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Member Guide

TABLE OF CONTENTS


Welcome ................................................................................................ page 3 Value of Membership ............................................................................ page 4 Who Represents You? ............................................................................ page 5 Statement of Nondiscrimination............................................................ page 6 Tips for Using Energy Wisely .................................................................. page 7 Be Safe! A Matter of Life and Death ...................................................... page 9 If Your Power Goes Off......................................................................... page 10 Outage Restoration .............................................................................. page 12 Habersham EMC Bylaws ...................................................................... page 13 Location, Hours, Etc. ............................................................................ page 38 Habersham EMC Service Territory ....................................................... page 39 Paying Your Electric Bill ........................................................................ page 40 Service Rates ........................................................................................ page 43 Habersham EMC Services .................................................................... page 44 Habersham EMC Products ................................................................... page 46 Right of Way Maintenance-Plan How You Plant.................................. page 47 Service Rules and Regulations ............................................................. page 48 How$mart Rider ................................................................................... page 62


WELCOME Welcome to membership in Habersham EMC, an electric membership corporation. We operate as a non-profit cooperative. Habersham EMC was created through the determination of rural people who worked together to provide this area with the electric service which was not available from other sources at the time. The cooperative’s mission is to be highly valued by the customers in northeast Georgia as an innovative provider of energy and related services. A brief history Habersham Electric Membership Corporation was chartered on July 25, 1938. The first 70 miles of line was energized May 15, 1939. Today there are over 3,700 miles of line and growing at an average of 20 miles of line per year. Membership has grown to over 34,000.

6135 State Hwy 115 W Clarkesville, GA 30523


VALUE OF MEMBERSHIP Dear Member: The directors and employees of Habersham EMC welcome you as a new member. You are one of the more than 25,000 consumers we serve in Habersham, Hall, Lumpkin, Rabun, Stephens and White counties. By paying your membership fee at Habersham EMC, you became a part owner of this organization. We are not in the business of distributing electric service to make a profit, but only to serve you–the member–with reliable electric service at the lowest possible cost. You have a voice in the operation of Habersham EMC through the members’ election of directors at the Annual Meeting held each year in June or July. The actual operation of the Cooperative is carried out by a well-trained group of employees, dedicated to providing the best service possible for you, the member-owner. This guide has been prepared to provide helpful information to you in getting the most from membership in the Cooperative. Please look through it and keep it where you can refer to it as needed. Sincerely, Jonathan Cantrell President/CEO


WHO REPRESENTS YOU? Nine directors are elected by you, the members, at the Annual Meeting held in July, to serve a three-year term as director. They are representatives for the co-op and make all major policy decisions. Dustin Hulsey CHAIRMAN 294 Pierce Drive Cleveland, GA 30528 Rick Wood (706) 892-6123 453 Swain Wood Rd Clarkesville, GA 30523 Frank McCrackin (706) 754-3755 P.O. Box 63 Tiger, GA 30576 VICE-CHAIRMAN (706) 782-3063 George Fry 3025 Stonepile Rd Kenneth McEntire Clarkesville, GA 30523 561 Bethel Temple Spur (706) 499-8278 Demorest, GA 30535 SECRETARY-TREASURER (706) 754-6580 Jeff Ferguson Dan Thurmond 215 Walker Branch Ct 121 Wingo Drive Clarkesville, GA 30523 Sautee, GA 30571 (706) 939-2084 (706) 878-2822 William “Billy” Cantrell David Wall 75 Mountain Meadows Drive P.O. Box 1108 Cleveland, GA 30538 Clarkesville, GA 30523 (706) 878-9639 (706) 754-3935


STATEMENT OF NONDISCRIMINATION In accordance with Federal civil rights law and U.S. Department of Agriculture (USDA) civil rights regulations and policies, the USDA, its Agencies, offices, and employees, and institutions participating in or administering USDA programs are prohibited from discriminating based on race, color, national origin, religion, sex, gender identity (including gender expression), sexual orientation, disability, age, marital status, family/parental status, income derived from a public assistance program, political beliefs, or reprisal or retaliation for prior civil rights activity, in any program or activity conducted or funded by USDA (not all bases apply to all programs). Remedies and complaint filing deadlines vary by program or incident. Persons with disabilities who require alternative means of communication for program information (e.g., Braille, large print, audiotape, American Sign Language, etc.) should contact the responsible Agency or USDA’s TARGET Center at (202) 720-2600 (voice and TTY) or contact USDA through the Federal Relay Service at (800) 877-8339. Additionally, program information may be made available in languages other than English. To file a program discrimination complaint, complete the USDA Program Discrimination Complaint Form, AD-3027, found online at http://www.ascr.usda.gov/complaint_filing_cust.html and at any USDA office or write a letter addressed to USDA and provide in the letter all of the information requested in the form. To request a copy of the complaint form, call (866) 632-9992. Submit your completed form or letter to USDA by: (1) mail: U.S. Department of Agriculture Office of the Assistant Secretary for Civil Rights 1400 Independence Avenue, SW Washington, D.C. 20250-9410; (2) fax: (202) 690-7442; or

(3) email: program.intake@usda.gov. This institution is an equal opportunity provider.


TIPS FOR USING ENERGY WISELY In cold weather • Set thermostats as low as is comfortable. The recommended energy-savings setting is 68º F. • Do not block radiators or vents with furniture, carpets or drapes. In hot weather • Use ceiling and window fans. • Set the thermostat as high as is comfortable, if using conventional air conditioning. Try 78º F or higher. • Close shades and curtains to keep sun out. In general • Install a high efficiency electric heat pump. It is cheaper to operate and provides good air quality. • Install a programmable thermostat. • Keep windows and outside doors closed when using heat or air conditioning. • Weather-strip or caulk drafty spots around windows and doors, and openings where pipes or wires enter. (Be sure furnaces and other appliances are properly vented.) • Add more insulation to your floor and ceiling. • Install double-glazed or storm windows and storm doors. • Maintain heating and cooling equipment properly. Clean or replace filters once a month, or as needed. Have equipment serviced regularly by licensed technicians.


TIPS FOR USING ENERGY WISELY (cont.) In general • Take short showers instead of full tub baths. Use a low-flow showerhead. • Use warm or cold water in your washing machine. Rinse in cold water when possible. • Set the hot water heater to 120º F. (If you use a dishwasher, check the owner’s manual.) • When buying new appliances, choose energy-efficient models. • Use LED lighting. It last longer and uses energy more efficiently. • Wrap your pipes if they pass through unheated areas. • Visit the Habersham EMC website, www.habershamemc.com for many more tips and advice.


BE SAFE! A MATTER OF LIFE AND DEATH Electricity provides necessities and luxuries that certainly add to the quality of our lives. However, carelessness with electricity can unfortunately result in burns, injuries and even death. Similar to lightning, electricity is always striving to find a path to the ground. Should any part of your body come in contact directly or indirectly with an energized object, you have provided that pathway to the ground and, therefore, are in immediate danger. Habersham EMC encourages you to remember the following safety rules: • Consider any electrical lines dangerous. Keep all objects (i.e.: kites, ladders and antennas) away from power lines. • Do not attempt to raise or move electric lines. • Report to Habersham EMC any potential power line hazards, including trees growing into the lines. • Always stay away from any electric line down on the ground. Call Habersham EMC immediately. • Never touch a person or object that is in contact with a power line. • If your power lines are underground, call the Utilities Protection Center at 811 OR 1-800-282-7411 and the lines will be located and marked. • Do not nail or stable signage, basketball goals, antennas, etc. on power poles.


IF YOUR POWER GOES OFF If your electricity should go off, first go to your main electrical panel to see if a fuse has blown or a breaker has tripped. Fuses must be replaced while breakers need only be reset. If the problem is not in your main panel, call a neighbor to determine if other homes in the area have been affected. If the problem is not in your home’s wiring and if several homes are involved, then call Habersham EMC. Our dispatch office is open seven days a week, 24 hours a day, including holidays. When You Report an Outage Please keep your account number near a phone when calling to report an outage. This is very important when reporting an outage. The number acts as a guide so we can locate your home exactly. You may also report your outage with our automated outage system by entering the phone number at the location of the outage or online at www.habershamemc.com. If you know the cause of the outage, please describe it (example: a limb is on the line, a pole has been hit by a car, etc.). The more information we have before we arrive can greatly decrease outage time. If you report the outage to us, be assured that we are doing our best to return service to you and leave the phone lines open for others to report outages. This will make sure all repairs are made as quickly as possible for everyone.


IF YOUR POWER GOES OFF (cont.) While the Electricity Is Off Keep your refrigerator and freezer closed. According to the Extension Service, food should keep up to 48 hours. If the outage should persist arrangements should be made to store food at another location or dry ice should be purchased. Stay away from power lines on the ground. Do not attempt to move trees or limbs from lines. That’s our job! Life-Support Equipment If someone in the home is dependent on life-support equipment (example: respirator, infant heart monitor), don’t wait until an outage to notify us of these circumstances. Call us or write to our office. After the main lines are repaired, these residences are given priority. When this type of equipment is in use full time, a generator may need to be considered. Also, when farm equipment is in use and is dependent on electricity, a generator should be considered to supplement during outages. Habersham EMC can supply the best possible service but we cannot guarantee 100% of the time.

Who Represents You?


OUTAGE RESTORATION


HABERSHAM EMC BYLAWS TABLE OF CONTENTS MEMBERS ARTICLE I: Eligibility for Membership .............................................................................1.01 Preconditions to Membership ......................................................................1.02 Joint Membership .........................................................................................1.03 Transfer of Membership ...............................................................................1.04 Obligations of Members and Applicants for Membership ............................1.05 Suspension of Membership and Reinstatement of Membership .................1.06 Withdrawal ................................................................................................... 1.07 Withdrawal and Termination .........................................................................1.08 Expulsion ........................................................................................................1.09 Effect of Withdrawal, Termination and Expulsion .........................................1.10 MEETING OF MEMBERS ARTICLE II: Annual Meeting .............................................................................................2.01 Special Meetings ........................................................................................... 2.02 Notice of Members’ Meetings ...................................................................... 2.03 Quorum ..........................................................................................................2.04 Voting ............................................................................................................ 2.05 Order of Business .......................................................................................... 2.06 Credentials and Election Committee .............................................................2.07 Robert’s Rules of Order................................................................................ 2.08 DIRECTORS ARTICLE III: General Powers of Board of Directors ...........................................................3.01 Election of Directors ..................................................................................... 3.02 Qualifications of Directors ............................................................................ 3.03 Nominations by Nominating Committee .......................................................3.04 Nominations by Petition ................................................................................3.05 Notice of Nominees .......................................................................................3.06 Election ......................................................................................................... 3.07 Vacancies .......................................................................................................3.08 Failure of Compliance ................................................................................... 3.09 Compensation ................................................................................................3.10 Emeritus Director ...........................................................................................3.11 Policies, Rules and Regulations ..................................................................... 3.12


