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EXHIBIT "C" <br />Methodology for Calculating Purchase Price <br />The purpose of this exhibit is to describe the <br />methodology which shall be used to calculate Metropolitan's <br />purchase price. <br />For each fiscal year commencing July 1, Metropolitan's <br />purchase price for the Actual Yield shall be the sum of <br />Metropolitan's prevailing Reclaimed Water Rate and the prior <br />calendar year's avoided energy cost of pumping water from the <br />Delta to the State Water Project, (SWP) terminal reservoirs in <br />Southern California. The purchase price shall be calculated <br />for each fiscal year according to the following formula: <br />A= B x C+ D <br />Where, A = The yield purchase rate for the fiscal year; <br />B = Net energy requirement in kilowatt-hours <br />(kWh) per acre-foot to convey water from the <br />Delta to the SWP terminal reservoirs in <br />Southern California (3,000 kWh per acre-foot): <br />