RETAIL ECONOMIC DEVELOPMENT RATE

METERED ON A BASIS COINCIDENT DEMAND

 SCHEDULE EDR-5-CP

AVAILABILITY 

Available to new electric power usage customers with at least 500 kW of load or the expansion of existing customer usage by at least 500 kW at standard primary or transmission line voltages.  Wholesale power will be supplied by Hoosier Energy pursuant to its Economic Development Coincident Demand Tariff No. 5.  Customer shall contract for capacity not less than 500 kW. 

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

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

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

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

d)      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)      e) Improves Hoosier Energy’s load factor or the load factor of the member cooperative.

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

g)      g) The retail customer provides documentation that without this tariff, it would be financially advantageous for the retail customer to expand or build the proposed new facility elsewhere.

TERM OF SERVICE 

Service can be contracted for a term of six or eight years after the start date stated in the contract.  The discount period of the contract shall be for half the length of the contract term.  At the end of the contract term, if mutually agreed to by the customer and the cooperative, the customer may continue to take service under this tariff at the non-discounted rate in effect at the time.  Otherwise the customer will be served under an alternative retail rate. 

MONTHLY RATE 

The Monthly Rate shall consist of a Coincident Peak Production Demand Charge, a Non-Coincident Peak Transmission Demand Charge, a Non-Coincident Peak Distribution Demand Charge, and an Energy Charge.

            Coincident Peak Production Demand Charge: 

   Year                       6-Year Contract              8-year Contract

     1                              $4.31/kW                       $4.31/kW

     2                              $5.02/kW                       $5.02/kW

     3                              $5.73/kW                       $5.73/kW

     4                              $6.44/kW                       $5.73/kW

     5 thru End of             $6.44/kW                       $6.44/kW

     Contract

Coincident Peak Production Demand is defined as the highest kW usage for a consecutive 30-minute period ending in the Peak Hour of the total member cooperative’s load on the Hoosier Energy system for that month.  The Peak Hour in the month of billing is defined as the hour in which the maximum kW usage of all member cooperatives’ delivery points on the Hoosier Energy system is maximum for the month in a 60 minute clock hour between the hours of 7:00 a.m. and 11:00 p.m., E.S.T.   

Non-Coincident Peak Transmission Demand Charge: $ 2.98 / kW 

The Non-Coincident Peak Transmission Demand is defined as the highest kW usage for any consecutive 30-minute period during the billing month. 

Non-Coincident Peak Distribution Demand Charge:   $ .50 / kW 

Non-Coincident Peak Distribution Demand is defined as the highest consecutive 30 minute interval demand expressed in kilowatts during the Peak Hours of the month and in no event less than 75 percent of the highest billing demand used in any of the preceding 11 months, nor less than 500 kW.  Peak Hours are defined as from 7:00 a.m. to 11:00 p.m. E.S.T., daily.

Energy Charge: 

The energy charge consists of the energy charge contained in Hoosier Energy’s plus a $0.00200/Kwh adder to cover administration and tax expenses, as follows

            Hoosier Energy kWh Charge               $ 0.02224

            Administrative Cost Adder                     0.00200

            Total                                                 $ 0.02424 / kWh

 POWER FACTOR ADJUSTMENT 

If the monthly average power factor is determined to be less than 93 percent, the monthly coincident and non-coincident billing demands shall each be adjusted for billing purposes by multiplying the respective metered demands by 93% and dividing the products by the measured average power factor expressed in percent.           

POWER COST ADJUSTMENT 

The Energy Charge will be adjusted by the Power Cost Tracker as listed in Appendix PC then in effect and approved for service to the member cooperatives of Hoosier Energy. 

FUEL COST ADJUSTMENT 

The energy charge will be adjusted by the fuel cost adjustment applicable to Hoosier Energy’s Economic Development Coincident Demand Tariff No. 5.

FACILITY CHARGE 

The customer will have the option of paying for facilities through an up-front contribution in aid of construction or through a facilities charge.  The facilities charge will be determined based upon the direct out-of-pocket cost to provide transmission and/or distribution facilities to the customer’s point of delivery.  This rate in this tariff does not include the construction of substations and radial lines.  Construction of substations and radial lines shall be covered through a contribution in aid of construction or a monthly carrying charge based on the costs of construction of substations and radial lines.

MEASUREMENT OF NEW OR EXPANDED USAGE 

All usage billed under this rate schedule must be separately metered. 

DELIVERY AT SECONDARY VOLTAGES 

At the sole discretion of the member cooperative, service may be provided hereunder at a secondary voltage.  In such event, the Demand and Energy Charges stated herein shall be adjusted to reflect secondary distribution losses. 

ONE-TIME OPTION TO SWITCH TO NON-COINCIDENT DEMAND TARIFF 

Upon completion of twelve months of service under this tariff, Customer may elect to switch its service to the terms of the Hoosier Energy member’s Economic Development Non-Coincident Demand Tariff No. 5 for the balance of the contract term.  To exercise this option, the Customer shall inform the Hoosier Energy member in writing not later than the 15th day of the thirteenth month of service under this tariff.  No adjustments of demand charges shall be made for the first year of service as a result of the exercise of this option.   

DETERMINATION OF START DATE 

Customer will specify the start date in which service will commence in accordance with this tariff.  Customer’s usage will be billed under one of the Cooperative’s regular tariffs until the start date.

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.

Approved July 22, 2003 by the board of directors for effective date January 1, 2004.