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Exhibit 2 - DEC Property Insurance- AEGIS ProposalMay 12, 2021 QL02 (04/2021)Page 1 of 6 007064 ©2021 ASSOCIATED ELECTRIC & GAS INSURANCE SERVICES LIMITED (AEGIS) AEGIS and the AEGIS Logo are the Registered Service Marks of AEGIS in the U.S., U. K., E.U., Bermuda, Canada AND New Zealand PRINT - 05/12/2021 16:01:25 Property Insurance Proposal INSURED:City of Denton 601 E Hickory St Denton, TX 76205-4304 PROPOSAL NUMBER: PO5934101M PROGRAM NAME:Denton Energy Center (DEC) BROKER:Lockton Companies, LLC Houston, TX POLICY PERIOD:May 25, 2021 to May 25, 2022 INSURANCE COMPANY:ASSOCIATED ELECTRIC & GAS INSURANCE SERVICES LIMITED, HAMILTON BERMUDA and any other insurers on the Schedule of Insurers. POLICY FORM:AEGIS Standard TERRITORY:This policy covers within the fifty states comprising the United States of America and the District of Columbia. COVERAGES: Direct physical loss or damage, from any cause not specifically excluded. If limits are proposed and accepted the policy will include: Property Damage, Extra Expense, Business Interruption and Machinery Breakdown, losses arising from Terrorism, Earth Movement, Named Windstorm, Storm Surge, Flooding and other coverages as more fully described in the policy. LIMITS OF LIABILITY: Primary:$159,805,902 (100.00%) part of $159,805,902 excess of deductibles Ascot Syndicate 1414 3.38% Associated Electric & Gas Insurance Services Limited 95.61% Ren Re Synd. 1458 1.01% No subscribing insurer will pay more than its share of the above limit(s) in any one occurrence. In addition, no subscribing insurer will be liable for more than its share of the sublimits below which are part of and not in addition to the Limits of Liability. COVERAGE/SUBLIMITS: Coverage Sublimit Earthquake and Associated Flood $25,000,000 Per Occurrence and in the Annual Aggregate excluding High Hazard Zones. Earthquake - High Hazard Zones Excluded QL02 (04/2021)Page 2 of 6 007064 PRINT - 05/12/2021 16:01:25 Property Insurance Proposal Coverage Sublimit Flood including Storm Surge $25,000,000 Per Occurrence and in the Annual Aggregate excluding High Hazard Zones. Flood-High Hazard Zones Excluded Named Windstorm/Windsotrm/Hail $25,000,000 Per Occurrence and in the Annual Aggregate Tornado $100,000,000 Per Occurrence and in the Annual Aggregate Accounts Receivable $1,000,000 Per Occurrence Business Interruption $5,514,578 Per Occurrence Monthly margin not to exceed 105% of reported on file. Civil or Military Authority $1,000,000 Per Occurrence 30 days; 5 miles limitation. Contingent Time Element $10,000,000 Per Occurrence Course of Construction $10,000,000 Per Occurrence Total limit not to exceed contract value nor sublimit whichever is less. New Generation and Time Element is excluded (requires review and approval by UW). High Hazard Perils of Flood, Earthquake and Named Windstorm excluded. Debris Removal $10,000,000 Per Occurrence or 25% of the recoverable property loss, whichever is less. Defense Costs $500,000 Per Occurrence Demolition and/or Increased Cost of Construction due to Law or Ordinance $10,000,000 Per Occurrence Errors or Omissions $2,500,000 Per Occurrence Expediting Expense $2,500,000 Per Occurrence Extra Expense $2,500,000 Per Occurrence Excludes Replacement Power. Fine Arts $500,000 Per Occurrence Fire Brigade Charges and Extinguishing Expenses $1,000,000 Per Occurrence Ingress/Egress $1,000,000 Per Occurrence 30 days; 5 miles limitation. Miscellaneous Unnamed Locations $2,500,000 Per Occurrence High Hazard Perils of Flood, Earthquake and Named Windstorm excluded. Newly Acquired Locations $5,000,000 Per Occurrence 90 days reporting; Total limit not to exceed purchase value or sublimit whichever is less. New Generation and Time Element is excluded (requires review and approval by UW). High Hazard Perils of Flood, Earthquake and Named Windstorm excluded. Pollution Clean-up of Land and/or Water $500,000 Per Occurrence and in the Annual Aggregate Professional Fees $500,000 Per Occurrence Excludes Public Adjusters and Attorney Fees. Protection and Preservation of Property $2,500,000 Per Occurrence Service Interruption $10,000,000 Per Occurrence Transit $5,000,000 Per Occurrence QL02 (04/2021)Page 3 of 6 007064 PRINT - 05/12/2021 16:01:25 Property Insurance Proposal Coverage Sublimit Valuable Papers and Records $1,000,000 Per Occurrence DEDUCTIBLES: Named Windstorm/Windstorm/Hail 2.00 % of TIV Per Occurrence Minimum of $250,000 Percentage of total values at location affected by loss. Tornado $1,000,000 Per Occurrence Property Damage $250,000 Per Occurrence except as noted: Gas Engine Generators $500,000 Per Occurrence Business Interruption, including Contingent Business Interruption 