Flender/Flender Gear Units/Bevel-helical gear reducers B4
the Facility exceed those permitted un der the PPTA. The December 5 letter ignores not only the Sept. 2 Letter

Agreement, but numerous correspo ndence and agreements between icent and the City (including some Ms. Nguyen appears to have forgotten).

Bicent intends to respond the misstatements in th at letter and to make calculation of Energy and Capacity Payments owed

by the City sh ortly. December 1, 2 Page 3 The Citys breaches of the PPTA and the ITSA have

caused Bicent substantial damages, all of which are recoverable unde the terms of those agreement . First, Bicent is entitled to recover the amounts it has expended and will expend for tempora ry and permanent repairs to the Facilitys steam turbine gear set. Second, Bicent is entitled to Energy Payments for outage periods that are attributable to the damage to the steam turbin gear set. Third, icent is entitled to Capacity Payments for outage periods that were characterized as Forced Outages but should not have been in light of the itys primary responsibility for the gear set damage. Fourth, Bicent is entitled to recover all of its other Losses attributa ble to the damage to the steam turbine gear set, including but not limited the attorneys fees it as and continues to expend on this matter. On December 5, 2, Bicent requeste that the City provide inf ormation regarding the Distribution System which is squa rely relevant to determine the nature of the deficiencies in the system and how the Citys non-comp liance with its obligations aused or contributed to the damage to the Facilitys steam turbine gear set. ( copy of Bi cents December 5, 2 letter is attached as Exhibit 2 .) Pursuant to Section 2.1 of the ITSA, Bicent reiterates tho se requests. The Power Quality of the Distri bution System materially impacts the Facility on daily basis. Thus, this information is necessary for the safe and reliable peration of the Facility and Bicents ongoing perfor