Terms and Conditions

Oklahoma

Terms and Conditions of Service

TERMS AND CONDITIONS OF SERVICE

I. RATES/SERVICE

101 PURPOSE OF TERMS AND CONDITIONS OF SERVICE

These Terms and Conditions of Service are designed to govern the supplying and taking of electric service in such a manner as to secure for each member the greatest practicable latitude in the enjoyment of electric service that is consistent with good practice and safety to other members and to the Cooperative. They supersede and cancel all previous regulations pertaining to the supplying and taking of the Cooperative's electric service.

102 APPLICABILITY

These Terms and Conditions of Service, and any modifications thereof and additions thereto lawfully made, are applicable to all standard service agreements and contracts now existing or which may be entered into by the Cooperative and to all rate schedules which from time to time may be lawfully determined and adopted.

The Cooperative's published rate schedules state the conditions under which each rate is available for service. A member may take service from more than one meter or point of delivery, with each meter or point of delivery serving physically separate loads. Each meter or point of delivery shall supply power at only one rate at any given time.

The Cooperative, at any time upon request, will determine for any member the rate best adapted to existing or anticipated service requirements as defined by the member. The responsibility for the choice between two or more applicable rates always lies with the member.

Rates are normally established on a twelve-month basis, and a member having selected a rate adapted to his service may not change to another rate within a twelve-month period unless there is substantial change in the character or conditions of his service. A new member or member requesting a new account will be given the opportunity to determine his service requirements prior to the commencement of electric service.

103 EXCLUSIVE SERVICE ON INSTALLATIONS CONNECTED TO THE COOPERATIVE’S SYSTEM

The standard electric rate schedules are based on exclusive use of Cooperative's service and, except in cases where the member has a contract with the Cooperative for auxiliary or standby service, no electric service from another utility will be used by the member on the same installation in conjunction with the Cooperative's service, either by means of a throw-over switch or any other connection. Auxiliary or standby service as furnished by the Cooperative is not to be connected or operated in parallel with a non-Cooperative-owned plant.

The membermember is prohibited from selling the electricity purchased from the Cooperative to any other member, company, person or entity. The member will not be permitted to extend or connect the installation to lines across or under a street, alley, or other public space in order to obtain service for adjacent property through one meter, unless such adjacent property is a part of

the same business and actually contiguous except for such intervening public space, owned by the member, or otherwise allowed by the Cooperative.

104 LOADS THAT GENERATE SPECIAL CONDITIONS

Because of their disturbing influence upon service to other members, hoists or winches, elevators, furnaces, welding machines, x-ray machines, sawmills, and other equipment where the use of electricity is intermittent or subject to violent fluctuations, or electronically controlled equipment that may generate disturbances of any kind, may be served separately or may be served with other light and power equipment at the rate applicable, subject to the following conditions:

A. The billing demand may be calculated based on the installed transformer capacity in the case of large demand placed on the system, rather than the metered (measured) demand.

B. The member shall pay all costs associated with special transformers, power factor correction capacitors, and any other equipment associated with the special conditions generated by the load. The need for power factor correction and mitigation of harmonics shall be at the discretion of the Cooperative, in order for the Cooperative’s power delivery system to be in compliance with any policy standards, regulatorimposed standards, or industry standards, or to mitigate complaints from members that experience problems associated with the load served. The Cooperative and the member shall agree on the ownership of any equipment installed for problem mitigation prior to the installation.

105 DISTRIBUTED GENERATION (DG)

Rural Electric Cooperative recognizes the need to establish clear, equitable rules for the use of member-owned parallel generation facilities. The rules shall differentiate distributed generation (DG) units of 25 kilowatts (KW) capacity or less single phase only, and units over 25 KW up to 2 Megawatts (MW). At no time shall a member operate a DG facility interconnected to the Cooperative’s system without the knowledge of the Cooperative.

DG units of 25 KW or less shall be subject to “Net Metering” arrangements, in which the member agrees not to sell power from the DG unit, but shall make every effort to utilize the power generated at the DG site. REC shall install suitable measuring equipment to allow power to flow back to the distribution system in such a manner that the number of kilowatt-hours (KWH) flowing into the distribution system shall reduce the number of KWH registered as flowing into the member’s facilities. This shall result in a “net” KWH usage from the Cooperative’s system, and potentially could result in no KWH registered on the meter. At no time will the usage be credited as negative usage for any billing period.

The DG Member who installs a DG facility capable of generating over 25 KW shall enter into a power purchase agreement with the Cooperative’s power supplier in order to sell electric power.

The DG member shall submit a completed “DG Interconnection Agreement” form and information regarding the site facilities, interconnection method and equipment, and any certification as required by the Cooperative, which may include proof of the equipment’s suitability to the application. The DG facility shall comply with IEEE Standard 1547, “Standard for Interconnecting Distributed Resources with Electric Power Systems”, as well as all applicable standards governing the performance of electricity-consuming equipment.

106 RIGHT-OF-WAY EASEMENTS AND ACCESS

The member shall provide or cause to be provided any and all right-of-way easements and/or permissions required for the construction of the Cooperative’s distribution system at no cost to the Cooperative prior to construction.

The member shall provide Cooperative personnel, including any authorized agent of the Cooperative, free and unrestricted access to all Cooperative facilities at all times for the purpose of inspecting, maintaining, repairing, replacing or retiring said facilities, as well as for reading meters or gathering data from other equipment installed on the Cooperative’s distribution system, with reasonable allowances for the security and safety of the member's facilities.

II. GENERAL INFORMATION 201 APPLICATION

Every member, before obtaining service, shall make written application (unless waived by the Cooperative) to the Cooperative for service at the appropriate rate. The written application for service, when signed by the member and accepted and approved by the Cooperative, constitutes a contract.

