1.

Locations of Stations are approximate street addresscs.

-11

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IN

DOLLARS

CCT., NOV. DEC. SAN FEB MAR APR. MAY SIME STAY ATIF SEPT OCT NOV DEC JAN FOR MER APR. MAYI,

JULY, 16. SEPT OCT NOV. DCC. JN FCE MR AMP. EUY SAME DAY I

APPENDIX

ESTIMATING PROCEDURE

Sections I and III 2. of the Agreement refer to the "standard estimating practices: and "standard estimating procedures", respectively. The following is a specification of the estimating procedure and wili govern transections made under this Agreement.

1. Upon receipt of a WATA "Authority Project" identification, PEPCO's. Syatce Planning Department determines the feeder circuits to be used in the associated "Utility Project." This is done in two parts, with and without Technical Provisions, as stated in Section III 2 of the Agreement.

2. PEPCO's Transmission and Distribution System Engineering Departrent takes the System Planning plans and determines feasibility, working with System Planning to make adjustments if necessary. Once the plans ere agreed to be feasible, cost estimates for the "outside plant" portions of the Utility Project are determined. "Cutside Plant" is everything beyond the supply station feeder cable terminations.

3.

4.

In making these estimates, T & D uses its standard unit cost estimating
books to apply costs to the physical units of conduit, cable, poles,
wires, etc. determined necessary. Time-cost escalation will be applied
to reflect costs at times of actual werk by using indices derived fran
PEPCO's historical experience.

The T&D estimates are then passed to PEPCO's Civil and Substation
Engineering Department where cost estimates of the "inside plant"
portion of the Utility Project are made in a similar manner.

Civil and Substation Engineering then forwards the complete Utility
Project estimate to the Building Services Department where a proposal
to MIATA is prepared.

The formal proposal consists of a statement of the estimated costs
with and without the Technical Provisions, with the difference being
identified as the "Estimated Cost" of the Contribution in Aid of
Construction; a series of engineering and construction cost "S" curves;
and a schedule of monthly payments to be made by WATA to PEPCO.

5. After the Utility Project is completed in the field, actual costs will be determined in accordance with standard PEPCO accounting practices. Once the actual cost of the Utility Project is known it will be divided by the estimated cost of Utility Froject for service in accordance with the Technical Provisions, as found in the formal proposal, and the resulting quotient will be multiplied by the estimated cost of Utility Project for service without the Technical Provisions. The revised estimate derived from this multiplication will be used as the "Estimated Cost" for comparing with the "Actual Cost" in determining the "Actual Cost" of Contributions in Aid of Construction.