Docket UE20908
Order UE93-13

 IN THE MATTER of an application of Maritime Electric Company for approval of a proposed Tariff for implementation on July 1, 1993.

BEFORE THE COMMISSION

on Thursday, the 8th day of July, 1993.

Linda Webber, Chair
John L. Blakney, Vice-Chair

Anne McPhee, Commissioner


Order


WHEREAS Maritime Electric Company, Limited (the "Company") has filed a revised financial forecast and submitted a proposed Tariff pursuant to Order UE93-11 issued herein on June 24, 1993;

AND WHEREAS the revised financial forecast has been reviewed by the Commission and is hereby accepted;

AND WHEREAS it appears to the Commission that the said Tariff is consistent with the findings contained in Order UE93-11, and is not unreasonable or unjustly discriminatory;

NOW THEREFORE, pursuant to the Island Regulatory and Appeals Commission Act and the Electric Power and Telephone Act

IT IS ORDERED THAT

1. Paragraphs 12, 14 and 15 of Commission Order UE93-11 are revoked and the following substituted therefor:

12. The average Rate Bases are approved in the adjusted amounts of $94,016,239 for 1990, $103,588,062 for 1991 and $113,174,295 for 1992.

14. A just and reasonable rate of return on average rate base is established at a range of 10.68% to 10.90% for 1993.

15. The Revenue Requirement for 1993 is approved at $83,916,008.

2. Appendices 2, 3 and 4 of Order UE93-11 are revoked and the revised Appendices 2, 3 and 4 attached to this Order are substituted therefor;

3. The General Tariff appended to, and forming part of, this Order is approved and declared effective on the date specified thereon and shall remain in effect until otherwise ordered by the Commission;

4. The Company shall distribute in the next billing cycle a Commission-approved bill insert that sets forth the changes in customer's bills resulting from this Order.

DATED at Charlottetown, Prince Edward Island, this 8th day of July, 1993.

BY THE COMMISSION:

Linda Webber, Chair

John L. Blakney, Vice-Chair

Anne McPhee, Commissioner


Appendix 2

(Revised)

Rate Base Calculation as Adjusted and Approved by the Commission.
  1989 1990 1991 1992 1993
  $ $ $ $ $
Plant in Service          
Plant in Service - Closing Balance 146,434,000 155,664,236 176,384,713 187,276,596 201,761,667
Less: Accumulated Depreciation (49,373,500) (53,469,539) (58,433,545) (63,746,339) (69,548,866)
  97,060,500 102,194,697 117,951,168 123,530,257 132,212,801
Plus: Unamortized DSM 0 214,593 540,827 779,863 1,294,863
Less: Unamortized Contributions (7,543,497) (7,987,424) (8,578,238) (8,791,457) (8,564,487)
Less: Deferred Income Tax (7,640,186) (8,743,582) (9,128,046) (10,324,975) (10,930,153)
  81,876,817 85,678,284 100,785,711 105,193,688 114,013,024
Plus: Working Capital          
Material and Supplies at Cost 3,276,829 4,087,528 3,013,019 3,092,648 3,659,000
12.5% of Operating Expenses 5,745,998 6,402,262 6,310,763 6,983,961 6,961,613
12.5% of Income Taxes Paid 391,517 633,518 572,291 688,415 685,867
Deferred Income (845,687) 785,411 (1,092,664) 800,757 (1,791,190)
  8,568,657 11,908,719 8,803,409 11,565,781 9,515,290
Rate Base - Year End 90,445,474 97,587,003 109,589,120 116,759,469 123,528,314
           
Rate Base - Average   94,016,239 103,588,062 113,174,295 120,143,892
           
           
Appendix 3

(Revised)

Proposed Revision of Rate Base Calculation.
  1989 1990 1991 1992 1993
  $ $ $ $ $
Plant in Service          
Plant in Service - Closing Balance 146,434,000 155,664,236 176,384,713 187,276,596 201,761,667
Less: Accumulated Depreciation (49,373,500) (53,469,539) (58,433,545) (63,746,339) (69,548,866)
  97,060,500 102,194,697 117,951,168 123,530,257 132,212,801
Plus:          
Property Under Construction 3,419,005 10,482,338 5,035,351 6,398,071 3,000,000
Unamortized DSM 0 214,593 540,827 779,863 1,294,863
Unamortized Financing Costs 241,071 445,271 698,771 702,896 774,868
Unamortized Load Research Study 0 0 59,025 541,417 982,056
Unamortized Generation Studies 361,771 281,328 190,885 100,443 "
Unamortized Engineering Studies 492,277 251,919 318,563 364,828 "
Less:          
Unamortized Contributions (7,543,497) (7,987,424) (8,578,238) (8,791,457) (8,564,487)
Deferred Income Tax (8,164,357) (9,267,753) (9,652,217) (10,849,146) (11,454,324)
  85,866,770 96,614,969 106,564,135 112,777,172 118,245,777
Plus: Working Capital          
Current Assets 8,841,831 11,873,395 14,961,341 11,851,100 17,912,592
Less: Current Liabilities (Excl. LTD) (22,603,153) (14,875,487) (11,184,850) (10,834,805) (10,886,499)
  (13,761,322) (3,002,092) 3,776,491 1,016,295 7,026,093
Rate Base - Year End 72,105,448 93,612,877 110,340,626 113,793,467 125,271,870
           
