If at the end of any 36 month period immediately preceding a monthly billing period, a new and later Company’s System Maximum in such preceding 36 months has not occurred, the charge for the 37^th and subsequent months, and until a succeeding Company’s System Maximum has again occurred, shall be at the applicable rate specified above reduced by fifty (50) percent.

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.

The Optional Demand Charge for any month shall be the sum of the following:

1. $31.10 per kilowatt for all kilowatts of Billing Demand in the month, plus

2. $6.68 per kilowatt for the total number of kilowatts of the Customer’s Demand at the time of the most recent Company’s System Maximum. This portion of the Demand Charge shall be first applicable in the month following the establishment of a new Company’s System Maximum and shall continue to and including the month in which a higher Company’s System Maximum is established, except as provided below.

   If at the end of any 36 month period immediately preceding a monthly billing period, a new and later Company’s System Maximum in such preceding 36 months has not occurred, the charge for the 37^th and subsequent months, and until a succeeding Company’s System Maximum has again occurred, shall be at the applicable rate specified above reduced by fifty (50) percent.