Rates & Policies

1. OBJECTIVE
   To establish policy concerning membership in the Cooperative by any person, partnership, estate, trust, association, corporation, limited liability company, Federal or State Agency or political subdivision thereof.
2. CONTENT
   1. Prior to receipt of electric service from the Cooperative, any person, partnership, estate, trust, association, corporation, limited liability company, Federal or State Agency or political subdivision thereof requesting service shall make written application for membership.
   2. No member may hold more than one membership in the Cooperative.
   3. No membership in the Cooperative shall be transferable, except as provided in the Bylaws.
   4. An “Application for Electric Service and Membership” shall be prepared by management to assist in the implementation of this policy.
3. RESPONSIBILITY
   The General Manager is responsible for administering this policy and for recommending to the Board any changes deemed desirable.

EFFECTIVE DATE:   June 24, 2004

DATE ADOPTED:     February 22, 2001
DATE REVISED:       June 24, 2004
DATE REVIEWED:   November 19, 2008
DATE REVIEWED:   November 21, 2012
DATE REVIEWED:   November 19, 2014

ATTESTED:  Chris Hofer, Secretary

1. OBJECTIVE
   To provide a systematic schedule for the reading of meters and the payment of energy bills on a monthly basis and to establish regulations which will assure prompt collections of delinquent accounts to the end that all patrons will be treated on a fair and equitable basis.
2. CONTENT
   
   1.  AMR/AMI Read, Co-op Billed Accounts: For accounts where the meter is read remotely by the Cooperative’s metering system to calculate and render a billing to the member-consumer, the following applies.
      1.  The AMR/AMI meters shall be read three (3) to six (6) working days preceding the end of each month and bills shall be calculated by the Cooperative and deposited in the mail by the 1st of the month. If a member selects paperless billing, they will receive an electronic notice of their billing. Payment shall be remitted to the Cooperative on or before the 17th of the month.
      2. If payment is not received by the 17th of the month, a late payment will be assessed on each account not paid by the due date. For accounts on the budget billing plan, the penalty will be assessed only on the amount of the monthly payment. The bill shall also be considered delinquent. A grace period is provided to extend the payment date to the first working day following the 17th if the 17th falls on a Saturday, Sunday or legal holiday.
      3.  Members that do not want the Cooperative to record their electric usage with an AMR/AMI meter may opt out of the remote metering program. For those members that opt out, the Cooperative shall utilize a non-AMR/AMI metering package. If a separate trip is required by Cooperative personnel to complete the meter change-out, a $50.00 charge will be assessed to help defray expenses. Cooperative personnel shall then read the meter on a monthly basis for billing purposes. A meter reading fee of $50.00 per month shall be applied to their account to offset the cost of reading the meter manually and inputting their electric usage into the billing system manually.
   2. Any account not paid after the delinquent date shall be sent a delinquent notice. The delinquent notice shall inform the member-consumer that the balance due must be paid, or arrangements for payment made by the date indicated on the notice.
   3.  If payment has not been received, or if arrangements for payment have not been made, by the date indicated on the delinquent notice, a disconnect notice shall be sent which will inform the member-consumer that the balance due must be paid, or arrangements for payment made, by the date listed on the disconnect notice or the electric service will be disconnected.
   4.  If payment has not been received, or if arrangements for payment have not been made by the date indicated on the disconnect notice and Cooperative personnel make a trip to collect or disconnect the service, a $50.00 collection or disconnect charge will be added to the delinquent account to help defray expenses.
   5.  Before a service is reconnected, the consumer shall pay a charge of $50.00 plus any other applicable charges or fees. However, management is authorized to waive reconnect charges for remote reconnects or for other extenuating circumstances. If the consumer requests that service be reconnected after normal working hours and Cooperative personnel make a trip to reconnect the service, the charge shall be $175.00 plus any other applicable charges or fees.
   6.  The provisions of this policy shall apply unless a written contract for electric service has been executed with the consumer which specifies other billing and collection procedures.
   7.  Billing Errors: When billing errors are discovered, the billing department will recalculate the billing to determine the amount overpaid or underpaid.
      1. Any overpayment will be refunded to the member-consumer(s) involved. No time limit shall apply. The refund shall be calculated from the point the error occurred to the point it was discovered and corrected. If the point the error occurred cannot be fixed with reasonable certainty, the refund will be limited to one year consisting of the twelve (12) months prior to the date the error was discovered.
      2.  For any underpayment, the Cooperative will limit the indebtedness to one hundred percent (100%) of the underpayment for a maximum look back period of one year (12 months).
      3. The Cooperative shall offer a deferred payment plan to any member-consumer for indebtedness due to a billing error of the Cooperative that permits such members to retire the debt by periodic payments as defined in a deferred payment plan.
      4.  The terms, conditions and acceptance of the member’s request for making deferred payment arrangements will be determined by the Cooperative after considering the following:
         
         1. Amount and age of past due amounts;
         2. The member-consumer’s ability to pay;
         3. The member-consumer’s payment history;
         4. Reasons for indebtedness; and
         5. Any other relevant factors to the member-consumer’s electric service.
      5. Any “Deferred Payment Agreement” shall be signed by the member-consumer and include the following provisions:
         
         1. The member-consumer shall pay all future bills for electric service in accordance with billing policies and procedures;
         2. The member-consumer shall retire the indebtedness according to the terms of the deferred payment agreement;
         3. No interest shall apply on the outstanding balance of the indebtedness;
         4. The deferred payment amount shall be subject to late payment penalties; and
         5. If the member defaults upon any payment due under the deferred payment agreement, the Cooperative shall have the right to demand immediate payment of the outstanding debt and service may be disconnected for nonpayment of any amount due.
3. RESPONSIBILITY
   
   1. The General Manager is responsible for administering this policy and for recommending to the Board any changes deemed necessary.
   2. The General Manager may delegate to appropriate staff the various activities necessary to carry out this policy.

EFFECTIVE DATE:   October 1, 2020

DATE ADOPTED:     March 28, 2000

DATE REVISED:       September 25, 2002

DATE REVISED:       June 24, 2004

DATE REVISED:       August 21, 2008

DATE REVISED:       November 19, 2008

DATE REVISED:       May 21, 2009

DATE REVISED:       January 20, 2011

DATE REVISED:       December 22, 2011

DATE REVISED:       January 19, 2012

DATE REVISED:       November 21, 2012

DATE REVISED:       December 18, 2014

DATE REVISED:       November 19, 2015

DATE REVISED:       November 23, 2016

DATE REVISED:       September 25, 2019

DATE REVISED:        July 23, 2020

ATTESTED:   ______________________________________________

Chris Hofer, Secretary

1. OBJECTIVE
   To establish policy that provides an option for the member-consumer to avoid large fluctuations in their monthly payments for energy.
2. CONTENT
   
   1. Member-consumers requesting a levelized billing method, as opposed to the normal billing method, shall execute a levelized billing agreement with the Cooperative.
      1. Eligibility for the levelized billing option shall be based solely on the member-consumer’s credit.  Member-consumers with satisfactory credit may begin to participate in the plan anytime during the course of a year except in the case of new services of which there is no history to base the levelized billing payment amount on.  In these cases, the member-consumer will be required to wait for a period of one-year before they may enroll in the plan.  Member-consumers with unsatisfactory credit will not be eligible to participate in the program unless they agree to have their payment automatically withdrawn from their checking account.  See the Cooperative’s Security Deposits policy for the definition of satisfactory credit.
      2. The agreement shall specify the method used by the Cooperative in determining the member-consumer’s monthly levelized payment amount, when the levelized billing plan becomes effective and when it terminates.
      3. Monthly levelized billing amounts shall be subject to review and adjustment by the Cooperative on a periodic basis.  The intent of the plan is for the member-consumer to pay a levelized amount each month in consideration of the member-consumers electric energy bill.  This amount shall be based on one-twelfth (1/12) of the previous twelve months kWh usage plus any anticipated increases due to additional usage or changes in rates.  If payment is made after the due date, the late payment fee will be added to the levelized amount due.
   2. Participants in the levelized billing plan shall be subject to any and all collection charges established by the Cooperative with the exception that the participant shall not be considered delinquent if they remain current with their monthly levelized billing payments.
   3. A “Levelized Billing Agreement” shall be prepared by the Cooperative to assist in the implementation of this policy.
3. RESPONSIBILITY
   The General Manager is responsible for administering this policy and for recommending to the Board any changes deemed necessary.

EFFECTIVE DATE:   August 22, 2019

DATE ADOPTED:     March 28, 2000
DATE REVISED:       September 18, 2003
DATE REVIEWED:   November 19, 2008
DATE REVIEWED:   November 21, 2012
DATE REVISED:       December 18, 2014
DATE REVIEWED:   December 22, 2016
DATE REVISED:       August 22, 2019

ATTESTED:   Chris Hofer, Secretary

I.          OBJECTIVE

To establish a policy for the assessment of penalties on all outstanding energy bills due to the Cooperative.

II.         CONTENT

A.The late payment charge shall apply if the balance due is $25.00 or larger and payment of the current month bill is not received in the office on or before the delinquent date.  In the event the normal delinquent date falls on a Saturday, Sunday or legal holiday, the delinquent date shall become the following working day.  The late payment charge shall be the larger of $5.00 or 1½% of the outstanding balance of each account not paid by the due date.  Also see the Cooperative’s policy on Consumer Billing.

B.A member-consumer’s check, credit card or ACH transaction that has been returned by the bank or credit card company for any reason and not corrected before the delinquent date shall be charged the applicable late payment penalty.

III.       RESPONSIBILITY

The General Manager is responsible for administering this policy and for recommending to the Board any changes deemed necessary.

EFFECTIVE DATE:   December 22, 2016

DATE ADOPTED:     March 28, 2000

DATE REVISED:       September 25, 2002

DATE REVIEWED:   November 19, 2008

DATE REVIEWED:   November 21, 2012

DATE REVIEWED:   December 18, 2014

DATE REVISED:       December 22, 2016

ATTESTED:   __________________________________

Chris Hofer, Secretary

I.          OBJECTIVE

To establish a policy for the return of checks or ACH transactions by the bank for non-sufficient funds (NSF) and other reasons and to set forth appropriate penalties.

II.         CONTENT

A.In the event payment of electric energy bills are made by check or ACH transaction and payment is refused by the bank on which they were drawn, the following shall apply:

1.The member-consumer shall be charged $40.00 for each returned check or ACH transaction.

2.The member-consumer shall be notified by letter that the energy account is considered as “not paid” and will be treated as a late payment and/or delinquent account.

3.If any member-consumer has two (2) or more checks and/or ACH transactions not honored by the bank in any twelve (12) month period, the Cooperative may require all future energy payments be made by cash, credit card, or postal money orders.

III.       RESPONSIBILITY

The General Manager is responsible for administering this policy and for recommending to the Board any changes deemed necessary.

EFFECTIVE DATE:   January 1, 2017

DATE ADOPTED:     March 28, 2000

DATE REVISED:       December 18, 2008

DATE REVISED:       November 21, 2012

DATE REVIEWED:   December 18, 2014

DATE REVISED:       November 23, 2016

ATTESTED:   __________________________________

Chris Hofer, Secretary

1. OBJECTIVE
   To establish policy governing the services performed by Cooperative personnel and the applicable charges associated with such services.
2. CONTENT
   
   1. Upon request, Cooperative personnel may perform various services with Cooperative equipment for member-consumers and others.
      1. Cooperative personnel shall only be authorized to perform work for others when the request involves services that are considered “in the nature” of the utility business.
      2. Cooperative equipment shall only be used to perform services the equipment was designed to perform.  Only qualified Cooperative personnel are authorized to operate equipment owned by the Cooperative.
      3. The applicable charges for such services are itemized on the attachment to this policy.
         
         1. For projects deemed to benefit the community, the general public or non-profit organizations, the General Manager is authorized to waive part or all of the applicable charges.
   2. Any on-going operations and maintenance arrangements or agreements shall be in writing along with a separate schedule of applicable charges and subject to approval by the Board of Directors.
3. RESPONSIBILITY
   
   1. The General Manager is responsible for administering this policy and for recommending to the Board any changes deemed desirable.
   2. The employee performing services, as described in this policy, shall be responsible for documenting any work done for others to ensure proper billing by the Cooperative.

EFFECTIVE DATE:   October 1, 2020

DATE ADOPTED:     March 28, 2000
DATE REVISED:       November 21, 2000
DATE REVISED:       June 24, 2004
DATE REVISED:       October 21, 2004
DATE REVISED:       August 21, 2008
DATE REVISED:       November 24, 2009
DATE REVISED:       January 20, 2011
DATE REVISED:       December 20, 2012
DATE REVISED:       December 18, 2014
DATE REVISED:       November 23, 2016
DATE REVISED:       August 23, 2018
DATE REVISED:       July 30, 2020

ATTESTED:       Chris Hofer, Secretary

WORK FOR OTHERS – CHARGES

Labor and Overhead Charges for Member-Consumers.  All labor and overhead charges for member-consumers shall be at the rate of $65.00 per hour regular time and $97.50 per hour overtime for each man, including travel time to and from the job.

