accounts listed in Exhibit A (Accounts), which is attached hereto and <br />incorporated herein. Public Agency represents and warrants that any prior <br />agreement(s) for the purchase of electricity for the Accounts from a supplier other <br />than the Utility, which Public Agency may have executed, will be terminated <br />effective upon Commencement of Service as defined in Paragraph 31. <br />2.2 ABAG has reviewed the Decision and other materials developed by, or under the <br />auspices of the CPUC. ABAG believes that the transactions set forth, or <br />contemplated, in this Agreement will comply with CPUC requirements for direct <br />access by electric consumers set forth in the Decision and current guidelines. <br />ABAG has, simultaneous with this Agreement, commenced the process of creating <br />an independent joint powers agency (ABAG POWER) to aggregate the Accounts <br />of Participants for the purpose of direct access. <br />Background: The CPUC requires that all Utility customers be eligible for direct access <br />by January 1, 1998. The regulatory requirements for customers to engage in direct access <br />and for Electric Services Providers (ESP) to offer direct access to customers are under <br />development as of June 25, 1997. In Paragraphs 4 and 5 ABAG has listed all such <br />conditions of which ABAG is actually aware. ABAG has used its best good faith effort to <br />enumerate in said paragraph all such conditions which might ultimately be imposed on <br />direct access customers and ESP's. However, ABAG cannot represent or warrant that the <br />enumerated conditions represent all conditions currently contemplated by the CPUC or <br />