ECONOMIC DEVELOPMENT RIDER

ECONOMIC DEVELOPMENT RIDER

 

Availability of Service

In order to encourage economic development in the Utility’s service area, limited-term reductions in billing demands described herein are offered to qualifying new and existing customers who make application for service under this Rider prior to January 1, 2025.

Service under this Rider is intended for specific types of commercial and industrial customers whose operations, by their nature, will promote sustained economic development based on plant and facilities investment and job creation. This Rider is available to commercial and industrial customers served under Tariff PP or Tariff IP who meet the following requirements:

1. Size: A new customer must have a billing demand of  1,000 kW or more over the maximum billing demand during the 12 months prior to the date of application by the customer for service under this Rider (Base Maximum Billing Demand).

1. THD: Total Harmonic Distortion. Both new and existing customers must comply with Standard IEEE 519-2014 or its most contemporary version, should the standard be revised.

1. Load Factor: Both new and existing customers must maintain a monthly load factor of at least 70%. Load factor shall be calculated as follows: “Total monthly kWH”/{peak k WD” x ”Days in Billing Period” x “24 hours”}

1. Power Factor: Both new and existing customers must maintain a monthly power factor of at least 98%.

1. Applicable Standards: Both new and existing customers shall comply with the most contemporary versions of National Electric Code, National Fire Protection Association Code, and relevant IEEE standards.

1. Business Type: In no event shall service under this Rider be available to a customers whose principal business at the service location is classified in one of the following SIC Major Groups:

Standard Industrial Classification (SIC per US Dept. of Labor)

A: Agriculture, Forestry, and Fishing

    01: Agriculture Production Crops

    02: Agriculture production livestock and animal specialties

    07: Agriculture Services

    08: Forestry

    09: Fishing, hunting, and trapping

C: Construction

    15: Building Construction General Contractors and Operative Builders

    16: Heavy Construction Other Than Building Construction Contractors

    17: Construction Special Trade Contractors

F: Wholesale Trade

    50: Wholesale Trade-durable Goods

    51: Wholesale Trade-non-durable Goods

G: Retail Trade

     52: Building Materials, Hardware, Garden Supply, and Mobile Home Dealer’s

     53: General Merchandise Stores

     54: Food Stores

     55: Automotive Dealer’s and Gasoline Service Stations

     56: Apparel and Accessory Stores

     57: Home Furniture, Furnishings, and Equipment Stores

    58: Eating and Drinking Places

     59: Miscellaneous Retail

H: Finance, Insurance and Real Estate

    64: Insurance Agents, Brokers, and Service

    65: Real Estate

    67: Holding and Other Investments Offices

I: Services

   70: Hotels, Rooming Houses, Camps, and Other Lodging Places

   78: Motion Pictures

   79: Amusement and Recreation Services

North American Industry Classification System (NAICS per OMB post 1997)

  11: Agriculture, Forestry, Fishing and Hunting

  22: Utilities

  23: Construction

  42: Wholesale Trade

  44: Retail Trade

  45: Retail Stores

  48: Transportation

  53: Real Estate Rental and Leasing

  71: Arts, Entertainment, and Recreation

  72: Accommodation and Food Service

  81: Other Services (except Public Administration)

(3) A new customer, or the expansion by an existing customer, must result in the creation of at least 10 full-times equivalent jobs (FTE) maintained over the contract term at the service location. Utility reserves the right to verify FTE job counts. Failure to maintain the minimum required FTE jobs will result in the termination of this Rider.

(4) The customer must demonstrate through form SB-1 to the Utility’s satisfaction that, absent the availability of this Rider, the qualifying new or increased demand would be located outside of the Utility’s service territory or would not be placed in service due to poor operating economics.

Availability is limited to customers on a first-come, first-served basis for loads aggregating to 25 MVA.

Terms and Conditions:

• To receive service under this Rider, the customer shall make written application to the Utility, using form SB-1, with sufficient information contained therein to determine the customer’s eligibility for service.