Rate Base - Average   82,859,163 101,976,752 112,067,047 119,532,669
           
Common Equity and Retained Earnings 36,540,387 39,424,877 46,212,627 50,390,468 54,483,871
Preferred Shares 10,300,000 17,600,000 15,600,000 15,000,000 15,000,000
Long-term Debt 27,418,000 36,588,000 48,528,000 48,403,000 55,788,000
Property Pending Approval (2,152,940) 0 0 0 0
  72,105,447 93,612,877 110,340,627 113,793,468 125,271,871
Appendix 4

(Revised)

Maritime Electric Revenue Requirement

1993

Account As Per Application

Sept. 1992

As Amended In

Course of Hearing

As Revised by

Application

Feb. 1993

As Adjusted

By Commission

Commission

Approved

Sales (MWh) 708,000   711,000   711,000
ECAM
Power Purchases (M-1, M-24) 18,638,000 353,000 18,991,000 0 18,991,000

Point Lepreau Entitlement (M-1, M-24)

3,262,000 122,000 3,384,000 (33,000) 3,351,000
Dalhousie Plant (M-1, M-24) 4,628,000 (66,000) 4,562,000 0 4,562,000
Charlottetown Plant (M-1, M-24) 2,371,000 (301,000) 2,070,000 0 2,070,000
Borden Plant (M-1, M-24) 296,000 (81,000) 215,000 0 215,000
  29,195,000 27,000 29,222,000 (33,000) 29,189,000
NON-ECAM          
Production 13,550,000 (105,000) 13,445,000 (67,000) 13,378,000
Distribution 3,030,000 (189,000) 2,841,000 0 2,841,000
Transmission 343,000 (36,000) 307,000 0 307,000
General          
Amortization 312,000 99,000 411,000 0 411,000
Donations

73,000

(3,000)

70,000

(35,000)

35,000

Other

9,740,000 (178,100) 9,561,900 (30,000) 9,531,900
  27,048,000

56,243,000

(412,100)

(385,100)

26,635,900

55,857,900

(132,000)

(165,000)

26,503,900

55,692,900

CAPITAL RELATED CHARGES

Depreciation

6,755,487 (98,768) 6,656,719 0 6,656,719
Depreciation - Adjustment 203,898 0 203,898 (81,559) 122,339

Interest - Long-Term Debt

5,388,055 170,833 5,558,888 (49,050) 5,509,838
Interest - Bank Loan 335,318 (194,971) 140,347 6,590 146,937

Interest - AFUDC

(650,000) 0 (650,000) 0 (650,000)
Interest - Amortization of Financing Costs 63,230 4,799 68,029 0 68,029
Interest - Discount on Bonds and Shares (3,000) 0 (3,000) 0 (3,000)
Income Tax - Current 6,028,969 76,433 6,105,402 (145,681) 5,959,721
Income Tax - Deferred 428,973 140,449 569,422 35,756 605,178

Preferred Dividends

1,271,400 0 1,271,400 0 1,271,400
Return on Common Equity 6,771,275 54,517 6,825,792 (140,817) 6,684,975
  26,593,605 153,292 26,746,897 (374,761) 26,372,136
TOTAL REVENUE REQUIREMENT 82,836,605 (231,808) 82,604,797 (539,761) 82,065,036
Fuel Clause Revenue (226,688) (18,293) (244,981) 12,007 (232,974)
Deferred ECAM 2,049,889 520,892 2,570,781 21,165 2,591,946
Other Revenue (485,000) (23,000) (508,000) 0 (508,000)
REVENUE FROM BASIC RATES 84,174,806 247,791 84,422,597 (506,589) 83,916,008

 


MARITIME ELECTRIC COMPANY, LIMITED

GENERAL TARIFF

THIS TARIFF SPECIFIES THE RATES AND CHARGES

APPLICABLE TO SERVICES PROVIDED BY

MARITIME ELECTRIC COMPANY, LIMITED

RULES AND REGULATIONS GOVERNING THE TYPES

OF SERVICES AND MANNER IN WHICH SUCH

SERVICES ARE PROVIDED ARE CONTAINED IN THE

PRINCE EDWARD ISLAND ELECTRIC UTILITIES

GENERAL RULES AND REGULATIONS

EFFECTIVE: JULY 1, 1993


CONTENTS

TABLE OF CONTENTS

ENERGY COST ADJUSTMENT MECHANISM

RATES FOR CHARLOTTETOWN AREA

RESIDENTIAL SERVICE RATE

STREET LIGHTING RATE

GENERAL SERVICE RATE

RATES FOR TOWN AREAS

RESIDENTIAL SERVICE RATE

RATES FOR RURAL AREAS

RESIDENTIAL SERVICE RATE

RATES FOR TOWN AND RURAL AREAS

GENERAL SERVICE RATE

STREET LIGHTING RATE

ISLAND-WIDE RATES

LARGE GENERAL SERVICE (FIRM) RATE

LARGE GENERAL SERVICE (INTERRUPTIBLE) RATE

INDUSTRIAL RATE

ALL-ELECTRIC GENERAL SERVICE RATE

UNMETERED RATE

EMERGENCY ALARM RATE

TRANSMISSION VOLTAGE RATE

RATES FOR THE TOWN OF SUMMERSIDE

CATV POLE ATTACHMENT RATE

INTERRUPTIBLE OPTION

 