MEETING OF DIRECTORS ARTICLE IV: Regular Meetings of Directors .......................................................................4.01 Special Meetings ........................................................................................... 4.02 Notice ............................................................................................................4.03 Quorum for Meeting of Directors ..................................................................4.04 Action of Board of Directors ..........................................................................4.05 Written Consent ............................................................................................4.06 OFFICERS ARTICLE V: Number ......................................................................................................... 5.01 Election and Term of Office ...........................................................................5.02 Removal ........................................................................................................ 5.03 Vacancies ..................................................................................................... 5.04 Chairman ........................................................................................................5.05 Vice Chairman ................................................................................................5.06 Secretary ........................................................................................................5.07 Treasurer ........................................................................................................5.08 President/CEO ................................................................................................5.09 NON-PROFIT OPERATION ARTICLE VI: Non-Profit Operation .....................................................................................6.01 Patronage Capital in Connection with Furnishing Electric Energy-Receipt ....6.02 Patronage Capital – Accounts ....................................................................... 6.03 Patronage Capital - Status as Such ................................................................6.04 Other Patronage Capital - Allocation ............................................................6.05 Patronage Capital from Other Organizations ................................................6.06 Patronage Capital – Dissolution ....................................................................6.07 Patronage Capital - Distribution Prior to Dissolution ....................................6.08 Patronage Capital - Distribution to Estates or Representatives of Deceased Members .......................................................................................................6.09 Patronage Capital - Assignment ....................................................................6.10 Patronage Capital - Right of Setoff ................................................................6.11 Patronage Capital - Unclaimed Refunds .......................................................6.12 Patronage Capital Contract with Member ....................................................6.13 OPERATIONS AND MISCELLANEOUS ARTICLE VII: Bonds of Officers and Employees .................................................................7.01 Reports ..........................................................................................................7.02 Fiscal Year .....................................................................................................7.03 Contract ........................................................................................................7.04 Checks, Draft s, Etc. .......................................................................................7.05 Deposits ........................................................................................................7.06 Membership in Other Organizations ............................................................7.07 Accounting Systems and Reports ..................................................................7.08


Obligations of Cooperative for Service .........................................................7.09 Circulation of Newsletter ..............................................................................7.10 INDEMNIFICATION AND INSURANCE ARTICLE VIII: Indemnification .............................................................................................8.01 Insurance ...................................................................................................... 8.02 PROPERTY ARTICLE IV: Disposition .................................................................................................... 9.01 Security Interest ............................................................................................9.02 SEAL

ARTICLE X:

AMENDMENTS ARTICLE XI: Original Bylaws adopted 8-9-38; 3-12-46; 1-13-48; 6-23-59; 7-14-59; 10-20-59; 12-19-61; 7-27-65; 6-23-70; 7-14-70; 1-25-77; 7-13-82; 7-16-85; 7-21-87; 10-1797; 12-9-97;7-14-98; 10-18-99; 6-12-01; 10-28-03; 11-11-03; 5-24-05; 6-20-06; 8-26-14 ARTICLE I MEMBERS 1.01 Eligibility for Membership. Any person, as that term is defined by the Georgia Electric Membership Corporation Act, who may lawfully receive electrical service from an Electric Membership Corporation is eligible to become a member of Habersham Electric Membership Corporation, referred to in these Bylaws as “Cooperative”. 1.02 Preconditions to Membership. No person shall become a member unless the following conditions have been met: (a) The person has made a written application for membership in the Cooperative, in the form prescribed by the Cooperative. Absent a written request, any payment made to HEMC for service shall constitute members agreement to be bound by these Bylaws and the Cooperative’s Service Rules and Regulations. (b) The person has agreed to take electric service from and is, unless temporarily prevented from doing so by causes reasonably beyond the person’s control, taking electric service from the Cooperative at one (1) or more premises. (c) The person has agreed to comply with and be bound by the Article of Incorporation and Bylaws of the Cooperative and the Rules and Regulations from time to time adopted by the Board of Directors of the Cooperative.


(d) The person has paid a service security deposit, membership fee, contribution in aid of construction, or any charge required by the Cooperative’s Service Rules and Regulations prescribed from time to time by the Board. (e) The person has paid all prior obligations owed by that person to the Cooperative. (f) The person has satisfied all other conditions established for membership by the Board of Directors. (g) The Board has passed a resolution accepting the person into membership of the Cooperative. Should the Cooperative ascertain that is providing electric service to a person who has not complied, and upon written request refuses or fails to comply with any one or more of these preconditions, the Cooperative may terminate electric service to the premises of such person. 1.03 Joint Membership. Husband and wife may apply for a joint membership or may convert an existing membership held by either to a joint membership, and subject to their compliance with the requirements for membership set forth in Section 1.02 of this Article, may be accepted for membership. The term “Member� as used in these Bylaws shall be deemed to include a husband and wife holding a joint membership and any provision relating to the rights and liabilities of membership shall apply equally with respect to the holders of a joint membership. Without limiting the generality of the foregoing, the following principles shall apply in respect to joint members: (a) The presence at a meeting of either or both shall be regarded as the presence of one (1) member and shall constitute a joint waiver of notice of the meeting. (b) The vote of either separately or both jointly shall constitute one (1) joint vote. Should joint members, however, disagree as to how a vote should be cast, each joint member shall be entitled to cast a one-half (1/2) vote. (c) A waiver of notice signed by either or both shall constitute a joint waiver. (d) A consent signed by either or both shall constitute a consent for both. (e) Notice to either shall constitute notice to both. (f) Expulsion, suspension or withdrawal of either shall terminate the joint membership.


(g) Either, but not both concurrently, may be a candidate for or elected or appointed as an officer or member of the Board of Directors, provided that both meet the qualifications of the office. Upon the death of either spouse holding a joint membership, such membership shall be held solely by the survivor; however, the estate of the deceased shall not be released from any debts due the Cooperative. 1.04 Transfer of Membership. A membership may be transferred but only to one who directly occupies or uses the premises being furnished electric service by the Cooperative and upon the successor member meeting the requirements of membership set forth in Section 1.02 above. 1.05 Obligations of Members and Applicants for Membership. Each member and applicant for membership shall be obligated to: (a) Purchase from the Cooperative, as soon as electric energy shall be available, all electric energy purchased for use on premises to which electric service is provided by the Cooperative at the request of the Member or the Member’s agent, unless temporarily prevented from doing so by causes reasonably beyond the control of the applicant or members, and shall pay therefore at rates which shall from time to time be fixed by the Board. (b) Comply with and be bound by the Articles of Incorporation and Bylaws of the Cooperative and the Service Rules and Regulations from time to time adopted by the Board of Directors of the Cooperative. (c) Upon request by the Cooperative, to execute and deliver to the Cooperative grants of easement or right-of-way over, on and under lands owned by the member in accordance with such reasonable terms and conditions as the Cooperative may require, for the furnishing of electric service to the member or other members or for the construction, operation, maintenance or relocation of the Cooperative’s facilities, lines and equipment for future members and applicants for membership. (d) Pay all sums justly due the Cooperative under the rates, tariff s, Service Rules and Regulations promulgated from time to time by the Cooperative. When the member has more than one service connection from the Cooperative, any payment for service to him by the Cooperative shall be deemed, pro forma, to be allocated and credited on a pro rata basis to his outstanding accounts for all such service connections, notwithstanding that the Cooperative’s actual accounting procedures do not reflect such proration. (e) Cause all premises to which electric service is provided by the Cooperative to become and remain wired in accordance with the


specifications of the National Electric Code, any other applicable code and ordinances as determined by governing authorities and the Cooperative. In this connection each member shall be responsible for and shall indemnify the Cooperative or any other person against injury, loss or damage resulting from any defect in or improper use or maintenance of the member’s premises, wiring or apparatuses utilizing electrical energy on the premises. IN NO EVENT, HOWEVER, SHALL THE RESPONSIBILITY OF THE COOPERATIVE EXTEND BEYOND THE POINT WHICH ITS SERVICE WIRES ARE ATTACHED TO THE MEMBER’S SERVICE ENTRANCE OR WIRING ON THE MEMBER’S PREMISES. (f) Provide devices to protect electrical motors and equipment in event of over current, low voltage, single phasing, etc. 1.06 Suspension of Membership and Reinstatement of Membership. Upon the failure of a member to pay for electrical service provided to the member by the Cooperative within the time required, or upon the member’s failure to comply with the member’s obligations set forth in the Service Rules and Regulations of the Cooperative, which results in the Cooperative’s termination of electrical service to the member’s premises, the membership rights of the member shall be suspended for a period of sixty (60) days from the date that the electric service was terminated. If the member, within this sixty (60) day period, shall pay all sums required by the Cooperative’s Service Rules and Regulations for reinstitution of services and shall satisfactorily rectify any other noncompliance with the Service Rules and Regulations of the Cooperative, and the Cooperative reinstitutes electric service to the premises of the member, the membership rights of the member shall be automatically reinstated. 1.07 Withdrawal. Any member may withdraw from membership upon payment in full of all debts, liabilities and obligations of the member to the Cooperative and in compliance with such other terms and conditions as the Board of Directors may prescribe. 1.08 Withdrawal and Termination. A member will be deemed to have withdrawn and terminated his membership in the Cooperative upon the Board of Directors adopting a resolution terminating the membership following the occurrence of any one of the following: (a) A voluntary withdrawal from membership by a member upon payment in full of all debts, liabilities and obligations of the member to the Cooperative and compliance with such other terms and conditions as the Board of Directors may prescribe. (b) The death or cessation of existence of member.


(c) A member who shall fail to reinstate a membership suspended in accordance with Paragraph 1.06 above, shall automatically be deemed to have withdrawn and terminated his membership without the necessity of the adoption of a resolution by the Board of Directors terminating his membership. 1.09 Expulsion. Member may be expelled from membership pursuant to such reasonable terms and conditions as may from time to time be adopted by the Board of Directors. 1.10 Effect of Withdrawal, Termination and Expulsion. Upon the withdrawal, termination or expulsion of a member, the membership of such person shall terminate. Termination of a membership shall not release any member or the member’s estate from any debts due the Cooperative. ARTICLE II MEETING OF MEMBERS 2.01 Annual Meeting. The annual meeting of the members shall be held in the months of June, July, September or October of each year, at such place within a county in which electrical service is provided by the Cooperative, as shall be determined by the Board of Directors and designated in the notice of the meeting. The annual meeting shall be for the purpose of electing directors, passing upon reports covering the previous fiscal year and transacting such other business as may come before the meeting, except matters which, under these Bylaws, the Articles of Incorporation or the Georgia Electric Membership Corporation Act are required to be, but have not been, stated in the notice of the annual meeting. Failure to hold the annual meeting shall not work a forfeiture nor such failure affect otherwise valid corporate acts. 2.02 Special Meeting. Special meetings, or a special meeting in lieu of the annual meeting of members, may be called by the Chairman, the Board of Directors or upon the written request of not less than ten percent (10%) of the members of the Cooperative, in which event, it shall be the duty of the Secretary to cause notice of such meeting to be given as required. A special meeting of the members may be held at such place within a county in which electrical service is provided by the Cooperative, as determined by the Board of Directors and specified in the notice of the special meeting. 2.03 Notice of Members’ Meetings. Written notice stating the place, day and hour of the annual meeting of the members and, in case of a special meeting, the purpose or purposes for which the meeting is called, shall be