Labor and Overhead Charges for Non-Members.  All labor and overhead charges for non-members shall be at the rate of $80.00 per hour regular time and $120.00 per hour overtime for each man, including travel time to and from the job.

Minimum Labor and Overhead Charges.  The minimum labor and overhead charge is ½ hour during normal work hours and two hours outside of normal work hours.

Material Charges.  All materials and supplies used in the completion of work for others will be charged out at average cost plus 30% FOB with the exception of materials and equipment promoted through the load management and marketing programs of the Cooperative.

House Moves.  A deposit equal to the estimated cost of a house move shall be made in advance before any building can be moved under the Cooperative’s lines.  All applicable charges shall be included in determining the actual costs of the house move.  Following completion of the job, the Cooperative will refund any overpayment or bill any underpayment, whichever applies.

I.          OBJECTIVE
To establish a policy for collecting security deposits from member-consumers.

II.         CONTENT

A.The Cooperative shall require a $150.00 security deposit from all new member-consumers.  If the deposit is found to be inadequate an additional deposit may be required.  For commercial or industrial accounts, a security deposit based on a two month estimate of their bill shall apply.

1.Members electing to participate in the prepaid service program shall not be required to maintain a security deposit.  After enrolling in the program, any existing security deposit shall be credited to their account.

2.Members electing to leave the prepaid service program shall be subject to the provisions of this policy.

B.A security deposit shall automatically be refunded, as a credit to the member-consumers account, when one of the following conditions are met:

1.   Upon receipt of a confirmation of satisfactory credit from the member-consumer’s most recent power supplier or the credit bureau if the member-consumer has no past history with a power supplier.

a.Satisfactory credit means that within the last year of service the member-consumer has not had his service disconnected for non-payment of a bill rendered, has not been issued a disconnect notice, has not had more than three late payment charges applied to their account and has no outstanding debt with their previous power supplier.

2.   After satisfactory credit has been established with the Cooperative.

a.   Satisfactory credit means that within the last year of service the member-consumer has not had his service disconnected for non-payment of a bill rendered, has not been issued a disconnect notice, has not had more than three late payment charges applied to their account and has no outstanding debt with the Cooperative.

C.The service of any member-consumer who fails to comply with the security deposit requirements within a specified time shall be subject to disconnection.

D.No interest shall be paid on security deposits.

III.       RESPONSIBILITY
The General Manager is responsible for administering this policy and for recommending to the Board any changes deemed necessary.

EFFECTIVE DATE:   June 30, 2016

DATE ADOPTED:     March 28, 2000

DATE REVISED:       September 25, 2002

DATE REVISED:       December 18, 2008

DATE REVIEWED:   December 20, 2012

DATE REVISED:       March 20, 2014

DATE REVISED:       June 30, 2016

ATTESTED:   __________________________________

Chris Hofer, Secretary

I.          OBJECTIVE
To establish a policy, which describes and explains rate fixing and the administration of the rates imposed.  Rates shall be designed to provide the member-consumers electrical services at the lowest possible cost consistent with sound business practices.

II.         CONTENT

A.The Board of Directors derives their authority to fix and establish rates from the membership via the bylaws of the Cooperative.  In addition, the articles of incorporation and the laws of this state grant to the Board of Directors the power to manage the business of the Cooperative.  Such management necessarily includes ratemaking because without control of the primary source of revenues, the Cooperative’s continued existence is not assured.  The Board of Directors’ duty is first to the Cooperative and each director represents all classes of member-consumers in the rate making process.

B.The goal of rate making for the Board of Directors is the fair apportionment of the costs of furnishing such services to its various classes of member-consumers.  Each class shall be cost recovery efficient as to the services provided to that class.  Capital credits are assigned on the basis of patronage, and unless each class bears its own costs and expenses, payments in excess of such costs and expenses (capital credits) will not truly reflect the patron’s capital contribution.

C.Classification of member-consumers shall be made upon actual different, and distinct, conditions and circumstances and the cost of furnishing services.  Where a substantial number of member-consumers share readily identifiable and common circumstances and conditions within the Cooperative system such member-consumers shall constitute and be treated as a class.  Facts that produce a substantial inequality of conditions or change of circumstances of the electrical member-consumers shall justify a reasonable commensurate inequality in rates.

D.It is hereby recognized that it is impossible to accurately break down the cost of furnishing services to each individual member-consumer, and therefore, no member-consumer shall be entitled to be considered individually and separately for rate purposes.  Cost of service and rate analysis need not proceed beyond the established classification, except as noted below.

1.Large commercial loads that qualify for the “market rate” as established and approved by East River shall have individual and separate rates based on their specific circumstances and cost recovery requirements.

E.Discrimination between or among member-consumers of the same class is prohibited unless (1) there exist an actual difference in the situation of such member-consumers and (2) the cost of furnishing services thereto justifies different treatment.  Examples of such permissible discrimination include, but are not limited to; member-consumers with a delinquent payment history, member-consumers not previously metered, member-consumers with newly constructed facilities where substantial cost recovery is required during the early years of availability, and member-consumers with idle services for which the fixed costs are different from those services actually used.

Discrimination on the basis of race, color, religion, national origin, sex, sexual orientation, gender identity, disability, veteran status age, or handicap is absolutely prohibited.

F.Cost of service studies and rate analysis shall be performed as frequently as deemed appropriate by the Board of Directors to maintain fair and equitable rates.

G.The Cooperative and its Board of Directors shall abide by the mandatory provisions of RUS requirements concerning rates and rate structures and shall follow the advisory recommendations contained therein unless good cause requires deviation therefrom.

H.Facility or minimum charges, whether monthly, seasonal, or annual, shall at least cover those fixed costs (as defined by relevant RUS requirements) which will be incurred whether or not service is actually used.  The member-consumer is not necessarily entitled to energy for payment of such charges.  Such facility or minimum charges shall be due and payable so long as the service is available and not terminated by 30 days advance written notice by the member-consumer or the Cooperative.

I.Denomination of a rate schedule and reference thereto in any contract or agreement between a member-consumer and the Cooperative shall not control.  Rather, where a particular rate schedule is specified or incorporated by reference, any subsequently adopted rate schedule for that class of member-consumers shall apply until again revised by the Board of Directors.  In short, substance shall control over form and every contract or agreement between a member-consumer and the Cooperative assumes rates will vary from time to time depending on the cost of the services furnished or made available.

J.The Board of Directors may discontinue services to any class of member-consumers that consistently demonstrates an inability or unwillingness to bear its own share of the cost of providing such services.  No class of member-consumers shall subsidize or support another class of member-consumers that cannot or will not carry its own burden.  In short, that class of member-consumers which benefits from the availability of a service shall pay for such services.

K.Reasonableness of rates shall be determined by reference to cost recovery efficiency and not by the economic circumstances of the individual member-consumer(s).

L.Margins derived from rates shall at all times meet the requirements of the Cooperative’s existing mortgages or other instruments of indebtedness.  Rates that jeopardize sufficient margins are hereby deemed “unreasonable” and shall be rectified forthwith by action of the Board of Directors.

M.Rates shall, generally, be structured upon either (1) service and energy charges or (2) a kilowatt demand and energy rate basis and shall encourage usage, tempered by conservation and load management concerns.

III.       CONDITIONS
The foregoing policy shall be subject to the Public Utility Regulatory Power Act of 1978, and acts amendatory thereto, and the Federal Energy Regulatory Commission.

IV.       RESPONSIBILITY
The General Manager is responsible for administering this policy and for recommending to the Board any changes deemed desirable.

EFFECTIVE DATE:   June 22, 2017

DATE ADOPTED:     February 22, 2001

DATE REVIEWED:   December 18, 2008

DATE REVIEWED:   December 20, 2012

DATE REVIEWED:   November 19, 2014

DATE REVISED:       June 22, 2017

ATTESTED:   ________________________________________

Chris Hofer, Secretary

I.          OBJECTIVE
To establish the general rules and regulations for electric service applicable to all member-consumers of the Cooperative.

II.         CONTENT

A.General

1.These rules and regulations set forth the terms and conditions under which electric service will be provided by the Cooperative.  They shall apply to all classes of service and shall govern the terms of all agreements for such service except that the Cooperative reserves the right to enter into special contracts.  Failure of the Cooperative to enforce any of the terms of these rules and regulations shall not be deemed as a waiver of the right to do so.

2.Any promises or agreements made by agents or employees of the Cooperative which are not in conformance with these rules and regulations, nor with the terms of special contracts executed by authorized representatives of the Cooperative shall not have a binding effect on the Cooperative.

3.No ownership rights in any facilities provided by the Cooperative shall pass to any person as a result of any contributions or deposit made under these rules.  No deposit or contributions made by member-consumers shall be refundable unless expressly so provided in these rules.

4.Copies of the Cooperative’s rules and regulations and rate schedules for electric services are open to public inspection at the Cooperative’s office and are available upon request.

B.All applicants for electric service shall sign the Cooperative’s “Application for Membership and Electric Service”, and service shall be granted in accordance with the Cooperative’s rules and regulations and rate schedules.

C.The Cooperative shall extend electric service to member-consumers providing the wiring on their premises meets the laws, rules, and regulations contained in the most recent National Electric Code and Wiring Bulletin published by the South Dakota State Electrical Board and any approved amendments thereto and providing all other requirements of the State Board have been complied with or in the City of Sioux Falls their inspections or ordinances have been complied with.

D.Any requirements regarding membership, fees, deposits, contracts or contributions-in-aid-of-construction shall be satisfied before construction or reconnection of electric service is completed.  In addition, the Cooperative must receive copies of the South Dakota Wiring Certificate form and verify that the owner and/or electrician has posted the correct wiring certificate form near the service entrance disconnect switch and other copies of the wiring certificate have been distributed as instructed.

E.Ownership and Responsibility

1.Cooperative Owned Facilities

a.The Cooperative will install, own, operate and maintain all distribution facilities on the supply side of the meter.  The point of connection or attachment by the member shall be the load side of the meter socket or the disconnect switch, unless otherwise specified by the Cooperative.  All service entrance conductor wiring from a point of connection to the Cooperative’s service line at a location satisfactory to the Cooperative shall be the responsibility of the member.  If building modifications hinder access to metering facilities, create a hazardous condition, or cause a violation of code, the member-consumer will be responsible for all costs incurred by the Cooperative to correct these conditions.

(1)Where requested by the member-consumer, the Cooperative shall install, own, operate and maintain load control receivers on the member-consumer’s side of the meter in conjunction with the load management program.

b.Access to Premises.  The member-consumer shall provide at no expense to the Cooperative suitable space with provisions for installation, inspection and maintenance of the Cooperative’s facilities on the member-consumer’s premises.  Failure to provide access may result in termination of service.

c.Use of Facilities.  The Cooperative will not allow use of its poles or other facilities by others for installations or attachments of any kind without written authorization from the Cooperative.  This includes, but is not limited to, electrical or communication equipment, lights and signs.  An exception will be made for fence wires, attached within four feet of ground level, to primary distribution poles located on private right-of-way.  The Cooperative assumes no responsibility for property owned by others attached to its facilities.  The Cooperative may remove unauthorized attachments to Cooperative facilities.

d.Protection.  The member-consumer shall use reasonable diligence to protect the Cooperative’s facilities located on the member-consumer’s premises, and to prevent tampering or interference with such facilities.  The Cooperative may discontinue service in accordance with these rules in cases where the meter and/or wiring on the member-consumer’s premises have been tampered with or energy is unmetered.  In case of such unauthorized use of service, the Cooperative shall continue service only after the member-consumer has paid or signed an agreement to pay for the unmetered energy used, paid all costs of discovery and investigation, and made provisions and paid charges for any metering changes as may be required by the Cooperative.  Failure to enter into such an agreement shall be cause to discontinue service.  Restoration of service will be made upon receipt or reasonable assurance of the member-consumer’s compliance with the Cooperative’s rules and regulations.

