Rates charged by the Lincoln County Power District No. 1 for electric service are based upon the cost of power from the Boulder Canyon Project. Under most operating conditions power from the Boulder Canyon Project is sufficient to meet the electric energy and demand needs of the customers of the Lincoln County Power District No. 1. Under certain conditions, including periods of drought in the Colorado River basin, power available from the Boulder Canyon Project is not sufficient to meet the needs of the Lincoln County Power District No. 1 and its customers. Under these conditions the Lincoln County Power District No. 1 must purchase power from additional sources. The purpose of this Purchased Power Adjustment Clause is to allow the Lincoln County Power District No. 1 to recover the additional cost of these supplemental power purchases which are not included in the base rates of the Lincoln County Power District No. 1.

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