Flender/Flender Gear Units/Helical speed reducers H3
er so soon after the November 2 test strongly suggests its lack of good faith in insisting on duplicative testing

all along . Now that the November 2 capacity test has been performed, however, Bicent agree not to conduct another

capacity test in December 2. Instead, Bicent will conduct the biennial Adjusted Contract Capacity Test in the Spring of 2,

prior to April 1 and within the biennial time period .5 Bicent will let the City know the exact date

as soon as practicable . III. THE CITYS PAYMENT OBLIG ATIONS Finally, are also unimpressed by your efforts to excuse Ms. Nguyens assertion that the City would withhold ayment under the PPTA for the difference between 1 MW capacity and . . . 1 MW capacity . While it is true that the City may dispute invoices under Section 4 While your letter suggests that the City believes no test should occur in December, Ms. Nguyen apparently feels otherwise. On December 3, 2 she ePriceed Bicent that the City was planning to send witnesses to observe the testthe very same witnesses who told Bicent personnel that they did not understand why the November 2 was being done given that another test was already scheduled for December. Th is begs the question of what the Citys position really is and who is giving direction. 5 In November 2, Ms. Nguyen waived the 2 test, which brought the Facility current for testing purposes to 2. The current biennial period thus runs from April 1, 2 through April 1, 2 . December 5, 2 Page 7 1.3 of the PPTA, your letter fails to mention key limitation on that right: that the disput must be in good faith. The plain language of the PPTA makes clear that the Facility is not required to deliver 1 MW at this point in its lifespan (PPTA, Appx. ) , and Ms. Nguyen provided no explanation of why the Facilitys invoices mi ght be incorre ct. The Citys decision to pay the invoices confirms that there was no good faith basis