2.Member-Consumer Owned Facilities

a.The Cooperative reserves the right to deny or terminate service to any member-consumer whose wiring or equipment shall constitute a hazard to the Cooperative’s equipment or its service to others.  However, it disclaims any responsibility to inspect the member-consumer’s wiring, equipment or any subsequent wiring changes or modifications and shall not be held liable for any injury or damage resulting from the condition thereof.

b.The member-consumer shall be responsible for the adequate performance of the member-consumer owned facilities.  Before purchasing equipment or installing wiring, it shall be the member-consumer’s responsibility to check with the Cooperative as to the characteristics of the service available.  The Cooperative reserves the right to make reasonable service charges for work performed by Cooperative personnel from malfunction of the member-consumer’s facilities.

c.The Cooperative may give member-consumers advice on wiring problems and inspect their wiring upon request.  Such member-consumers shall be given a written explanation outlining any such advice given relative to the member-consumer’s wiring and/or recommended corrections to be made to the member-consumer’s electrical facilities resulting from such inspection.  No charge shall be made for such inspection.

d.The member-consumer shall not allow harmonic distortion to exceed a level that will adversely affect the reliable distribution of electric energy of the Cooperative or any of the Cooperative’s systems or its devices.  Harmonic distortion will be determined at the Point of Common Coupling (PCC).  The latest revision of IEEE Standard 519 will be used as a guide for allowable limits of harmonic distortion.  If harmonic distortion exceeds acceptable levels, the member-consumer shall mitigate the problem immediately by use of filters, reactors or other recommendations of the manufacturer of the harmonic producing equipment.  The Cooperative will assist the member-consumer measure the levels of harmonic distortion and determine a solution.

F.Nature and Quality of Service

1.The Cooperative shall endeavor to, but does not guarantee to, furnish a continuous supply of electric energy and to maintain voltage and frequency within reasonable limits.

2.The Cooperative shall not be liable for interruptions in service, phase failure or reversal, or variations in the service characteristics, or any loss or damage of any kind or character occasioned thereby, due to causes or conditions beyond the Cooperative’s control, and such causes or conditions shall be deemed to specifically include, but not be limited to the following; operation of safety devices except when such operation is caused by negligence of the Cooperative, absence of an alternate supply of service; failure, malfunction, necessary repairs or inspection of machinery, facilities or equipment; act of God, war, action of the elements; storm or flood; fire; riot; or civil disturbances; or the exercise of authority or regulation by governmental or military authorities.

3.The member-consumer shall be responsible for giving immediate notice to the Cooperative of interruptions or variations in electric service so that appropriate corrective action can be taken.  The Cooperative reserves the right without previously notifying the member-consumer to temporarily interrupt service for construction, repairs, emergency operations, shortages in power supply, safety, and state or national emergencies and shall be under no liability with respect to any such interruption, curtailment or suspension.

a.If the Cooperative has been properly notified of individuals at specific locations with special needs or medical conditions which necessitate electric service, every effort shall be made to contact these individuals prior to a planned outage.  Individuals with such requirements shall be advised to install standby and/or supplemental onsite generation.

G.Use of Service

1.Each member-consumer shall, as soon as electric energy shall be available, purchase from the Cooperative all electric energy, unless a member shall qualify and engage in co-generation and/or small power production, used on the premises referred to in application of such members for membership, and shall pay therefore at rates which shall from time to time be fixed by the Board of Directors.  Standby and/or supplemental onsite generation may be utilized only if the installation of the unit has been inspected by the State Electrical Commission or a duly authorized representative of the Cooperative and all such plants shall be equipped with a double pole, double throw switch and proper metering equipment.

2.Notice of Intent

a.Application.  Prior to use of electric service, each member-consumer shall make proper application to the Cooperative, and shall furnish all reasonable information required by the Cooperative.  Failure to comply with this requirement may result in refusal by the Cooperative to provide service.  Any member-consumer using service without first notifying and enabling the Cooperative to establish a beginning meter reading may be held responsible for any amounts due for service supplied to the premises from time of last reading reported immediately preceding the member-consumer’s occupancy.

b.Termination.  Any member-consumer desiring termination of service shall so notify the Cooperative in advance so the service may be discontinued on a mutually agreeable date.  Member-consumer’s failing to give proper notice of intent to vacate the premises may be held responsible for use of service until a meter reading acceptable to the Cooperative is obtained and the service has been disconnected.

3.Conditions of Use

a.The member-consumer shall not use the service in any way that causes a safety hazard, endangers the Cooperative’s facilities, or disturbs service to other member-consumers.  The member-consumer shall not use the service for any type of use other than those specified or implied under the rate schedules of the Cooperative.  Failure to comply with this provision may result in discontinuance of the member-consumer’s service.

b.Member-consumers shall install only such motors or other apparatus or appliances as are suitable for operation with the character of the service supplied by the Cooperative, and electric energy must not be used in such manner as to cause detrimental voltage fluctuations or disturbances in the Cooperative’s distribution system.

c.The member-consumer shall be responsible for notifying the Cooperative of any additions to or changes in their equipment, which might exceed the capacity of the Cooperative’s facilities, or otherwise affect the quality of service.

d.The member-consumer shall install and maintain the necessary devices to protect the member-consumer’s equipment against service interruptions and other disturbances on the Cooperative’s system.  Characteristics and installation of all such equipment or devices shall meet the approval of the Cooperative.

(1)Nonstandard Service.  Member-consumers shall be liable for the cost of any special installation necessary to meet particular requirements for service at other than standard practices.

e.Resale of Electric Energy.  Unless provided for under the terms of the Cooperative’s rate schedules, member-consumers shall not resell to others any electric service furnished by the Cooperative.  Where resale of electric service exists, the Cooperative will be under no obligation to furnish or maintain meters or other facilities for the resale of service by reselling member-consumer to the ultimate user.

f.Point of Attachment

(1)The Cooperative will install service connections from its distribution lines to a suitable point of attachment on the member-consumer’s premises designated by the Cooperative and as noted in Section E.1.a. above.  Where the member-consumer requires a point of attachment other than that specified, the member-consumer may be required to stand the cost of additional facilities necessary to reach the point of attachment.

(2)Service will be provided to a meter pole, or other appropriate facilities, where more than one structure is to be supplied from a single meter.  The maximum size main entrance switch to be furnished by the Cooperative for single-phase service shall not exceed 600-amps.

(a)Should it become necessary, for any cause beyond the Cooperative’s control, to change the location of the point of attachment, the cost of any changes in the member-consumer’s wiring made necessary thereby shall be borne by the member-consumer.

g.Insulation Requirement for Electric Heating.  Any member-consumer contemplating installing electric heat as the primary heat source in their home should install insulation to meet the minimum “R” values necessary to provide for efficient use of service.

H.Metering and Metering Equipment

1.The member-consumer shall permit only authorized agents of the Cooperative or other persons lawfully authorized to do so, to inspect, test or remove the meters.  If the meters or metering equipment are damaged or destroyed through the neglect of the member-consumer, the cost of necessary repairs or replacements may be required of the member-consumer.

a.Meter Testing.  Qualified personnel will do all testing of metering equipment.  The Cooperative may at its option, either conduct field tests on the member-consumer’s premises, or remove metering equipment for shop testing.

(1)Routine Tests.  The Cooperative will, through test procedures, endeavor to maintain its metering equipment within accurate limits.  The Cooperative shall test its devices based on routine testing schedules established by the Cooperative.

(2)Test Requested by Member-Consumers.  Requests to have individual meters tested will be referred to the Cooperative’s Metering Department.  The meter tests shall be provided as set forth in Cooperative policy.

2.All dwellings, including permanent type mobile homes, shall be separately metered.

a.Apartments and similar multiple dwelling services may be metered with one master meter and numerous sub-meters.

b.Member-consumers with rental property that wish to split the usage at a service location between the owner and the renter may request a second meter be installed at their expense.  All charges applicable to a new service apply plus the minimum charge for installing a second meter shall be equivalent to two hours of labor and overhead charges.

c.Two residences at one location require two metered services.

3.Location of Meters.  Meters for all services should be installed outdoors and readily accessible to Cooperative personnel.  An authorized representative of the Cooperative will determine the acceptability of the meter location in all cases.

4.Meter Readings.  The Cooperative will provide for readings of meters on a monthly basis.  All meter reading schedules will be determined by the Cooperative.

5.Meter Failures.  Upon the discovery of a service that has been under or overcharged due to failure of the metering equipment, the Cooperative shall notify the member-consumer and issue a bill or refund for the amount of the error.  In determining the amount of the error, the Cooperative may consider the criteria, such as the following, on a case-by-case basis.

a.Effect of weather patterns on energy use.

b.Number of days in each billing period.

c.Historical data for the service location.

d.Cooperative read meter readings.

e.Retail rate in effect at the time of the error.

f.Any other pertinent facts.

I.Continuity of Service

1.The Cooperative shall use reasonable diligence to provide a constant and uninterrupted supply of electric power and energy, but if such supply shall fail or be interrupted or become defective through an act of God, or the public enemy, or by accident, strikes, labor troubles, the inability to secure rights-of-way or other needed permits, or any cause beyond reasonable control of the Cooperative, the Cooperative shall not be liable therefore.

2.For the purposes of making repairs to or changes in the Cooperative’s plant, distribution system or other property, the Cooperative may, without incurring any liability, suspend service for such period as may be required.  The Cooperative shall not inconvenience the member-consumer unnecessarily and whenever possible shall give reasonable notice to the member-consumer prior to such suspension of service.

3.Interruptions of service, however, shall not relieve the member-consumer from any charges for service actually supplied, nor relieve the member-consumer of payment of minimum charges specified in the applicable rate or contract.

J.Standard Voltage, Frequency and Permissible Variations

1.The Cooperative’s standard nominal voltages for its secondary voltage distribution systems are 120 volts, single phase, two-wire; 120/240, single phase, three wire; 240 volt or 480 volt, three phase, three-wire delta; 120/240 or 240/480 volt, three phase, four-wire delta connected; and 120/208 or 277/480 volt, three phase, four-wire wye connected.

2.Every reasonable effort shall be made by the use of proper equipment and operation to maintain such voltage practically constant at all times.  The voltage maintained at the Cooperative’s main service terminal (the point at which the Cooperative’s service connections terminate) as installed for individual consumers or groups of consumers shall be reasonably constant.

3.Variations in voltage in excess of those specified caused by the operation of power apparatus on the member-consumer’s premises, which necessarily requires large starting currents, by the action of the elements, by infrequent and unavoidable fluctuations of short duration due to necessary station or line operations, shall not be considered a violation to this rule.

III.       RESPONSIBILITY
The General Manager is responsible for administering this policy and for recommending to the Board any changes deemed desirable.

EFFECTIVE DATE:   July 31, 2014

DATE ADOPTED:     September 20, 2001

DATE REVISED:       October 30, 2008

DATE REVIEWED:   February 28, 2013

DATE REVISED:       March 21, 2013

DATE REVISED:       July 31, 2014

ATTESTED:   __________________________________

Chris Hofer, Secretary

Construction & Extension Of Electric Service

I.          OBJECTIVE
To set forth the terms and conditions under which the Cooperative will construct and extend its facilities to provide electric service for the benefit of the member-consumer.

II.         CONTENT

A.  Construction Requirements

1.  The electric plant of the Cooperative shall be constructed, installed, maintained and operated in accordance with RUS standards and accepted engineering practices in the electric industry to assure, as far as reasonably possible, continuity of service, uniformity in quality of service furnished and the safety of persons and property.

2.  The Cooperative shall use, as the minimum standard of accepted practice, the National Electrical Safety Code as prescribed by the statutes of the State of South Dakota or as the same may be amended.

3.  The type and character of construction, capacity requirements, location of the origin, and the route to be followed in the construction of an extension shall be determined by the Cooperative after due consideration of the engineering problems involved, with the objective of providing the best service possible.  The origin need not necessarily be at the point on the existing distribution system most proximate to the member-consumer’s premises, nor the route selected the shortest distance between the origin and the delivery point.

4.  Prior to the construction of new facilities to serve a member-consumer, the provisions specified in this policy shall be used to determine any required contribution-in-aid-of-construction (CIAC).  If the Cooperative determines that a contribution-in-aid-of-construction is necessary, payment or payment arrangements for the contribution-in-aid-of-construction shall be made prior to the construction and extension of electric service. As with any contribution-in-aid-of-construction payment, the Cooperative retains ownership of the facilities involved and the Cooperative is responsible for any future maintenance and/or ordinary replacements.

a.   Management shall be authorized to negotiate payment arrangements for contributions.  Payment arrangement options that spread payments over an extended period of time shall include a termination clause to guarantee payment of the contribution in the event electric service is discontinued.

