No. 4 of 6 Sheets

POWER FACTOR CORRECTION

GENERAL TERMS AND CONDITIONS OF SERVICE

1. Contract

   Contracts under this rate schedule shall be made for a term to be agreed upon between the Company and the Customer considering the amount of the electrical load, the location of the electrical load, and the facilities to be furnished by the Company to serve the electrical load.

   In such contract it shall be proper to include such provisions, if any, as may be agreed upon between the Company and the Customer with respect to special terms and conditions under which service is to be furnished hereunder, including but not limited to, the electrical capacity to be supplied, voltage to be supplied, and facilities to be provided by each party.

2. Metering

   The electric energy to be used under the terms of this schedule shall be measured at the delivery voltage as to maximum demand, use of electric energy and power factor determination through meters to be located in a building or buildings approved by the Company, and furnished by the Customer on the Customer’s premises. The Company shall own, furnish and install the necessary metering equipment. All bills, other than bills for the minimum payments, shall be calculated upon the registration of these meters. The meters installed on the Customer’s premises, by the Company under this schedule, shall remain the property of the Company and shall be safely kept and protected by the Customer.

   The Company shall, at all times, have the right to inspect and test meters, and if found to be defective or inaccurate, to repair or replace them at its option; provided that notice shall be given to the Customer before testing the meters so that the Customer may have its representative present, if desired. Any meter tested and found to be not more than one percent (1 %) inaccurate shall be considered accurate and correct but shall be adjusted to be as nearly correct as possible. If, as a result of any test hereunder, any meter shall be found inaccurate or incorrect in excess of one percent (1%), such meter shall be adjusted to be as nearly correct as possible, and the reading of such meter previously taken shall be corrected to the percentage of inaccuracy so found, but no such correction shall, without the consent of both parties, extend back beyond one-half of the period between the date of such test and the date of the last prior test showing the meter to be within one percent (1%) accurate, nor more than forty-five (45) days,