30 Day Per Occurrence Business Interruption, including Contingent Business Interruption 45 Day Per Occurrence In respects to Property Damage for Gas Engine Generators, including Contingent Business Interruption Service Interruption 24 Hour Per Occurrence Property Damage and Time Element deductibles apply separately to each loss. Should more than one Property Damage deductible apply to a loss, only the largest applicable Property Damage deductible will apply. Should more than one Time Element deductible apply to a loss, only the largest applicable Time Element deductible will apply. Percentage of Value The POLICY to which these DECLARATIONS apply is amended as follows and any conflicting wording is deleted: If a deductible is shown as a percentage of value, then, subject to any minimum and maximum dollar amounts shown, the deductible will be calculated by multiplying such percentage by the value reported on the most recent schedule on file with the INSURER for all COVERED PROPERTY at all INSURED LOCATIONS where COVERED PROPERTY sustained physical loss or damage due to the same OCCURRENCE. If any of such COVERED PROPERTY is not specifically scheduled, the value will be deemed to be the value of such COVERED PROPERTY as valued by the INSURER at the time and place of loss without deduction for depreciation. Any percentage deductible will apply separately to such COVERED PROPERTY irrespective of any other deductibles that apply. VALUATION:Based on Repair or Replacement CO-INSURANCE:None CANCELLATION:90 days notice of cancellation except 10 days for non-payment of premium. TOTAL INSURED VALUE:$159,805,902 as reported to the company on May 5, 2021 POLICY PREMIUM:Primary:$467,000 (100% AEGIS participation) part of $467,000 QL02 (04/2021)Page 4 of 6 007064 PRINT - 05/12/2021 16:01:25 Property Insurance Proposal The premium proposed is the amount due net to the participating insurers. The premium may be subject to state and/or local taxes that are your responsibility or the responsibility of your broker to report and pay. Premium will be distributed to the participating insurers based on their participation in the Limits of Liability. CONSORTIUM TERRORISM PREMIUM: The following Terrorism Premium, which will include any agreed commission, is included in the Consortium participation premium above. Primary:$17,000 DEDUCTIONS:Primary:Nil PREMIUM DUE DATE:30 days after binding. QUOTE EXPIRATION DATE:May 25, 2021 ENGINEERING FEE REIMBURSEMENT: At no cost to the INSURED, AEGIS Insurance Services' Loss Control engineers shall prepare, during the term of this Policy, Risk Summary Reports (excluding jurisdictional inspections) for mutually agreed assets if the INSURED: 1) accepts this Proposal as presented, or 2) gives AEGIS an order to bind at least 80% of the INSURED'S Primary Layer. Aegis Loss Control Services on a Bundled service to provide a Summary Report. Detailed Risk Assessment Report available for a fee. CONDITIONS:o Authorization is subject to no changes in loss experience prior to renewal effective date. o AEGIS premium does not include any applicable state or local surplus lines taxes. o AEGIS authorized line to sign in full, unless agreed otherwise in writing. o AEGIS capacity includes AEGIS Consortium participation. o Aegis Standard Policy form o Terrorism Option included for premium $17,000 TERMS AND CONDITIONS: AEGIS Membership and Voting Rights Endorsement SANCTION EXCLUSION 2020 EMERGENCY ACTION ENDORSEMENT CYBER COVERAGE SERVICE OF SUIT COMMUNICABLE DISEASE AND INFECTIOUS PATHOGEN EXCLUSION Terror Exclusion QL02 (04/2021)Page 5 of 6 007064 PRINT - 05/12/2021 16:01:25 Property Insurance Proposal ATTACHMENTS: L222 (05/2013)AEGIS Membership and Voting Rights Endorsement L269 (07/2020)SANCTION EXCLUSION 2020 L270 (05/2019)EMERGENCY ACTION ENDORSEMENT L271 (05/2020)CYBER COVERAGE L278 (05/2021)SERVICE OF SUIT L273 (06/2020)COMMUNICABLE DISEASE AND INFECTIOUS PATHOGEN EXCLUSION L238 (07/2015)Terror Exclusion The liability of an insurer under this contract is several and not joint with other insurers party to this contract. An insurer is liable only for the proportion of liability it has underwritten. An insurer is not jointly liable for the proportion of liability underwritten by any other insurer; nor is an insurer otherwise responsible for any liability of any other insurer that may underwrite this contract. The proportion of liability under this contract underwritten by an insurer (or, in the case of a Lloyd’s syndicate, the total of the proportions underwritten by all the members of the syndicate taken together) is shown in this contract. SCHEDULE OF INSURERS Associated Electric & Gas Insurance Services Limited By: AEGIS Insurance Services, Inc. as