Manufacturer Service [B] Rate Schedule (MSB)

AVAILABILITY
This rate shall apply to the firm power requirements where (a) a customer’s current effective contract demand is greater than 5,000 kW but not more than 15,000 kW and (b) the major use of electricity is for activities conducted at the delivery point serving that customer which are classified with a 2-digit Standard Industrial Classification Code between 20 and 39, inclusive.

Prior to initially taking any service under this schedule, and from time to time thereafter as may be required by Bristol Tennessee Essential Services (BTES) or the Tennessee Valley Authority (TVA), a customer shall certify to both BTES and TVA that it meets the requirements set forth in condition (b) above.  The certification form to be used shall be (i) furnished or approved by TVA, (ii) provided by BTES to the customer, and (iii) signed and promptly returned by the customer to BTES.  Further, such customer shall promptly certify any change in status of any of the information contained in the certification form to BTES.

CHARACTER OF SERVICE
Power shall be delivered at a transmission voltage of 161 kV or, if such transmission voltage is not available, at the highest voltage available in the vicinity, unless at the Customer’s request a lower standard voltage is agreed upon.

BASE CHARGES
If the customer’s contract demand is no more than 5,000 kW:

Customer Charge: $1,500 per delivery point per month.
Demand Charge: $11.12 plus $.520 environmental charge to equal $11.64 per kW of billing demand per month, plus an additional $11.12 plus $.520 environmental charge to equal $11.64 per kW per month for each kW, if any, of the amount by which the customer’s billing demand exceeds its contract demand.

Energy Charge: 3.079 cents plus .149 cents environmental charge plus 1.860 cents fuel cost adjustment to equal 5.088 cents per kWh for up to 620 hours use of metered demand per month.

2.512 cents plus .121 cents environmental charge plus 1.860 cents fuel cost adjustment to equal 4.493 cents per kWh for all additional kWh per month.

If the customer’s contract demand is greater than 5,000 kW:

Customer Charge: $1,500 per delivery point per month
Demand Charge: $10.52 plus $.49 environmental charge to equal $11.01 per kW of billing demand per month, plus an additional $10.52 plus $.49 environmental charge to equal $11.01 per kW per month for each kW, if any, of the amount by which the customer’s billing demand exceeds its contract demand.

Energy Charge: 2.923 cents plus .142 cents environmental charge plus 1.860 cents fuel cost adjustment to equal 4.925 per kWh for up to 620 hours use of metered demand per month

2.388 cents plus .115 cents environmental charge plus 1.860 cents fuel cost adjustment to equal 4.363 cents per kWh for all additional kWh per month

ADJUSTMENT
The base demand and energy charges shall be increased or decreased in accordance with the current Adjustment Addendum published by TVA. (In addition, such charges shall be increased or decreased to correspond to increases or decreases determined by TVA in the value of the hydro generation benefit allocated to residential customers.)

FACILITIES RENTAL CHARGE
There shall be no facilities rental charge under this rate schedule for delivery at bulk transmission voltage levels of 161 kV or higher.  For delivery at less than 161 kV, there shall be added to the customer’s bill a facilities rental charge.  This charge shall be 36 cents per kW per month except for delivery at voltages below 46 kV, in which case the charge shall be 93 cents per kW per month for the first 10,000 kW and 73 cents per kW per month for the excess over 10,000 kW.  Such charge shall be applied to the higher of (1) the highest billing demand established during the latest 12-consecutive-month period or (2) the customer’s current effective contract demand and shall be in addition to all other charges under this rate schedule including minimum bill charges.  Such amounts in cents per kW may be increased or decreased by TVA, effective with the effective date of any Adjustment Addendum published by TVA, to reflect changes in the costs of providing for delivery at voltage levels below 161 kV.

REACTIVE DEMAND CHARGES
If the reactive demand  (in kVAR) is lagging during the 30-consecutive-minute period of the month in which the customer’s highest metered demand occurs, there shall be added to the customer’s bill a reactive charge of $1.46 per kVAR of the amount, if any, by which the reactive demand exceeds 33 percent of such metered demand.  If the reactive demand (in kVAR) is leading during the 30-consecutive-minute period of the month in which the customer’s lowest metered demand (excluding any metered demands which are less than 25 percent of the highest metered demand) occurs, there shall be added to the customer’s bill a reactive charge of $1.14 per kVAR of the amount of reactive demand.  Such charges shall be in addition to all other charges under this rate schedule, including minimum bill charges, and such amounts in cents per kVAR may be increased or decreased by TVA, effective with the effective date of any Adjustment Addendum published by TVA, to reflect changes in the costs of providing reactive power.

DETERMINATION OF DEMAND
BTES shall meter the demands in kW of all customers served under this rate schedule. The metered demand for any month shall be the highest average during any 30-consecutive-minute period beginning or ending on a clock hour of the month of the load metered in kW, and such amount shall be used as the billing demand, except that the billing demand for any month shall in no case be less than the sum of (1) 30 percent of the first 5,000 kW, (2) 40 percent of any kW in excess of 5,000 kW of the higher of the current effective contract demand or the highest billing demand established during the preceding 12 months.

MINIMUM BILL
The monthly bill, excluding any facilities rental charges and any reactive charges, shall not be less than the sum of (1) the base customer charge, (2) the base demand charge, as adjusted (but excluding the additional portion thereof applicable to excess of billing demand over contract demand) applied to the customer’s billing demand, and (3) the base energy charge, as adjusted, applied to the customer's energy takings.  BTES may require minimum bills higher than those stated above.

CONTRACT REQUIREMENT
If the customer’s demand requirements are in excess of 15,000 kW, the contract shall be for an initial term of at least five years and any renewals or extensions of the initial contract shall be for a term of at least one year; after 10 years of service, any such contract for the renewal or extension of service may provide for termination upon not less than four months notice.  The customer shall contract for its maximum requirements, which shall not exceed the amount of power capable of being used by customer, and BTES shall not be obligated to supply in greater amount at any time than the customer’s current effective contract demand.  If the customer uses any power other than that supplied by BTES under this rate schedule, the contract may include other special provisions.  The rate schedule in any power contract shall be subject to adjustment, modification, change, or replacement from time to time as provided under the power contract between BTES and TVA.

PAYMENT
Bills under this rate schedule will be rendered monthly.  Any amount of bill unpaid after the due date specified on the bill may be subject to additional charges under BTES standard policy.

SINGLE-POINT DELIVERY
The charges under this rate schedule are based upon the supply of service through a single delivery and metering point, and at a single voltage.  If service is supplied to the same customer through more than one point of delivery or at different voltages, the supply of service at each delivery and metering point and at each different voltage shall be separately metered and billed.

***Service is subject to the Rules and Regulations of BTES

Effective 10/1/08