A single application for service may be made to apply to different locations, or to cover more than one meter to be used by the same member.

Every application for service shall be made in the legal name of the member desiring the service. Use of an alias, trade name, business name, spouse’s name, the name of a relative, or another person as a device to escape payment of an unpaid obligation for utility service already provided to the member, or for any other reason, will not be permitted. In case of violation of this provision, the Cooperative may refuse or discontinue the service.

The contract for service is not transferable by the member, and a new occupant of the premises must make a new application in writing to the office of the Cooperative before service is begun.

The Cooperative may charge a fee (as provided for in the appropriate tariff) for all connects for the following:

1. Reconnecting a member who has been disconnected for non-payment;

2. First connect of a new service.

The Cooperative may charge a fee (as provided for in the appropriate tariff) for all disconnects, unless the account has been in continuous service for at least six months. The applicant must furnish all permits required to enable the Cooperative to supply service, except for public space.

All electric service provided under the published rate schedules of the Cooperative, except for temporary services as described in Section 404, are effective for initial periods of one year and are automatically renewed upon each expiration date on a month-to-month basis unless canceled

by either party. The Cooperative may require a contract for a period of more than one year when the member’s requirements for power and energy are unusually large, or necessitate considerable special or reserve equipment. In such cases the Cooperative may also require payment for facilities such as lengths of line, transformers, special protection equipment, capacitors, largecapacity or distribution voltage level metering, or other costs not considered within the applicable rate schedule.

The contract shall, at the option of the Cooperative, cease and terminate and all bills for service previously furnished immediately become due and payable without further notice in case any act of bankruptcy is made or committed by the member, or any petition, either voluntary or involuntary, is filed or against the member in bankruptcy. This paragraph does not apply to residential members.

202 MEMBERSHIP FEES AND DEPOSITS

A membership fee shall be paid by each member receiving service from the Cooperative, or upon application for service from the Cooperative, as required in the By-Laws of the Cooperative.

202.1 Required Deposits

A. Residential Accounts

1. When the applicant has had an account with Rural Electric Cooperative for twelve consecutive months out of the last eighteen (18) months, and did not have more than two late payments, or any checks returned for insufficient funds during those twelve months.

2. When the applicant at some time earlier than the previous eighteen months had been a member of Rural Electric Cooperative, and had a satisfactory credit history.

3. When other circumstances exist that allow waiving all or part of the deposit requirement, in the opinion of the Manager-Member Accounting.

4. A deposit may be paid in installments at the option of the Manager-Member Accounting.

5. Rural Electric Cooperative’s deposit policy is designed to assess the credit risk associated with all applications for new or continued service, while protecting the assets of our membership. This policy is based upon the use of a technologybased screening tool called ONLINE Utility Exchange to assess credit risk at the point of application and charge deposits only to those potential members and existing members who pose credit risk.

Deposit Criteria

Rural Electric Cooperative shall consider the status of the applicant and act according to the following criteria:

Residential Service Applicants

1. New-service applicants who pose no credit risk (Green Light returned on ONLINE Utility Exchange) will be charged no deposit.

2. New-service applicants who pose minimal risk (Yellow Light returned on ONLINE Utility Exchange) will be charged a deposit equal to one times highest month’s usage for the service address during the preceding twelve (12) months.

3. New-service applicants who pose substantial credit risk (Red Light returned ONLINE Utility Exchange) will be charged a deposit equal to two times the highest month’s usage for the service address during the preceding twelve (12) months.

4. If the service address is new and has not had service before, an ONLINE Utility Exchange report will be run as normally required. A Green light shall require no deposit. A Yellow light shall require a deposit equal to one month’s residential system average usage. A Red light shall require a deposit equal to two month’s residential system average usage.

5. Any existing member who has no deposit and becomes delinquent (i.e. has not paid current bill for 30 days, or has had two or more delinquencies in any consecutive 24-month period, shall be deemed to have an unsatisfactory payment record and may be required to pay a maximum deposit to continue service.

6. A member who has had service terminated or has an unpaid utility bill returned by ONLINE Utility Exchange shall pay a maximum deposit. A service applicant who provides a social security number that is returned as deceased, non-issued, belonging to a person under the age of 18, or belonging to a person other than the applicant, or is fraudulent, shall be required to provide social security number as well as additional proof of identity i.e. valid drivers license, Social Security Card, etc. before service will be activated.

7. Electric Cooperative cannot demand that an applicant provide their social security number as a requirement for service. However, it is our policy that applicants who refuse to provide their social security number pose a greater risk and shall be charged the maximum deposit.

Commercial Service Applicants

1. Commercial applicant’s deposit will be determined in the following manner:

A. Sole proprietorships will have an ONLINE Utility Exchange report pulled on the sole proprietor and charged the corresponding deposit.

B. Partnerships, Limited Liability Companies (LLC) and Limited Liability partnerships (LLP) that are less than one year old will have and ONLINE Utility Exchange report pulled on the managing partner or managing director, as appropriate, and the corresponding deposit will be charged. If the entity is over one year old, an IntelliScore Report will be pulled and a deposit charged as described in paragraph 2 below.

C. Commercial applicants who are corporations, regardless of whether they are Subchapter S of full “C” Corporations, or any corporation that has a corporate headquarters outside of our service area (foreign corporation), shall have their credit risk based upon ONLINE Utilities Business Profile Report and IntelliScore Report.

i. If there are no negative trade items or indications of risk, the deposit shall reflect the IntelliScore risk as described in paragraph 2 below.

ii. If the Business Profile Report or IntelliScore Report indicates credit risk the member will be referred to commercial rates for their deposit to be determined.

iii. Any commercial member who bills in excess of $2,000 per month will have their deposit determined by commercial rates.