ENERGY COST ADJUSTMENT MECHANISM

APPLICATION: The following energy cost adjustment mechanism applies to all scheduled rates applicable to the sale of energy by Maritime Electric Company, Limited.

ENERGY COST ADJUSTMENT MECHANISM: The energy charge under all applicable rates will be subject to a rate adjustment when the cost of fuel used to generate electricity in the Company's generating plants and the cost of purchased electricity increases or decreases from the base cost.

The base cost for fuel used in generating electricity and for purchased electricity is 4.043 cents per kilowatt hour net produced and purchased.

The rate adjustment per kilowatt hour sold and applied in each month will be calculated as follows:

1. Determine the total cost of fuel used to generate electricity in the Company's generating plants and the cost of purchased electricity in the second month preceding the billing month. For the purposes of this paragraph, purchased electricity includes the following percentages of the following costs associated with purchases from the Pt. LePreau generating station:

Account 1991* 1992 1993 1994
Fuel 100.0 100.0 100.0 100.0
Fuel Inventory 100.0 100.0 100.0 100.0
Capital Charges 100.0 66.6 33.3 0.0
Inventory Charge 100.0 66.6 33.3 0.0
Operations & Maint. 100.0 66.6 33.3 0.0
Decommissioning Fee 100.0 66.6 33.3 0.0
Guarantee Fee 100.0 66.6 33.3 0.0
Heavy Water Charge 100.0 66.6 33.3 0.0

*Nov-Dec Only

2. Calculate any over (or under) collection of energy cost adjustment expense due to monthly fluctuations in (kWh) sales, multiply kWh sales in the second month preceding the billing month by the energy cost adjustment in that month to determine actual energy cost adjustment revenue recovered. Subtract this from the calculated excess cost which was used to establish the rate adjustment for the second month preceding the billing month.

3. Determine the net kilowatt hours of energy generated in the Company's generating plants and the kilowatt hours of energy purchased in the second month preceding the billing month.

4. Multiply the quantity of energy determined in (3) above by the base cost per net kilowatt hour of 4.043 cents to determine the base cost of fuel.

5. Subtract the base cost of fuel determined in (4) above from the sum of the cost determined in (1) above to calculate the amount of the excess cost of fuel and purchased electricity.

6. Add the excess cost of fuel and purchased electricity calculated in (5) above to the corresponding excess costs for the preceding eleven months and divide the result by twelve to determine the average excess cost of fuel and purchased electricity.

7. Add the cost and expense calculated in (2) and (6) above to determine the total amount of adjustment required.

8. Divide the adjustment calculated in (7) above by the total energy sold by the Company in the second month preceding the billing month to determine the rate adjustment required in cents per kilowatt hour sold and which will be applied in the billing month. The rate adjustment will be calculated to the nearest three decimal places (five decimal places on the dollar).

9. Until further order of the Commission, if at the end of any month the Company's Deferred Energy Cost Adjustment account contains a negative balance in excess of $2,000,000, a further adjustment will be made as follows: $2,000,000 will be subtracted from the Deferred Energy Cost Adjustment account for the third month preceding the billing month and the resulting amount divided by twelve to determine the adjustment amount required for the month. This adjustment amount will be divided by the total energy sold by the Company in the second month preceding the billing month to determine the adjustment required in cents per kilowatt hour sold which will be applied in the billing month. This negative rate adjustment will be calculated to the nearest three decimal places (five decimal places on the dollar).The amount to be debited to the Deferred Energy Cost Adjustment account as a result of this further adjustment shall be the negative rate adjustment multiplied by the actual number of kWh sold in the month in which the negative rate adjustment is applied.

RATES FOR CHARLOTTETOWN AREA

The Charlottetown Area shall include the area bounded by the following description:

Commencing at a point on the shoreline of the Hillsborough River where it is joined by Wright's Creek and following the shoreline of the Hillsborough River and the North River to its intersection with the Trans Canada Highway at the T.C.H. Causeway; thence easterly along the Trans Canada Highway and in a line in continuation thereof to a point of intersection with the Canadian National Railway right-of-way; thence in a northerly direction following the C.N.R. right-of-way to the point of intersection with the Sherwood Road; thence easterly along the Sherwood Road to the Brackley Point Road; thence northerly along the Brackley Point Road to the north boundary of the Charlottetown Airport; thence following the various courses of the Airport boundary as it existed prior to 1978 and as shown as property of Department of Public Works (Canada) on Department of Public Works Plan S-500 dated April, 1978 and registered with the Registrar of Deeds for Queens County on August 16, 1979 to the point of intersection with the Norwood Road; thence following the Norwood Road to its point of intersection with the southern branch of Wright's Creek; thence following Wright's Creek to the point of commencement of the shoreline of the Hillsborough River.