B.  Post-Disaster Construction Specifications, Codes and Standards

1.  In the aftermath of a major storm which has caused significant damage to existing overhead pole line, the Cooperative will assess the extent of the damage to determine whether the damaged portion of the overhead pole line will be rebuilt or replaced with underground facilities.  It shall be the practice of the Cooperative to rebuild or replace any storm damaged overhead pole line based on the following minimum construction specifications, codes and standards rather than rebuild the overhead pole line to the former specifications, codes and standards:

a.      Single-Phase Overhead Pole Line Construction

• Pole – Class 5 or lower
• Conductor – #2 ACSR, 6/1 Aluminum
• Spans – average 240 feet or less

b.     Three-Phase Overhead Pole Line Construction

• Pole – Class 3 or lower
• Conductor – #2 ACSR, 6/1 Aluminum
• Spans – average  240 feet or less

c.      Single-Phase Underground Line Construction

• Cable – #1/0, 220 mil, EPR
• Rubber Goods – 200 Amp

d.     Three-Phase Underground Line Construction

• Cable – #4/0, 220 mil, EPR or TRXLP
• Rubber Goods – 200 Amp or 600 Amp, depending on the feeder

2.  It is the Cooperative’s intention to improve and upgrade the distribution system to meet these minimum specifications, codes and standards; however, the first priority in the aftermath of any major storm is to restore power as expeditiously and safely as possible.

3.  Management will make the decision to replace overhead pole line with either overhead pole line or underground facilities after restoring service and taking into consideration the damage to the overhead pole line, the Long Range Engineering Plan and the number of members and the types of loads to be impacted.

C.  General Terms and Conditions

1.  The Cooperative shall install and maintain the electric distribution lines and all equipment up to and including the meter, which may be located either on a building, a Cooperative-owned pole or a Cooperative-owned underground pedestal.

a.      Where requested by the member-consumer, the Cooperative shall install, own, operate and maintain load control receivers on the member-consumer’s side of the meter in conjunction with the load management program.

2.  For safety purposes, the installation of a double throw disconnect switch shall be a pre-requisite to a member-consumers operation of a standby generator.  For a generator with a capacity of 5 kW or greater, the Cooperative shall furnish a double-throw disconnect switch at no cost to the member-consumer for single-phase service only.  For a generator with a capacity of less than 5 kW, a contribution-in-aid-of-construction equal to $1,000.00 shall apply.

3.  For each service classification, the Cooperative shall provide single or three-phase electric service under the applicable rate schedule at the meter location, or delivery point, to be agreed upon by the Cooperative and the member-consumer as the best load center available.  The terms, rates and conditions of service may be formulated into a contractual agreement with the member-consumer prior to the installation of the service.

D.  Contributions-In-Aid-of-Construction and Other Requirements

1.  Single-Phase Service. The following applies to single-phase line extensions for new service.  Additional criteria apply to seasonal services, see applicable policy provisions.

a.      The contribution-in-aid-of-construction shall consist of the following charges.  Per foot charges shall apply to both primary and secondary line extensions.

Flat Charge………………………………………………….. $400.00, plus

Per Foot Charge:

First 600 feet……………………………………………… $0.00 per foot

Over 600 feet……………………………………………… $2.00 per foot

Any incidental charges directly related to the line extension such as road bores, winter conditions, county permits and/or crossing fees shall be added to and included in the contribution-in-aid-of-construction.  If the member-consumer requests an underground disconnect, a charge of $1,000.00 shall apply to help defray the additional costs.

b.     Any new request for electric service with above normal load requirements may be required to accept three-phase service by the Cooperative in lieu of single-phase service.  In making the determination between single and three-phase service, the Cooperative will take into consideration the following load characteristics and existing distribution system capabilities:

(1)  Overhead versus underground service;

(2)  Transformer capacity requirements and limitations;

(3)  Wire size limitations;

(4)  Amperage limitations;

(5)  Diversity within the new services load requirements;

(6)  Existing load requirements on the nearest single-phase circuit.

c.      The maximum allowable transformer capacity for a single-phase service shall be 100 kVA.

d.     For developments or platted subdivisions, see applicable section of this policy.

2.  Three-Phase Service to Non-biddable Load. The following applies to three-phase line extensions for new services.  Additional criteria apply to seasonal services, see applicable policy provisions.

a.      The contribution-in-aid-of-construction shall consist of the following charges.  Per foot charges shall apply to both primary and secondary line extensions.

Flat Charge (1)………………………………………….. $2,000.00, plus

Capacity Charge (2)…………………………………………. $6.50 per amp, plus

Per Foot Charge: (3)

First 1,200 feet…………………………………………… $1.00 per foot

Over 1,200 feet…………………………………………… $5.00 per foot

(1)  Based on the size of the electrical panel.

(2)  When 300 amp underground primary line is deemed appropriate by the Cooperative, the applicable Per Foot Charge shall be doubled.

(3)  Any incidental charges directly related to the line extension such as road bores, winter conditions, county permits and/or crossing fees shall be added to and included in the contribution-in-aid-of-construction.

(4)  If the Cooperative determines that the construction of the new service line extension would provide a specific benefit to the distribution system, the contribution-in-aid-of-construction may be modified accordingly to take into consideration those betterment costs as determined by management.

b.     The Cooperative may require that a written contract be executed between the Cooperative and the member-consumer prior to the installation of the service.

c.      For loads in excess of 150 kVA, the member-consumer may be required to furnish and install a secondary transition cabinet next to the transformer with a connective raceway between them.  The Cooperative shall furnish and install the conductor between the transformer and transition cabinet and be fully responsible for all connectors and connections in the transformer.  The member-consumer shall furnish the connectors inside the transition cabinet.  The member-consumer shall furnish and install a cement pad for the transformer in accordance with the Cooperative’s specification.

3.  Three-Phase Service to Biddable Load. The following applies to all line extensions to serve large three-phase services, such as an ethanol plant, classified as a biddable load under SDCL.

a.      As a biddable load, management shall have the authority to negotiate the cost recovery methodology for the service investment required to serve the load.  Cost recovery methods may vary from a full contribution-in-aid-of-construction with no initial investment cost recovery built into the rate to no contribution-in-aid-of-construction with full investment cost recovery built into the rate.

b.  The extent of investment cost recovery considered during the negotiation process shall be based on various criteria including:

(1)  The amount of the initial service investment;

(2)  The viability of the industry requesting service;

(3)  The risk associated with the investment;

(4)  Any other factors deemed appropriate.

c.  The Cooperative shall require that a written Electric Service Agreement be executed between the Cooperative and the member-consumer prior to the installation of the service.

4.  Seasonal Service. All line extensions to new seasonal services, including grain drying and irrigation, shall require a contribution-in-aid-of-construction based on the previous provisions of this policy as applicable plus an additional $5.00 per amp of the electrical panel size.  The following additional criteria also apply to all line extensions to new irrigation services.

a.      Members requesting irrigation service must show satisfactory permits and tests on the availability of water, both in quantity and quality, suitable for long-range irrigation practices.

b.     The Cooperative may require that capacitors rated at 480 volts and sized to the horsepower rating of the pumping unit be connected on the line side of the motor starter.

c.      For electric service to operate only irrigation pivot motors, the member-consumer shall furnish and install the secondary service wire from the pivot to a location specified by the Cooperative.

5.  Multiple-Voltage Service. When more than one electric service is requested to accommodate multiple voltages for the same location, the contribution-in-aid-of-construction shall include the normal contribution-in-aid-of-construction based on this policy plus an estimate of the entire installation costs associated with any additional electric service(s) including metering and transformation.

6.  Service Upgrade. Member-consumers may upgrade the size of their electrical panel to a maximum of 400 amps without incurring any related charges from the Cooperative for increasing the size of their transformation.  For existing services where the member-consumer’s load requirements justify upgrading the size of their electrical panel beyond 400 amps and the Cooperative makes a corresponding upgrade in the transformation for that service, a contribution-in-aid-of-construction equal to 25% of the estimated cost to be incurred by the Cooperative shall apply.

7.  Multiple-Metered Service. The following applies to all line extensions to serve multiple-metered loads.

a.      A contribution-in-aid-of-construction for any line extension to the delivery point shall be based on the previous provisions of this policy as applicable.

b.     For services of 600-amps or less, the gang meter panels with meter bypass and breaker shall be furnished and installed by the Owner.  The delivery point shall be the transformer terminal or the buss of a secondary transition cabinet furnished and installed by the Owner, including cabinet connector.

c.      For services exceeding 600 amps, the Owner shall furnish and install the gang meter panels with meter bypass and breaker and also furnish and install a secondary transition cabinet next to the transformer with a connective raceway between them.  The Cooperative shall furnish and install the conductor between the transformer and transition cabinet and be fully responsible for all connectors and connections in the transformer.  The Owner shall furnish the connectors inside the transition cabinet.

d.     The Cooperative shall furnish membership application forms and self-addressed, stamped envelopes to the Owner/Manager of the facility for use in collecting deposits and notifying the Cooperative of new tenants.  The Owner/Manager shall also be responsible for notifying the Cooperative when tenants move out and shall be ultimately responsible for the balance on the electric bill of any tenant that moves out.  The Cooperative shall make arrangements with the Owner/Manager to obtain the forwarding addresses of former tenants.

8.  Mobile or Modular Home

a.  For electric service to an individual mobile or modular home, the following applies:

(1)  If the Cooperative considers the structure to be permanent in nature (i.e.; approved water supply, septic system and/or permanent foundation), a contribution-in-aid-of-construction for any line extension to the delivery point shall be based on the previous provisions of this policy as applicable.

(2)  If the Cooperative considers the structure to be non-permanent in nature, the Cooperative shall require a contribution-in-aid-of-construction equal to one-half of the estimated cost to provide electric service.

b.  For electric service to mobile or modular home courts or parks, the Owner shall furnish and install a meter loop and support pole for overhead service.  If underground service is provided, the Owner shall be charged a minimum of $400.00 per metering point – either single or multiple.

9.  Non-Permanent/Temporary Service The following applies to facilities of a temporary nature or where the venture may be of such speculative character that the permanency is questionable.

a.  The Cooperative shall collect a construction deposit to cover all of the costs associated with the construction and retirement of facilities that are non-permanent/temporary in nature including labor, overheads and materials.

b.  Upon retirement of the facilities, credit on the deposit shall be granted for any material salvaged.  If the Cooperative decides to reclassify the electric service as permanent in nature, the amount of the deposit in excess of any contribution-in-aid-of-construction shall be refunded.

c.  Any inspection fees that are required for the temporary service shall be the responsibility of the member-consumer.

d.  The Cooperative shall also collect a prepayment sufficient to cover the estimated usage or twelve (12) monthly minimums, whichever is greater.  This prepayment will then be credited to the electric account on a monthly basis.

10.  Construction Service

a.  When single-phase electric service is requested during the construction of facilities to be served with permanent electric service at a later date, the Cooperative will energize and de-energize a 20 amp, single-phase construction service provided by the contractor after receiving a $200.00 fee for each construction service.

b.  When three-phase electric service is requested during the construction of facilities to be served with permanent electric service at a later date, the Cooperative will energize and de-energize a three-phase construction service provided by the contractor after receiving a $400.00 fee for each construction service.

11.  Primary Voltage Service

a.  A contribution-in-aid-of-construction for any line extension to the delivery point shall be based on the previous provisions of this policy as applicable.

b.     The Cooperative may furnish electric service at 12,470/7,200-ground wye primary voltage under the applicable rate schedule at the request of the member-consumer.  To qualify, the member-consumer must be capable of owning, operating and maintaining all high voltage distribution facilities between the metering point and the low voltage service entrance.

c.      Due to the specialized nature of the required metering, the cost of the primary metering package shall be included in the contribution-in-aid-of-construction for any primary voltage service.

12.  Recognizing the fact that the Cooperative can not define a method of determining the applicable contribution-in-aid-of-construction for every situation or circumstance in a written policy, the General Manager and the Operations Manager shall have the authority to interpret the intent of this policy and make reasonable estimates of contributions-in-aid-of-construction for unusual or unique situations whether or not specifically addressed herein.

E.  Duplication of Service/Redundant Service

1.  For any member-consumer requesting redundant electric service with the construction of an alternate feed, the Cooperative shall require a contribution-in-aid-of-construction equal to the cost of redundant line extension less the value of any resulting line improvements or upgrades deemed beneficial to the Cooperative.

F.   Developments or Platted Subdivisions

1.  For development of residential areas, an economic analysis shall be made by the Cooperative to determine if anticipated revenue justifies the expenditure.  When the anticipated revenues justify the expenditure, the Cooperative may waive any or all contributions-in-aid-of-construction.  When the anticipated revenue does not justify the expenditure, the installation will be made only if the Owner/Developer pays the Cooperative that portion of the facility cost not justified by the anticipated revenue.

2.  The Owner/Developer shall establish grades, which shall be no more than four (4) inches above or below the final finished grade.  The Owner/Developer shall be responsible for all costs associated with the relocation of Cooperative facilities to accommodate changes in grade or relocation after the facilities have been installed.

