The above charges shall be adjusted for cost of fuel in accordance with the formula set forth in Rule 39 of the accompanying Rules and Regulations. See Appendix B – Sheet No. 59 for applicable Fuel Cost Charge.

The rates and charges contained in this schedule are subject to a Customer Credit Adjustment Factor set forth in accordance with the Final Order of the Indiana Regulatory Commission, issued September 23, 2002, approving the Settlement Agreement in Cause No. 41746. See Appendix C - Sheet 59A, for the applicable Customer Credit percentage.

The above rates are subject to an Environmental Cost Recovery Mechanism Factor set forth in Rule 47 of the accompanying General Rules and Regulations, in accordance with the Order of the Indiana Utility Regulatory Commission approved November 26, 2002, in Cause No. 42150. The Environmental Cost Recovery Mechanism Factor stated in Appendix D, Sheet No. 59B, is applicable hereto and is issued and effective at the dates shown on Appendix D.

The above rates are subject to an Environmental Expense Recovery Mechanism Factor set forth in Rule 48 of the accompanying General Rules and Regulations, in accordance with the Order of the Indiana Utility Regulatory Commission approved November 26, 2002, in Cause No. 42150. The Environmental Expense Recovery Mechanism Factor stated in Appendix E, Sheet No. 59C, is applicable hereto and is issued and effective at the dates shown on Appendix E.

The electric service to be supplied under this rate shall be measured as to Maximum Demand and Electric Energy by suitable meters to be installed by the Company.

The Customer’s demand of electric energy supplied shall be determined for each one-hour interval of the month. The phrase "one-hour interval" shall mean sixty (60) 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 shall be the greatest of the following demands:

1. The maximum one-hour demand registered for the month.
2. 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%).

If the energy in kilowatt hours for any month is less than the product of 365 multiplied by the number of kilowatts constituting the Billing Demand for that month, then there shall be added to the Energy Payment one mill per kilowatt hour for such deficiency in kilowatt hours.

LAKE, LA PORTE, PORTER AND ST. JOSEPH COUNTIES, INDIANA