provided not less than five (5) (10 days if notice is provided by a means other than first class mail) nor more than ninety (90) days before the date of the meeting, by any reasonable means, by or at the direction of the Secretary, or the officer or persons calling the meeting, to each member of record then entitled to vote at such meeting. Reasonable means of providing such notice shall include, but not be limited to, United States mail, personal delivery, electric membership corporation’s newsletter or member’s monthly service bill. The incidental and non-intended failure of any member to receive such notice shall not invalidate any action which may be taken by the members at any such meeting. Attendance of a member at a meeting shall of itself constitute waiver of notice and waiver of any and all objections to the place of the meeting, the time of the meeting or the manner in which it has been called or convened, except when a member attends a meeting solely for the purpose of stating at the beginning of the meeting any such objection or objections to the transaction of business. 2.04 Quorum. Attendance in person of at least 150 members of the Cooperative shall constitute a quorum for any meeting of members. A majority of those present may adjourn the meeting from time to time whether or not a quorum is present. When a meeting is adjourned to another time or place, it shall not be necessary to give any notice of the adjourned meeting if the time and place to which the meeting is adjourned are announced at the meeting at which the adjournment is taken; and at the adjourned meeting, any business may be transacted that might have been transacted on the original date of the meeting. 2.05 Voting. Each member shall be entitled to only one vote upon each matter submitted to a vote at a meeting of the members. At all meetings of the members, the spouse of a member when the member is absent, shall be entitled to vote in place of the member. At all meetings of the members at which a quorum is present, the affirmative vote of a majority of the members represented at the meeting shall be the act of the membership unless the vote of a greater number is required by these Bylaws, the Articles of Incorporation or by law; provided, however, when a quorum is once present to organize a meeting, the members present may continue to do business at the meeting or at any adjournment thereof, notwithstanding the withdrawal of enough members to leave less than a quorum. The Board may authorize a return-mail balloting process for the casting of votes on specific business matters in addition to or in place of voting for such matters at a meeting of the members. In such cases, the Board shall cause to be printed and mailed to all members, return-mail written ballots for voting on matters authorized by the Board. Instructions as to how the ballot(s) may be voted shall be printed thereon, and an


explanation as to how the ballot may be returned and the deadline for return shall be enclosed therewith. The ballot shall be issue neutral. 2.05A Absentee Voting. Members, who are unable to attend the meeting of the members, shall be provided the opportunity to vote an absentee ballot on all contested elections or other business matters appearing on the official ballot. The absentee ballot may be obtained at and returned to the office of the Cooperative, or through the mail using return-mail written absentee ballots during the period of not more than fourteen (14) days and not less than two (2) business days prior to the meeting of the members. The Credentials and Elections Committee, or a subcommittee thereof, shall qualify, count, and retain all return-mail absentee ballots prior to the meeting of the members. The results shall not be revealed to anyone until the appropriate time at the meeting of the members. Any member who votes by absentee ballot as above provided and then attends the annual meeting shall not be allowed to vote on any matter during the meeting and shall not have the privilege of receiving door prizes or other benefits at such meeting. The Board of Directors may adopt policies, rules and regulations governing the casting of absentee ballots and the delivery of such ballots to the place of the annual meeting. 2.06 Order of Business. The order of business at the annual meeting of the members, and so far as possible at all other meetings of the members, shall be essentially as follows: 1. Report on number of members present in person in order to determine the existence of a quorum. 2. Reading or waiver of reading of the notice of the meeting and proof of provision of notice. 3. Reading or waiver of reading of unapproved minutes of previous meetings of the members and the taking of necessary action with respect to such meetings. 4. Presentation and consideration of and acting upon reports of officers, directors and committee. 5. Election of directors. 6. Unfinished business. 7. New business. 8. Adjournment. The Board may, however, in their discretion, establish a different order of business for the purpose of assuring the earlier consideration and action upon any item of business, the transaction of which is necessary or desirable in advance of any other item of business. If a revised order of business is established by the Board, notice of the revised order shall be


provided in the notice of the meeting. 2.07 Credentials and Election Committee. The Board of Directors shall, at least 60 days before any annual meeting of the members, appoint a Credentials and Election Committee composed of members who are not officers or directors of the Cooperative or candidates for such positions nor employees of the Cooperative, which shall be responsible for supervising the procedures for election of directors, the counting of all ballots or votes cast and for ruling on the effect of any ballots or votes irregularly marked or cast and on all other questions that may arise relating to member voting and the election of directors, including but not limited to, the validity of petitions of nomination or qualification of candidates and the regularity of the nomination and election of directors. Any committee member related within the second degree by affinity or consanguinity, computed according to the civil law, to any candidate for director shall refrain from participating in any deliberation or vote of the committee concerning such candidate. The Committee shall be comprised of not less than five (5) nor more than fifteen (15) members. The Credentials and Election Committee shall meet within five (5) days after the deadline for fi ling petitions to pass on the validity of petitions, qualifications of candidates, and carry out other duties. 2.08 Robert’s Rules of Order. Parliamentary procedure at the annual meeting of the members shall be governed by the most recent edition of Robert’s Rule of Order; except to the extent such procedure is otherwise controlled by law or the Articles of Incorporation or these Bylaws. Any failure to conduct the meeting in compliance therewith, however, shall not render invalid any action taken at the meeting unless objection citing such failure is made at the time such action is taken. ARTICLE III DIRECTORS 3.01 General Powers of Board of Directors. The business and affairs of the Cooperative shall be managed by a Board of nine (9) directors, except as otherwise noted below, which shall exercise all the powers of the Cooperative except such as are by law or by the Articles of Incorporation of the Cooperative or by these Bylaws conferred upon or reserved to the members. The number of directors may be increased or decreased from time to time by amendment hereto, or by other procedure set forth herein; however, provided that no amendment hereto shall have the


effect of shortening the term of any incumbent director. 3.02 Election of Directors. At each annual meeting, directors shall be elected by the members to serve for a period of three (3) years and until the third succeeding annual meeting of the members after each director was elected or, notwithstanding the foregoing, until their successors shall have been elected and shall have qualified. Election of directors shall be by secret ballot unless there is only one member nominated for each seat coming vacant on the Board of Directors and the membership votes at the meeting to waive election by secret ballot. Districts. The Board of Directors shall create (4) four member districts to be established generally and equitably such that each director shall represent an approximate equal number of members. The Districts shall be represented by a map on fi le with the corporate records at the main office and available for inspection or copy upon request by any member. The Board of Directors shall name each District and shall have the duty of informing each and every member of the Cooperative of the District divisions. Each District shall have at least one (1) director on the Board during any given term. The Board of Directors shall on a regular basis, but not less than once every three years, examine the district boundaries and make changes as needed to ensure fair representation as the geographical distribution of the membership changes. 3.03 Qualifications of Directors. No member shall be eligible to be elected, remain, or re-elected a director of the Cooperative unless such member meets the following qualifications: (a) Such member is a natural person of the age of 18 years or over; (b) Such member has been a member of the Cooperative and has resided within the HEMC district of which he or she would represent for at least one (1) year prior to the date on which he or she would take office; (c) Such member is receiving service from the Cooperative at his primary residential abode unless temporarily prevented from doing so by causes reasonably beyond such member’s control. The filing of a claim for homestead exemption shall be conclusive proof of the place of primary residence; proof of place of primary residence of a person who does not claim a homestead exemption shall be made by such evidence as shall be satisfactory to the Credentials and Election Committee; (d) Such member is not in any way employed by or financially interested in an enterprise competing with the Cooperative. As used herein, “financially interested” shall mean ownership of more than a five percent (5%) interest of any sort in any such enterprise; (e) Such member is not an employee of the Cooperative;


(f) Such member is not related to another director of the Cooperative in the first or second degree by affinity or consanguinity: and (g) Such member is not the spouse of or otherwise related to a permanent, fulltime employee of the Cooperative in the first or second degree by blood or marriage. A Board member who becomes related to another director or permanent employee as provided herein may complete his or her term on the Board but shall not be eligible for reelection so long as the relationship exists. Notwithstanding the requirements of this paragraph, any duly elected director in office as of January 1, 2006, shall be eligible for re-election to the Board in any subsequent year as long as all other qualifications are met. (h) Such member has not been employed on a part-time, full time, or contract basis, by the cooperative within the previous thirty-six (36) months. (i) Such member is not a former employee currently receiving employment related benefits from the Cooperative, e.g. retirement, medical insurance benefits, etc. (j) Such member shall not have ever been convicted of a felony crime. (k) Such member shall not have ever fi led for personal bankruptcy. (l) Such member shall not have been disconnected from electric service for failure to make payment within the previous five (5) years. (m) Candidate affidavit. The member seeking election to the office of director shall provide a signed affidavit, in the form provided by the Cooperative, confirming their qualifications as outlined in this section for consideration as a director and authorizing the Cooperative to conduct criminal background checks and credit reports in accordance with applicable statues. 3.04 Nominations by Nominating Committee. It shall be the duty of the Board to appoint, not less than 95 days before the date of each annual meeting or other meeting at which directors are to be elected, a Nominating Committee whose members shall be selected by the Board so as to give equitable representation to the geographical areas served by the Cooperative. No Board member shall be appointed to the Nominating Committee. It shall be the duty of the Nominating Committee to meet at least fifty (50) days prior to such meetings and to nominate one or more candidates for the directorships that are to be filled at such meetings. 3.05 Nominations by Petition. Other nominations for such elections may be made by written petition signed by not less than fifty (50) members which shall be submitted to the Secretary of the Cooperative or his nominee not less than forty five (45) days prior to such meeting.


3.06 Notice of Nominees. The Secretary shall be responsible for posting at the headquarters of the Cooperative the nominees for the election made by the Nominating Committee and by petition, and if feasible, shall include same in the notice to the members for the meeting at which the election is to be held. The list of nominees shall be posted not less than thirty (30) days prior to the Annual Meeting. 3.07 Election. Directors will be elected at large. An immediate drawing by lot shall resolve, where necessary, any tie votes. 3.08 Vacancies. (a) Any director may resign at any time by giving written notice to the Board of Directors or to the President/CEO of the Habersham Electric Membership Corporation. Unless otherwise specified in such written notice, such resignation shall take effect upon receipt thereof by the Board of Directors or the President/CEO, and the acceptance of such resignation shall not be necessary to make it effective. (b) Any director may be removed with or without cause at any time by the members, at the annual meeting or at a special meeting of the members called for that purpose, and may be removed for cause by action of the Board. As used herein the term “for cause� shall include but not be limited to the following (i) dereliction of duties, (ii) continuous and consecutive absence from regularly scheduled meetings of the Board for a period of six (6) calendar months. (c) Any vacancy on the Board of Directors occurring by reason of the death, resignation, disqualification, removal or inability to act of any directors, except vacancies created by removal by the members, shall be filled as follows: (i) Any vacancy occurring more than sixty (60) days prior to the next regularly scheduled annual meeting shall be filled by a majority vote of the remaining directors, though less than a quorum, at any regular meeting or special meeting of the Board of Directors called for that purpose. Any director so elected shall serve until the next regularly scheduled annual meeting of the members at which time an election shall be held to fill the unexpired portion of the term of the director causing the vacancy. (ii) Should any vacancy occur less than sixty (60) days and more than forty-five (45) days prior to the next regularly scheduled annual meeting of the members the Nominating Committee shall nominate one (1) or more persons to fill the vacancy, for the unexpired portion of the term, as provided in Section 3.04 of these Bylaws.