G.  Easements

1.  A contract for electric service, or the receipt of service by a member-consumer, shall be construed as an agreement granting to the Cooperative without charge, an easement for electric lines, wires, conduit and other equipment of the Cooperative necessary to render service to the member-consumer.  Cooperative personnel may enter the premises to repair, maintain and perform any other duties necessary to provide continuity of service for the member-consumers of the Cooperative.

2.  The Cooperative may assist the member-consumer in the procurement of other right-of-way easements necessary for the line extension and may assess the member-consumer for any costs incurred in the right-of-way acquisition.  It shall be the responsibility of the member-consumer desiring service to provide or pay for costs incurred for tree or brush clearing or crop damages.

H.  Transformers

1.  Necessary step-down transformers shall be installed and maintained by the Cooperative, unless otherwise specified in the applicable rate schedule on file.  The Cooperative shall determine the required capacity of the transformation.

a.  The member-consumer, at the request of the Cooperative, shall furnish and maintain space and facilities for the installation of the Cooperative’s transformers and other equipment.

III.       RESPONSIBILITY
The General Manager is responsible for administering this policy and for recommending to the Board any changes deemed desirable.

EFFECTIVE DATE:   January 1, 2018

DATE ADOPTED:     April 24, 2003
DATE REVISED:       January 24, 2008
DATE REVISED:       January 22, 2009
DATE REVISED:       March 21, 2013
DATE REVISED:       May 23, 2013
DATE REVISED:       August 21, 2014
DATE REVISED:       February 22, 2017
DATE REVISED:       November 29, 2017
DATE REVISED:        March 21, 2019

ATTESTED: Chris Hofer, Secretary

I.          OBJECTIVE
To establish rules governing the upgrade, modification or reconfiguration of existing electric facilities.

II.         CONTENT

A.    When requested, the Cooperative shall make changes in the configuration of existing facilities (examples may be modifications from overhead to underground, single-phase to three-phase installations or relocation of secondary wires) under any of the following conditions:

1.If the reconfiguration will result in no improvement in the Cooperative’s facilities, a contribution-in-aid-of-construction equal to the total additional investment shall be required.

2.The modification is needed to permit the member-consumer to expand their use of electric power, and the Cooperative receives a contribution-in-aid-of-construction that limits the Cooperative’s new incremental investment to a level that can be justified by increased revenues from the expanded electrical use.

3.The reconfiguration shall result in a substantial and needed improvement in the Cooperative’s facilities.

4.If the reconfiguration will result in improvement in the Cooperative’s facilities, but one that is not necessarily needed at the time requested, a partial contribution-in-aid-of-construction may be required by the Cooperative.

B.    An electric service may be upgraded, modified or reconfigured at the discretion of the Cooperative at no cost to the member-consumers to eliminate a safety hazard created by the Cooperative or to match service line capacity with load requirements.

C.    The member-consumer may be assessed the cost of upgrading, modifying or reconfiguring an electric service when one or more of the following apply.

1.     The member-consumer request service changes when existing service conditions and capacity meet service needs.

2.     The member-consumer requests the installation of underground service where existing facilities meet service requirements or underground services are not in the Cooperative’s work plan.

3.     The member-consumer requests the installation of an additional service meter loop to meet personal needs for separate service billings.

a.A contribution-in-aid-of-construction shall be required for such service changes in an amount sufficient to cover the total cost of the service change less an estimated salvage value of the service meter loop.

III.       RESPONSIBILITY
The General Manager is responsible for administering this policy and for recommending to the Board any changes deemed desirable.

EFFECTIVE DATE:   February 22, 2017

DATE ADOPTED:     September 20, 2001
DATE REVIEWED:   June 25, 2009
DATE REVIEWED:   February 28, 2013
DATE REVISED:       August 21, 2014
DATE REVISED:       February 22, 2017

ATTESTED:   Chris Hofer, Secretary

I.          OBJECTIVE
To set forth the terms and conditions under which the Cooperative will construct and extend its facilities to provide electric service for the benefit of the member-consumer consistent with the principles of complete area coverage.

II.         CONTENT

A.The Cooperative shall construct facilities and furnish electric service to any person, firm or organization desiring electric service from the Cooperative with the following conditions:

1.The request for electric service must be at a location without central station electric service, and must be within the areas where the Cooperative has the legal right to provide such service.

2.Based on the Cooperative’s evaluation of the specific service requirements and Policy 702, “Construction and Extension of Electric Service” requirements, a contribution-in-aid-of-construction may be required.

III.       RESPONSIBILITY
The General Manager is responsible for administering this policy and for recommending to the Board any changes deemed desirable.

EFFECTIVE DATE:   June 25, 2009

DATE ADOPTED:     September 20, 2001
DATE REVISED:       June 25, 2009
DATE REVIEWED:   February 28, 2013
DATE REVIEWED:   August 21, 2014

ATTESTED:  Chris Hofer, Secretary

I.          OBJECTIVE
To establish rules governing alteration, relocation or removal of the Cooperative’s existing electric facilities for private and public convenience or necessity.

II.         CONTENT

A.    Requests for alteration or relocation of the Cooperative’s facilities for road work, house moves, joint use or other similar reasons shall be made sufficiently in advance to enable the Cooperative to properly schedule the requested alteration or relocation.

1.     The Cooperative shall cooperate with all political subdivisions in the construction and improvement of roads and highways.  The political subdivision shall formally request the relocation or alteration of the Cooperative’s facilities.

a.If the Cooperative’s facilities are located within the confines of the public right-of-way, the Cooperative shall make the necessary relocation at its own expense.

b.If the Cooperative’s facilities are located on private right-of-way, the political subdivision shall agree to reimburse the Cooperative for the applicable portion of the costs involved in relocating or altering its facilities.

c.When road or highway construction or improvement is completed which necessitates relocation or altering the Cooperative’s facilities, the political subdivision creating such necessity shall be billed for the applicable portion of the costs incurred by the Cooperative in relocating or altering its facilities.  When the applicable portion of the costs to be billed creates any undue financial burden on the political subdivision, in-kind contributions may be taken into consideration by Cooperative management.

2.     When the Cooperative is requested to relocate its facilities for reasons other than highway construction or improvement, the person, firm or organization requiring or creating the need for relocation of the facilities shall guarantee payment for the work to be performed by making a cash deposit of the estimated charges in advance.

B.    Meters and other facilities of the Cooperative shall not be removed or relocated by anyone except Cooperative personnel, except in the case of emergencies.  If, due to an emergency, the member-consumer removes a meter or other facilities of the Cooperative, the member-consumer shall immediately notify the Cooperative.

III.       RESPONSIBILITY
The General Manager is responsible for administering this policy and for recommending to the Board any changes deemed necessary.

EFFECTIVE DATE:   August 21, 2014

DATE ADOPTED:     September 20, 2001
DATE REVISED:       June 25, 2009
DATE REVIEWED:   March 21, 2013
DATE REVISED:       August 21, 2014

ATTESTED:   Chris Hofer, Secretary

I.          OBJECTIVE
To provide for written contracts and special rules relating to agreements between the Cooperative and the member-consumer requesting electric service for large loads, services requiring above normal line extensions or investments by the Cooperative.

II.         CONTENT

A.In either of the following circumstances, contracts for electric service shall be in writing, approved by the Cooperative and executed by the member-consumer prior to the construction of a new service or the extension of existing facilities to serve the new load.

1.Electric services with a contracted minimum demand of two thousand (2,000) kilowatts or more as established by SDCL 49-34A-56.

2.As determined by management, based on the Cooperative’s evaluation of the specific service requirements, investments and Policy 702, “Construction and Extension of Electric Service” requirements.

B.The Board of Directors shall review and approve any contracts described in A.1 or A.2 above, prior to execution.

1.   The policies, rules and regulations of the Cooperative shall not apply to contracts set forth in A.1 and A.2 to the extent that their terms conflict with the terms of such contracts.

III.       RESPONSIBILITY
The General Manager is responsible for administering this policy and for recommending to the Board any changes deemed desirable.

EFFECTIVE DATE:   September 26, 2006

DATE ADOPTED:     September 20, 2001
DATE REVISED:       September 26, 2006
DATE REVIEWED:   June 25, 2009
DATE REVIEWED:   March 21, 2013

ATTESTED:   Pat Scheier, Secretary

I.          OBJECTIVE
To establish policy to govern the assistance to be made available from the Cooperative where stray voltage may exist.

II.         DEFINITION

A.Electric service to member-consumers is provided through a multi-grounded network.  All parts of this network are interconnected through an electrically conductive system consisting of primary and secondary neutrals and all grounded equipment and facilities.  The grounded neutral system is connected through “ground rods” driven into the soil and through electrically grounded equipment and facilities in contact with the soil.  The Cooperative has constructed this type of system because it is dictated by code, by RUS standards, and provides the greatest level of safety and reliability.

B.Every part of the grounded neutral network, including the conductors, the connections, the earth, and the contact between the ground rods and earth, has some resistance to the flow of electric current.  Due to these resistances, whenever there is a current in the neutral system, a voltage exists between it and the earth.  These voltages are reflected to all parts of the interconnected network.  Neutral-to-earth voltage occasionally does get high enough to cause some concern, and at that time the animal contact area needs to be checked to see whether any of these neutral-to-earth voltages are entering the animal contact area.  This phenomenon and its affects have been termed as “stray voltage”.

C.Stray voltage is defined as a small voltage (less than 10 volts) measured between two points that can be contacted simultaneously by an animal.  Because animals respond to the current produced by a voltage and not to that voltage directly, the source of the voltage must be able to produce current flows greater than the threshold current needed to elicit a response from an animal when an animal, or an equivalent electrical load, contacts both points.

D.Some level of stray voltage is an inherent characteristic of a properly designed and bonded electrical distribution system and is not necessarily the result of electrical faults or poor wiring.  Simply by complying with National Electric Code requirements for bonding in agricultural buildings, neutral-to-earth voltage should be expected in the animal environment.

III.       CONTENT

A.The Cooperative shall periodically inform the membership that the possibility of stray voltage may exist and assist member-consumers to prevent or alleviate any problems associated with stray voltage.

B.The Cooperative shall respond in a timely manner to inquiries or complaints indicating a potential stray voltage problem.  Cooperative personnel shall determine neutral-to-earth voltage levels by conducting voltage tests and installing a recording device for a period of time.

C.If the Cooperative’s investigation indicates that the stray voltage levels in any of the animal contact areasexceed the level of concern, recommendations will be made in an effort to reduce the voltage to acceptable levels without undue delay.  These recommendations may require that Cooperative personnel work in conjunction with the member-consumer’s qualified electrician, milk buyer, veterinarian, consultant, etc.

1.An acceptable level of stray voltage in the animal contact area shall be based on the circumstances and the scientific research available at the time of the investigation.

2.The member-consumer shall bear the cost of any materials installed by the Cooperative on the member-consumer’s system as a result of the investigation.

D.A neutral isolation device may be installed by the Cooperative to isolate the primary neutral from the secondary neutral.  The following criteria apply for the installation of a neutral isolation device.

1.     Where all remedial actions by both the Cooperative, other contributing utilities and the member-consumer fail to reduce the voltage to acceptable levels and the primary system has been determined to be a major contributing factor, the Cooperative shall bear the cost of the neutral isolation device and it’s installation.

2.     Connection of the neutral isolation device shall be in accordance with the National Electric Safety Code in effect at the time of installation.

3.     The Cooperative shall own and maintain the neutral isolation device.

4.     The member-consumer shall execute a written agreement with the Cooperative regarding the installation of the neutral isolation device.

E.Each investigation shall be documented by appropriate Cooperative personnel.  Documentation shall include, but not be limited to, the type of service; problem area; measurements taken; recommendations made; remedial actions taken; results of remedial actions on voltage readings; and any follow-up taken.  Copies of the documentation, analysis and an explanation shall be provided to the member-consumer.

IV.       RESPONSIBILITY

The General Manager is responsible for administering this policy and for recommending to the Board any changes deemed desirable.

EFFECTIVE DATE:   October 30, 2014

DATE ADOPTED:     September 20, 2001
DATE REVIEWED:   July 23, 2009
DATE REVISED:       April 18, 2013
DATE REVISED:       October 30, 2014

ATTESTED:   Chris Hofer, Secretary

I.          OBJECTIVE

To establish policy concerning the retention or retirement of idle services deemed to be no longer needed by the Cooperative.

II.         CONTENT

A.    Line Retention Fee.

1. Upon request for a new service, the Cooperative will make every effort to complete the installation in a timely manner.  Once a new service has been constructed and is ready for the Cooperative to energize and the member-consumer/contractor is not ready for the service to be energized or asks the Cooperative to postpone the installation of the metering equipment required to energize the service, a line retention fee shall be assessed until the member-consumer/contractor indicates that the service is ready to be energized.

