Optional Demand Charge

If the Customer does not have electric generating equipment, other than minor standby equipment for emergency use as approved by the Company, the Customer may elect the following optional demand charge.

$14.52 per month per kilowatt for the first 50,000 kilowatts of Billing Demand

$14.11 per month per kilowatt for all over 50,000 kilowatts of Billing Demand

The Customer may elect the optional demand charge by giving the Company not less than 30 days’ prior written notice of its election setting forth in such notice the date on which they desire the optional demand charge to become effective. Once elected the optional demand charge shall continue for a period of not less than 36 months.

Energy Payment

37.073 mills per kilowatt hour for energy used per month for the first 660 hours of the Billing Demand for the month.

34.821 mills per kilowatt hour for energy used per month in excess of 660 hours of the billing Demand for the month.

The above rates are subject to a Purchased Power Cost Adjustment Tracking Factor, in accordance with the Order of the Indiana Utility Regulatory Commission approved December 17, 1976, in Cause No. 34614. The Purchased Power Cost Adjustment Tracking Factor stated in Appendix A - Sheet No. 58 is applicable hereto and is issued and effective at the dates shown on Appendix A.

The Customer’s demand of electric energy supplied shall be determined for each half-hour interval of the month and said demand in kilowatts for each half-hour interval shall be two times the number of kilowatt hours recorded during each such half-hour interval. The phrase "half-hour interval" shall mean thirty (30) minute period beginning or ending on a numbered clock hour as indicated by the clock controlling the metering equipment.

The Billing Demand for the month except during the Termination Period shall be the greatest of the following demands:

1. Seventy five percent (75%)of the greatest obligation to serve for the month.
2. The maximum half-hour demand registered for the month during the Peak Period.
3. The largest of the number of kilowatts determined by subtracting from the demand for each half-hour interval of the Off-Peak Period of the month the Surplus Capacity allotted for such half-hour interval.
4. Seventy five percent (75%) of the highest Billing Demand established in the immediately preceding eleven (11) months, adjusted, if the Company’s obligation to serve is increased or decreased. Each time the Company’s obligation to serve is increased or decreased, the highest Billing Demand established in the immediately preceding eleven (11) months shall be adjusted by a ratio of the Company’s current obligation to serve the Company’s obligation to serve in the month of the highest Billing Demand before multiplying by seventy five percent (75%).