ONLINE Utility Exchange’s Business IntelliScore Reports.

A. Commercial applicants who pose low risk and display an IntelliScore of <<80 to 100>> Shall pay a deposit of one times the highest monthly usage of the service address during the prior 12 months.

B. Commercial applicants who pose a medium risk and display an IntelliScore of <<70 to 79>> shall pay a deposit of two times the highest monthly usage of the service address during the prior 12 months.

C. Commercial applicants who pose a moderate credit risk and display an IntelliScore of <<69 or lower>> shall pay a deposit of three times the highest monthly usage of the service address during the prior 12 months.

Adverse Action Letters:

An adverse action letter will be printed and given to each applicant who is denied service, or charged a deposit. The Federal Trade Commission and the Fair Credit Reporting Act (FCRA) mandate that a member who is charged a deposit based upon their credit information be given notification as to where the information was obtained and detailed procedures as to how they might dispute the information.

Present members may be required to post a deposit or increase the amount of an existing deposit as a condition of continued service if:

1. Payment of undisputed charges is late more than two out of the last twelve billing periods;

2. The member/member has had service terminated for non-payment during the last twelve months;

3. A check is returned for insufficient funds;

4. The member/member is found to have tampered with the Cooperative’s meter or other equipment.

Each deposit will be reviewed yearly, and will be applied along with accumulated interest, to the current billing if, during the preceding twenty-four months, none of the conditions in the section above were permitted to occur.

202.2 Receipts

1. Each member/member posting a cash deposit shall receive a non-transferable receipt in writing at the time of making such deposition or within ten days thereafter.

2. If a member/member is paying a deposit as a portion of an electric service bill, the payment in full of that bill shall constitute the receipt of deposit. If the deposit is not paid by the due date on such bill, the amount of the deposit shall become a part of the total past due amount and money paid on the past due account shall be applied to the oldest past due accounts until paid in full.

3. A member/member shall not be required to produce the original receipt in order to receive a refund of the deposit under the procedures for the return or refund of deposits as set out herein.

202.3 Interest on Deposits

A. The Cooperative shall pay interest on all deposits held longer than thirty days, said interest to accrue from the date of the posting. No interest shall accrue after discontinuance of service, and the deposit shall cease to draw interest on the date it is credited to the member/member’s account, or returned.

B. The rate of interest to accrue shall be as established by the Oklahoma Corporation Commission pursuant to the formulas promulgated by OAC 165:35-19-10(e).

C. In November of each year, the Cooperative shall compute the amount of accrued interest and shall pay to the member/member the amount of accrued interest through a credit on such member/member’s then current bill.

202.4 Refund of Deposits

A. Except as otherwise provided herein, a deposit, with accrued interest, shall be applied to any unpaid charges at the time of a discontinuance of electric service. The balance, if any, of the account shall be returned to the member within thirty (30) days following settlement of the account, either in person or by mailing to the member/member’s last known address.

B. The Cooperative may withhold the refund or return of the deposit, with accrued interest, pending the resolution of any dispute in regard to charges secured by such deposit.

202.5 Records

A. The Cooperative shall keep records regarding membermember deposits, which show:

1. The name, account number and address of each deposit, and, 2. The amount of the deposit and the date received, and, 3. Each transaction regarding such deposit.

B. Such records shall be maintained for at least two (2) years after the deposit, when accrued interest is returned or applied to charges.

202.6 Sale of System

Should the Cooperative sell or transfer all or any part of its system, it shall file with its Application a verified list of all members from whom a deposit is being held along with the information required to be kept in Sec. 202.5 above. Such information shall be treated as confidential.

203 SERVICE STANDARDS

203.1 Residential Rate Schedules Single-Phase and Three-Phase Service

Members served under the Residential Rate Schedules shall be furnished single-phase or threephase service under the following provisions:

A. Single-Phase service is standard for residential members as defined in Section 501.1, and shall be supplied without any payment other than the regular billing specified in the applicable rate schedule. This single-phase service shall be provided for individual motors, subject to the provisions of Section 307. Larger motors may be permitted at the Cooperative’s option.

B. When three-phase secondary service is available at or near the location for a residential member, the Cooperative may permit connection of three phase motors, subject to the applicable Small Commercial three-phase rate. The member shall arrange his wiring so that all single-phase and three-phase service will be taken through one meter.

203.2 Commercial Rate Schedules--Single-Phase and Three-Phase Service

Members served under the Commercial Rate schedules shall be furnished either single-phase or three-phase service as required by the member, subject to the provisions in Section 307. The taking of single-phase or three-phase service shall be subject to the provisions of section 405.1 and of the Cooperative’s standard Extension Policy in Section 4.

204 BILLING

Electric meters are ordinarily read approximately every thirty (30) days and charges for service is computed at monthly intervals. Because of the structure of the calendar the actual interval may be four or five weeks.

Whenever the Cooperative is called upon to furnish two or more metering installations for one member, each installation will be considered a separate point of delivery, and charges for each will be calculated separately.

When additional metering points are installed solely to benefit the Cooperative, the Cooperative shall combine the readings of the multiple meters and compute the charges for such service as though it were metered at one point.

Bills are payable no later than twenty (20) days from the date of billing. A charge for late payment, based on approved rate schedules may be added to bills not paid within twenty (20) days from date of billing.

When the member requests discontinuance of service, bills for vacating premises, special bills, or removal bills, except bill for non-payment, the bills shall be processed and billed within thirty (30) days from the first of the following month. All bills to be paid at the office of the Cooperative or at an authorized Cooperative collection agency, within the time specified above.