2. The line retention fee shall be the monthly facility charge of the applicable retail rate schedule.  The initial line retention fee may be prorated by the Cooperative for any partial billing period.

3. Any delinquent line retention fees at the time the member-consumer/contractor indicates that the service is ready to be energized must be paid before the Cooperative will energize the service.

B.    Idle Services.

1.Any electric service that has been idle for more than one (1) year may be retired at the discretion of the Cooperative in accordance with the regular work order procedure.

2.If the member or land owner request that the idle service be retained, a monthly line retention fee shall be required.  The fee shall coincide with the facility charge specified in the applicable rate schedule as determined by the Cooperative.

3.If the electric facilities are retired, the Cooperative’s line extension policy shall apply for any future requests for electric service at the same location.

4.If an idle service has not been retired and an applicant requests that the service be energized, the applicant shall pay any outstanding line retention fees.

III.       RESPONSIBILITY

The General Manager is responsible for administering this policy and for recommending to the Board any changes deemed desirable.

EFFECTIVE DATE:   March 23, 2017

DATE ADOPTED:     September 20, 2001
DATE REVISED:       July 23, 2009
DATE REVIEWED:   April 18, 2013
DATE REVISED:       March 23, 2017

ATTESTED: Chris Hofer, Secretary

Interconnection of Co-Generation & Small Power Production Facilities

PREAMBLE

The Public Utility Regulatory Policies Act of 1978 (PURPA) declared purpose is to encourage co-generation and small power production.  PURPA authorizes the Federal Energy Regulatory Commission (FERC) to issue rules to implement Sections 201 and 210 of the Act.  FERC has issued such final rules to implement Sections 201 and 210 of the Act.

This Policy provides the manner in which Southeastern Electric Cooperative, Inc. (Southeastern) will implement Subpart C (Arrangements between Electric Utilities and Qualifying Co-generation and Small Power Production Facilities under Section 210 of PURPA) other than Section 292.302 thereof, of the regulations set forth in Part 292, Chapter I, Title 18, Code of Federal Regulations.

Southeastern is a member of East River Electric Power Cooperative, Inc. (East River) Madison, South Dakota.  It is legally obligated by contract to obtain all its requirements for electric energy and capacity from East River.

East River has contracted with the United States Department of Energy – Western Area Power Administration (WAPA) for the purchase of electric energy and capacity.  Electric energy and capacity in excess of the amount of energy and capacity furnished by WAPA is furnished to East River pursuant to contract with Basin Electric Power Cooperative, Inc. Bismarck, North Dakota.

For the purpose of this Policy a co-generation and/or small power production facility owner is hereinafter referred to as the Customer.  East River is hereinafter referred to as the Power Supplier.  Southeastern is hereinafter referred to as the Utility.

GENERAL

The Utility will conform with all the requirements of Sections 201 and 210 of PURPA, Co-generation and Small Power Production, and with the actual regulations set forth in Part 292 of Chapter I, Title 18, Code of Federal Regulations which are applicable to this Utility.

DEFINITIONS

The following definitions apply for the purpose of this Policy.

1.   “Qualifying facility” means a co-generation facility or a small power production facility which is a                                     qualifying facility or a utility geothermal small power production facility, under applicable Federal Energy                       Regulatory Commission’s regulations.

2.   “Purchase” means the purchase of electric energy or capacity or both from a qualifying facility by an                            electric utility.

3.   “Sale” means the sale of electric energy or capacity or both by an electric utility to a qualifying facility.

4.   “System emergency” means a condition on a utility’s system which is likely to result in imminent significant disruption of service to customers or is imminently likely to endanger life or property.

5.   “Rate” means any price, rate, charge, or classification made, demanded, observed or received with respect to the sale or purchase of electric energy or capacity, or any rule, regulation, or practice respecting any such rate, charge, or classification, and any contract pertaining to the sale or purchase of electric energy or capacity.

6.   “Avoided costs” means the incremental costs to an electric utility of electric energy or capacity or both which, but for the purchase from the qualifying facility or qualifying facilities, such utility would generate itself or purchase from another source.

7.   “Interconnection costs” means the reasonable costs of connection, switching, metering, transmission, distribution, safety provisions and administrative costs incurred by an electric utility directly related to the installation and maintenance of the physical facilities necessary to permit interconnected operations with a qualifying facility, to the extent such costs are in excess of the corresponding costs which the electric utility would have incurred if it had not engaged in interconnected operations, but instead generated an equivalent amount of electric energy itself or purchased an equivalent amount of electric energy or capacity from other sources.  Interconnection costs do not include any costs included in the calculation of avoided costs.

8.   “Supplementary power” means electric energy or capacity supplied by an electric utility, regularly used by a qualifying facility in addition to that which the facility generates itself.

9.   “Backup power” means electric energy or capacity supplied by an electric utility to replace energy ordinarily generated by a facility’s own generation equipment during an unscheduled outage of the facility.

10. “Interruptible power” means electric energy or capacity supplied by an electric utility subject to interruption by the electric utility under specified conditions.

11. “Maintenance power” means electric energy or capacity supplied by an electric utility during scheduled outages of the qualifying facility.

CRITERIA FOR A QUALIFYING FACILITY

A qualifying facility, either a co-generation or small power production facility, must be owned by someone other than a person primarily engaged in the generation or sale of electric power.  The membership test is satisfied if more than 50 percent of the equity interest in a facility is owned by persons other than electric utilities and related entities.

A small power production facility may not become a qualifying facility if its capacity exceeds 80 megawatts.  Also, its primary energy source (more than 75 percent) must be a renewable resource such as water power, solar energy, wind energy, geothermal energy, biomass, or waste.

The regulations do not place a size limitation on co-generation facilities; however, the regulations do prescribe certain operating and efficiency standards for co-generation facilities.

PROCEDURES FOR OBTAINING QUALIFYING STATUS

The owner or operator of a qualifying facility must furnish FERC with the following information:

1.   The name and address of the applicant and location of the facility.

2.   A brief description of the facility, including whether such facility is a small power production facility or a co-generation facility.

3.   The primary energy source used or to be used by the facility; and

4.   The power production capacity of the facility.

The owner or operator of a facility has the option to file an application with FERC for certification that the subject facility is a qualifying facility.

Utility is not required to purchase electric energy from a facility with design capacity of 500 KW or more until 90 days after the owners or operators thereof notify the Utility that it is a qualifying facility, or until 90 days after an application has been made to FERC for certification of the facility.

UTILITY’S OBLIGATION

Subject to the provisions of the Policy and the requirements of Section 201 and 210 of PURPA and Part 292 of the regulations pertaining to said described sections, the Utility assumes the following obligations:

1.   To purchase any electric energy and capacity that is made available from a qualifying facility;

2.   To sell to any qualifying facility any electric energy and capacity requested.

3.   To make interconnections with any qualifying facility to accomplish purchases or sales; and

4.   To offer to operate in parallel with a qualifying facility.

5.   The Utility will attempt to negotiate with the Customer for the right of the Utility to transmit the electric energy or capacity of the Customer’s qualifying facilities to the Utility’s power supplier.

SAFETY AND RELIABILITY STANDARDS

Interconnection between the Customer’s generation equipment and the Utility’s electric system and/or Power Supplier’s electric system mandate the establishment by this Utility of reasonable standards to ensure the safety and reliability of the Utility’s electric system and/or Power Supplier’s electric system, and to protect the Customer and its generating system, the general public, and the Utility’s and/or Power Supplier’s personnel.

The Utility will permit the Customer to operate its generation equipment in parallel with the Utility’s electrical system whenever this can be done without adverse effects on the general public, other utility consumers, or to the Power Supplier or to the Utility’s equipment or personnel.  Certain protective devices (relays, circuit breakers, etc.) within reasonable Electrical Industry Standards specified by the Utility and/or the Power Supplier must be installed at any location where a Customer desires to operate generation in parallel with the Utility and/or its Power Supplier.  The purpose of these devices is to promptly remove the infeed from the Customer’s generation whenever a fault occurs, so as to protect the general public and the Utility’s facilities and/or the Power Supplier’s facilities and personnel from damage due to fault currents produced by the Customer’s generation.

The Customer shall design, construct, operate and maintain its generation facility in accordance with Prudent Utility Practice.

For the purpose of this Policy, Prudent Utility Practice is defined as any of the practices, methods and acts, which, in the exercise of reasonable judgment in the light of the facts (including but not limited to the practices, methods and acts engaged in or approved by a significant portion of the electric utility industry prior thereto) known at the time the decision was made, would have been expected to accomplish the desired result at the lowest reasonable cost consistent with good business practices, reliability, safety and expedition, taking into account the fact that Prudent Utility Practice is not intended to be limited to the optimum practice, methods or acts to the exclusion of all others, but rather to be a spectrum of possible practices, methods or acts which could have been expected to accomplish the desired result at the lowest reasonable cost consistent with reliability, safety and expedition.  Prudent Utility Practice includes due regard for manufacturers’ warranties and requirements of governmental agencies of competent jurisdiction.

The Customer’s generation facility and associated equipment shall meet all requirements of applicable state and federal regulations, local, state and national codes and all standards of Prudent Utility Practice.

Any Customer who desires to install a generation facility on its premises and interconnect it with the Utility’s electric system must submit to the Utility a written proposal and offer to sell to the Utility electric energy and/or capacity.  The proposal shall specify the terms and conditions of the sale.

Prior to connecting the Customer’s generation facility in parallel to the Utility’s electric system the Customer shall provide to the Utility and its electric power supplier for its review, the specifications for major equipment associated with the Customer’s generation facility, detailed electrical diagrams, which diagrams must show all related wiring and safety features of the generation facility, equipment nameplate data including the interface device and the control system of the Customer’s power source and a site plan and the operating characteristics for Customer’s generator and interconnection, all of the foregoing must be approved by the Utility and/or Power Supplier.

Interconnection shall be made in such manner that, if the voltage from the Utility and/or the Power Supplier is absent, the electrical interconnection is immediately broken.

The Utility and/or the Power Supplier will not assume any responsibility for the protection of the generator(s), or of any portion of the Customer’s electrical equipment.  The Customer is fully responsible for protecting its equipment in such a manner that faults or other disturbances on the Utility’s system and/or the Power Supplier’s system do not cause damage to the Customer’s equipment, the general public, the Utility’s and/or electric Power Supplier’s equipment and personnel.

The Utility and the generator owner must comply with all applicable provisions of the State Electrical Code, the National Electric Safety Code and the National Electrical Code.

The Customer’s generating system, including interconnecting equipment, shall meet the requirements of and be inspected and approved by the State Electrical Commission and any other public authority having jurisdiction before any interconnection is made to the electric system of the Customer or the Utility.

Wind driven generating facilities, for safety purposes, shall be connected by underground conductor to a point of a horizontal length not less than 1.5 times the fall distance of the generating facility from the Utility facility(s).

To protect appliances and equipment on the premises of the Customer and other consumers, the power generated by the Customer shall not induce excessive distortion to the system’s voltage or current sine waves.  The maximum allowable distortion must not exceed 10% measured at the consumer’s service box.

If the generating system interferes with the operation of Utility’s equipment or interferes with other consumer services, the Utility reserves the right to disconnect.

The Customer’s (generator owner’s) load, in conjunction with the generating system, shall not have a power factor of less than .95 leading or lagging.

To protect the generating system, and to protect all parties from electric shock, the Customer shall supply and install automatic devices to positively disconnect his generating equipment from the system in the event of a disturbance or supply outage on the Utility’s system.  The Utility shall be allowed access to this device at all times to permit periodic safety tests.

The Customer shall furnish and install a disconnecting switch to be connected between the Utility’s electric system and the generating system.  This switch must provide a visual opening in the line and shall be located and equipped so that Utility personnel can have access to operate and lock the switch in case of an outage or for work on the Utility’s and/or Power Supplier’s system.

The Customer shall furnish and install all additional wiring and equipment needed to connect the generating system metering at existing service location.  The meter socket shall be installed as close as possible to the existing service meter.

The Utility shall not interconnect with any “Qualifying Facility” as defined in Subpart A of Part 292 of the Regulations under Sections 201 and 210 of PURPA with regard to Small Power Production and Co-generation, if solely by reason of purchases or sales over the interconnection, the Utility would become subject to regulation as a public utility under Part II of the Federal Power Act.

The Customer shall give reasonable notice to the Utility concerning periods during which the Customer generated energy is proposed to be furnished and the estimated amount thereof.

The Customer shall advise the Utility prior to making any revisions to the Customer’s generation facility, the control system, or interface between the two power systems after the installation.  Any such revision must be acceptable to the Utility.

