Base/Customer Charge Monthly Bill: A fixed charge of two hundred and fifty dollars ($250) will be charged on a monthly basis regardless of consumption quantity plus the demand charge as computed under the above schedule; or such amount as may be required by the Company when necessary to justify the investment required to provide the service.

Determination of Maximum Demand: The customer's maximum demand shall be the maximum rate at which energy is used for any period of thirty (30) consecutive minutes of the month for which the bill is rendered as shown by the Company's demand meter, but shall not be considered to be less than fifty (50) KW.

Determination of Billing Demand: The billing demand upon which the demand charge is based shall be the maximum demand as determined above corrected for power factor as set forth under Power Factor Clause, provided that no billing demand shall be considered as less than the highest billing demand previously determined during a twelve (12) month period ending with the current month.

Power Factor Clause: The consumer shall at all times take and use power in such a manner that the power factor shall be as nearly one hundred percent (100%) as possible, but when the average power factor as determined by continuous measurement of lagging reactive kilovolt ampere hours is less than ninety-five percent (95%) the billing demand shall be determined by multiplying the maximum demand, measured by the demand meter for the billing period by ninety-five percent (95%) and dividing the product thus obtained by the actual average power factor expressed in percent. The company may, at its option, use for adjustment the power factor as determined by test during periods of normal operation of the consumer's equipment instead of the average power factor.

Primary Service Discount: When all of the following conditions are met, a discount of five percent (5%) of the net monthly bill computed will be allowed:

1. The customer takes service at 12,500y/7.200 volts.
2. The customer owns, maintains, and operates all equipment on customer's side of point of delivery.

When the customer qualifies and elects to take primary service, but the company chooses to meter on the load side of the customer's transformers, the five percent (5%) discount shall be allowed, but the KWH billed shall be increased by the amount of the transformer losses computed as follows:

One percent (1%) of the total KVA rating of the customer's transformers times seven hundred thirty (730) hours.

Secondary Service/Primary Metering Discount: When the customer does not qualify for the five percent (5%) primary service discount and the Company chooses to meter on the supply side of the Company's transformers, the five percent (5%) primary service discount will not be allowed, but the KWH shall be decreased by the amount of the transformer losses computed as follows:

One percent (1%) of the total KVA rating of the Company's transformers times seven hundred thirty (730) hours. The decrease in KWH shall not exceed five percent (5%) of metered KWH.

Fuel Adjustment: The above energy charges will be increased or decreased to reflect the charge in the cost of fuel and purchased power incurred by the Company for the supply of service hereunder, as prescribed in Fuel Adjustment Clause.

Taxes: The net monthly bill is subject to the addition of all taxes levied on power bills.

Payment: Payment shall be due fifteen (15) days from the billing date and if not paid on or before the fifteenth (15th) day following the billing date, a late charge of ten percent (10%) may be added to the bill.

Contract Period: Contracts under this schedule shall be for not less than one (1) year, but longer contracts (subject also to special minimum guarantees) may be necessary in cases warranted by special circumstances or unusually large investments by the Company.