The Cooperative may mail to the member at the address shown on the application for service or change of address order, a bill for electricity delivered to the application address; however, the Cooperative reserves the right to adopt other methods of bill delivery.

Occupation taxes, license taxes, franchise fees, and operating permit fees required for engaging in business inside a municipality will be charged only to those accounts located within the incorporated area levying the fee.

Failure to receive a bill in no way exempts the member from payment for service.

204.1 Average Monthly Payment Plan

An average Monthly Payment Plan is available to all residential members as an option, subject to the following provisions:

A. Eligibility:

1. To be eligible to participate in this plan a member must have twelve (12) months billing history at the service location involved.

2. The member must not have been late in paying his account after the due date more than twice during the preceding twelve (12) months.

3. The member’s account must be currently paid in full when participation in the plan commences.

4. A member may be removed from the plan if the account at any time becomes subject to termination for non-payment.

B. How the Plan Will Work:

1. A member desiring to use the plan shall make a request to be allowed to use this optional payment plan.

2. The Cooperative will allow use of the average monthly payment plan if the member meets and continues to meet the eligibility requirements.

C. How Bills Are Prepared:

1. Under this plan the bill is calculated each month in the usual manner, using the seasonal rate and power cost adjustment appropriate for that month.

2. The member is billed the average of the prior twelve (12) months usage.

D. Full Settlement:

The Average Monthly Payment Plan is valid through November of each year. Any monies due over the calculated average will become due and payable in December. Any over payment may be applied to the next billing, or may be refunded if the member requests a refund. To continue the plan the member must make a new application and recalculate the payment amount for the following year.

A full settlement of the account shall be made when participation in the plan is ended, either at the request of the member or of the Cooperative.

205 DELINQUENT BILLS

All bills presented for payment become delinquent after twenty (20) days from the date the bill was mailed. The Cooperative may discontinue service for such delinquency after twenty-five (25) days from the date the bill was mailed. Delinquency and Cut-off dates will be printed on the bill. If a collection trip is made, the Cooperative may charge a service fee (as provided for in the appropriate tariff). Delinquent bills shall be subject to a late fee of a minimum of $5.00 up to 1.5% of the total amount owed.

If service has been disconnected because of non-payment of a bill, or for a violation of the rules of the Cooperative, the member shall pay all delinquent bills and all collection and reconnect fees before service will be re-established. The Cooperative shall restore service within a reasonable time during normal working hours.

The Cooperative shall not discontinue service for non-payment of bills between the hours of 5:00 p.m. and 8:00 a.m., after 12:00 p.m. on Fridays or the day preceding a holiday, or on Saturdays, Sundays, or holidays. If a member requests reconnection of service which has been disconnected for non-payment, the member will pay a fee (as provided for in the appropriate tariff), if performed at the request of the member, between the hours of 4:00 p.m. and 8:00 a.m., or between the hours of 4:00 p.m. Friday and 8:00 a.m. Monday, or between the hours of 4:00 p.m. preceeding a legal holiday and 8:00 a.m. the day following the holiday.

The Cooperative may refuse to accept a check for payment due the Cooperative if the member has, during the previous twelve (12) months, had one or more checks returned unpaid to the

Cooperative by his bank. There will be a service fee (as provided for in the appropriate tariff) on all returned checks.

206 FRAUDULENT USE OF CURRENT

In the event of fraudulent use of current, or evidence of attempted fraudulent use of current, such as tampering with metering equipment, breaking of meter seals, jumpering of metering equipment or service wiring, is discovered, the Cooperative shall have the right to discontinue service without notice to the member. Service will not be resumed to the member until such member has paid all outstanding bills including payment for the current fraudulently consumed, together with any damages to the meter or metering equipment, all expenses incured by the Cooperative, the maximum deposit allowable, plus a connection fee (as provided for in the appropriate tariff), or until it has been shown to the satisfaction of the Cooperative that the member had no connection with, or knowledge of, such fraudulent use of current.

206.1 Meter Seals

All Cooperative meters shall be sealed. When it is necessary to break a seal, the Cooperative shall be notified before the breaking. When the seal is broken without authorization, the Cooperative may assess a service fee (as provided for in the appropriate tariff) for any trip made to reseal the meter.

207 STANDARD TESTING OF WATTHOUR METERS

A. Upon receipt of a written request from a member, the Cooperative shall, within twenty (20) days, test the accuracy of the meter through which the member is being served.

B. If the member requests a meter test, and the meter has been tested within the past twelve (12) months, and both the previous test and the present test showed that the meter performed within prescribed limits of accuracy, the Cooperative may make a service fee (as provided for in the appropriate tariff) for the test.

C. A member may make written request to be present when the Cooperative conducts the meter test and to have an expert or other representative present at the time. The Cooperative shall then conduct the test in the presence of the member or the member’s representative, but during regular working hours of the Cooperative.

D. A written report stating the name of the member requesting the test, the date of the request, the location of the premises where the meter has been installed, the type, make, size, and serial number of the meter, the date of removal, the date tested and the results of the test, shall be supplied to the member within ten (10) working days after the completion of the test.

All testing of watthour meters shall be done in accordance with the applicable rules of the Oklahoma Corporation Commission.

207.1 Adjustment of Bills for Meter Error

All adjustments of bills will be done in accordance with the applicable rules of the Oklahoma Corporation Commission.

208 ACCESS

The member shall give the duly authorized agents of the Cooperative permission to enter the member’s premises at all reasonable times for any purpose incidental to the supplying of electric service. All employees and duly authorized agents of the Cooperative requiring access to premises of a member shall be furnished with an identification card.

