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6.G. - Page 45 of 238 <br />water and allocated between Retail Customers and Wholesale Customers on the basis of <br />Proportional Water Use. <br />2. All Project capital costs incurred by the SFPUC in complying with the <br />mitigation measures in the Project MMRP shall be considered Regional capital costs under <br />Section 5.04 of this Agreement. <br />3. Operations and maintenance expenses incurred by the SFPUC in <br />maintaining Project mitigation assets described in the Project MMRP shall be considered <br />Regional transmission and distribution expenses under Section 5.05.D of this Agreement. Well <br />pumping expenses that are required to be paid by the SFPUC in the agreements with the <br />Irrigation Well Owners shall be considered Regional pumping expenses under Section 5.05.6 of <br />this Agreement. <br />4. Any wheeling charges imposed by California Water Service Company for <br />delivery of Irrigation Well Owner Replacement Water shall be considered Regional transmission <br />and distribution expenses under Section 5.05.D of this Agreement. <br />F. F. The SFPUC will audit (1) operation and maintenance expenses submitted <br />by the Participating Pumpers, and (2) well pumping expenses submitted by the Irrigation Well <br />Owners, for reimbursement to confirm that such costs were incurred, respectively, as a result of <br />(1) operating Project Facilities and Shared Facilities for a Regional benefit and (2) complying <br />with mitigation obligations in the Project MMRP. Costs associated with the use of Project <br />Facilities or Shared Facilities for Direct Retail or Direct Wholesale purposes, or that do not <br />otherwise provide Regional benefits, shall not be included in the Wholesale Revenue <br />Requirement. The SFPUC is responsible for resolving disputes with the Participating Pumpers <br />and Irrigation Well Owners concerning expense allocations. Project expense documentation, <br />including documentation of negotiation and settlement of disputed costs, will be available for <br />review during the Compliance Audit described in Section 7.04 of this Agreement. The <br />Wholesale Customers may dispute the SFPUC's resolution of expense allocations through the <br />arbitration provisions in Section 8.01 of this Agreement. <br />G. The SFPUC may direct the Participating Pumpers to recover water from the <br />SFPUC Storage Account for any type of shortage referenced in Section 3.11 of this Agreement. <br />Water recovered from the SFPUC Storage Account using Project Facilities and Shared Facilities <br />may be used for (1) the benefit of all Regional Water System customers; (2) Retail Customers; <br />or (3) one or more of the Participating Pumpers. The Wholesale Revenue Requirement shall <br />27 <br />15118728.1 <br />376 <br />