Industrial Power Service

Availability

Available in all territory served by the Corporation, subject to the Corporation's Service Rules and Regulations.

Applicability

Applicable to consumers supplied at a single location who meet the following requirements for service:

1. Service to the consumer must qualify under the requirements set forth in the Industrial Power Tariff of Hoosier Energy Rural Electric Cooperative, Inc. (Hoosier Energy).
   

2. The consumer's monthly maximum demands must be at least 500 kw.
   

3. The consumer's monthly billing load factor must be at least 45 percent.

Type of Service

The type of service rendered under this schedule will be alternating current, 60 hertz, single phase, or three phase, secondary voltage of approximately either 120 volts, 208 volts, 240 volts, 277 volts, or 480 volts, as requested.

Billing Demand

Billing Demand shall be the highest consecutive 30 minute demand during the Peak Hours of the month expressed in kilowatts, but in no event less than 75 percent of the highest billing demand used in any of the preceding 11 months, or 500 kilowatts, whichever is greatest. Peak Hours are defined as those hours from 7:00 a.m. to 11:00 p.m., E.S.T., daily.

Billing KWH

The Billing kWh shall be the greater of the actual kWh used during the billing month or 328.5 times the monthly Billing Demand.

Power Factor

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. Should such measurements indicate that the average power factor in the billing period is less than 93 percent, the demand for billing purposes shall be the demand as indicated or recorded by the demand meter multiplied by 93 percent and divided by the percent power factor.

Minimum Monthly Charge

The minimum monthly charge shall be the greatest of:

• A charge of $1.00 per kVA of required transformer capacity.

• The contract minimum.

• The applicable facilities charge, if any, plus the customer charge and demand charge.

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.

Loss Compensation

The demand and energy charges are based upon service metered at the Corporation's supply voltage from Hoosier Energy and do not reflect any compensation for line or transformation losses. Demand and energy loss compensation adjustments shall be applied for metering under conditions as follows:

Distribution Facilities Charge

a) Substation Direct Service:

The Consumer shall own, operate, and maintain all electric distribution facilities, except for metering equipment, from the point at which service is delivered by Hoosier Energy to the Corporation, and there will be no distribution facilities charge.

b) Fully Dedicated Distribution Service:

The distribution facilities charge of 1.90 percent per month shall apply to the Corporation's total dollar investment in distribution facilities, excluding metering equipment, which are dedicated to providing retail electric service to the consumer. The Corporation may require a contribution in aid of construction for all or part of the investment in facilities in which case the facilities charge applicable to the dollars of investment covered by the contribution shall be 1.18 percent.

c) Integrated Distribution Service:

The demand and energy charges of the Monthly Rate are based upon normal service from the Corporation's distribution system at a primary distribution voltage. Upon request by consumer, secondary service will be provided in which case the facilities charge of 1.90 percent shall apply to the total dollar investment in transformers and transformation equipment, and all secondary service facilities except metering equipment which are installed to provide secondary distribution service to the consumer.

The Corporation may also apply the facilities charge to the dollars of investment in primary facilities requested by the consumer which are in excess of those normally provided.

A contribution in aide of construction may be required for all or a part of the direct investment in primary or secondary facilities in which case the facilities charge applicable to the dollars of investment covered by the contribution shall be 1.18 percent.

Changes to the Distribution Facilities Charge

The Corporation may revise the Distribution Facilities Charge percentage from time-to-time to reflect current level costs subject to approval of the Corporation's board of directors.

Other Wholesale Charges and Adjustments

In addition to the base wholesale demand and energy charges which are included in the demand and energy charges of the Monthly Rate, the consumer shall pay all other charges billed the Corporation by Hoosier Energy for service hereunder pursuant to Hoosier Energy's Industrial Power Tariff.

Wholesale Rate Changes

Should there be any change in the Hoosier Energy Industrial Power Tariff under which the Corporation purchases power for service hereunder, the charges and provisions of Schedule IPS shall change correspondingly such that the change in wholesale power cost is passed through to the consumer.

Terms and Conditions of Service

1. The applicant will be required to give satisfactory assurance by means of a written agreement as to the character, amount, and duration of the business offered.
   

2. In general, individual motors rated in excess of twenty (20) horsepower must be three-phase.
   

3. Any transformers and regulation equipment which may be required for incidental lighting shall be furnished by the consumer.

Fuel Cost Adjustment

The above rates are subject to a fuel adjustment clause as defined in Appendix "A".

Approved January 30, 2007 the board of directors for effective date April 1, 2007.