(iii) Should any vacancy on the Board of Directors occur less than forty five (45) days before the next regularly scheduled annual meeting of the members, or should any of the nominees for directors die or become disqualified within such period of time so that there would not be a sufficient number of nominees remaining on the ballot to fill the seats of the directors to be elected at the next regularly scheduled annual meeting of the members, then, in either of such events, the remaining directors by a majority vote, at any regular meeting or special meeting of the Board of Directors called for that purpose, shall elect a person from within the district vacated to fill such vacancy, and any director so elected shall serve until the regularly scheduled annual meeting of the members to be held during the ensuing year at which time an election shall be held to fill the unexpired portion of the term of the director whose seat was vacated. (d) Any vacancy created by the removal of a director by the members, shall be filled by the members at the meeting at which the removal was effected. Any vacancy in the Board of Directors occurring by reason of an increase in the number of directors shall be filled by the members at the meeting at which the Amendment to the Bylaws authorizing the increased number is duly adopted. In such instances, and only in such instances, nominations from the floor shall be permitted. 3.09 Failure of Compliance. Failure to comply with any of the provisions of this article as to the election of directors, except bad faith or intentional failure to comply, shall not affect the validity of the election of any director nor shall it invalidate the actions of all or any of the directors. 3.10 Compensation. Directors as such shall not receive any salary for their services, but by resolution of the Board of Directors, an allowance for insurance, a fixed sum paid on a per diem basis and expenses associated therewith may be allowed for attendance at: (a) Each meeting of the Board of Directors. (b) Each meeting of a committee of the Board of Directors. (c) Each state, regional or national meeting, convention, seminar, institute or clinic, provided that such attendance has been previously authorized by the Board of Directors. (d) Any other meetings at which attendance is specifically authorized by the Board of Directors. 3.11 Emeritus Director. The position of an “emeritus director� is hereby established in recognition of long and meritorious service rendered by


directors to the Cooperative while serving as a member of the Board of Directors. A director or ex-director shall become eligible for the position of emeritus director upon meeting the following: (a) Having attained his 66th birthday. (b) (1) Having served a total of twenty years on the Board of Directors, or (2) Having served a minimum of twelve years when leaving the Board and being 66 years of age or older. (c) Being a member of the Cooperative. Upon becoming eligible, the Board will approve a resolution designating such former director as emeritus director unless there is just cause to deny such designation. An emeritus director who ceases being a member of the Cooperative shall automatically forfeit his status as emeritus director and all benefits associated. An emeritus director may upon written permission of the Board of Directors, attend meetings of the Board of Directors but shall have no vote on any matter pending before the Board of Directors. Such status may be revoked, with cause, by vote of two thirds (2/3) of the Board of Directors. The Cooperative may provide an allowance to assist with the cost of medical insurance for the emeritus director and spouse at time of retirement to the same extent as provided to retired employees of the Cooperative and to the extent available under the insurance program. While an emeritus director will not be eligible for the cooperative’s medical insurance coverage if he/she previously chose not to continue medical insurance coverage, he/she shall receive the appropriate allowance. 3.12 Policies, Rules and Regulations. The Board of Directors shall have power to make and adopt such policies, rules and regulations not inconsistent with the law or the Articles of Incorporation or Bylaws of the Cooperative as it may deem advisable for the management, administration and regulation of the business and affairs of the Cooperative. ARTICLE IV MEETING OF DIRECTORS 4.01 Regular Meetings of Directors. A meeting of the Board of Directors shall be held without notice immediately after, and at the same place as, the


annual meeting of the members. A regular meeting of the Board of Directors shall also be held monthly or more often at such time and place as the Board of Directors may provide by resolution. Such regular meetings may be held without notice. 4.02 Special Meetings. Special meetings of the Board of Directors may be called by the Chairman or any three (3) directors. The person or persons authorized to call special meetings of the Board of Directors may fi x the time and place, which shall, unless authorized by a majority of the entire Board of Directors, be in Habersham County, Georgia, for the holding of any special meeting of the Board of Directors called by them. 4.03 Notice. Notice of the time, place and purpose of any special meeting of the Board of Directors shall be given by or at the direction of the Chairman, the Secretary or the persons calling the meeting. The notice shall be given to each director at least five (5) days prior to the meeting, by written notice delivered personally or mailed to each director at his last known address. If mailed, such notice shall be deemed delivered when deposited in the United States mail so addressed with first-class postage thereon, prepaid. Notice of a meeting of the Board of Directors need not be given to any director who signs a waiver of notice either before or after the meeting. Attendance of a director at any meeting shall constitute a waiver of notice of such meeting, except when a director shall attend a meeting for the express purpose of objecting to the transaction of any business because the meeting shall not have been lawfully called or convened, which objection shall be voiced at the commencement of the meeting. 4.04 Quorum for Meeting of Directors. A majority of the Board of Directors shall constitute a quorum for the transaction of business at any meeting of the Board of Directors. A majority of the directors present may adjourn the meeting to another time and place without further notice, whether or not a quorum is present. 4.05 Action of Board of Directors. The vote of a majority of directors present and voting at the time of the vote, if a quorum is present at such time, shall be the act of the Board of Directors unless the vote of a greater number is required by law, the Articles of Incorporation or these Bylaws. The Board of Directors or any committee designated by such Board may participate in a meeting of such Board or committee by means of conference, telephone or similar communications equipment by means of which all persons participating in the meeting can hear each other. Participation in a meeting in this manner shall constitute presence in person at such meeting.


4.06 Written Consent. Any action required to be taken at a meeting of the Board of Directors or any action that may be taken at a meeting of the Board of Directors may be taken without a meeting if a written consent setting forth the action so taken is so signed by all the directors and fi led with the minutes of the proceedings of the Board of Directors. ARTICLE V OFFICERS 5.01 Number. The officers of the Cooperative shall be a Chairman, ViceChairman, Secretary and Treasurer. The offices of Secretary and of Treasurer may be held by the same person. 5.02 Election and Term of Office. The officers shall be elected annually by and from the Board of Directors at the first meeting of the Board of Directors held after each annual meeting of the members. If the election of officers shall not be held at such meeting, such election shall be held as soon thereafter as conveniently may be. Each officer shall hold office until the first meeting of the Board of Directors following the next succeeding annual meeting of the members or until his successor shall have been duly elected and shall have qualified, subject to the provisions of these Bylaws with respect to the removal of officers. 5.03 Removal. Any officer or agent elected or appointed by the Board of Directors may be removed by the Board of Directors whenever in its judgment the best interests of the Cooperative will be served thereby. 5.04 Vacancies. Except as otherwise provided in these Bylaws, a vacancy in any office may be filled by the Board of Directors for the unexpired portion of the term. 5.05 Chairman. The Chairman shall be the principal officer of the Cooperative and unless otherwise determined by the majority of the Board, shall preside at all meetings of the members and the Board of Directors and shall, in general, perform all duties incident to the office of Chairman and such other duties as may be prescribed by the Board of Directors from time to time. 5.06 Vice-Chairman. In the absence of the Chairman, or in the event of his inability or refusal to act, the Vice-Chairman shall perform the duties of the Chairman, and when so acting, shall have all the powers of and be subject to all the restrictions upon the Chairman and shall perform such


other duties as from time to time may be assigned to him by the Board of Directors.

5.07 Secretary. The Secretary shall be responsible for: (a) Keeping the minutes of meetings of the members and the Board of Directors in one or more books provided for that purpose; (b) Seeing that all notices are duly given in accordance with these Bylaws or as required by law; (c) Safe keeping of the seal of the Cooperative and affixing the seal to all documents, the execution of, which on behalf of the Cooperative under its seal, is duly authorized in accordance with the provisions of these Bylaws; (d) Keeping a register of the post office address of all members; (e) The general charge of the books of the Cooperative in which a record of the members is kept; (f) Keeping on fi le at all times a complete copy of the Bylaws of the Cooperative containing all amendment thereto, which copy shall always be open to the inspection of any member; Furnishing a copy of the Bylaws and all amendments thereto to a member upon such member’s request. (g) In general, performing all duties incident to the office of Secretary and such other duties as from time to time may be assigned to him by the Board of Directors. 5.08 Treasurer. The Treasurer shall be responsible for: (a) Custody of all funds and securities of the Cooperative; (b) The receipt and issuance of receipts for monies due and payable to the Cooperative from any source whatsoever and for deposit of all such monies in the name of the Cooperative in such depositories or investments as shall be selected in accordance with the provisions of these Bylaws; (c) In general, performance of all the duties incident to the office of Treasurer and such other duties as from time to time may be assigned to him by the Board of Directors. 5.09 President/CEO. The Board of Directors shall appoint a President/CEO who may be, but who shall not be required to be, a member of the Cooperative. The President/CEO shall be the chief executive officer and shall manage the activities of the cooperative and shall perform such duties as the Board of Directors may from time to time require of him and


shall have such authority as the Board of Directors may from time to time vest in him.

ARTICLE VI NON-PROFIT OPERATION 6.01 Non-Profit Operation. The Cooperative shall at all times be operated on a cooperative non-profit basis for the mutual benefit of its patrons. 6.02 Patronage Capital in Connection with Furnishing Electric Energy Receipt. In the furnishing of electric energy the Cooperative’s operation shall be so conducted that all patrons will, through their patronage, furnish capital for the Cooperative. In order to induce patronage and to assure that the Cooperative will operate on a non-profit basis, the Cooperative is obligated to account on a patronage basis to all its patrons for all amounts received and receivable from the furnishing of electric energy in excess of operating costs and expenses properly chargeable against the furnishing of electric energy. No interest or dividend shall be paid or be payable by the Cooperative on any capital furnished by its patrons. 6.03 Patronage Capital - Accounts. The Cooperative is obligated to pay by credits to a capital account for each patron all such amounts in excess of operating costs and expense. The books and records of the Cooperative shall be set up and kept in such a manner that at the end of each fiscal year the amount of capital, if any, so furnished by each patron is clearly reflected and credited in an appropriate record to the capital account. The Cooperative shall, within a reasonable time after the close of the fiscal year, notify each patron by notification to all patrons of the aggregate amount of such excess with an explanation of how each patron may compute and determine for himself the specific amount of capital so credited to him. 6.04 Patronage Capital - Status as Such. All such amounts credited to the capital account of any patron shall have the same status as though they had been paid to the patron in cash in pursuance of a legal obligation to do so and the patron had been furnished the Cooperative corresponding amounts of capital. 6.05 Other Patronage Capital - Allocation. All other amounts received by the Cooperative from its operation in excess of costs and expenses shall, insofar as permitted by law, be:


(a) Used to offset any losses incurred during the current or any prior fiscal year; and (b) To the extent not needed for that purpose allocated to is patronage on a patronage basis and any amount so allocated shall be included as a part of the capital credited to the accounts of the patrons as herein provided. 6.06 Patronage Capital From Other Organizations. Notwithstanding any other provision of these Bylaws, the Board shall have the power to adopt rules providing for the separate accounting for and procedure for the retirement of such other amounts of capital credited to the account of the Cooperative by other organizations in which the Cooperative is a member. Such rules shall among other things: (a) Establish a method for determining portions of such capital credited to each of the Cooperative’s patrons for each applicable fiscal year. (b) Provide for the separate identification thereof for each patron on the Cooperative books. (c) Provide for appropriate notification thereof to patrons. (d) Preclude a general or special retirement thereof prior to actual receipt of such capital by the Cooperative. 6.07 Patronage Capital - Dissolution. In the event of dissolution or liquidation of the Cooperative, after all outstanding indebtedness of the Cooperative shall have been paid, outstanding capital credits shall be retired without priority on a pro rata basis before any payments are made on account of property rights of members. 6.08 Patronage Capital - Distribution Prior to Dissolution. If, at any time prior to dissolution or liquidation, the Board of Directors shall determine that the financial condition of the Cooperative will not be impaired thereby, the capital then credited to patrons’ accounts may be retired in full or in part. In no event, however, may such capital be retired unless, after the proposed retirement, the capital of the Cooperative shall equal at least thirty percent (30%) of the total assets of the Cooperative. 6.09 Patronage Capital - Assignment. Capital credited to the account of each patron shall be assignable only on the books of the Cooperative pursuant to written instruction from the Assignor and only to successors in interest or successors in occupancy in all or part of such patron’s premises served by the Cooperative unless the Board of Directors acting under policies of general application shall determine otherwise.


