Duke Power Company To Offer Special Economic Re-Development Billing Credit


		Rider ER (NC) - Economic Re-Development Billing Credit Rider ER provides qualifying customers locating in Duke served existing buildings a billing credit of 50% for their first year of operation beginning, at the customer’s discretion, up to 12 months after the initial delivery of service. The monthly billing credit effectively offers a new customer in an existing Duke served building, with adequate Duke electrical service in place, the opportunity for ‘half price energy’ during their first year of operation. Qualifications To qualify for Rider ER, the customer must sign a 5-year contract with Duke and add a minimum of 500 KW of new load on the Duke Power system accompanied by either: · • 35 new full time employees on the Duke system per 500 KW of load, or · • $200,000 in capital investment per 500 KW of new load with a net increase in full time employees on the Duke system. Rider ER (NC) - Availability Effective August 1, 2002, the Rider EC is available to nonresidential establishments, provided the establishment is not classified as Retail Trade or Public Administration, for load associated with a new customer in an existing establishment served by Duke, provided the establishment has been unoccupied and/or has remained dormant for a minimum period of 6 months. The Customer must make an application for consideration of Rider ER and must affirm that the availability of this Rider was a factor in their decision to locate the new load on the Duke system. The 500 KW must be at one delivery point at one voltage and must not result in additional investment in distribution facilities, other than minor alterations in the service which can be accomplished feasibly and economically. Rider ER (NC) Economic Re-Development Availability (North Carolina Only) Available, only at the Company’s option, to nonresidential establishments receiving service from the Company under Schedule G, GA, I or OPT provided that the establishment is not classified as Retail Trade or Public Administration by the Standard Industrial Classification (SIC) Manual published by the United States Government. This Rider is available for load associated with a new customer in an existing establishment served or previously served by the Company, provided the establishment has been unoccupied and/or has remained dormant for a minimum period of 6 months as determined by the Company. In order to qualify for service under the Rider the New Load must be a minimum of 500 KW at one delivery point at one voltage. In addition, the requested service necessary to serve the New Load must not result in additional investment in distribution facilities by the Company; however, minor alterations in the service supplied which can be accomplished feasibly and economically may be allowed. To qualify for service under this Rider, the Customer must meet the qualifications under A. or B. below: A. The Customer employ an additional workforce in the Company’s service area of a minimum of thirty-five (35) full time equivalent (FTE) employees per 500 KW of New Load. Employment additions must occur following the Company’s approval for service under this Rider. B. The Customer’s New Load must result in capital investment of two hundred thousand dollars ($200,000) per 500 KW of New Load, provided that such investment is accompanied by a net increase in full time equivalent employees employed by the Customer in the Company’s service area. The capital investment must occur following the Company's approval for service under this Rider. This Rider is not available for renewal of service following interruptions such as equipment failure, temporary plant shutdown, strike, or economic conditions. This Rider is also not available for load shifted from one establishment or delivery on the Duke system to another on the Duke system. However, if a change of ownership occurs after the customer contracts for service under this Rider, the successor customer may be allowed to fulfill the balance of the contract under Rider ER and continue the credits outlined below. Definitions New Load: New Load is that which is added to Company’s system as a result of the new customer taking service at an existing establishment and shall not be less than the Contract Demand. Delivery Date: The Delivery Date is the first date service is supplied under the contract. Operational Date: The Operational Date shall be the date the facility is fully operational as declared by the Customer, but shall be no more than twelve months after the Delivery Date. Month: The term “month” as used in this Rider means the period intervening between readings for the purpose of monthly billings. Readings will be collected each month at intervals of approximately thirty (30) days. General Provisions 1. The Customer must make an application to the Company for service under this Rider and the Company must approve such application before the Customer may receive service hereunder. The application must include a description of the amount of and nature of the new load and the basis on which the Customer requests qualification shown in A or B under Availability above. In the application, the Customer must affirm that availability of this Rider was a factor in the Customer’s decision to locate the new load on the Duke system. The application shall also specify the total number of full time equivalent employees (FTE) employed by the Customer in all establishments receiving electric service from the Company’s system, at the time of application for this Rider, and on the Operational Date. 2. The Customer must agree to a minimum contract term of five (5) years, with the credits being available for a maximum period of one (1) year following the Operational Date. 3. To continue service under this Rider, the Customer must maintain a monthly average of 300 hours use of demand. 4. All terms and conditions of Schedules G, GA, I or OPT applicable to the individual customer shall apply to service supplied to the Customer except as modified by this Rider. Application of Credit Beginning with the Operational Date, a credit of 50% will be applied to the total bill in Months 1 through 12 for the New Load contracted for under this Rider, calculated on the applicable rate schedule, including the Basic Facilities, Demand Charge, Energy Charge, or Minimum Bill excluding other applicable riders, and excluding Extra Facilities Charges. Contract Period Each customer shall enter into a contract to purchase electricity from the Company for a minimum original term of five (5) years, and thereafter from year to year upon the condition that either party can terminate the contract at the end of the original term, or at any time thereafter by giving at least sixty (60) days’ previous notice of such termination in writing. If the Customer requests a change in rate schedule from that which was approved in conjunction with Rider ER, credit under Rider ER will no longer be available. Such a change will be allowed upon thirty (30) days’ written notice to the Company. If at any time during the term of contract under this Rider, the Customer violates any of the terms and conditions of the Rider or the agreement, the Company may discontinue service under this Rider, and bill the customer under the applicable schedule without further credits. In the event of early termination of a contract under this Rider, the Customer will be required to pay the Company any costs due to such early cancellation. Information regarding this special incentive was taken from an original copy of the Rider ER (NC) and its Summary as prepared by Duke Power Company..