• For new customers, billing demands for which deductions will be applicable under this Rider shall be for service at a new location and not merely the result of a change of ownership. Relocation of the delivery point of the Utility’s service does not qualify as a new service location.

• For existing customers, billing demands for which deductions will be applicable under this Rider shall be the result of an increase in business activity and not merely the result of resumption of normal operations following a force majeure, strike, equipment failure, renovation or refurbishment, or other such abnormal operating condition. In the event that such an occurrence has taken this Rider, the monthly billing demands during the 12-month period shall be adjust as appropriate to eliminate the effects of such occurrence.

• All demand adjustments offered under this Rider shall terminate no later than December 31, 2020.

• The existing local facilities of the Utility must be deemed adequate, in the judgment of the Utility, to supply the new or expanded electrical capacity requirements of the customer. If construction of new or expanded local facilities by the Utility is required, the customer may be required to make a contribution-in-aid of construction for the installed cost of such facilities pursuant to the provisions of the Utility’s Terms and Conditions of Service.

Determination of Monthly Adjusted Billing Demand.

The Qualifying incremental billing demand shall be determined as the amount by which the billing demand, as determined according to Tariff PP or IP for the current billing period without this Rider, exceeds the Base Maximum Billing Demand. Such incremental billing demand shall be considered to be zero, however, unless it is at least 1,000 kW for new customers or existing customers.

The monthly adjusted billing demand under this Rider shall be the billing demand as determined according to Tariff PP or IP for the current billing period without this Rider less the product of the qualifying incremental billing demand and the applicable Adjustment Factor. No Adjustment Factors shall be applied to any portion of minimum billing demands as calculated under Tariff PP or IP.

Determination of Adjustment Factor

Standard New Development Customers-customers meeting all availability and terms and conditions above shall contract for service for a period of  five (5) years with a scheduled Adjustment Factors as followers:

Year  1   15%

Year  2   10%

Year  3   10%

Year  4   10%

Year  5   05%

Urban Redevelopment Customers-customers meeting all availability and terms and conditions above, and that (1) are locating a new business in an existing building that has been unoccupied and/or has remained dormant for at least one or more years and has no current or prior relationship with the precious occupant, as determined by the Utility, and (2) taking delivery at one point that does not require significant distribution or transmission system investment, other than the connection of service, shall qualify the same as a Standard New Development Customer.

The Appropriate adjustment factor shall be applicable over a period of 60 consecutive billing months beginning with the first such month following the end of the start-up period. The start-up period shall commence with the effective date of the contract addendum for service under this Rider and shall terminate by mutual agreement between the Utility and the customer. In no event shall the start-up period exceed 12 months.

Written Annual Statement of Substantial Compliance

Customers must apply for the Economic Development Rider using Form SB-1 “Statement of Benefits” which can be found as Attachment A.

Subsequent to qualifying the Economic Development Rider, the Customer MUST file an updated SB-1 at least 30 days prior to the anniversary of the state date identified in the Utility’s confirmation that Customer is eligible for the Economic Development Rider. Failure to comply with the reporting requirements will result in termination of eligibility for the Economic Development Rider.

Terms of Contract

A contract or agreement addendum for service under this Rider, in addition to service under Tariff PP or IP, shall be executed by the customer and the Utility for the time period which includes the start-up period and the five-year period immediately following the end of the start-up period. The contract addendum shall specify the Base Maximum Billing Demand, the anticipated total demand, the Adjustment Factor and related provisions to be applicable under this Rider, and the effective date for the contract addendum.

The customer may discontinue service under this Rider before the end of the contract or agreement addendum only by reimbursing the Utility for any demand adjustments received under this Rider billed at the applicable rate.

Special Terms and Conditions

Except as otherwise provided in this Rider, written agreements shall remain subject to all of the provisions of Tariff PP or IP. This Rider is subject to the Utility’s Terms and Conditions of Service.