In all cases where boundary lines are roads or highways, service will be provided to all premises on both sides of the road or highway to a maximum distance of 61m outside the described area.

RATES FOR CHARLOTTETOWN AREA

RESIDENTIAL SERVICE RATE

AVAILABILITY: The rate for residential service shall apply to all electric energy used by the customers for domestic or household purposes, including lighting, heating, cooking, refrigeration and power for ordinary small household appliances. Service shall be rendered under this rate through one meter to each individual apartment, each unit of a multiple dwelling, and the like. Two or more household units shall not be connected together and served under this rate, and it shall not apply to hotels, public buildings, public boarding houses, rooming houses, institutional dormitories and the like.

Service Charge: $12.85 per month.

Energy Charge: 10.547 cents per kWh for all consumption.

ENERGY COST ADJUSTMENT MECHANISM: This rate is subject to the Energy Cost Adjustment Mechanism.

NOTE: Government Rebate not included in these Rates.

RATES FOR CHARLOTTETOWN AREA

STREET LIGHTING RATE

AVAILABILITY: This rate shall apply to street or area lighting service furnished within the Charlottetown area, and shall be for all-night service every night on a schedule of approximately 4,100 hours per year, and shall include installation and maintenance of street lighting fixtures, renewal of lamps, and electric energy.

Mercury Vapour rates are closed. No new addition shall be made to these fixtures.

Mercury Vapour

Annual kWh Fixture Size and Type Rates
656 125 Watts Sentinel $ 168.00 per fixture per yr
881 175 Watts Sentinel $ 192.96 per fixture per yr
1210 50 Watts Standard $ 230.16 per fixture per yr
1906 400 Watts Standard $ 323.40 per fixture per yr

 

High Pressure Sodium

Annual kWh Fixture Size and Type Rates
389 70 Watts Lantern $ 462.60 per fixture per yr
389 70 Watts Standard $ 177.12 per fixture per yr
553 100 Watts Standard $ 201.00 per fixture per yr
779 150 Watts Standard $ 215.40 per fixture per yr
1283 250 Watts Standard $ 287.88 per fixture per yr
1886 400 Watts Standard $ 360.96 per fixture per yr

Optional 10' mounting bracket for standards $13.76** per year.

ENERGY COST ADJUSTMENT MECHANISM: This rate is subject to the Energy Cost Adjustment Mechanism.

NOTE: Government Rebate not included in these rates.

* Circuits for Lantern installations are to be supplied by the customer.

** If the optional arm is to be installed at time of original installation, no installation charges are applicable. Otherwise the customer requesting the installation shall pay the applicable charges.

RATES FOR CHARLOTTETOWN AREA

GENERAL SERVICE RATE

AVAILABILITY: This rate shall apply to electric energy used by customers not covered by other rate classifications. Where service to a customer can be measured through a single meter and service will not be impaired by such grouping, single metering may be permitted.

A discount of $0.38 per kW of monthly billing demand is available to customers who choose to supply, install and maintain their own service transformer. (Refer Article 4.13, Electric Utility General Regulations).

A) Light, Heat and Power up to 3 kW Connected Load:

Demand Charge: $7.89 per month per kW of connected load.

B) Light, Heat and Power Over 3 kW Connected Load:

Demand Charge: $9.21 per month per kW of maximum demand

OR $5.06 per month per kW of maximum demand when the load falls in the off-peak classification.

C) Energy Charge: 10.556 cents per kWh for the first 200 kWh per month

per kW of maximum demand.

9.441 cents per kWh for all consumption over 200 kWh per month per kW of maximum demand.

ENERGY COST ADJUSTMENT MECHANISM: This rate is subject to the Energy Cost Adjustment Mechanism.

NOTE: Government Rebate not included in these Rates.

RATES FOR TOWN AREAS

The Town Areas shall include the areas within the corporate limits of the Towns of Georgetown, Montague, Souris, Borden, Kensington and Alberton.

RATES FOR TOWN AREAS

RESIDENTIAL SERVICE RATE

AVAILABILITY: The rate for residential service shall apply to all electric energy used by the customer for domestic or household purposes, including lighting, heating, cooking, refrigeration and power for ordinary small household appliances. Service shall be rendered under this rate through one meter to each individual household unit, i.e., single family house, individual apartment, each unit of a multiple dwelling, and the like. Two or more household units shall not be connected together and served under this rate, and it shall not apply to hotels, motels, public buildings, public boarding houses, rooming houses, institutional dormitories and the like.

Service Charge: $13.73 per month.

Energy Charge: 10.631 cents per kWh for all consumption.

