Remittance of NBCs.

NBCs.

NBCs required to be remitted to IOU under this Agreement shall be based upon the IOU's NBC rates in effect from time to time pursuant to Applicable Law and Applicable Tariffs. Should any NBC be found to be invalid, repealed, or otherwise unenforceable after payment of such NBC by Customer(s), then any such unenforceable NBCs shall be refunded by IOU to POU for crediting to Customer(s)' accounts within ___ months of a final, unappealable determination of unenforceability. POU and IOU shall work together to establish a mutually agreeable refund plan.

Remittance of NBCs.

Payment of NBCs shall be made on a monthly basis no later than the __st day of each month in accordance with the following procedures. Details regarding POU's remittance of NBCs to IOU, including how remittances are to be calculated, are set forth in Attachment B.

Remittance Report: Each Remittance shall be accompanied by a written report that provides (i) the effective rate period for the NBC remittances; (ii) the total NBC remittances broken down by revenue class or rate schedule; (iii) the total NBC remittances broken down by component (i.e., DWR Bond Charge, DWR Power Charge, CTC, et al.); (iv) aggregate usage by revenue class or rate schedule.

POU will not be required at any time to advance or pay any of its own funds in the fulfillment of its Customers' responsibilities with respect to NBCs owed to IOU.

Except as expressly provided in Section 6.2 of this Agreement, POU shall not deduct from amounts due to IOU hereunder any amounts owing by IOU to POU which relate to arrangements within or outside the scope of this Agreement, or any other amounts, and POU expressly waives any right to do so. The foregoing shall not limit POU's rights to seek any other remedies permitted under other arrangements with IOU.

Billing Report: POU will provide a monthly report of each NBC billed amount aggregated by component to allow the IOU to accurately record revenues. This information should be provided electronically to the IOU by the second work day of the month. Information to include revenue class, billed revenue, and usage, and aggregated by component.

3.3 Non-Payment of NBCs.

(a) In the event of non-payment of NBCs by any Customer, POU shall provide information regarding such Customer to a designated third-party collection agent, who shall be responsible for enforcing such non-payment on IOU's behalf, as well as to DWR.

(b) IOU shall have the right and responsibility to hire such designated third-party collection agent, and IOU shall bear any associated fees. In its contract with the third-party collection agent, IOU shall ensure that Confidential Information regarding Customer(s) is not provided or disclosed to IOU. [Need to discuss when NBC receivable is "written off" so that IOU can adjust uncollectibles.]