209 MEMBER’S RESPONSIBILITY

The member shall be responsible for all damage to or loss of the Cooperative’s property located upon his premises, regardless of previous consumer’s activities, unless occasioned by causes beyond his control, and shall not permit anyone who is not an agent of the Cooperative to remove or tamper with the Cooperative’s property.

210 HOUSE MOVING

When a house or other structure is to be moved along roadways over which electric wires are strung, the Cooperative must be advised of the route over which the house or structure is to be moved, and a suitable deposit made to cover cost of providing for clearance of wires. In no case shall anyone other than authorized employees of the Cooperative remove, cut, raise or handle any wires in connection with the moving.

211 MEMBER’S WIRING—NATIONAL ELECTRIC CODE

All electrical wiring and apparatus connected or to be connected to the Cooperative’s distribution system shall be made, installed and maintained in accordance with the requirements of the National Electric Code, any applicable local codes, and the Cooperative. The Cooperative reserves the right to refuse to connect to any wiring or apparatus which does not meet these requirements and the Cooperative may, without further notice, discontinue service to any member when a defective or unsafe condition of wiring or equipment upon the premises of the member results, or is likely to result, in interference with proper service.

211.1 Changes

In the event a member shall add to or increase the size of his electrical equipment, he shall notify the Cooperative so that its meter and other equipment may be enlarged to accommodate the increase. If the member fails to so notify the Cooperative, he will be held responsible for any damage to the meter or other equipment of the Cooperative caused by such increased load.

212 CONTINUITY OF SERVICE

The Cooperative will use reasonable diligence to supply steady and continuous electric service at the point of delivery, but will not be liable to the member for any damages occasioned by irregularities or interruptions. The Cooperative may, without further notice, discontinue service to any member when a defective condition of wiring or equipment upon the premises of the

member results, or is likley to result, in danger to life or property, or interference with proper service.

In order to make repairs to or changes in the Cooperative’s facilities for supplying electric service, the Cooperative reserves the right, without incurring any liability therefore, to suspend service without notice to the member for such periods as may be reasonably necessary.

213 MODIFICATION OF TERMS AND CONDITIONS OF SERVICE

No agent, representative or employee of the Cooperative shall have authority to modify the Terms and Conditions as stated herein, but the Cooperative shall have the right to amend these Terms and Conditions or to make additional Terms and Conditions as it may deem necessary from time to time, subject to approval by the Board of Trustees and any other body having jurisdiction.

III. ELECTRIC SERVICE REGULATIONS

These regulations are to provide for the safety of the public and for dependable electric service. The Cooperative, upon request, will furnish drawings illustrating the installations described herein, without charge.

301 DEFINITIONS

301.1 Auxiliary or Standby Service: Electric service supplied by the Cooperative which is used to supplement the electric service which the member secures from another source, or which is available in the event of failure of the electric service which the member normally secures from another source, or which in effect serves to relieve, sustain or reinforce the effective operation of the member's private generating plant or other source of non-Cooperative electric service.

301.2 Member or Member: One individual, partnership, association, firm, public or private corporation, or governmental agency at a single location receiving one class of service to be used only at the location or premises under his/her sole ownership or control.

301.3 Distributed generation: Any generator, whether renewable or non-renewable, connected to the Cooperative’s distribution system, the purpose of which is to generate power to the local (onsite) load and/or generate power onto the Cooperative’s distribution system, whether for sale or under a net metering agreement, in a “parallel” power arrangement. This excludes generators temporarily connected to the member’s facilities by the member for emergency situations in which there is no connection to the Cooperative’s distribution system.

301.4 Non-Residential Service: A service that does not serve a permanent residence or mobile home, or a three-phase service. Water wells, fence chargers, barns, travel trailers, oil

pumping units, and other commercial loads are considered non-residential loads. In the event that a single service serves a permanent residence and a non-residential load, the greater usage shall be the determinant of the type of service.

301.5 Permanent Residence: Any residential dwelling containing complete kitchen facilities for each dwelling unit, and with normal occupancy on a permanent, year-round basis. Motels, rooming houses, weekend cabins, and mobile homes are not included in the term "permanent residence”.

301.6 Point of Delivery: The point of delivery of electric service shall be the point at which the electric supply system of the Cooperative connects to the wiring system of the member. This may be at the terminals within the meter base or the disconnect enclosure, or at the secondary terminals of the transformer in the case of instrument-rated metered services. In the case of a primary connection, the point of delivery shall be as agreed upon between the member and the Cooperative, but generally will be at the point of attachment of the member’s conductors at a primary dead-end structure.

301.7 Standard Electric Service Connection: Single Phase

A standard single phase connection, as used herein, shall be a point of connection with the Cooperative’s distribution system at a secondary voltage of 240 volts or less, phase-to-ground. The standard connection shall consist of any or all of the following: a single phase transformer, meter loop and meter, and disconnect. A service capacity above 320 amperes that may require the use of instrument-rated transformers shall be considered as a standard electric service.

Three Phase

A standard three-phase connection, as used herein, shall be the point of connection with the Cooperative’s distribution system at a secondary voltage of 480 volts or less, phase to phase. The standard three phase connection shall consist of any or all of the following: a single three-phase transformer: or 2 or 3 transformers banked into a standard three-phase configuration; and a meter loop and meter. The member shall provide all disconnects required. A service capacity above 320 amperes that may require the use of instrument-rated transformers shall be considered as a standard electric service.

In cases when the load cannot be served by a standard electric service connection, special arrangements shall be made with the Cooperative.