agent under an Insurance Services Agreement effective September 27, 2007 By May 12, 2021 Authorized Signature Date Name: Angela Slattery Title: Underwriting Officer AEGIS Insurance Services, Inc. 1 Meadowlands Plaza East Rutherford, NJ 07073 RenaissanceRe Syndicate 1458 at Lloyd's By: AEGIS Insurance Services, Inc. as agent under Binding Authority B080116217N21 By May 12, 2021 Authorized Signature Date Name: Angela Slattery Title: Underwriting Officer AEGIS Insurance Services, Inc. 1 Meadowlands Plaza East Rutherford, NJ 07073 QL02 (04/2021)Page 6 of 6 007064 PRINT - 05/12/2021 16:01:25 Property Insurance Proposal Ascot Syndicate 1414 at Lloyd’s By: AEGIS Insurance Services, Inc. as agent under Binding Authority B080111625N21 By May 12, 2021 Authorized Signature Date Name: Angela Slattery Title: Underwriting Officer AEGIS Insurance Services, Inc. 1 Meadowlands Plaza East Rutherford, NJ 07073 POLICY NOTICES: The INSURED shall make any notice required or permitted to the COMPANY: if with respect to underwriting to: Underwriting Division AEGIS Insurance Services, Inc. 1 Meadowlands Plaza East Rutherford, NJ 07073 if with respect to a claim to: Claims Division AEGIS Insurance Services, Inc. 1 Meadowlands Plaza East Rutherford, NJ 07073 Submit a Claim by sending an email to: PropertyClaimNotice@aegislimited.com or if with respect to a customer complaint to: Member Relations AEGIS Insurance Services, Inc. 1 Meadowlands Plaza East Rutherford, NJ 07073 The INSURED shall make all required premium payments in accordance with the COMPANY'S invoice. L222 AEGIS Manuscript (05/2013)Page 1 of 1 MEMBERSHIP AND VOTING RIGHTS ENDORSEMENT This POLICY does not entitle the INSURED to be a member in the INSURER. This POLICY does not entitle the INSURED to a vote on any matter submitted to the members of the INSURER. L269 AEGIS Manuscript (07/2020)Page 1 of 1 SANCTION EXCLUSION 2020 This Policy does not insure against; specifically excludes, and the COMPANY shall not be liable to pay any claim or provide any benefit hereunder to the extent that the provision of such cover, payment of such claim, or provision of such benefit is prohibited or restricted or would expose the COMPANY to any sanction under United Nations resolutions or the trade or economic sanctions, laws or regulations of the European Union, United Kingdom or United States of America, including, but not limited to sanctions, laws and regulations administered and enforced by the United States Treasury Department’s Office of Foreign Assets Control (“OFAC”) (collectively “Economic Sanctions”). If any coverage in this POLICY violates any of these Economic Sanctions this POLICY is void from its inception. If the policy is determined by the COMPANY to be a blocked or frozen contract under any Economic Sanction no payments, including, but not limited to, claims, premium refunds, or member related credits will be made by the COMPANY without written authorization from each applicable regulatory body. L270 AEGIS Manuscript (05/2019)Page 1 of 1 EMERGENCY ACTION ENDORSEMENT Business Income Loss from a failure to provide electric generating capacity and availability during emergency action hours is subject to a five (5) hour deductible and a five (5) hour sublimit not to exceed $1,000,000 annual aggregate. L271 AEGIS Manuscript (05/2020)Page 1 of 1 CYBER COVERAGE The following is added: This Policy does not insure against any loss, damage, cost, or expense caused by a CYBER INCIDENT, but does not exclude any loss, damage, cost, or expense caused by any ensuing physical loss or damage to Covered Property which is not SOFTWARE AND DATA from a cause not specifically excluded. The following Definitions apply in this Endorsement: COMPUTER EQUIPMENT means any electronic data processing equipment, computer, computer or communication system or component, hardware, network, microprocessor, microchip, integrated circuit, or similar devices or components in computer or non-computer equipment, or any electronic, electro-mechanical, or electro-magnetic media that holds SOFTWARE AND DATA, including, but not limited to, COMPUTER EQUIPMENT that monitors and/or controls physical devices and/or processes. CYBER INCIDENT means any of the following: (1)any unauthorized acquisition, loss, copying, disclosure, transfer, sale, alteration, corruption, destruction, deletion, encryption, use, operation, and/or damage to any SOFTWARE AND DATA; (2)infection of COMPUTER EQUIPMENT by a VIRUS or other malicious code; (3)the use of deception to manipulate authorized individuals into divulging financial, confidential or personal information; (4)denial of service attack, being an attack to block or prevent access to any COMPUTER EQUIPMENT or SOFTWARE AND