6.10 Patronage Capital - Right of Setoff. If a member or a patron should terminate his or her membership in the Corporation, either voluntarily, or if said membership is terminated by action of the Board of Directors or by the members at a membership meeting, and at the time of such termination the member or patron is indebted to the Corporation for nonpayment of any debt or obligation, which may include electric service, penalties, and/or other fees and services rendered as provided for in the policies of the Corporation, the Corporation may, at the time of the retirement of said capital credit, charge the same to the capital credit account of the member or patron and debit the member’s or patron’s capital credit account in the amount and credit the same to the member’s or patron’s delinquent and unpaid account. 6.11 Patronage Capital - Unclaimed Refunds. When capital credits or other refunds, such as deposits and membership fees, are made to the member’s account, and the payment of the refund cannot be accomplished because the member cannot be found via the last known mailing address, and the check is returned by the postal department or is not presented for payment, the same shall be disposed of as follows: (a) Place in a “Deferred Credits” account and paid to the original payee or his estate, if claimed by the person entitled thereto, less expenses incurred by the Cooperative to maintain records relating to such accounts. The balance of such account shall be considered abandoned and property of the Cooperative after such time and for such purposes as prescribed under Georgia laws and regulations. (b) The Board of Directors is vested with wide discretion in the administration of this section. (c) Tender of capital refunds shall be presumed to be accomplished when a check of the Cooperative is properly mailed to the member-customer at his last address shown on the books of the Cooperative. 6.12 Patronage Capital Contract with Member. The patrons of the Cooperative, by dealing with the Cooperative, acknowledge that the terms and provisions of the Articles of Incorporation and Bylaws shall constitute and be a contract between the Cooperative and each patron, and both the Cooperative and the patrons are bound by such contract as fully as though each patron had individually signed a separate instrument containing such terms and provision. The provisions of this article of the Bylaws shall be called to the attention of each patron of the Cooperative by posting in a conspicuous place in the Cooperative’s office. ARTICLE VII OPERATIONS AND MISCELLANEOUS


7.01 Bonds of Officers and Employees. The Board of Directors shall require the Treasurer and any other officer of the Cooperative charged with the responsibility for the custody of any of its property to be bonded in such sum and with such surety as the Board of Directors shall determine. The Board of Directors may, in its discretion, require any other officers, agent or employee of the Cooperative to be bonded in such amount and with such surety as the Board shall determine. All premiums and expenses associated with the acquisition and maintenance of the bonds for such officers, agents or employees shall be paid by the Cooperative. 7.02 Reports. The Cooperative shall, within four (4) months of the close of the fiscal year, prepare reports covering the business of the Cooperative for the previous fiscal year and showing the condition of the Cooperative for the previous fiscal year and showing the condition of the Cooperative at the close of such fiscal year. Such report shall be provided to any member requesting it. 7.03 Fiscal Year. The fiscal year of the Cooperative shall commence on the first day of January and end on the last day of December each year. 7.04 Contract. Except as otherwise provided in these Bylaws, the Board of Directors may authorize any officer or officers, agent or agents to enter into any contract or execute and deliver any instrument in the name and on behalf of the Cooperative and such authority may be general or confined to specific instances. 7.05 Checks, Draft s, Etc. All the checks, draft s or other orders for the payment of money and all notes, bonds or other evidence of indebtedness issued in the name of the Cooperative shall be signed by such officer or officers or employee or employees, of the Cooperative and in such manner as shall from time to time be determined by resolution of the Board of Directors. 7.06 Deposits. All funds of the Cooperative shall be deposited from time to time to the credit of the Cooperative in such depository or investments as the Board of Directors may select. 7.07 Membership in Other Organizations. The Cooperative shall not become a member of or purchase stock in any other organization without an affirmative vote of the directors at a duly held meeting. 7.08 Accounting Systems and Reports. The Board of Directors shall cause to be established and maintained accounting systems and other financial and


management systems as would be established by ordinarily prudent men under similar circumstances and like positions. 7.09 Obligations of Cooperative for Service. The Cooperative will use its best efforts to furnish adequate and dependable electric service, although THE COOPERATIVE CANNOT AND THEREFORE DOES NOT GUARANTEE A CONTINUOUS AND UNINTERRUPTED SUPPLY OF ELECTRICITY. 7.10 Circulation of Newsletter. For the purpose of disseminating information devoted to the science of agriculture, to agricultural cooperation and to productive means of exploiting electric energy, the Board of Directors shall be authorized to circulate to the members periodically a newsletter. ARTICLE VIII INDEMNIFICATION AND INSURANCE 8.01 Indemnification. The Cooperative shall indemnify each person who is or was a director, officer, employee or agent of the Cooperative (including the heirs, executors, administrators or estate of such person) or is or was serving at the request of the Cooperative as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise to the full extent permitted under Sections 34C-617(a), (b) and (c) of the Georgia Electric Membership Corporation Act or any successor provisions of the laws of the State of Georgia. If any such indemnification is requested pursuant to Sections 34C-617(a) or (b) of said Act or laws, the Board of Directors shall cause a determination to be made (unless a court has ordered the indemnification) in one of the manners prescribed in Section 34C-617(d) of said Act or laws as to whether indemnification of the party requesting indemnification is proper in the circumstances because he has met the applicable standard of conduct set forth in Sections 34C-617(a) or (b) of said Act or laws. Upon any such determination that such indemnification is proper, the Cooperative shall make indemnification payments of liability, cost, payment or expense asserted against, or paid or incurred by, him in his capacity as such a director, officer, employee or agent to the maximum extent permitted by said sections of said Act or laws. The indemnification obligation of the Cooperative set forth herein shall not be deemed exclusive of any other rights, in respect of indemnification or otherwise, to which any party may be entitled under any other Bylaw provision or resolution approved by the members pursuant to Section 34C-617 (f) of said Act or laws. 8.02 Insurance. The Cooperative may purchase and maintain insurance at its expense to protect itself and any Director, officer, employee or agent of


the Cooperative (including the heirs, executors, administrators or estate or any such person) against any liability, cost, payment or expense described in Section 8.01 of this Article VIII, whether or not the Corporation would have the power to indemnify such person against such liability. ARTICLE IX PROPERTY 9.01 Disposition. The Cooperative may not sell any of its property other than: (a) property which, in the judgment of the Board of Directors, neither is nor will be necessary or useful in operating and maintaining the Cooperative’s system and facilities; provided, however, that all sales of such property shall not in any one year exceed in value ten per centum (10%) of the value of all of the property of the Cooperative; (b) services of all kinds, including electric energy; and (c) personal property acquired for resale; unless such sale is authorized at a meeting of members by the affirmative vote of at least two-thirds (2/3) of the members voting thereon at such meeting in person and that twothirds (2/3) must be a majority of the entire membership and the notice of such proposed sale shall have been contained in the notice of the meeting; or if all or substantially all of the property of the Cooperative is involved, such sale is authorized pursuant to the provisions of Section 34C-1102 of the Georgia Electric Membership Act. 9.02 Security Interest. The Board of Directors, without any authorization by the members, at any regular meeting of the Board of Directors or any special meeting of which notice of the intent and purpose of the meeting is given in writing, shall have full power and authority to borrow money from the United States of America or any agency or instrumentality thereof or any national financing institution organized on a cooperative plan for the purpose of financing its member’s programs, projects and undertakings in which the Habersham Electric Membership Corporation is a member or from any other entity whatsoever and in connection with such borrowing from either one or more of such lenders, to authorize the making and issuance of bonds, notes or other evidences of indebtedness and to secure the payment thereof, to authorize the execution and delivery of a mortgage or mortgagees, or deed or deeds of trust, security deeds, financing statements and security instruments upon the pledging or encumbrancing of any or all of the property, assets, rights, privileges, licenses, franchises and permits of the Cooperative whether acquired or to be acquired and wherever situated, all upon such terms and conditions as the Board of Directors of this Cooperative shall determine.


ARTICLE X SEAL The seal of the Cooperative shall be in such form as the Board of Directors may from time to time determine. In the event it is inconvenient to affix such a seal at any time, the words “Corporate Seal” or the word “Seal” accompanying the signature of an officer signing for and on behalf of the Cooperative shall be the seal of the Cooperative. ARTICLE XI AMENDMENTS These Bylaws may be amended at any meeting of the Board of Directors by the affirmative vote of not less than a majority of the Directors present at a meeting at which a quorum is present, providing notice of such meeting containing a copy of the proposed amendment or a reasonable synopsis thereof shall have been given at least five (5) days prior thereto; provided, however, that the Board of Directors shall not have the power to alter, amend or repeal provisions of these Bylaws or adopt new Bylaw provisions directly relating to the election of the Board of Directors. Any Bylaw provision required to be adopted or amended by the members may be altered, amended, repealed or new provisions adopted by a two-thirds (2/3) majority of the members voting, provided notice containing a copy of the proposed amendment or a reasonable synopsis thereof shall have been given. Any Bylaw provision adopted by the Board of Directors may be altered, amended or repealed and the new provisions adopted by the members by the affirmative vote of not less than two-thirds (2/3) of the members present at a meeting at which a quorum is present, provided notice of such meeting containing a copy of the proposed amendment or a reasonable synopsis thereof shall have been given.


LOCATION, HOURS, ETC.

Habersham EMC’s main office is located at 6135 State Hwy. 115 West, Clarkesville, GA. The branch office is located in the Colonial Shopping Center, Hwy. 129 South, Cleveland, GA. The mailing address is 6135 Hwy 115 W, Clarkesville, GA 30523. The HEMC service territory is nestled in the mountains of Northeast Georgia but within close proximity to four-lane Highways I-85, GA 985/365 & 400. This area is approximately 80 miles northeast of Atlanta and 60 miles southwest of Greenville, SC. Office hours are Monday through Friday, 8 a.m.–5 p.m. Customer online chat hours are 8:30 a.m.–4:30 p.m., Monday through Friday. Standby crews are on call at times other than normal business hours. Outages or other emergency needs may be reported to Habersham EMC 24 hours a day.

CLARKESVILLE MAIN OFFICE (706) 754-2114 (800) 640-6812 Fax: (706) 839-6325 Website: www.habershamemc.com

CLEVELAND BRANCH OFFICE (706) 865-HEMC (4362) (800) 640-6812 Fax: (706) 219-3856 email: forinfo@hemc.coop


HABERSHAM EMC SERVICE TERRITORY

Habersham EMC serves portions of a six-county service area that includes Habersham, Hall, Lumpkin, Stephens, Rabun and White counties.


PAYING YOUR ELECTRIC BILL For your convenience, we offer many bill paying options that will save you time and money. You may pay your bill in the following ways: • By mail. Use the return envelope provided with your monthly bill and mail in your payment. • By visiting one of our two office locations in Clarkesville or Cleveland. Consumers in White, Hall and Lumpkin Counties may want to visit our Cleveland office at 897 S. Main Street, Suite 8, Cleveland GA 30528. Consumers in Habersham and Stephens may wish to visit our Headquarters in Clarkesville at 6135 Hwy 115 W, Clarkesville, GA 30523. Consumers in Rabun County may pay at United Community Bank in Clayton. Please be sure to bring your payment stub or account number with you. • By using the night depository. Both office locations are equipped with night drop boxes for payments made after business hours. Please note that once payments are placed in these receptacles, they will not be posted until the next business day. For security purposes, please do not place cash in the night depositories. • By phone. During normal business hours, a Customer Resource Manager can take your payment by phone when you use a Visa, Master Card or Discover card or by e-check. After business hours, payments can be made by phone over our automated system. There is no charge to use this service.