All Cooperative-owned equipment shall be placed on or attached to Cooperative-owned facilities, with the exception of a meter base and conduit placed on the side of a memberowned building. No construction shall be made that attaches Cooperative-owned equipment to a member’s pole or other equipment or facilities, with the above-mentioned exception.

301.8 Starting Current: Regarding motors, it is the locked rotor current at nameplate voltage.

A. Overhead Services: The point of attachment of an overhead service drop to a building shall not be less than that required by the National Electric Safety Code in effect at the time of construction of the electric service.

B. Underground Services: Only approved meter bases and conduit for service entrance wiring, and associated equipment, shall be attached to the building. The metering equipment shall be mounted not less than three (3) feet nor more than six (6) feet six {6) inches from the ground, measured from the center of the meter cover.

303 METER POLE AND METER LOOP

When a member requests service at a meter pole, the Cooperative will furnish and install both a meter loop and the pole along with a disconnect on services of 200 amps or less. The connection point on the load side of the disconnecting means will be the point of delivery, and the member is responsible for extending the service to the point of use. For services of between 200 amps and 400 amps capacity, the Cooperative will provide a meter base only, and the member shall provide all disconnects. For metered services utilizing instrument-rated transformers (“CT’s” and or “PT’s”) the member must furnish and install a suitable disconnect immediately below the meter base.

No meter loops will be furnished to those members who desire to have the meter installed on the house or building, but the Cooperative will provide a meter base to be installed by either the member or his electrical contractor.

All meter loops and bases remain the property of the Cooperative.

304 SERVICE TO RESIDENTIAL SUBDIVISIONS AND MOBILE HOME PARKS

This rule applies to the following:

A. Five or more contiguous residential lots in a development, average size per lot of 10 acres or less.

B. Five or more contiguous mobile home stalls in a mobile home park.

The developer shall acquire any easements necessary to extend the Cooperative's lines to the subdivision or mobile home park, and also provide any easements needed within the subdivision or mobile home park to extend service to each lot.

The developer shall pay the cost of extending the Cooperative’s distribution system, whether overhead or underground, to the closest point on the development from the existing line, along a route that is determined by the Cooperative, using the cost per foot in Section 402.1, “Cost per Foot of Line”.

In addition to the line cost to reach the development, the developer shall pay 50% of the total cost of the line, whether overhead or underground, within the development along the dedicated easements or the line route as determined by the Cooperative, when the developer requests the lines to be installed in the entire subdivision. The cost of installing the distribution system within the development shall be calculated by measuring the line route as determined by the

Cooperative, and multiplying by 50% of the cost per foot in the table in Section 402.1, “Cost per Foot of Line”. That calculated amount shall be divided by the total number of lots as shown on the plat, and the amount per lot shall be called the “lot allowance”. For each electric service connected AND serving a residential load at the time of connection, the lot allowance shall be paid back to the developer, differentiated as follows:

For permanent site-built homes: 100% paid back to the developer

For mobile homes as defined in this policy: 50% paid back to the developer

For non-residential services: No lot allowance

The length of time for returning lot allowances to the developer shall be no longer than 5 years.

Line extensions within a lot shall be the responsibility of the lot owner, and the terms of Section IV shall apply.

For mobile home parks, the developer shall pay the New Service Charge as stated in Section 401 for each meter installed in addition to the Line Extension cost for developers as stated above. No lot allowance shall be returned for mobile home parks.

In the event the developer does not request that lines be installed in the housing development prior to the sale of lots, the lot owner shall pay an amount equal to the total cost of construction divided by the number of lots for each electric service requested.

The developer shall be required to bring all easements to within six (6) inches of final grade and to clear all easements of all timber, brush, and undergrowth to a width of thirty-three (33) feet for single-phase or three-phase lines prior to commencement of construction of the electric system.

The developer shall submit to the Cooperative a print of the subdivision plat map with all utility easements marked, shall file the plat with the county within which the development is located, and shall dedicate the easements. The developer shall also assist the Cooperative in coordinating with other utility companies regarding the location and sequence of placement of the other utility facilities before and during the Cooperative's installation. If the Cooperative incurs costs due to the developer’s failure to provide the above stated components, the developer shall be charged 100% of the actual cost incurred.

305 OBSTRUCTIONS PLACED IN THE RIGHT-OF-WAY

When an obstruction has been installed after the initial electric system installation, and maintenance or additional construction requires access to the pole or other equipment, the owner of the obstruction shall:

A. Permit the Cooperative access to the premises.

B. Pay the cost of removing and replacing the obstruction OR pay the cost of relocating the Cooperative’s facilities to mitigate the effects of the obstruction.

MOBILE HOMES NOT IN MOBILE HOME PARKS

Mobile homes, trailer houses, modular homes built upon trailer frames, and other like structures shall be considered as “mobile” even when placed on a foundation and the wheels, axles, and tongue are removed. The term “mobile home” used in this policy shall refer to any of these structures.

Mobile homes shall be served with a standard electric service connection. For any underground service installed to serve a mobile home, the member shall pay the full cost at the rate stated in Section 402.1, “Cost per Foot of Line”.

307 MOTORS AND OTHER EQUIPMENT

In order that service to other members may not be adversely affected, the following limitations shall apply.

307.1 Allowable Motor Starting Currents

A.Individual motors, or groups of motors, starting simultaneously, served from a 120-volt single-phase circuit shall have starting currents not to exceed 100 amperes.

B. Motors served from a 240-volt single-phase circuit shall have starting currents not to exceed 200 amperes. Groups of motors starting simultaneously shall be classed as one motor. Larger starting currents may be permitted where the Cooperative's facilities permit; and the motor or group of motors is of acceptable starting design. In the case of thermostatically controlled air conditioning and heat pumping equipment, a time delay device to prevent simultaneous starting of the compressor motor and the associated fan motors is desirable and may be required.