ENERGY COST ADJUSTMENT MECHANISM: This rate is subject to the Energy Cost Adjustment Mechanism.

NOTE: Government Rebate not included in these Rates.

RATES FOR RURAL AREAS

The areas to be served under the "Rates for Rural Areas" shall comprise all areas, communities and municipalities within the Province exclusive of the Charlottetown Area and the Town areas as herein before described, as well as that area of the Province served by the Town of Summerside Electric Department as set forth in their Schedule of Rates.

RATES FOR RURAL AREAS

RESIDENTIAL SERVICE RATE

AVAILABILITY: The rate for residential service shall apply to all electric energy used by the customer for domestic or household purposes, including lighting, heating, cooking, refrigeration and power for ordinary small household appliances.Service shall be rendered under this rate through one meter to each individual apartment, each unit of a multiple dwelling, and the like.Two or more household units shall not be connected together and served under this rate, and it shall not apply to hotels, public buildings, public boarding houses, rooming houses, institutional dormitories and the like.

A farm may be considered a residential customer if it has an occupied domestic residence and may be served through a single meter at this rate.Service supplied at this rate shall be single-phase to a maximum service entrance capacity of 200 amperes to each individual residence or household. Load requirements in excess of this capacity shall be served under the General Service Rate.

Service Charge: $14.50 per month.

Energy Charge: 10.631 cents per kWh for all consumption.

ENERGY COST ADJUSTMENT MECHANISM: This rate is subject to the Energy Cost Adjustment Mechanism.

NOTE: Government Rebate not included in these Rates.

RATES FOR TOWN AND RURAL AREAS

GENERAL SERVICE RATE

AVAILABILITY: This rate shall apply to electric energy used by customers not covered by other rate classifications. Where service to a customer can be measured through a single meter and service will not be impaired by such a grouping, single metering may be permitted.

A discount of $0.38 per kW of monthly billing demand is available to customers who choose to supply, install and maintain their own service transformers. (Refer Article 4.13, Electric Utility General Regulations).

A) Light, Heat and Power up to 3 kW Connected Load:

Demand Charge: $7.98 per month per kW of connected load.

B) Light, Heat and Power over 3 kW Connected Load

Demand Charge: $9.28 per month per kW of maximum demand

OR $5.14 per month per kW of maximum demand when the load falls in the off-peak classification.

C) Energy Charge: 11.038 cents kWh for the first 200 kWh per month per

kW of maximum demand.

9.848 cents per kWh for all consumption over 200 kWh per month per kW of maximum demand.

ENERGY COST ADJUSTMENT MECHANISM: This rate is subject to the Energy Cost Adjustment Mechanism.

NOTE: Government Rebate not included in these Rates.

RATES FOR TOWN AND RURAL AREAS

STREET LIGHTING RATE

AVAILABILITY: This rate shall apply to street or area lighting service furnished within the Town and Rural areas, and shall be for all-night service every night on a schedule of approximately 4,100 hours per year, and shall include installation and maintenance of street lighting fixtures, renewal of lamps, and electric energy.

Mercury vapour rates are closed. No new additions shall be made to these fixtures.

Mercury Vapour

Annual kWh Fixture Size and Type Rates
656 125 Watts Sentinel $ 173.64 per fixture per yr
881 175 Watts Sentinel $ 198.60 per fixture per yr
1210 250 Watts Standard $ 236.52 per fixture per yr
1906 400 Watts Standard $ 329.52 per fixture per yr

High Pressure Sodium

Annual kWh Fixture Size and Type Rates
389 70 Watts Standard $ 186.72 per fixture per yr
553 100 Watts Standard $ 210.48 per fixture per yr
779 150 Watts Standard $ 224.88 per fixture per yr
1283 250 Watts Standard $ 297.24 per fixture per yr
1886 400 Watts Standard $ 369.96 per fixture per yr

Optional 10' mounting bracket for standards $13.76** per year.

ENERGY COST ADJUSTMENT MECHANISM: This rate is subject to the Energy Cost Adjustment Mechanism.

NOTE: Government Rebate not included in these rates.

** If the optional arm is to be installed at time of original installation, no installation charges are applicable.Otherwise the customer requesting the installation shall pay the applicable charges.

LARGE GENERAL SERVICE (FIRM) RATE

AVAILABILITY: This rate shall apply to electric energy used by customers located in areas capable of being served by the existing power system who are served 12 months of the year and whose annual maximum demand is not less than 50 kVA and who sign an agreement with the utility relative to their load requirements.

A discount of $0.32 per kVA of monthly billing demand is available to customers who choose to supply, install and maintain their own service transformers (Refer Article 4.13, Electric Utility General Regulations).

CORRECTION Customers served under this rate by single-phase

FACTOR: service shall be metered in kW and a correction factor of 1.175 applied to determine kVA for

Demand Charge: $6.92 per month per kVA of billing demand when

the load falls in the on-peak classification.

OR $4.18 per month per kVA of billing demand when the load falls in the off-peak classification.

Energy Charge: 9.034 cents per kWh for the first 200 kWh per month per kVA of billing demand.