PAYING YOUR ELECTRIC BILL (cont.) • Through the HEMC Website. Visit www.habershamemc.com anywhere, anytime and pay your bill using our secure online payment system. Customer service can provide your account number and password if you choose this method. This is also a free service that we provide to our members. • Using Our Payment Kiosks. Payment kiosks are located inside the following convenience stores: Express Mart Express Mart 674 Central Ave 258 North Main St Demorest, GA 30535 Cleveland, GA 30528 Store hours: 6 a.m. – 11 p.m. Store hours: Open 24 hours Kiosks accept, cash, debit/credit cards or checks. There is no additional fee to use this service. SAVE MORE BY USING THESE OPTIONS • HEMC Phone App: Stay connected on the go with the FREE My HEMC phone app. For smart phones and mobile devices (iPhones®, iPads® and Android™). View bills, make payments, manage your alerts and reminders and receive notifications. • Electronic bank draft/credit card draft. Easy and worry free. Eliminate late fees by setting your account up to automatically draft from your bank or credit card on the due date. • HEMCeBILL (Email bill) or HEMCeBill Plus+ (email bill and account bank drafted). The ONLY ways to pay your bill that pays you back! When you sign up for these services, you will receive a credit on your monthly bill. For HEMCeBILL Plus+, you will receive a monthly credit of $2.


PAYING YOUR ELECTRIC BILL (cont.) Please note that the bill payment policy requires payments to be made by the due date listed on the bill. Failure to pay on time will result in late penalties and/or termination of service. Reconnection requires significant additional charges. The amount of each bill is based upon an actual meter reading except in cases where obtaining a reading or obtaining it by a specified date was impossible. On these rare occasions the bill amount will be estimated using comparable prior consumption and any discrepancy will be corrected when the next reading is obtained.


SERVICE RATES FARM & HOME SERVICE Service Charge ......................................................................... $25.00 per month Winter Rates (October through May) First 700 kWh ................................................................................ 9.77¢ per kWh Over 700 kWh ..............................................................................10.60¢ per kWh Summer Rates (June through September) First 700 kWh ................................................................................ 9.77¢ per kWh Next 300 kWh ..............................................................................10.60¢ per kWh Over 1,000 kWh ..........................................................................13.50¢ per kWh RESIDENTIAL SEASONAL SERVICE Service Charge ......................................................................... $33.50 per month Winter Rates (October through May) First 700 kWh ................................................................................ 9.80¢ per kWh Over 700 kWh .............................................................................. 10.60¢ per kWh Summer Rates (June through September) First 700 kWh ................................................................................ 9.80¢ per kWh Next 300 kWh .............................................................................. 10.60¢ per kWh Over 1,000 kWh .......................................................................... 13.50¢ per kWh RESIDENTIAL CONSERVATION Service Charge ......................................................................... $45.50 per month Winter Rates (October through May) First 1,000 kWh ............................................................................ 7.40¢ per kWh Over 1,000 kWh .......................................................................... 10.60¢ per kWh Summer Rates (June through September) First 1,000 kWh ............................................................................. 7.40¢ per kWh Over 1,000 kWh .......................................................................... 13.50¢ per kWh COMMERCIAL SERVICE (SMALL) Service Charge ......................................................................... $26.50 per month Demand Charge (All kW over 20 kW) ........................................... $ 4.00 per kW Energy Charge: First 700 kWh. ............................................................................. 10.20¢ per kWh Next 300 kWh .............................................................................. 10.60¢ per kWh Over 1,000 kWh .......................................................................... 12.00¢ per kWh * All rates subject to fuel cost adjustment * Complete copies of the rates are available at the HEMC office and online at www.habershamemc.com


HEMC SERVICES • Bank or Credit Card Draft: Payments electronically deducted from your bank or credit card account. • Energy Audit: Energy analysis of your home to identify problem areas. • GEORGIA MAGAZINE/Member Newsletter: Sent out monthly to every member at no charge filled with timely energy related topics, information regarding co-op events and value-added products and services. • Green Power: Members can subscribe to help produce more environmentally friendly energy for an additional $4/month for 150 kWh. • HEMCeBILL Plus+: Receive monthly bill through e-mail notification PLUS save $24 a year by signing up for bank draft. • How$mart Program: Raise a home’s IQ and lower monthly power bills by upgrading to energy efficient standards. HEMC makes the initial investment, and then over time, the member pays the amount back through a monthly charge on their power bill. • Budget Billing: Help budget your electric costs. Available after one year of service with a good payment record. • Operation Round Up: Allows HEMC members to have their monthly electric bill ‘rounded-up’ to the next whole dollar. The contributions are then distributed to worthy causes by the HEMC Foundation Board. The average donation is only 50₵ per month.


HEMC SERVICES (cont.) • Operation Round Up PLUS: Allows HEMC members to donate by having a specified amount added to their monthly bill. • Senior Citizens Plan: No late payment charge for those receiving Social Security, SSI or disability. • Safety Demonstrations: Representatives will present safety demonstrations to schools, clubs or organizations. We also participate in school career days. • Touchstone Energy® Conservation Home Program: Designed for new, existing and manufactured homes. Choose energy measures to reduce energy costs or a significant upgrade for premium savings. • HEMC Phone App: Stay connected on the go with My HEMC phone app. For smart phones and mobile devices (iPhones®, iPads® and Android™). View bills, make payments, manage your alerts and reminders and receive notifications. • Prepaid Metering Program: Gives you the ability to track energy usage. Prepay for your service by the week, month or year. Never accrue a late penalty or pay a deposit. • HEMC Cooperative Solar: Harness the sun’s energy at an affordable price. And avoid maintenance requirements of onsite solar panels. HEMC Cooperative Solar blocks are only $25 each per month and members receive credit for the energy generated.


HEMC PRODUCTS OUTDOOR LIGHTING: • Standard and decorative lighting from $8.95 a month (includes maintenance) • Dusk to dawn light POWERGUARD SECURITY: • Security systems for your home or business • Customized to meet any budget and lowest monitoring fee in the area • PERS (Personal Emergency Reporting System) allows independence while providing peace of mind to family members. • Takeover of existing systems SURGE/LIGHTNING PROTECTION: • Ensures protection for your home’s motor-driven appliances • Meter-socket adapter (MSA 200 amp), $5.60/month • Universal Surge Protector (USP 400 amp), $8.35/month TRAILWAVE FIBER OPTIC SERVICE: • Residential and commercial applications in selected areas • More reliable and greater speeds than DSL • No buffering during videos • No home telephone line required HEMC WIRELESS INTERNET: • Residential and commercial applications in selected areas • More reliable and greater speeds than DSL • No buffering during videos • No home telephone line required


RIGHT OF WAY MAINTENANCE

PLAN HOW YOU PLANT When the weather’s bad, trees and limbs can contact power lines, causing electrical outages. That’s why your co-op regularly trims trees and shrubs that could interfere with electrical service and create safety hazards. Habersham EMC maintains the right-of-way to be in compliance with the National Electrical Safety Code and the Rural Utilities Service, as required. If you’re planning to plant, you can assist your co-op in their efforts—as well as help keep the power on and everyone else safe—by following some simple guidelines: • Evaluate your landscaping. Trees and shrubs are enticing to children, who like to play in hedges, climb trees, etc. Before you plant, make sure that accidental contact with power lines cannot be made. • Keep electrical devices accessible. Don’t allow shrubs and other landscaping to obstruct transformers, switch cabinets, pedestals and other electrical related devices—Habersham EMC needs access to these things to maintain them. And don’t plant over an underground utility facility, because the cable or pipe may require maintenance, which in turn, requires digging (thereby ruining plant roots). Plant 10-15 feet from these devices. • Keep your distance. Plant large trees at least 35-40 feet from the center of the pole line. This permits 10-15 feet of clearance for mature trees with a branch spread of 40 feet in diameter. New small trees and large shrubs can be planted within 35 feet of power lines, but they should not exceed 15 feet in height. Trees that should not be planted near power lines are Pine, Poplar, Oak, Maple, Sweet Gum, Wild Cherry, Privy Hedge, Leyland Cypress, Cedar or Hemlock. • Remember, before you do any digging, Georgia law requires that you call the Utilities Protection Center at 811 or (800) 282-7411 to have lines located.


SERVICE RULES AND REGULATIONS INDEX 100 - ELECTRIC SERVICE AVAILABILITY 101 - Application for Membership and Membership Fee 102 - Service Security Deposits 103 - Additional Service & Additional Service Connection Fee 104 - Security Light Fee 105 - Transfer of Additional Service Fees and Security Light Fees 200 - GENERAL EXTENSION POLICY (AREA COVERAGE) 201 - Extension Classification Overhead Extension 202 - Underground Service Extension 203 - Facilities Extension Ownership 300 - SERVICE CONNECTIONS, MEMBER WIRING AND MEMBER EQUIPMENT 301 - Service Connections 302 - General Wiring Requirements 303 - Member Equipment 304 - Power Factor Corrections 305 - Phase Load Balance 400 - CONSUMER RATE CLASSIFICATION 401 - Rate Schedule Availability 402 - Filing of Rate Schedules 403 - Resale of Power

Regulations

500 - METERING 501 - Electric Meters 502 - Meter Reading 503 - Incorrect Reading of Meter 504 - Failure of Meter to Register Correctly 505 - Meter Tests 600 - BILLING 601 - Billing Period and Payment of Bills 602 - Disconnect for Failure to Pay and Reconnection Fee 603 - Other Reasons for Disconnection or Reconnection 604 - Extension of Credit 700 - EASEMENTS, RIGHT OF ACCESS AND COOPERATIVE PROPERTY 701 - Member to Grant Easements to Cooperative if Required. 702 - Right of Access 703 - Cooperative Property 800 - GENERAL CONDITIONS FOR MEMBER WITHDRAWAL AND/OR TRANSFER 801 - Member Withdrawal 802 - Membership Transfer 803 - Refund of Fees


100 - ELECTRIC SERVICE AVAILABILITY 101 - Application for Membership and Membership Fee Any person, firm, association, corporation, or public body shall sign a written application for membership and pay a membership fee of $40.00 together with any service security deposit that may be required by the Cooperative. In this application, the consumer shall agree to purchase from the Cooperative all electric energy used on premises except that energy generated on premises, and be bound by the Cooperative’s Certificate of Incorporation and bylaws and all rules, regulations and rate schedules established pursuant thereto and pay the minimum monthly bill stated in the applicable rate schedule or, in the event of a written contract for service, the minimum set forth in said contract. 102 - Service Security Deposits A service security deposit shall be collected in addition to other fees and/or deposits with respect to which the cooperative determines that such deposit is needed to assure payment of the power bill. In determining the need for a service security deposit, and in fixing the amount of such deposit, the Cooperative will give careful regard to the following factors: A. Type of service involved; B. The risk involved; C. The reputation of the involved premises; D. The credit rating of the consumer; E. History of connect, disconnect, and reconnects at the involved premises or for the involved consumer; and F. Any other factor having a realistic bearing on the consumer’s financial dependability. However, such deposit shall not ordinarily be more than the consumer’s estimated power bill for three months’ service, except when service is being furnished on the basis of a written contract or when the Cooperative determines that a higher amount is necessary due to some unusual circumstance.