C. Motors served from 208-volt Wye and 240-volt delta three-phase circuits shall have starting currents not to exceed 200 amperes. Motors served from 480-volt three-phase circuits shall have starting currents not to exceed 400 amps. Groups of motors starting simultaneously are classed as one motor. For motors larger than 75 horsepower, the Cooperative may elect to provide service at primary voltage to mitigate starting current effects. The Cooperative may also require the member to install soft-start devices at the member’s expense. Individual motors larger than 300 horsepower are considered as special circumstances and the type of service shall be at the discretion of the Cooperative.

A motor may be started at full line voltage if the starting current does not exceed the limits given above.

If there is sufficient capacity in the local distribution system to prevent the excess starting currents adversely affecting service to other members, the Cooperative may permit greater starting currents than those in the foregoing paragraphs.

307.2 Current Fluctuation Control

In cases of hoists, elevators, furnaces, welding machines and other equipment where the use of electricity is intermittent or subject to violent fluctuations, the Cooperative reserves the right to

have the member install at his own expense, fly-wheel motor generators or other suitable equipment to reasonably limit adverse affects.

308 Payment for Member Troubleshooting Calls – Commercial Accounts Only

A Member Troubleshooting Call occurs when the cause of an outage is found to be on memberowned equipment and proper voltage is still present at the Point of Delivery, or when memberowned equipment causes power to be lost at the transformers, meter point, or other REC-owned point due to a failure of member-owned equipment, excessive current, or improper coordination of the member’s protective devices. Root causes on the member’s side of the point of delivery may be lack of or improper maintenance; over-sizing the equipment for the service point’s capacity; or failure to use proper system protection.

If any of these conditions exist, and REC dispatches a repair crew to the site, a cost will be assessed to the member according to the following table:

During Regular Working Hours (7:00-4:00): $200 Evenings, Holidays: $300

The lead serviceman on-site may, at his discretion, waive the charges if a cause is not apparent or if there are special circumstances such as a major storm that involves extreme lightning.

In the event a member-caused outage results in damage to transformers, meters, or other RECowned equipment, the member may be assessed the replacement cost including labor.

Refusal to pay invoiced costs of equipment damage or the fee for a troubleshooting call shall constitute violation of REC’s Terms and Conditions and the account will be subject to disconnection.

IV. LINE EXTENSION POLICY

401 COST FOR NEW SERVICE

In arriving at the length of electric line extension necessary to render service at any point, the distance from the point of delivery to the nearest electric distribution line shall be measured along lines of probable construction and shall be measured from the Cooperative’s nearest electric distribution line to the point of delivery.

The following payment shall be made to the Cooperative for a new service:

A. Single phase service to a permanent residence: $100

B. Single phase service to a mobile home: $300

C. Single phase non-residential service

D. Three phase service:

If the member requests metering at distribution voltage ("primary metering") for a new service because of special conditions, or for which the Cooperative would normally provide secondary voltage metering, the member shall be charged a one-time fee of $5,000.00.

For all permanent residence services to be built, the member shall provide a copy of the builder’s contract or construction loan document or bill of sale; or have completed the foundation and water source.

402 CALCULATION OF LINE EXTENSION COST

402.1 Cost per foot of Line

The following costs shall be used to calculate the cost of line extension: LINE TYPE COST/FOOT

Single Phase Overhead Primary Line $ 5.50

Single Phase Overhead Service Wire $ 15.00

Three Phase Overhead Primary Line $ 7.50

Three Phase Overhead Secondary Wire $ 16.00

Single Phase Underground Primary Line $ 9.50

Single Phase Underground Service Wire $ 17.50

Three Phase Underground Primary Line $ 16.00

Three Phase Underground Secondary Wire $ 12.50

For all new services constructed, the Cooperative shall provide up to 300 feet of primary overhead line or up to 150 feet of secondary overhead wire at no additional cost. For all new services constructed except mobile homes, the Cooperative shall provide up to 150 feet of underground secondary wire at no additional cost. When secondary line is combined with primary line extensions, the member shall pay the difference between primary costs and secondary costs for all secondary wire footage.

402.2 Calculation of Member’s Cost for Line Extension to a Permanent Residence

A. Overhead

The member shall be required to pay 25% of the cost for all primary line built longer than 300 feet up to 900 feet. For all primary line built over 900 feet up to 2,640 feet in length, the member shall pay 50% of the cost; for all primary line built over 2,640 feet the member shall pay 100% of the cost.

B. Underground

The member shall be required to pay 25% of the cost for all primary line built longer than 150 feet up to 500 feet. For all primary line built over 500 feet up to 1,500 feet in length, the member shall pay 50% of the cost; for all primary line built over 1,500 feet the member shall pay 100% of the cost.

402.3 Calculation of Member’s Cost for Line Extension to a Mobile Home

The member shall be required to pay 50% of the cost of the overhead line for all line built longer than 300 feet up to 900 feet. For all line built over 900 feet the member shall pay 100% of the

cost. The member shall pay 100% of the cost of any underground line installed to serve a mobile home, as stated in Section 306.

402.4 Calculation of Member’s Cost for Line Extension to a Non-Residential Load

A. Single Phase Service up to 10 KVA

For all line built over 300 feet of overhead, or 150 feet of underground, the member shall pay 100% of the cost.

B. Service to Loads above 10 KVA

1. Overhead

The member shall be required to pay 50% of the cost of all primary line built longer than 300 feet up to 900 feet. For all primary line built over 900 feet the member shall pay 100% of the cost.

2. Underground

The member shall be required to pay 50% of the cost for all primary line built longer than 150 feet up to 500 feet. For all line built over 500 in length, the member shall pay 100% of the cost.