Should the parallel operation of the Customer’s generation facility cause interference or adversely affect voltage, frequency, harmonic content or power factor in the Utility’s system or other consumer’s service, the Utility may require disconnection of parallel operation until the condition has been corrected.

The Utility shall be responsible for maintenance of all equipment supplied by the Utility.  The Customer shall be responsible for the maintenance of his generating, protective equipment and interconnection equipment.  Complete maintenance records must be maintained by the Customer and be available for the Utility’s review.

The Utility reserves the right to promulgate such other safety and reliability standards necessary for the operation of its system as may be allowed or required by law.

The Utility reserves the right to inspect on demand all protective equipment including relays and circuit breakers owned and installed by the Customer at the point of interconnection.

AVAILABILITY OF ELECTRIC UTILITY SYSTEM COST DATA

The headquarters office of the Utility will maintain for public inspection appropriate data of Utility’s power and energy costs.  Upon request the Utility will provide to interested persons the required system cost data of its supplying Utility and the rates at which the Utility currently purchases energy and capacity.

PURCHASES AND RATES FOR PURCHASES BY UTILITY

The rates at which the Utility shall purchase electric power and energy from a qualifying facility shall be just and reasonable to the consumers of the Utility and shall be in the public interest.  Such rates shall not discriminate against qualifying co-generation and small power production facilities.

The Utility will purchase power and energy from a qualifying facility at the avoided cost unless a lower rate is agreed to by the operators of the qualifying facility.  The purchase price may be established at the avoided costs over a specific contract term.  This avoided cost will, of course, vary from the avoided cost at a specific time of delivery.

1.   The Utility will purchase energy (KWH) recorded on the meter or meters measuring energy from the Customer’s generating system constructed on or after November 9, 1978 at a rate equal to its avoided cost which is deemed to be the net rate the Utility would have paid its wholesale power supplier for the energy only.

2.   The Utility will also purchase capacity (demand KW) from the Customer’s systems constructed on or after November 9, 1978 that can schedule and guarantee firm delivery during the various peak use periods.  Payment, therefore, will be at a rate not greater than the Utility’s avoided cost for demand KW (capacity) which is deemed to be the net rate the Utility would have paid its wholesale power supplier.  However, such rate for purchase of capacity shall be subject to adjustment to reflect properly the avoided cost.

In determining the avoided cost the following factors shall to the extent practicable, be taken into account.

a.   The data provided pursuant to 292.302 (b), (c), or (d) of Subpart C of said Regulations – Arrangements between Electric Utilities and Qualifying Co-generation and Small Power Production Facilities under Section 210 of PURPA.

b.   The availability of capacity or energy from a qualifying facility during the system daily and seasonal peak periods, including:

1.   The ability of the utility to dispatch the qualifying facility;

2.   The expected or demonstrated reliability of the qualifying facility;

3.   The terms of any contract or other legally enforceable obligation, including the duration of the obligation, termination notice requirement and sanctions for noncompliance;

4.   The usefulness of energy and capacity supplied from a qualifying facility during system emergencies, including its ability to separate its load from its generation;

5.   The individual and aggregate value of energy and capacity from qualifying facilities on the electric utility’s system; and

6.   The smaller capacity increments and the shorter lead times available with additions of capacity from qualifying facilities.

c.   The relationship of the availability of energy or capacity from the qualifying facility as derived in paragraph (e)(2) of Section 292.304 of said regulations, to the ability of the electric utility to avoid costs, including the deferral of capacity additions and the reduction of fossil fuel use; and

d.   The costs or savings resulting from variations in line losses from those that would have existed in the absence of purchases from a qualifying facility, if the purchasing electric utility generated an equivalent amount of energy itself or purchased an equivalent amount of electric energy or capacity.

3.   The Utility may establish rates at a lower rate than its avoided cost as determined according to pertinent PURPA regulations for purchases of energy or capacity from the Customer’s generation system constructed before November 9, 1978 provided the Utility determines that the lower rate will provide sufficient encouragement of co-generation and small power production.

4.   When the Utility has more energy or capacity than the Utility requires to meet its total system load the purchase rate for energy or capacity from the Customer shall only include the payment for energy or capacity which the Utility can use to meet its total system load.

5.   The Utility shall not be required to deliver unusable energy or capacity to another utility for subsequent sale.

6.   If the purchase of capacity by the utility from the Customer causes a decrease in the level of the purchase of capacity by the Utility from its power supplier resulting in losses of revenues to the power supplier and the power supplier assigns such loss of revenue to the Utility then the Utility will deduct such losses from the previously calculated avoided cost and shall pay the Customer accordingly.

7.   The Utility shall put in effect standard rates for purchases from customers with qualifying facilities with a design capacity of 100 kilowatts or less.  Such standard rate shall equal the Utility’s avoided cost determined according to pertinent PURPA regulations.  (See Exhibit A attached.)

8.   The Utility may establish standard rates for purchase of energy or capacity from the Customer which differentiates among qualifying facilities on the basis of supply characteristics of the particular technology.

9.   Notwithstanding any other provisions of the Policy, the Utility will not be required to purchase electrical energy during any period:

a.   involving a system emergency if such purchase would contribute to such emergency;

b.   while the Customer has breached any provision of an interconnection and electric sales agreement for small power production facilities between the Utility and the Customer.

c.   involving the risk of loss to property or injury to persons by reason of such purchases; or

d.   when the systems are not operated in parallel;

e.   when due to operational circumstances, purchases of electric energy or capacity from Customer will result in cost greater than those which the Utility would incur if it did not make such purchase, but instead generated an equivalent amount of energy itself or purchased from its wholesale power supplier an equivalent amount of energy.  However, the Utility must notify the Customer in time for the Customer to cease the delivery of energy or capacity to the Utility.

RATES FOR SALES BY UTILITY

The rates for sales by Utility to a qualifying facility shall be just, reasonable and in the public interest and nondiscriminatory.  Such rates shall be similar to the rates in effect for consumers having the same characteristics as the load or other cost related characteristics of other non-generating consumer of the Utility.

Subject to the provisions of this policy and the applicable PURPA statutes and regulations the Utility, upon request from a qualifying facility will provide:

1.   Supplementary power;

2.   Backup power;

3.   Maintenance power; and

4.   Interruptible power.

The rate for supplementary power, maintenance power and interruptible power shall be the rate charged to other consumers having the same characteristics as the load or other cost related characteristics of other non-generating consumers of the Utility.  The rate for interruptible power shall not be lower than the rate for firm service.

However, any of the above services may be waived by FERC if the Utility can demonstrate that such service will:

1.   Impair Utility’s ability to render adequate service to its consumers; or

2.   Place an undue burden on the Utility.

The Utility will require each Customer who supplies any portion of his electrical requirements by his generating facilities to contract for backup power.

For furnishing backup power to the Customer the utility will determine the rate to be charged as follows:

1.   The Utility will determine its annual fixed cost of Plant Investment experienced on its system (all cost except power).

2.   The Utility will divide such annual fixed costs by its total Plant Investment.

3.   The percentage determined in (2) above will be multiplied by the additional investment in plant necessary to provide such backup power.

4.   The result determined in (3) above shall be the annual charge for furnishing such backup power.

5.   The annual charge determined in (4) above shall be divided by twelve to determine the monthly charge, which charge shall be billed monthly.

Provided, however, the foregoing charge for backup power shall not apply during such time the Customer is purchasing capacity and energy from the Utility.

During the time the Customer is purchasing capacity and energy from the Utility, the Customer shall pay the same rate the Utility charges for supplementary power, maintenance power and interruptible power, in lieu of the backup power rates.

INTERCONNECTION

The Customer shall pay all “interconnection cost” which cost is defined as all cost in excess of those costs which the Utility would have incurred if it had not engaged in interconnected operations with the Customer’s generation facilities and includes the definition of “Interconnection Cost” as defined in the pertinent PURPA regulations referred to herein.

In event generating facilities of the qualifying applicant are multiple, it may be required that the facilities be interconnected by their own common network rather than use the Utility’s facilities for interconnection.  This requirement is to avoid degrading service on Utility’s facilities and permit planning for adequate transformations, if required, as well as line facilities for existing service capacity and the added generation.

METERING

A qualifying facility will require significantly more metering than most industrial customers.  In the event the qualifying applicant is a consumer of the Utility and qualifies only for energy credit of avoided costs, two meters, one of which will replace the existing service meter and both equipped with détente, will be used.  The meter replacing the existing service meter will be furnished, installed, maintained and calibrated by the Utility at the Utility’s expense and will be used to measure the amount of energy delivered by the Utility to the qualifying applicant.  The second meter, which will be used to measure the energy delivered by the qualifying applicant to the Utility, will be furnished by the qualifying applicant and installed, maintained and calibrated by the Utility at the qualifying applicant’s expense.  The meter furnished by the qualifying applicant shall be approved by the Utility.

In the event both capacity and energy are produced and agreed that the same be delivered into the facilities of the Customer, demand and energy metering will be required so that proper credit can be provided according to the time coordination with the Customer’s delivery facilities into the system and out of the system facilities by KW and KVAR.  Measurements shall be provided at the expense of the qualifying Customer so that proper monitoring can be done of the power factor and assure capacity and energy credits in proper proportion.

Totalizing metering may be desirable but is not required.  The Utility reserves the right to require such necessary meters to properly measure the electric power and energy into its system and the outflow of electric power and energy from the Customer’s generator.

CONTRACT

Each Customer shall enter into a contract for a minimum original term of ten (10) years and thereafter until terminated by giving at least twenty-four (24) months previous notice of such termination in writing, but the Utility may require a contract for a longer original term of years where the requirement is justified by the circumstances.

The Utility reserves the right to terminate the Customer’s contract under this policy at any time upon written notice to the Customer in the event that the Customer violates any of the terms or conditions of this policy or the contract or operates his generating facilities in a manner which is detrimental to the Utility or any of its consumers.  In the event of early termination of a contract under this policy or the contract, the Customer will be required to pay the Utility for the costs due to such early cancellation.

The exact conditions governing the connection and operation of a qualifying facility will be as set forth in contract between the owners or operators of each qualifying facility and the Utility and/or the Power Supplier.

If required by the rules and regulations of the Rural Utilities Service, the contract shall be subject to the approval of the Administrator of the Rural Utilities Service.

ADDITIONAL CONSIDERATIONS

The headquarters office of the Utility shall provide appropriate reference material for the benefit of anyone interested in co-generation and small power production.

To the extent that any of the provisions of this Policy conflict with Part 292, Chapter I of Title 18, Code of Federal Regulations, and Sections 201 and 210 of PURPA and amendments thereto, the provisions of said law and regulations govern.

EFFECTIVE DATE:   July 23, 2009

DATE ADOPTED:     December 21, 2000
DATE REVISED:       July 23, 2009
DATE REVIEWED:   April 18, 2013

ATTESTED:   Pat Scheier, Secretary

I.          OBJECTIVE

To establish the conditions and requirements that must be satisfied to facilitate the interconnection of and energy purchases from member-owned distributed generation of not more than 10 megavolt amperes (MVA) located on the Cooperative’s electric distribution system under the small renewable energy purchase rate.

II.         CONTENT

A.The Cooperative shall make readily available to the public standard interconnection of distributed generation facilities application documents, application procedures, application fees and agreements.  All costs to be recovered from the application process shall be readily explained to the member/applicant and authorized by the member/applicant prior to the Cooperative incurring these costs.

B.The distributed generation facility must be owned by the member/applicant, be directly connected to the Cooperative’s distribution system, and be within the SPP-UMZ.

C.Energy shall be purchased by the Cooperative under the small renewable energy purchase rate based on the PURPA avoided cost rate.

D.Only energy delivered to the Cooperative’s distribution system shall qualify for payment.  Energy generated and used on the member’s site shall be excluded from payment.

E.The Cooperative shall submit, on behalf of the member/applicant, an application for each distributed generation facility.

F.The member/owner/operator shall be responsible for all interconnection, metering, and other costs associated with connecting the distributed generation facility to the Cooperative’s electric distribution system in order to meet all applicable conditions and requirements.

G.Metering requirements include the following:

1. Appropriate metering shall be required to properly measure all energy purchased by the Cooperative from distributed generation facilities.  The metering shall separately register and measure all energy delivered to the grid from the distributed generation facilities (net of the member’s use) and all energy delivered from the Cooperative to the member/owner/operator.  Net metering is not allowed.

2. In the event the member/owner/operator is currently utilizing a special incentive rate for heating/cooling needs and has a separate meter installed to record that usage, the Cooperative will remove the member from the special incentive rate due to the inability of the Cooperative to accurately meter their heating/cooling use in conjunction with the special metering of energy delivered to the grid.  The only option available to the member/owner/operator in order to maintain a special incentive rate for heating/cooling needs is to install, at the member’s cost, a separate electric service isolated from the distributed generation facilities.