A service security deposit shall be refunded, without interest – A. As provided for in a written contract for service; or B. Upon such other conditions as may be established by the Cooperative with respect to service risks of similar character. Upon request of the consumer, the security deposit will be refunded after two years provided there has not been a delinquency during the last two years. In any event, the deposit shall be refunded, without interest, upon termination of the service, less any amount the consumer may then owe the Cooperative. 103 - Additional Service & Additional Service Connection Fee Consumers desiring additional service connections must file written applications for each such desired service connection on a form provided by the Cooperative and may be required to pay an additional service deposit based upon payment history. 104 - Security Light Fee A member (having already qualified for membership) will not pay additional security light fee deposits. A non-member shall qualify for membership by paying the $40.00 fee pursuant to receiving security light service. 105 - Transfer of Additional Service Fees and Security Light Fees These fees may be transferred to one who directly occupies the premises being furnished service under such fees upon the successor meeting the requirements for additional service in 103 and 104 and paying any other fees and deposits required; notwithstanding the foregoing, service to a surviving spouse, a change from single service to a joint service by the member and spouse, or a change from a joint service to a single service by either one receiving joint service, may continue under such existing fees upon meeting all other requirements. 200 - GENERAL EXTENSION POLICY (AREA COVERAGE) 201 - Extension Classification - Overhead Extension It shall be the policy of Habersham Electric Membership Corporation to extend single phase service by the most economical method of construction upon request to all consumers. A contribution in aid of construction may be required for the following:


A. The consumer requires service that is not by the most economical method of construction in which case the consumer will pay the difference, B. The distance to be extended is over 1,000 feet from the cooperative’s existing lines. C. Commercial and three-phase service. For commercial, industrial consumers, and all multi-phase consumers of all rate classifications, service will be extended under individual agreements with the consumer. All such agreements shall contain a requirement for the consumer to pay a minimum monthly bill. If needed to make such service feasible, the Cooperative may require any or all of the following: (a) An increase in minimum, (b) A facilities extension deposit, (c) A contribution in aid of construction. D. Temporary service Temporary service of 120 or 240 volts, single-phase power will be furnished for construction purposes. Application for temporary service shall be handled on an individual basis. A non-refundable charge may be required for the installation of each temporary service, this charge to be in addition to any fees or security deposits. A consumer applying for temporary service will be required to supply a suitable meter loop set at the desired location. If overhead the top of the pole shall be at least 12 feet above ground level or higher if needed. Temporary transient service and other applicants for temporary service will be required to furnish their own meter loop and meter base. Service charges will be determined according to the construction and retirement costs involved. A security deposit may also be required. E. Other service Requests for service for those not otherwise covered will be considered on the merits of each request. A consumer may be required to pay the cost of the initial right-ofway clearing as determined by the cooperative.


202 - Underground Service Extension Underground primary lines are generally more expensive to install than overhead and are subject to special conditions and policies making it necessary to consult the Cooperative during planning. Upon request, the Cooperative will, as nearly as practical, install, own, and maintain underground facilities under the same conditions as it would overhead facilities provided that the Cooperative obtains a payment in the amount by which the cost for providing underground facilities exceeds the overhead distribution cost. In arriving at the cost to provide underground facilities, terrain, vegetation, accessibility, proximity of individual services, maintenance, operation, and other pertinent factors will be considered. Except for bulk primary distribution feeders, the Cooperative will not install overhead distribution facilities, or replace underground facilities with overhead facilities, in an area served by an underground distribution network system unless sound engineering practices dictate otherwise. 203 - Facilities Extension Ownership All line extensions, service wire and connections, no matter who pays or contributes toward paying the cost thereof, are to be installed by the Cooperative and remain the property of the Cooperative. The Cooperative shall not be required to serve any consumer over a line built, owned, operated, and/or maintained by the consumer or a third party. All property of the Cooperative placed in or upon the consumer’s premises, used in supplying service to him, is placed there under his protection. The Cooperative shall have access to such property at all reasonable times. A consumer shall at the request of the Cooperative, pay a portion of the cost of a lock or furnish a lock of his choosing keyed for a co-op master key. The consumer shall not commit or cause or permit any act that may result in damage to or loss of such property or in the loss of life or injury to any person, or the loss of or damage to any other property, in relation to such property.


300 - SERVICE CONNECTIONS, MEMBER WIRING AND MEMBER EQUIPMENT 301 - Service Connections The wiring and electrical equipment in or upon the premises of the consumer to the point of service cut-in must have the approval of the constituted authority of the local government agency, or any other constituted authority, if any, and must conform to the requirements of the National Electrical Code, the wiring requirements of the Cooperative and any lawfully applicable standards before it can be connected to the system. The location of the service cut-in shall be determined by agreement with a representative of the Cooperative and must conform to the Cooperative’s requirements. The consumer shall provide suitable means of supporting service wires to his structure which will provide the minimum ground clearance and give adequate clearance over driveways and other obstructions as provided by the National Electrical Code. The Cooperative shall not be required to build without cost to the applicant more service line than is necessary to reach the cut-in point as agreed to by the Cooperative. The Cooperative’s responsibility for installation and/or maintenance of facilities shall not extend beyond facilities owned by the Cooperative at the point of attachment to the consumer’s facilities (building, central distribution point, or structure). The consumer shall provide and maintain his cut-in free of all unnecessary wires, pipes, antennas, and any item that might interfere with receiving service or be unsafe; likewise he shall not erect an antenna, or other structure that might interfere with such service. He shall maintain his cut-in in its original condition and will, as soon as possible, make any repairs that may be required after he becomes aware of damage to the cut-in. When the consumer service requirements are of such a nature that a central distribution point is to be located on a pole, the Cooperative will install the central distribution point pole for the attachment of the Cooperative’s service facilities and the consumer may attach his facilities to the pole. When loads and conditions justify, a C.T. Meter may be installed on the central pole at the option of the Cooperative and service facilities extended to the consumer’s entrances. A contribution in aid of construction toward the cost of the central meter installation facilities may be required.


302 - General Wiring Requirements Each consumer shall cause all premises receiving electric service pursuant to his membership to become wired to meet as a minimum the requirements of the National Electrical Code or any authority having jurisdiction. Each consumer shall be responsible for and shall indemnify the Cooperative and any other person against injury, loss, or damage resulting from any defect and/or improper use or maintenance of such premises and all wiring and apparatus connected thereto or used thereon. In no event shall the responsibility of the Cooperative extend beyond the point at which its service wires are attached to the consumer’s facilities. 303 - Member Equipment A. Electric Motors The Cooperative should always be consulted on motor installations other than motors used in normal home appliances. It is the characteristic of most electric motors to draw a heavy momentary current when starting, resulting in many cases in variation of the voltage supplied to the other consumers who receive service from the same circuits or transformer. The Cooperative shall require the consumer to limit, when necessary, the amount of starting current which may be drawn by a motor. All motors should be provided with devices that will protect the motor against overload and short circuit as defined in the National Electrical Code. All three phase motors shall have overload devices on each of the three-phase wires to insure proper protection for the motor. The direction of phase rotation and the continuity of all threephase current are guarded with great care, but the Cooperative cannot guarantee against accidental or temporary change in phase rotation or phase failure; therefore, motors shall be equipped with suitable protection against such reversal or phase failure. B. Electric GeneratorsWhere auxiliary or standby service is installed by the consumer to provide emergency power, parallel operation of the consumer’s generating equipment with the Cooperative’s system will not be allowed. A double throw switch must be used to prevent possible injury to the Cooperative workmen by making it impossible for power to be fed back into the main line from the emergency generator.


C. Electric Welders and Miscellaneous DevicesConsumers desiring to operate electric welders or other devices with high inrush or fluctuating currents must supply the Cooperative with information regarding the electrical characteristics of the equipment. Service will not be allowed to equipment, which adversely affects the Cooperative’s facilities or the service to other consumers. The Cooperative must be consulted before the installation of such equipment. D. Consumer Responsibility for Protective Devices All protective devices required by these regulations shall be provided by the consumer and at the consumer’s sole expense. 304 - Power Factor Corrections The maintenance of high power factor is of primary importance in the economic operation and maintenance of the distribution system. Underloaded motors contribute largely to the creation of a low power factor unfavorable to both the Cooperative and the consumer. Where the over-all power factor of the consumer’s load is less than the rate requirement, the Cooperative may require the consumer to install at his own expense, equipment to correct the power factor. The Cooperative reserves the right to measure the power factor at any time. 305 - Phase Load Balance When multi-phase service is furnished, the consumer will at all times maintain a reasonable balance of load between the phases. 400 - CONSUMER RATE CLASSIFICATION 401 - Rate Schedule Availability When two or more rates are available for certain classes of service, the conditions under which each is applicable to the requirements for the individual consumer are plainly set forth in the Cooperative’s published rate schedules. The choice of such rates will be as set forth in an agreement for electric service, or, otherwise lies with the consumer. The Cooperative will at any time upon request, advise a consumer as to the rate best adapted to existing or anticipated service requirements as defined by the consumer, but the Cooperative does not assume responsibility for the selection of such a rate or for the continuance of the lower annual cost under the rate selected.


A consumer having selected a rate adapted to his service may not change to another rate within a 12-month period unless there is a substantial change in the character or conditions of his service. A new consumer will be given reasonable opportunity to determine his service requirements before definitely selecting the most favorable rate therefor. 402 - Filing of Rate Schedules A copy of the Cooperative’s applicable retail rates shall be on fi le at the Georgia Public Service Commission, and will be provided upon request at the headquarters of the Cooperative. 403 - Resale of Power A consumer shall not resell power purchased from the Cooperative without a written agreement permitting such resale. 500 – METERING 501 - Electric Meters All meter bases shall be installed on an exterior surface outside the structure as nearly as possible at eye level. Upon receipt of the application for service, a representative of the Cooperative will survey the premises to be served and locate the meter center in the most feasible location. Central meter pole service may be provided upon request at the option of the Cooperative where such installations are feasible and desirable to adequately supply power to the served premises. The consumer will furnish and install the meter socket except when the Cooperative elects to do so in special metering situations. All meters shall be placed ahead of all switches and fuses unless otherwise agreed to by the Cooperative. An electric meter that becomes enclosed inside a structure or becomes inaccessible to the Cooperative because of construction to or closing in of a part of the structure, or for any reason, shall be relocated to the outside at the expense of the owner of the structure. 502 - Meter Reading Cooperative personnel shall read all meters on the system on a route basis. However, meters may be read or re-read at any time at the discretion of the Cooperative. These readings will not be at an additional charge to the consumer.


Consumers may request that a meter be re-read. A service charge may be applied to cover such expense unless an error is determined to have been made by the cooperative. 503 - Incorrect Reading of Meter Corrections shall be made whenever meters are incorrectly read. The correct reading shall be ascertained whenever possible, and the bills will be recalculated as nearly as possible to reflect the correct usage. 504 - Failure of Meter to Register Correctly If a meter fails to register correctly, the consumer will be billed on an estimated consumption, which will be based on the previous usage of the consumer. Consideration will be given to consumption on months immediately preceding, consumption in similar periods of other years, comparative usage and sizes of connected loads, and other relevant facts. Corrections for errors in meter registration may be considered for up to 48 months of prior billings. 505 - Meter Tests The Cooperative will, upon request, test the accuracy of a consumer’s meter. Should a consumer request repeated tests within 12 months period, a fee may be charged to cover such costs if the error is determined to be less than two percent (2%). 600 – BILLING 601 - Billing Period and Payment of Bills All consumers shall be billed monthly. Bills are due and payable upon receipt of the bill by the consumer and are delinquent after the due date shown on the bill. A final notice will be sent notifying the consumer that unless payment is made immediately an employee of the Cooperative will disconnect service not later than the next scheduled meter reading unless the bill is paid. If the occupant of the place is not at home, or if the consumer refuses to pay the bill, service will be discontinued. Notwithstanding the above, service may be discontinued at any time a consumer refuses to pay a delinquent or past due bill. Payments received will go toward paying any ancillary services (i.e. PowerGuard Security, Internet Service, etc.) before being applied to the power bill.