6.726 cents per kWh for all over 200 kWh per month per kVA of billing demand.

BILLING DEMAND: The billing demand for either option will be the maximum metered kVA demand during the billing period, but not less than 50% of the maximum demand established over the preceding eleven months.

ENERGY COST ADJUSTMENT MECHANISM: This rate is subject to the Energy Cost Adjustment Mechanism.

NOTE: Government Rebate not included in these rates.

LARGE GENERAL SERVICE (INTERRUPTIBLE) RATE

AVAILABILITY: This rate shall apply to electric energy used by customers located in areas capable of being served by the existing power system who are served 12 months of the year and whose annual maximum interruptible demand is not less than 500 kVA and who sign an agreement with the utility relative to their load requirements.

A discount of $0.32 per kVA of monthly billing demand is available to customers who choose to supply, install and maintain their own service transformers (Refer Article 4.13, Electric Utility General Regulations).

CORRECTION Customers served under this rate by single-phase service shall

FACTOR: be metered in kW and a correction factor of 1.175 applied to determine kVA for billing purposes.

Demand Charge: $18.49 per month per kVA of firm demand

AND $14.40 per month per kVA of interruptible demand for the portion of the demand which falls in the interruptible classification.

Energy Charge: 4.637 cents per kWh

BILLING DEMAND: The billing demand for either option will be the maximum metered kVA demand during the billing period, but not less than 50% of the maximum demand established over the preceding eleven months.

ENERGY COST ADJUSTMENT MECHANISM: This rate is subject to the Energy Cost Adjustment Mechanism.

NOTE: Government Rebate not included in these rates.

INDUSTRIAL RATE

AVAILABILITY: This rate shall apply to electric energy used by customers located in areas capable of being served by the existing power system who are engaged in manufacturing, production, processing and other enterprises of a like nature.

A discount of $0.32 per kVA of monthly billing demand is available to customers who choose to supply, install and maintain their own service transformers (Refer Article 4.13, Electric Utility General Regulations).

CHARACTERISTICS: Customers served under this rate must have a load with an annual maximum demand of not less than 25 kVA.

TERMS OF This rate shall apply for a minimum of four consecutive months

CONTRACT: in any 12-month period.

CORRECTION Customers served under this rate by single-phase service shall

FACTOR: be metered in kW and a correction factor of 1.175 applied to determine kVA for billing purposes.

Demand Charge: $6.51 per month per kVA of billing demand.

Energy Charge: 9.668 cents per kWh for the first 200 kWh per month per kVA of billing demand.

8.380 cents per kWh for the balance of kWh per month.

BILLING DEMAND: The billing demand will be the maximum metered kVA demand during the month, but not less than 50% of the maximum demand established over the preceding eleven months.

ENERGY COST ADJUSTMENT MECHANISM: This rate is subject to the Energy Cost Adjustment Mechanism.

NOTE: Government Rebate not included in these Rates.

ALL-ELECTRIC GENERAL SERVICE RATE

AVAILABILITY: This rate shall apply to all electric energy used by qualifying customers in areas capable of being served.

QUALIFICATIONS: To any establishment in which electricity is the only source of energy for space heating, water heating, and all other services; and also provided that the connected space heating load is not less than 1/3 of the total connected load. Customers who qualify for this rate should ensure that the building is adequately insulated for electric space heating if used during the period 1 November to 30 April.

Demand Charge: $8.62 per month per kW of maximum demand.

Energy Charge: 9.343 cents per kWh for the first 200 kWh per month per kW of maximum demand.

7.623 cents per kWh for all energy in excess of 200 kWh per month per kW of maximum demand.

MINIMUM BILL: $24.29 per month, or the demand charge whichever is greater.

ENERGY COST ADJUSTMENT MECHANISM: This rate is subject to the Energy Cost Adjustment Mechanism.

NOTE: Government Rebate not included in these Rates.

UNMETERED RATE

AVAILABILITY: This rate shall apply to electric energy used to supply certain prescribed classifications of service to customer-owned devices which it is considered not practicable to meter, such as area lighting, telephone booths and traffic warning devices (it shall not apply to intersection traffic control lights). It shall not be available on a premises already served by a metered service.

INSTALLATION All costs relative to installation and maintenance shall be borne

MAINTENANCE: by the customer. The Utility may do installation and maintenance upon the request and at the expense of the customer.

METERING: No energy metering device shall be used to serve customers which fall within this rate. The prescribed classification will be charged as follows:

kWh/Month

37 Area Lighting Charge: $5.01 per month per 100 watts of connected load.
37 Flashing Light Charge: $5.01 per month per 100 watts of connected load.
74 Continuous Light Charge: $8.92 per month per 100 watts of connected load.
74 Telephone Booth Charge: $8.92 per month per 100 watts of connected load.

MINIMUM CHARGE: The minimum charge shall be $5.01 per month with not less than six monthly charges in any one year.

ENERGY COST ADJUSTMENT MECHANISM: This rate is subject to the Energy Cost Adjustment Mechanism.

