§ 2. Franchise Fee:

The total dollar amount of franchise fees paid by the Company to the City shall be calculated as follows: The current Fiscal Year total franchise fee shall equal the product of the Design Day Capacity and the current franchise fee factor. The current franchise fee factor shall be equal to the product of the Base Year Franchise Fee Factor and one plus the Inflation Index expressed as a decimal to three significant digits.

The following formula quantifies this payment:

FFc = FFFby × (1 + (CPI - PFA)) × DDCc

Where FFc equals total franchise fees due the city for the current Fiscal Year

FFFby equals the Base Year Franchise Fee Factor

CPI-PFA equals the Inflation Index based on the cumulative change in the Consumer Price Index less the productivity factor adjustment determined by the Georgia Public Service Commission.

DDCc equals the Design Day Capacity as of the last day of the previous fiscal year.

FFFby equals Ffby/DDCby

Where Ffby equals the total franchise fees paid in the Base Year

And DDCby equals the Design Day Capacity of the Base Year.