DATA; (5)violation of law, statute, regulation, policy, or contractual provision relating to the authenticity, availability, confidentiality, security, storage, control, disclosure, protection, encryption, integrity or use of SOFTWARE AND DATA; (6)intentionally shutting down, disabling, or removing connectivity to any COMPUTER EQUIPMENT or SOFTWARE AND DATA; or (7)errors or omissions in the programing or operation of a COMPUTER EQUIPMENT or SOFTWARE AND DATA. SOFTWARE AND DATA means any computer software, firmware, operating systems, programs, code, or data. VIRUS means SOFTWARE AND DATA that causes or threatens to cause the deletion, destruction, degradation, corruption, malfunction, compromise, or otherwise adversely affect the operation or functionality of any COMPUTER EQUIPMENT or SOFTWARE AND DATA including, but not limited to, any denial of service attack, encryption, or ransomware. L278 AEGIS Manuscript (05/2021)Page 1 of 1 SERVICE OF SUIT Service of Suit It is agreed that in the event of the failure of the Underwriters hereon to pay any amount claimed to be due hereunder, the Underwriters hereon, at the request of the Insured (or Reinsured), will submit to the jurisdiction of a Court of competent jurisdiction within the United States. This Service of Suit Clause will not be read to conflict with or override the obligations of the parties to arbitrate their disputes as provided for in any Arbitration provision within this Policy. This Clause is intended as an aid to compelling arbitration or enforcing such arbitration or arbitral award, not as an alternative to such Arbitration provision for resolving disputes arising out of this contract of insurance (or reinsurance). Service of process in any suit instituted against an Underwriter under this Policy may be made: Upon Associated Electric & Gas Insurance Services Limited by service on: AEGIS Insurance Services, Inc., 1 Meadowlands Plaza, East Rutherford, NJ 07073. Upon any Syndicate at Lloyd’s of London included on the Schedule of Insurers by service on: Lloyd’s America, Inc., Attention: Legal Department, 280 Park Avenue, East Tower, 25th Floor, New York, NY 10017, or Foley & Lardner LLP, 555 California Street, Suite 1700, San Francisco, CA 94104-1520 in respect of California Insureds. The above-named are authorized and directed to accept service of process on behalf of Underwriters in any such suit and/or upon the request of the Insured (or Reinsured) to give a written undertaking to the Insured (or Reinsured) that they will enter a general appearance upon Underwriters' behalf in the event such a suit shall be instituted. The Underwriter will abide by the final decision of the court in such suit or of any appellate court in the event of any appeal. Nothing in this clause constitutes or should be understood to constitute a waiver of the Underwriter’s right to commence an action in any court of competent jurisdiction in the United States, to remove an action to a United States District Court, or to seek to transfer a case to another court as permitted by the laws of the United States or of any state in the United States. Further, pursuant to any statute of any state, territory or district of the United States of America, which makes provision therefore, the Underwriters hereby designate the Superintendent, Commissioner or Director of Insurance or other officer specified for that purpose in the statute, or his successor or successors in office, as our true and lawful attorney upon whom may be served any lawful process in any action, suit or proceeding instituted by you or on your behalf or any beneficiary hereunder arising out of this contract of insurance, and we hereby designate the above named as the person to whom the said officer is authorized to mail such process or a true copy thereof. L273 AEGIS Manuscript (06/2020)Page 1 of 1 COMMUNICABLE DISEASE AND INFECTIOUS PATHOGEN EXCLUSION Notwithstanding any provision of this Policy to the contrary, and regardless of any intervening cause or event that contributes concurrently or in any sequence, this Policy excludes and the COMPANY does not insure any loss, cost, damage, expense, or any other sum that, either directly or indirectly, proximately or remotely, is or can be caused by, result from, arise out of, composed or comprised of, attributable to, contributed to by, or in any way connected with, any of the following: i.any actual, suspected, or potential Communicable Disease or Infectious Pathogen; ii.any fear or threat (whether actual or perceived) of sickness resulting from any Communicable Disease or Infectious Pathogen; iii.any action taken in controlling, cleaning, monitoring, preventing, or suppressing any Communicable Disease or