NOTE: Government Rebate not included in these Rates.

EMERGENCY ALARM RATE

AVAILABILITY: This rate shall apply to electric energy used by legally constituted fire fighting departments and the Government of Canada Alert Warning System for the purpose of operating sirens.

INSTALLATION: All equipment installed for fire alarm and alert warning systems shall be the responsibility of the department concerned.

METERING: No energy metering device shall be used with regard to alarm equipment which falls within this rate. All energy for equipment other than sirens will be metered.

Demand Charge: No charge.

Energy Charge: No charge.

TRANSMISSION VOLTAGE RATE

AVAILABILITY: This rate shall apply to electric energy used by customers located in areas capable of being served directly from the existing 69kV transmission system who are served 12 months of the year and whose annual maximum demand is not less than 2500 kVA and who sign an agreement with the utility relative to their load requirements. Under this rate, the customer must supply, install and maintain his own 69kV transformer step-down facility. The design of this facility shall conform to Maritime Electric's standards.

This rate is available only to customers who have a minimum annual load factor of 25%.

Demand Charge: $14.62 per month per kVA of firm demand

AND $9.68 per month per kVA of interruptible demand for the portion of the demand which falls in the interruptible classification.

Energy Charge: 4.617 cents per kWh

BILLING DEMAND: The billing demand for either option shall be the maximum metered kVA demand during the billing period, but not less than 75% of the maximum demand established over the preceding 11 months.

METERING POINT: This rate shall apply to electric power and energy sold at the 69kV level. If the metering point is on the low voltage side of the 69kV step-down transformer, then the demand and energy readings shall be adjusted upward to include the transformation losses.

ENERGY COST ADJUSTMENT MECHANISM: This rate is subject to the Energy Cost Adjustment Mechanism.

NOTE: Government Rebate not included in these rates.

RATES FOR TOWN OF SUMMERSIDE

IN THIS RATE SCHEDULE:

"Firm Demand" means the difference between the Town's estimated annual peak demand and its plant capacity, or such higher amount as is requested by the Town in advance of the applicable period. The Town shall not reduce its Firm Demand without two years written notice to Maritime Electric.

"Annual Peak Demand" means the highest demand during the calendar year, as measured in kilowatts at the Sherbrooke substation.

"Interruptible Demand" means any demand which is not firm demand.

"Capacity Deficiency" means the difference between:

(a) Annual peak demand, and

(b) the sum of,

(i) Plant capacity, and

(ii) firm demand.

"Short Term Firm Demand" means firm demand requested for short periods of time as required to replace temporarily unavailable operating capacity provided that arrangements are actively being made to restore the unit or units to full capacity.

RATES:

AVAILABILITY: These rates shall apply to electric power and energy delivered to the Town of Summerside for distribution to the Town's own customers.

Firm Demand: $17.04 per kW per month.

Interruptible Demand: $ 8.24 per kW per month as determined from the monthly maximum kW demand.

Short Term

Firm Demand: $91.21 per MW per day.

Capacity Deficiency

Charge: $19.60 per kW per month.

Capacity deficiency charge will apply from the beginning of the calendar year in which the deficiency existed until the deficiency has been corrected.

Energy Charge: 4.678 cents per kWh.

ENERGY COST ADJUSTMENT MECHANISM: This rate is subject to the Energy Cost Adjustment Mechanism.

INTERRUPTIBLE CONDITIONS:

1)  Maritime Electric may at any time and from time to time request the Town to reduce its load to Firm Demand or to such higher extent as Maritime Electric may request and the Town shall comply with the request, provided that no such request to reduce load shall be used by the Town to reduce the load to any customer of the Town below his firm demand requirements or to disconnect any customer.

2)  The Town shall ensure that it is at all times able to comply with a request made under 1. Such a request may be communicated in any manner which Maritime Electric may elect to use to communicate the request.

3)  Interruption hereunder is entirely at the discretion of Maritime Electric and may be requested by Maritime Electric whenever Maritime Electric deems it necessary or desirable to reduce the load on its power system or any part thereof.

4)  The Town shall, at all times, have instituted procedures which will enable it, whenever requested by Maritime Electric, to reduce its load to the extent requested by Maritime Electric, and the Town shall acquaint its operating staff with such procedures and ensure that its operating staff is trained and otherwise prepared to so reduce the Town's load.

5)  Whenever requested by Maritime Electric, the Town will, from time to time, demonstrate to the satisfaction of Maritime Electric that it has complied with 4.

6)  If the Town defaults in performance of any of its obligations under these conditions then Maritime Electric may calculate the Town's bills for the next 12 months as if, for that period, the Town's Firm Demand was equal to the Town's peak load during the peak reduction period (excluding the first ten minutes).

7)  Nothing in this Schedule is to be construed as an assurance or undertaking by Maritime Electric that the Town's Firm Demand will not be subject to interruption or diminution by reason of matters beyond Maritime Electric's reasonable control or for repair, overhaul, installation, removal or inspection of lines and equipment.

