Availability

This rate schedule is available for service to each member consumer of the Corporation that contracts after the effective date of this rate schedule for new and/or expanded service. This tariff is offered in conjunction with Hoosier EnergyREC, Inc.'s ("Hoosier") Economic Development Rate No. 4 and with Hoosier's Standard Wholesale rate schedule.

The availability of this rate schedule is limited to an aggregate amount of 100 MW demand for the entire Hoosier system. (excluding the aggregate demand from Economic Development Rate No. 3).

Applicability

The Corporation shall provide this retail service to qualifying member-consumers for new or expanded electric power customers that meet the following conditions:

1. The new or expanded electric power service of any such retail customer must be contracted for between the customer, the Corporation and Hoosier for a time period of 5 to 10 years from the start date specified in the contract. The start date shall not be later than December 31, 2002.

2. The new or expanded electric power service load measures at least 500 kw of monthly non-coincident maximum demand (measured over a 30 minute interval) for at least six months of any contract year. Expanded electric power service is in addition to the load utilized by the retail customer prior to such expansion and shall be metered separately to assure compliance with this condition.

3. The retail customer shall certify to the Corporation and Hoosier Energy that the new or expanded electric power service meets two of the following criteria:

a) Results in the creation of a minimum of five full-time equivalent jobs.

 

b) Pays an average wage above the average County wage.

 

c) Selected location is in an area with an unemployment rate higher than the State average unemployment rate.

 

d) Selected site requires some form of environmental reclamation, or represents re-use of an existing industrial site where the former industry has ceased operations, or the new or expanded service replaces internal combustion engines thereby reducing air emissions.

 

e) Improves Hoosier Energy's load factor or the load factor of the Corporation.

 

f) Receives commitment of federal, state or local incentives, including sewer lines, water lines, road improvements and/or other infrastructure investment.

 

g) The retail customer provides documentation that without EDR No. 4, it would be financially advantageous for the retail customer to build the proposed new facility elsewhere.

The Corporation and Hoosier have the final determination of whether the retail customer meets the above criteria. Documentation of compliance with the above criteria shall be the retail customer's responsibility.

Monthly Rate

Demand Charge: Equal to the non-coincident Demand Charge of Hoosier Energy's Economic Development Rate No. 4, discounted as follows, times the Billing Demand:

The Total Cumulative Discount is the product of the Term of Service and the Average Annual Discount. The Total Cumulative Discount may be utilized in any pattern through the years of the contract term as long as the Maximum Annual Discount is not exceeded.

The contract between the qualifying retail customer, the Corporation, and Hoosier shall specify the demand charge discount for each year of the contract.

Determination of Billing Demand

The Billing Demand shall be the highest consecutive 30 minute kilowatt demand occurring between the hours of 7 am to 11 pm EST, or 500 kw, whichever is greater. For the first six contract months, the Billing Demand shall be the highest consecutive 30 minute kilowatt demand occurring between the hours of 7 am to 11 pm EST.

Standard Energy Charge

Standard Energy Charge shall be defined as the energy charge of the Standard Wholesale Tariff then in effect and approved for service to the Corporation.

Facilities Cost

Customers requesting facilities in addition to those normally provided may be required to pay the Corporation and Hoosier Energy either a contribution-in-aid-of-construction equal to the cost of the additional facilities or the monthly carrying charge of such cost, whichever is mutually agreed upon and specified in the contract.

Late Payment Charge

The above rates are net. In the event the current monthly bill is not paid within seventeen (17) days from the date of the bill, a late payment charge of 5 percent of the net billing will be assessed. When the seventeenth (17th) day falls on Saturday, Sunday, or any other observed holiday, the first (1st) business day thereafter shall be deemed the seventeenth (17th) day.

Fuel Cost Adjustment

The Energy Charge shall be adjusted by the fuel cost adjustment as defined in Appendix A.

Power Factor Adjustment

The consumer agrees to maintain unity power factor as nearly as practicable. The Corporation reserves the right to measure such power factor at any time. If the power factor (leading or lagging) at the time of the maximum monthly demand is determined to be less than 97%, the maximum monthly demand shall be adjusted separately by multiplying the maximum monthly demand by the ratio of the current target power factor percent (97%) and the measured actual power factor percent at the time of the maximum monthly demand.

Prospective Only

This rate shall be applicable only to new and expanded service contracted for after the effective date hereof. Customers contracting for service under any Economic Development Rate heretofore in effect shall continue to be served under the terms and conditions of that rate.

Approved March 1, 2010 by the board of directors for effective date April 1, 2010.