Infectious Pathogen or any sickness or any fear or threat (whether actual or perceived) of sickness resulting from any Communicable Disease or Infectious Pathogen; iv.any loss of sales or interruption of any market in any way relating to any Communicable Disease or Infectious Pathogen or any sickness or any fear or threat (whether actual or perceived) of sickness resulting from any Communicable Disease or Infectious Pathogen; or v.any loss of use of property or any loss of value of property, in any way relating to any Communicable Disease or Infectious Pathogen or any sickness or any fear or threat (whether actual or perceived) of sickness resulting from any Communicable Disease or Infectious Pathogen. This Exclusion applies to all coverages and coverage extensions provided in the Policy, including but not limited to any Property Damage Coverages, Time Element Coverages, Extra Expense, or any other Policy modifications or endorsements. A “Communicable Disease or Infectious Pathogen” means any disease, bacterium, virus, parasite, fungus, or other material, whether deemed living or not, which is or can become harmful or potentially harmful to humans, human welfare, or other living organisms, which is or can become capable of being spread: a) directly from one person to another, b) indirectly through airborne transmission, bodily fluid transmission, or transmission from or to any organic or inorganic surface, object, solid, liquid, or gas, or c) via any other disease host, vector, or other means of transmission. L238 AEGIS Manuscript (07/2015)Page 1 of 1 TERROR EXCLUSION This POLICY excludes all loss, damage, cost or expense, arising directly or indirectly as a result of a ACT OF TERRORISM regardless of any other cause or event contributing concurrently or in any other sequence to the loss. "ACT OF TERRORISM" means the commission of a violent act, or an act dangerous to human life, tangible property, intangible property or infrastructure, or the threat of such act, that is reasonably believed to have been committed (a) for political, religious and/or ideological reasons; and (b) either (1) to intimidate, coerce or cause fear among the public or a section of the public, (2) to influence the policy of, or overthrow, a government by intimidation, fear or coercion, (3) to affect the conduct of a government or the public or a section of the public, (4) to disrupt any segment of a country's economy or (5) for any similar reason. An ACT OF TERRORISM includes those, events and circumstances constituting an “act of terrorism” as defined by the Terrorism Risk Insurance Act of 2002, as amended (the “FEDERAL ACT”). An ACT OF TERRORISM shall also include any actions by, or on behalf of, a government or branch thereof (including, without limitation, the uniformed armed forces, militia, police, state security, national guard and anti-terrorism agencies) in deterring, responding to, combating or retaliating against terrorism or removing debris from a terrorist attack. If an ACT OF TERRORISM results in a fire and the direct physical loss or damage to property insured hereunder located in any State of the United States, the District of Columbia, the Commonwealth of Puerto Rico, the Commonwealth of the Northern Mariana Islands, American Samoa, Guam, each of the United States Virgin Islands and any territory or possession of the United States, that, either pursuant to the Standard Fire Policy or otherwise, prohibits exclusions for ACTS OF TERRORISM that result in fire, the INSURER will pay for the loss or damage caused by that fire. Such coverage for fire applies only to direct loss or damage to property insured hereunder and may be limited, in accordance with the Standard Fire Policy to the lesser of the actual cash value of the property at the time of the loss, or the amount which it would cost to repair or replace the property, without allowance for any increased cost of repair or replacement by reason of any ordinance or law, and without any compensation for business interruption, extra expense to continue business activities, or any other coverage for loss or damage other than direct physical loss or damage to the property insured hereunder. With respect to fire resulting from any one or more ACTS OF TERRORISM, the INSURER will not pay any amounts for which this INSURER is not responsible under the terms of the FEDERAL ACT (including subsequent Congressional action pursuant to the Act) due to the application of the FEDERAL ACT or any clause that results in a cap on our liability for payments for terrorism losses. Nothing herein contained shall be held to vary, alter, waive or change any of the terms, limits or conditions of the POLICY, except as herein above set forth.