8)  The Town shall, whenever requested by Maritime Electric, provide such information on and tests of its system as may reasonably be required by Maritime Electric for the purpose of determining the Town's annual peak demand, plant capacity, interruptible demand, and reserve planning capacity and otherwise for the purpose of determining the amounts payable by the Town hereunder.

CATV POLE ATTACHMENT FEE

Companies operating community antenna television (CATV) systems are permitted, in accordance with the terms of written contract, to attach their aerial cables and equipment to electric power poles owned by Maritime Electric. The CATV operators shall pay to Maritime Electric an attachment fee of $5.50 per pole per annum. The attachment fee is subject to revision in accordance with the terms of the written contract.

INTERRUPTIBLE OPTION

TERMS AND CONDITIONS OF SERVICE

1. DEFINITIONS

(i) Firm Demand means 15% of the maximum kVA demand of the customer for the most recent 12 months or such other amount which the customer stipulates by letter as the minimum kVA which the customer considers sufficient for the operation of its essential equipment. A customer may stipulate an essential power amount as low as zero kVA.

(ii) Interruptible Demand means all demand in excess of Firm Demand but in no case less than 500 kVA during any 12 month period.

2. CHANGES IN FIRM AND INTERRUPTIBLE DEMAND

Not more often than once in any 12 month period the customer may apply in writing to Maritime Electric for an increase or decrease in the amount of Firm Demand for the purpose of this rate with a corresponding change in the amount of Interruptible Demand, and Maritime Electric may, but need not, allow the increase or decrease. Maritime Electric is not required under this rate to provide any additional generating facilities for Interruptible Demand and may, at times, be unable to accept a decrease in the Interruptible Demand load of the customer with corresponding increase in Firm Demand. An increase in the amount of Firm Demand shall not result in the amount of Interruptible Demand being less than that 500 kVA.

3. CUSTOMER EQUIPMENT

The customer shall install load reduction equipment which will automatically reduce the customer's load to a level no higher than the Firm Demand amount within not more than ten minutes after receipt of a signal at the customer's premises from Maritime Electric. The customer, who will own it, is responsible for purchasing, installing and maintaining this automatic load reduction equipment.

4. MARITIME ELECTRIC EQUIPMENT

Maritime electric shall own, install, operate and maintain, at the customer's expense, a remote control system that will provide a signal at the customer's premises that will initiate the operation of the customer's load reduction equipment.

5. INTERRUPTION OF INTERRUPTIBLE DEMAND

Maritime Electric may at any time initiate the customer's automatic load reduction sequence, and the customer shall ensure that its equipment is programmed to reduce its load within not more than ten minutes to a level that does not exceed the stipulated amount of Firm Demand.

Maritime Electric reserves the right, in case of a malfunction of its communication equipment, to notify the customer by telephone to interrupt and the customer shall reduce its load to the Firm Demand within not more than ten minutes.

6. AVOIDANCE OF RISK TO CUSTOMER AND OTHERS

It is the responsibility of the customer to ensure that reduction in its load to Firm Demand can be carried out without putting the customer or others who may be affected by reductions in the customer's load at risk of loss or damage. The customer shall therefore take all steps necessary to ensure that neither the customer nor anyone else who may be affected by reductions in the customer's load is exposed to loss or damage by reason of reduction in the customer's load to Firm Demand.

7. QUALITY OF SERVICE

The interruption of Interruptible Demand is entirely at the discretion of Maritime Electric and may occur whenever Maritime Electric deems it necessary or desirable to reduce the load on its power system or any part thereof. Without limitation of the generality of the foregoing, interruption of Interruptible Demand may occur for the purpose of demonstration or for the purpose of reducing the peak load on Maritime Electric's system. Nothing in this condition is to be construed as an assurance or undertaking by Maritime Electric that the customer's Firm Demand will not be subject to interruption or diminution. Maritime Electric will take the usual precautions to guard against unscheduled interruptions and diminutions of the customer's Firm Demand and will, to the extent consistent with the proper operation of its system as a whole, use due diligence to terminate unscheduled interruptions and diminutions in Firm Demand.

8. COMPLIANCE, DEFAULT AND TERMINATION

Subject to Section 5, any default by a customer in the performance of its obligations under this rate, unless directly attributable to unavoidable or unforseeable malfunction of the customer's or Maritime Electric's automatic load reduction equipment, shall render the customer ineligible for service under the interruptible option for twelve months, beginning the month following the month in which the default occurs. Thereafter, the customer may be returned to the interruptible option provided that the customer demonstrates, to the satisfaction of Maritime Electric, that it has rectified the cause of such default and will meet its obligations under the Interruptible Option in the future.

9. METERING

Maritime Electric may install, maintain and, from time to time replace, such metering and other measurement devices as it deems necessary for the purpose of determining whether the customer is in compliance with the terms and conditions of this rate. Maritime Electric's records of readings of such meters and other measurement devices shall be proof of the amounts and other matters reported in those records. The customer shall pay the difference between the cost of such metering and other measurement devices and the cost of metering that would be used if the customer were not served under this rate.