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NORTHERN INDIANA PUBLIC SERVICE COMPANY
IURC Electric Service Tariff
Original Volume No. 10
First Revised Sheet No. 18.3A
Superceding
Original Sheet No. 18.3A

RIDER 848.2
ECONOMIC DEVELOPMENT RIDER TO GENERAL SERVICE - LARGE USE,
OFF_PEAK AND INDUSTRIAL POWER SERVICE
RATE SCHEDULES 824, 826, 832 AND 833

No. 2 of 5 Sheets

RATE (Continued)

deemed the Customer's base load and will be billed on the appropriate Rate Schedule. For the energy requirements of qualifying new Customers, and for the non-base load service and energy requirements of existing Customers, a discount on monthly billings for all applicable purchases shall be applied in accordance with the following criteria for bills issued during the respective months starting from contract commencement date:

Year 1 Contract Up to 50% of the increased base rate charges

Year 2 Contract Up to 40% of the increased base rate charges

Year 3 Contract Up to 30% of the increased base rate charges

Year 4 Contract Up to 20% of the increased base rate charges

Year 5 Contract Up to 10% of the increased base rate charges

In no event, however, shall the incremental revenues derived from the discounted base rate charges, as stated above for serving the new or increased load, be allowed by the Company to be less than the Company's marginal energy costs, plus the marginal capacity costs, to serve said load or the minimum billing provisions of the base rate.

At the completion of the Rider contract term, the energy supplied in accordance with this Rider will be furnished under the appropriate Rate Schedule in accordance with the contract between the Company and the Customer.

The size and duration of discounts on monthly bills will be determined on an individual Customer basis given the degree of fulfillment of the following criteria. The determination of monthly discounts to be applied will be at the sole discretion of the Company, but such discounts will vary with the number and extent to which the listed criteria are met by Customer's proposed new or expanded load. As an alternative to the above discount tiers and at the Company's sole discretion, the Company may elect to offer levelized percentage discounts up to the maximum allowed over the 5-year contract period.




Issued Date Issued By
Daniel D. Gavito
Vice President, Regulatory & Government Policy - Indiana
Effective Date
March 26, 2003 Merrillville, Indiana March 26, 2003

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