POWER SUPPLY ADJUSTMENT

APPLICATION: Applicable to all rate schedules where there is a kWh charge.

1. The Power Supply Adjustment will be determined on a quarterly basis with application to the first revenue cycle in the months of February, May, August and November.

2. The Power Supply Adjustment is determined by calculating the average actual cost per kWh of retail power supply from all sources and subtracting the average planned cost per kWh from all sources. All calculations will be carried out to $.00001 per kWh. Power supply cost includes the cost of purchased power including the power supplier's energy cost adjustments, the cost of fuel for self-generation, and fees for regional power grid services.

3. The average planned cost per kWh will be adjusted for each new calendar year.

4. The Power Supply Adjustment will be the actual amount per kWh calculated in #2 above in excess of the planned amount per kWh calculated in #2 above. This dollar amount per kWh will be added to each kWh of sales.