CITY OF CUERO
ELECTRIC RATE - SCHEDULE LP-2
(Large Commercial & Small Industrial)

Effective January 1, 2005

To all commercial and industrial customers where service is taken through one meter at one point of delivery and where the monthly peak kilowatt demand is greater than 100 kW and less than or equal to 1000 kW. Service will be furnished under this rate schedule subject to the established rules and regulations of the City covering this type of service. Before service is furnished, however, an individual service agreement contract between the customer and the City may be required outlining all details of the service to be supplied, the terms of the contract, and the obligations of each party.

A.C., 60 cycles per second, single phase, 120/240 volts; three-phase, 120/240, 120/208, 240/480, 2400/4160, 7200/12,470 volts, as available at point of service. Three-phase customers served via underground primary to pad-mounted transformers are offered only 120/208 or 277/480 volt service.

The minimum monthly charge under this rate schedule shall be the highest one of the following charges:

$868.18 per month plus applicable power cost adjustment on the kilowatt-hours used.

The sum of customer charge and demand charge under the above rate plus applicable power cost adjustment on the kilowatt-hours used.

The minimum monthly charge specified in the customer's service contract with the City, plus applicable power cost adjustment on the kilowatt-hours used.

The billing demand shall be the maximum 15 minute measured kilowatt demand in the billing period, but not less than 50% of the peak demand measured in the twelve month period ending with the current month. Unless otherwise specified in a firm electric service contract agreement, if at any time, a customer billed under this schedule continues for a period of twelve consecutive months without a demand in excess of 100 kW, Schedule LP-1 shall apply beginning with the first month succeeding such twelve month period. Likewise, a customer whose demand exceeds 1000 kW for any billing period shall be billed under Schedule LP-3 for the next twelve month period beginning with the current month.

Should the power factor be lower than 0.95 lagging, the City may adjust the measured demand by multiplying by the ratio of 0.95 to the actual power factor.

Where service is taken by the customer at the City's available primary voltage and where the customer owns, operates, and maintains all service facilities, except metering equipment, required to take service at such a voltage, a credit of 2% of the base rate charges will be allowed. Metering may be primary or secondary (corrected for the transformer losses) at the City's option.

The monthly charges under this rate schedule shall be increased or decreased as necessary to reflect the application of a Power Cost Adjustment, calculated in accordance with Schedule Power Cost Adjustment (PCA).

The above rate shall be subject to an increase or decrease in proportion to the amount of new taxes or increased taxes which the City may hereafter have to pay which are levied or imposed or increased or decreased by law or ordinances which were not in effect on the effective date of this schedule.

Where the customer reimburses the City for the cost of purchasing and installing the required demand metering equipment, as selected by the City, to continuously monitor a customer's load peak demand, this off-peak rider shall apply in computing the customer's monthly electric bill. Under this rider, the demand for billing purposes shall be the highest one of the following:

The peak demand measured during the period defined as the on-peak period, or

The peak demand measured during the period defined as the on-peak period plus one-half the amount the peak demand measured during the off-peak period exceeds the peak demand measured during the on-peak period.

         However, in no case shall the billing demand in any month be less than 50% of the peak demand measured in the twelve month period endig with the current month.

The periods for application of this rider are defined as follows:

11:00 p.m. through 6:00 a.m. on Monday through Friday and 11:00 p.m. on Friday through 6:00 a.m. on Monday.