402.5 Calculations involving Combinations of Construction Types

When the member requests a combination of overhead and underground, the first type of line constructed shall govern the applicable “no-cost” distance and only one shall apply. (For example: The member who requests 400 feet of overhead and 100 feet of underground line will only be allowed 300 feet of overhead line at no cost; 100 feet of overhead and all of the underground line will be charged at the applicable cost per foot.) When both overhead and underground construction are requested, the straight line distance shall be used to determine the cost of line sections. (For example: A member requests 700 feet of overhead primary line and 300 feet of underground primary line. 400 feet of the overhead will be charged at 25%; all of the underground will be charged at 50% because of the distance past 500 feet.

403 LARGE POWER CONTRACT PROVISIONS

When preparing contracts to serve loads of 300 kW or more, the Cooperative shall consider the following:

A. Investment required to extend facilities.

B. Estimated annual revenue to be produced.

C. Terminated risks, including duration of service and member's credit.

D. Initial term of contract.

E. Unusual fluctuations or disturbances to the Cooperative's system.

F. Special equipment necessary to provide non-standard voltage or above-normal continuity of service.

G. Special load characteristics, seasonal or otherwise.

H. Removal costs less salvage value.

404 TEMPORARY SERVICE

Temporary service is defined as any service required for a period of less than twelve (12) months.

When a temporary service is required by an applicant, the Cooperative shall require that the applicant pay $500 in advance for installing and removing the service. The cost of line footage shall be determined by using the cost per foot as stated in Section 402.1, “Cost per Foot of Line”.

The applicant must also provide and install a suitable meter pole. The Cooperative may provide and install a meter pole with 100-amp capacity, and a disconnect, for an additional cost of $500.

405 OUTDOOR LIGHTING

The Cooperative provides outdoor lighting subject to the following terms:

1. Lights installed on a meter pole shall be metered through the existing meter. Lights installed on any pole other than a meter pole shall be subject to the fixed monthly fee-refer to the published rate schedule for Outdoor Lighting.

2. Any new wire installed shall be for secondary voltages only. The light and all associated equipment (poles, wire, etc.) shall be installed and owned by the Cooperative. No RECowned equipment shall be installed on member-owned facilities. The light may be installed on an existing meter pole (not flat rate--see #1 above), existing line pole, or a pole dedicated to the light only. Access to the light and associated equipment shall be provided by the member as with all REC-owned facilities. The light shall not be placed on a switch. Lights found to be installed on a switch shall be subject to disconnection and removal.

3. REC shall maintain the light and associated equipment, and maintenance/repairs shall be during normal working hours only, as work schedules allow.

4. Outdoor lighting shall be subject to the existing and approved rate schedules.

5. Installation of outdoor lighting shall be subject to the following contribution in aid of construction:

Transformer, pole and light: $500

Transformer and light: $300

Pole and light: $200

Light Only: $ 50

Each additional 30' pole: $200

6. All equipment shall be installed overhead. If the member requests underground installation of wire to a pole, the member shall pay the cost of installation at the rate stated in the table in Section 402.1, "Cost per Foot of Line".

406 RELOCATION OF POWER LINES AND SERVICES, POLES, GUY/ANCHOR ASSEMBLIES, AND OTHER FACILITIES AT THE MEMBER’S REQUEST

When a member, who currently receives electric service at a meter, requests a relocation of all or part of a power line owned by the Cooperative, the provisions are as follows:

The alteration of facilities shall be limited to the electric service serving, and facilities on property owned by, the member making the request.

Meter poles and meter loops, and service wire to the meter poles, shall be relocated at no cost to the member. The relocation and connections of all service wire owned by the member shall be the responsibility of the member.

The cost of relocating primary poles, transformer poles, primary guys/anchors, primary conductor, and associated equipment shall be paid by the member, according to the table below:

Item Cost

Setting a pole $ 300.00 Retiring a pole $ 100.00

Setting a guy/anchor assembly $ 120.00 Retiring a guy/anchor assembly $ 50.00

Setting a transformer $ 100.00 retiring a transformer $ 75.00 setting a meter loop $ 75.00 retiring a meter loop $ 75.00 Setting a recloser $ 100.00 retiring a recloser $ 100.00 setting a line lightning arrestor $ 25.00 retiring a line lightning arrestor $ 25.00 moving one conductor per foot $ 0.25 setting a capacitor $ 50.00 retiring a capacitor $ 50.00

When relocating a line results in adding to the length of existing facilities, the cost of the added facilities shall be paid by the member based on the cost per foot as stated in Section 402.1, “Cost per Foot of Line”.

When underground line is relocated, the cost shall be paid by the member based on the cost per foot of new cable as stated in Section 402.1, “Cost per Foot of Line”.

When a third party (a person or entity that does not receive electric service from the facilities in question) requests the relocation of the Cooperative’s facilities, the third party shall be responsible for acquiring all necessary easements and permits. The cost of relocating primary poles, transformer poles, primary guys/anchors, primary conductor, and associated equipment, as well as any meter poles or service equipment, shall be paid by the third party, according to the table above, prior to commencement of the project. For special projects such as line relocations

for state/federally funded highway, road or bridge projects, or when the actual cost differs more than 15% from the calculated cost based on the above referenced table, the actual cost shall be used.

407 LINE CONVERSION TO SUPPLY THREE PHASE POWER AT THE MEMBER’S REQUEST

When a member requests a conversion of an existing power line to supply three phase power, the member shall pay the cost of the length of conversion as described below.

Converting single phase to three phase: $2.00/foot

Converting two phase to three phase: $1.00/foot