Payment of bills may be made by mail, phone, internet, automatic draft, and e-check or in person at the Cooperative’s office in Clarkesville or Cleveland, Georgia, or at one of the designated payment locations. 602 - Disconnect for Failure to Pay and Reconnection Fee Any consumer whose service has been disconnected for failure to pay his bill in accordance with the provisions of Section 601 shall be required to pay a service fee and additional security deposits prior to reconnection. Normally, reconnections shall be made only during regular working hours. Reconnections requested and made during other than regular working hours shall be made only upon the consumer’s paying the regular service fee, plus an overtime fee. 603 - Other reasons for Disconnection or Reconnection Service will be disconnected immediately and without notice for the following reasons: A. Discovery of meter tampering. B. Diversion of electric current. C. Discovery of a condition determined by the Cooperative to be hazardous. Electric service will be reconnected in the above cases under the following conditions: A. Correction of infraction. B. Payment of any unmetered current if applicable. C. Payment of a service fee to help defray costs resulting from the incident. D. Member must agree to comply with reasonable requirements to protect Cooperative against further infractions. Service may be disconnected, but only after notice and reasonable time to comply with infraction has been allowed, for the following reasons: A. For violation of and/or non-compliance with any applicable state or other local laws, regulations and codes pertaining to electric service.


B. For non-compliance with bylaws, rules and regulations of the Cooperative. Electric service disconnected for above reasons will be reconnected upon correction of infractions pursuant to Section 602. 604 - Extension of Credit The Cooperative may deviate from its policy on cut-off s without obligation to do so for delinquent bills only if having knowledge of and in accordance with the following standards: A. When it is determined that enforcement of the policy will constitute an undue hardship in relation to the amount of the delinquent bill and that extension of credit for a fixed time, or arrangement for installment payment of the bill, will not unduly impair the Cooperative’s ability to effectuate final collection of the bill; or B. When the consumer involved establishes to the satisfaction of the Cooperative that his failure to pay the bill has resulted from some mistake on the Cooperative’s part or some mistake for which the consumer was not responsible; or C. When the involved bill is a final bill covering service to a farm, house, or other residential account and the main building thereof has been destroyed by fire not caused by act of arson on the part of the consumer or his family; or D. When to disconnect service might pose immediate danger to the consumer or other persons due to illness or when the household is immediately and directly affected by a death. 700 - EASEMENTS, RIGHT OF ACCESS AND COOPERATIVE PROPERTY 701 - Member to Grant Easements to Cooperative if Required. Each consumer shall, upon being requested to do so by the Cooperative, execute and deliver to the Cooperative grants of easement or rights-ofway over, on and under such lands owned by the consumer; and in accordance with such reasonable terms and conditions, as the Cooperative shall require for the furnishing of electric service and other utility type service (phone, cable, etc.) or for the construction of other facilities necessary for furnishing service to others or for transmitting power between two or more otherwise unconnected points on the Cooperative’s system.


702 - Right of Access Cooperative’s identified employees shall have the right of access to consumer’s premises at all reasonable times for the purpose of reading meters, testing, repairing, removing, maintaining, or exchanging any or all equipment and facilities which are the property of the Cooperative. When access is locked, the consumer shall assist with or provide a lock that will accommodate a master key of the Cooperative pursuant to Section 203 of these Service Rules and Regulations. 703 - Cooperative Property All meters, service connections, poles, and other equipment furnished by the Cooperative shall be, and remain, the property of the Cooperative. The member- customer shall exercise proper care to protect the property of the Cooperative on the member premises; and, in the event of loss or damage to the Cooperative’s property arising from neglect of the member-customer to care for same, the cost of necessary repairs or replacement shall be paid by the member customer. No persons or organization shall install or attach any wire, signs, or other material or equipment to any of the Cooperative’s poles, conductors, or other fixtures, except with the expressed written consent of the Cooperative. 800 - GENERAL CONDITIONS FOR MEMBER WITHDRAWAL AND/OR TRANSFER 801 - Member Withdrawal A member may voluntarily withdraw in good standing from membership upon: A. Compliance with the bylaws. B. Payment of any and all amounts due the Cooperative, and cessation of any non-compliance with his membership obligations. 802 - Membership Transfer A membership may be transferred to one who directly occupies the premises being furnished electric service upon the successor member meeting the requirements for membership in 101 and paying any other fees or deposits required; notwithstanding the foregoing, the membership may be transferred to the surviving spouse of said member, a single membership may be transferred to a joint membership composed of the single membership holder and his or her spouse, or a joint membership may be transferred to a single membership in the name of one of the joint members under the existing membership fee.


803 – Refund of Fees Upon withdrawal or termination, the member shall be entitled to refund of his membership fee, additional service connection fees or security light fees and security deposits then held by the Cooperative, except the following: A. That the membership fee, the additional service fee, or any other fee or deposit shall be applied to any obligations owed the Cooperative and the balance refunded; and B. Due to the cost of making refunds by check an amount of $1.00 or less will not be made unless a request for the amount is made in person, in which case a cash refund of the amount will be made. Rewritten: 10-82; Amended: 3-22-84; 9-6-84; 3-27-90; 12-23-91; 4-13-93; 5-22-01; 7-9-02; 2-2205; 5-27-08; 10-28-10 STATEMENT OF NONDISCRIMINATION In accordance with Federal civil rights law and U.S. Department of Agriculture (USDA) civil rights regulations and policies, the USDA, its Agencies, offices, and employees, and institutions participating in or administering USDA programs are prohibited from discriminating based on race, color, national origin, religion, sex, gender identity (including gender expression), sexual orientation, disability, age, marital status, family/parental status, income derived from a public assistance program, political beliefs, or reprisal or retaliation for prior civil rights activity, in any program or activity conducted or funded by USDA (not all bases apply to all programs). Remedies and complaint filing deadlines vary by program or incident. Persons with disabilities who require alternative means of communication for program information (e.g., Braille, large print, audiotape, American Sign Language, etc.) should contact the responsible Agency or USDA’s TARGET Center at (202) 720-2600 (voice and TTY) or contact USDA through the Federal Relay Service at (800) 877-8339. Additionally, program information may be made available in languages other than English. To file a program discrimination complaint, complete the USDA Program Discrimination Complaint Form, AD-3027, found online at http://www.ascr.usda.gov/complaint_filing_cust.html and at any USDA office or write a letter addressed to USDA and provide in the letter all of the


information requested in the form. To request a copy of the complaint form, call (866) 632-9992. Submit your completed form or letter to USDA by: (1) mail: U.S. Department of Agriculture Office of the Assistant Secretary for Civil Rights 1400 Independence Avenue, SW Washington, D.C. 20250-9410; (2) fax: (202) 690-7442; or (3) email: program.intake@usda.gov. This institution is an equal opportunity provider.


RIDER HS-1 HOW$MART® RIDER


AVAILABILITY Available in all territory served by the Corporation to consumers for the purposes of improving energy efficiency and reducing the consumers’ bills for electric service furnished by the Corporation, in accordance with the Corporation’s Service Rules and Regulations. APPLICABILITY This Rider will apply only to consumers receiving service under the Corporation’s Schedules A-14, A-RS-15, A-RC-3, BC-9, and CS-8, and successor rate schedules thereto. INVESTMENT AND REPAYMENT TERMS The Corporation will make investments for consumer energy efficiency improvements pursuant to the following conditions and consumer repayment terms: 1. The cost of approved efficiency measures will be paid by the Corporation. 2. The How$mart® repayment obligation shall be assigned to the premises and will survive changes in ownership and/or tenancy. 3. How$mart® program costs shall be recovered through a line item charge entitled “How$mart®” on the consumer’s monthly utility bill. 4. The How$mart® charge shall be treated the same as the Corporation’s other charges for electric service for purposes of billing and collection. Failure to make payment may result in disconnection in accordance with the Corporation’s Service Rules and Regulations. 5. The How$mart® charge must be less than ninety (90) percent of the estimated monthly average savings associated with the investment. 6. The Corporation will be responsible for determining the Estimated Resource Savings and developing the Conservation Plan upon which the How$mart® charge will be based. CONSERVATION PLAN The Conservation Plan will be developed by the Corporation and will specify measures recommended by the Corporation to the prospective How$mart® consumer. The Conservation Plan shall include: • Estimated Resource Savings – The modeled change(s) in costs of resources consumed at the premise attributable to the efficiency


measure(s) recommended. The Corporation will be solely responsible for determining the savings estimates. • How$mart® Charge – The charge to be included on the consumer’s monthly bill based on the cost of the proposed measures and the savings resulting from those measures. The Corporation will be solely responsible for calculating the How$mart® charge utilizing its standard economic model. To the extent available, the Corporation will incorporate grants and low-interest funds into calculation of the How$mart® charge for the benefit of consumers who meet qualifying guidelines of such funding sources. In calculating the How$mart® charge, the Corporation may add a one-time administrative fee of up to five (5) percent of the cost of proposed projects as bid by contractors or vendors to offset How$mart® program costs. The annual interest rate used to calculate the How$mart® charge shall be approximately the Corporation’s weighted cost of capital, as determined from time to time by the Corporation. • How$mart Audit Fee – Building Owners (consumers or consumers’ landlords) may be charged an Audit Fee for completed Conservation Plans. The Audit Fee will be assessed no sooner than six (6) months after the Conservation Plan has been provided to the Building Owner; provided, however, the Audit Fee will be waived for participants or if the Conservation Plan does not produce an efficiency measure option that results in the required net bill savings with no up-front investment required by the consumer. • Number of payments – The number of periods for which the How$mart® charge will apply at the premises. Unless, otherwise specified herein, the duration of the How$mart® charge shall not exceed seventy-five (75) percent of the estimated life of the efficiency measure, or ten (10) years, whichever is less. • In the event that multiple efficiency measures are being completed as part of a Conservation Plan, the Charge will not appear on the consumer’s bill until the earliest of either all measures having been completed, or six months from any expense being paid by the Corporation. Consumer’s and Landlord’s (if applicable) signature on the How$mart® Agreement shall indicate acceptance of the Conservation Plan. UNECONOMIC MEASURES A consumer or Landlord may elect to “buy down” the cost of implementing an efficiency measure so that the How$mart® charge will be less than the average estimated monthly savings. In this way, measures that might otherwise not yield sufficient economic savings to pay for themselves may still be approved. Prior to Corporation approval of a Conservation Plan that includes one or more such uneconomic measures, the consumer or Landlord must agree to pay the


amount required to buy down said measure(s) such that the How$mart® charge is no greater than ninety (90) percent of the estimated savings. RESPONSIBILITIES Responsibilities, understandings and authorizations of consumer, Corporation, Landlord (if applicable) and Participating Contractors shall be effective only if evidenced by the associated written agreements, notifications and disclosures/consents required., the forms of which are made a part of this Rider. MEMBER RESPONSIBILITY The responsibility for outstanding How$mart® obligations shall fall to the successor party as a pre-condition to receiving electric service at that premise when the roles of consumer, Landlord or Tenant change.. For example: If a Tenant purchases an apartment complex, that individual assumes the obligations of Landlord upon becoming the member/consumer requesting or receiving electric service from the Corporation. OTHER 1) This Rider only applies to How$mart® measures permanently installed as fixtures at the premises. Portable efficiency products such as compact fluorescent lights do not qualify under this Rider. The Corporation will solely determine the permanence of efficiency measures or products. 2) Premises in which How$mart® efficiency measures will be installed must be permanently anchored to a foundation. 3) At its sole discretion, Corporation may withhold application of this Rider if: a. The structure has an expected life shorter than the payback period, or b. The structure does not meet applicable public safety or health codes, or c. The consumer’s account has a past-due balance. 4) At its sole discretion, Corporation will determine the maximum How$mart® program investment in any year. 5) For non-residential How$mart® projects exceeding $20,000, the Corporation, at its sole discretion, may require a security instrument such as a lien, bank letter of credit, or security bond.

Member Guide  
Member Guide  
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