Appendix A

Rate Adjustment

The Rate Adjustment in Rates A, B, TOU, LP, OP, LLF and HLF shall be on the basis of a Purchased Power Cost Adjustment Tracking Factor occasioned solely by changes in the cost of purchased power.

Rate Adjustment Applicable to the Above Listed Rate Schedules:

Rate is adjusted quarterly.

Fuel Cost Adjustment

The fuel cost adjustment in dollars per kWh shall be the same as that most recently billed to Bartholomew County REMC by its purchased power supplier divided by 1 minus the total energy losses of the utility for the preceding calendar year expressed as a decimal fraction of the total energy purchased for the same year.

Approved March 1, 2018 by the board of directors for effective date April 1, 2018.