H.The member/owner/operator of the distributed generation facility shall hold Basin, East River and the Cooperative harmless from any liability arising from the operation of the distributed generation facility.

I.The application of the small renewable energy purchase rate and purchase of energy must be allowed by state law, without subjecting Basin, East River, the Cooperative or the member to additional regulation and/or obligation.

J.Each member/owner/operator shall execute a Distributed Generation Interconnection and Small Renewable Energy Power Purchase Agreement with the Cooperative. 

1.The agreement shall include a description of the distributed generation facility, a one line diagram of the point of interconnection and the small renewable energy purchase rate.

2.The agreement shall incorporate the Institute of Electrical and Electronic Engineers (IEEE) standards 1547 and 1547.1, appropriate electric power system disconnect facilities, as determined by the Cooperative, which shall include a lockable disconnect and a visible open that are accessible to and operable by authorized personnel at all times.

3.The agreement shall provide for Cooperative access to the distributed generation facility during normal business hours and all emergency situations.

4.The agreement shall require the member/owner/operator to maintain appropriate liability insurance for distributed generation resource facilities that are interconnected to the Cooperative’s electric system and be responsible for compliance with all national, State, local government and electric utility standards for the safety of the public and personnel responsible for Cooperative power system operations, maintenance and repair.

5.The agreement shall hold the member/owner/operator responsible for the safe and effective operation and maintenance of the distributed generation facilities, as determined by the Cooperative.

K. A wiring certificate must be provided to the Cooperative before the interconnection of the distributed generation facilities will be allowed.  In addition, the member/owner/operator must install a double throw disconnect switch and make it available to Cooperative personnel in case of an emergency.

L. This policy shall be reviewed at least every five (5) years.

III.       RESPONSIBILITY

The General Manager is responsible for administering this policy and for recommending to the Board any changes deemed desirable.

EFFECTIVE DATE:   March 23, 2017

DATE ADOPTED:     September 29, 2009

DATE REVISED:       June 22, 2011

DATE REVIEWED:   April 18, 2013

DATE REVIEWED:   October 30, 2014

DATE REVISED:       March 23, 2017

ATTESTED:   __________________________________

Chris Hofer, Secretary

I.     OBJECTIVE

To establish policy for situations in which the Cooperative’s service meters are tampered with in any manner that may result in the inaccurate recording of actual use and/or the diversion of energy around the metering equipment.  To establish a methodology for calculating the value of energy charges avoided through meter tampering and/or energy diversion and a penalty to be assessed for meter tampering and/or energy diversion.

II.      CONTENT

A.When Cooperative personnel suspect meter tampering or energy diversion, the metering equipment shall be inspected to verify any evidence to confirm meter tampering or energy diversion.

1. If upon inspection by Cooperative personnel it becomes evident that the metering equipment or wiring has been tampered with to understate the reading of actual energy used, management personnel shall be notified immediately and the County Sheriff or local authorities shall be summoned to conduct an investigation of energy theft.

a.      Cooperative personnel shall provide technical assistance to the County Sheriff or local authorities conducting the investigation as needed.

b.     Cooperative personnel shall document their findings with a written report and photographs or video tape.

c.      The Cooperative shall examine the historical billing records of the member to determine the approximate time frame of the energy diversion, estimate the energy actually use and recalculate the member’s energy bills for each billing period to determine the estimated dollar value of the energy diversion.

2. If it is determined by the County Sheriff or local authorities that enough evidence is available to assume energy theft has occurred, the General Manager shall evaluate the circumstances on a case-by-case basis to determine if the Cooperative will authorize the County Sheriff or local authorities to press charges of energy theft against the member.

3. If charges are pressed, the County Sheriff or local authorities will be asked to contact the member regarding their findings and the charges that have been filed.

4. Cooperative personnel shall make the changes necessary to the metering equipment or wiring to ensure that the metering equipment is operating normally and the members shall be informed that these changes have been made and that Cooperative personnel shall be making random inspections of the site in the future to verify that additional tampering has not occurred.

B. Upon conviction, admission of guilt or plea of nolo contendre, the member shall be billed a meter tampering fee of $250.00 plus any charges or out-of-pocket costs connected with the investigation of the tampering plus the estimated dollar value of the energy diversion plus a security deposit of $250.00.  Failure to pay such fees and charges in full shall be grounds to terminate membership and electric service with the Cooperative.

III.     RESPONSIBILITY

The General Manager is responsible for administering this policy and for recommending to the Board any changes deemed desirable.

EFFECTIVE DATE:   February 22, 2017

DATE ADOPTED:     February 22, 2017

ATTESTED:   __________________________________

Chris Hofer, Secretary

I.          OBJECTIVE

To establish policy concerning wise and efficient use and conservation of energy by the Cooperative and its member-consumers.

II.         CONTENT

A.The Cooperative shall dedicate a reasonable amount of resources to encourage energy conservation by:

1.Constantly evaluating the Cooperative’s own energy use practices in its headquarters facilities and vehicle operations in order to minimize energy waste through conservation, temperature control and other measures.

2.Providing specialized training for employees and an adequate information program for member-consumers to help them understand what they can do to meet energy needs in the most productive, beneficial and efficient manner possible.

3.Encouraging the input of consumers, employees and public for ideas on energy conservation and utilization.

4.Taking advantage of every opportunity to discuss with or contact member-consumers to promote the wise and efficient use of energy through conservation measures, adequate insulation, weatherization, energy efficient appliances and equipment, as well as other uses in the home, on the farm and in business.

5.Informing member-consumers, employees and public of the importance of energy conservation through continued use of our newsletter, articles and ads in local newspapers, local radio, the Cooperative’s webpage on the Internet, and the use of pamphlets and special mailings when advisable.

6.Cooperating with and continuing the utilization of federated services, between our power supply Cooperatives and member systems, to achieve maximum results through coordinated alternate energy research, load management and conservation programs.

7.Cooperating with governmental agencies in carrying out directives and programs relative to energy conservation.

III.       RESPONSIBILITY

The General Manager is responsible for administering this policy and for recommending to the Board any changes deemed desirable.

EFFECTIVE DATE:   April 19, 2001

DATE ADOPTED:     April 19, 2001

DATE REVIEWED:   August 20, 2009

DATE REVIEWED:   May 23, 2013

DATE REVIEWED:   June 19, 2014

ATTESTED:   __________________________________

Chris Hofer, Secretary

I.          OBJECTIVE

To establish guidelines for developing and implementing an effective and comprehensive load management program.  The load management program should be used to increase the sale of off-peak electricity and control peak demand purchases to better utilize the existing electric distribution plant by improving the Cooperative’s load factor.

II.         CONTENT

A.Load Management Program

1.The Cooperative shall utilize the load management system available through East River Electric to the fullest extent possible.

2.The load management program shall be used to cycle on and off a member-consumer’s use of electricity for selected purposes during times of peak usage through a remotely activated load control receiver.

3.The Cooperative shall promote the idea of load management and the options available to the member-consumers through various information programs in accordance with budget limitations of the Cooperative.

4.Member-consumer participation in the load management program shall be on a voluntary first come, first served basis, but all member-consumers shall be urged to participate in the joint effort to hold down the rising cost of electricity.

5.At such time that the load management program develops to a level whereby additional controls become counter productive or the controlling of loads become unfeasible, the Cooperative reserves the right to limit further installations.

B.Load Management Options

1.Water Heating Systems

a.The voluntary control of electric hot water heater circuits shall be available for member-consumers whose water heaters have a capacity of 50 gallons or more, a 240 volt service and a total wattage of 1,000 watts or more.

b.The Cooperative shall make a special rate available to those member-consumers participating in this option.

2.Home Heating Systems; All Electric (Primary Heat)

a.The primary heating system shall be separately metered or sub-metered and the member-consumer shall provide suitable equipment for the installation of the meter.  The Cooperative shall provide the metering equipment which shall remain the property of the Cooperative and shall be mounted outside the structure.

b.The electric energy requirements of the primary heating system shall be at least eight (8) kilowatts or whole house heating.  Air-to-air heat pumps in conjunction with a secondary fossil fuel system shall qualify.

c.Any qualifying heating system shall be eligible to include their usage for controlled central air-conditioning and controlled water heating on the electric heat meter or sub-meter.

d.The Cooperative shall make available a special rate to those member-consumers participating in this option.

3.Home Heating Systems; All Electric Homes with Heat Storage

a.The heat storage system shall be capable of heating a limited area of the structure for an extended period of time under the “warm room” concept.  In cases where a central heat storage furnace is installed, the central heat storage system shall be capable of heating the entire structure for a period of up to sixteen (16) hours.

b.The portion of the electric heating system under control shall be separately metered or sub-metered and the member-consumer shall provide suitable equipment for the installation of the meter.  The Cooperative shall provide the metering equipment which shall remain the property of the Cooperative and shall be mounted outside the structure.

c.The combined electric energy requirements of the heat storage units shall be at least four (4) kilowatts.

d.Any qualifying heat storage system shall be eligible to include their usage for controlled central air-conditioning and controlled water heating on the heat storage system meter or sub-meter.

e.The Cooperative shall make a special rate available to those member-consumers participating in this option.

4.Irrigation Systems

a.The irrigation system shall be controlled so that the complete irrigation system is de-energized during control periods.  The control circuit shall be located between the center pivot and the control panel.

b.The Cooperative shall seal all load control receivers.  In the event the member-consumer wishes to override the control, the seal may be broken and the by-pass switch operated.  As a result of such action, the member-consumer shall be billed demand charges for that billing period according to the rate schedule.  The Cooperative shall reseal the control at the end of each billing period when the meter is read.

c.The Cooperative shall make a special rate available to those member-consumers participating in this option.

5.Grain Drying Systems

a.The control of the entire grain drying system or the electric fans only is available to member-consumers with a minimum of ten (10) horsepower or seven and one-half (7½) kilowatts of controlled load per bin.  Any bin with fossil fuel heat shall not qualify for load control.

b.The portion of the grain drying system under control shall be separately metered or sub-metered.  The member-consumer shall provide suitable equipment for the installation of the meter including all control wires required by the Cooperative.  The Cooperative shall provide the metering equipment, which shall remain the property of the Cooperative.

c.The Cooperative shall make a special rate available to those member-consumers participating in this option.

6.Other Options

a.      The load management program may be expanded by the Board of Directors to include other feasible types of controllable loads that increase the system’s load factor.

C.Load Management Rules and Regulations

1.The Cooperative shall furnish, install and maintain the load control receiver unit and associated hardware at no direct cost to the member-consumer and that equipment shall remain the property of the Cooperative.  Installation of all other automatic controls shall be the responsibility of the member-consumer, subject to the rules and regulations of the Cooperative.

2.The member-consumer shall wire the structure to provide for the installation of the load control receiver unit and metering equipment in accordance with the National Electrical Code and the National Electric Safety Code.

3.The Cooperative shall inspect and approve each load management installation.

4.The Cooperative reserves the right to have the electric power to the controlled equipment interrupted during periods of system peak demand or emergencies.  Controls may be at any time during a month and shall be based on the control strategy established by East River.

5.No other loads, except those specified by the Cooperative, may be connected to the controlled circuit and the member-consumer shall comply with all rules and regulations of the Cooperative.

6.Cooperative personnel shall have access to the control unit for maintenance and inspection purposes, as the control unit shall normally be located on the inside of the structure.

7.The member-consumer reserves the right to have the control receiver disengaged or removed.

8.The control system and the metering shall be sealed and any member-consumer tampering with this equipment may be subject to penalties and legal action.  Tampering could constitute just cause for the Cooperative to refuse continuation of any special rate.

9.The Cooperative shall not be liable for any loss or damage caused by or resulting from any interruption of service or malfunction of the control equipment.

III.       RESPONSIBILITY

The General Manager is responsible for administering this policy and for recommending to the Board any changes deemed desirable.

EFFECTIVE DATE:   June 19, 2014

DATE ADOPTED:     April 19, 2001

DATE REVIEWED:   August 20, 2009

DATE REVIEWED:   May 23, 2013

DATE REVISED:       June 19, 2014

ATTESTED:   __________________________________

Chris Hofer, Secretary

I.          OBJECTIVE

To establish methods and guidelines for the promotion of new electric loads that will improve the Cooperative’s load factor and to encourage the wise use of electric energy by the member-consumers.

II.         CONTENT

A.The Cooperative shall utilize and supplement the marketing incentives established by East River to provide financial assistance to the Cooperative’s member-consumers in the form of rebates and/or low-interest loans for the purchase and installation of new electric equipment.

B.Marketing incentives available to the member-consumers shall be aggressively promoted among the membership to maximize the number of new electric loads and the use of energy efficient equipment.

C.Qualifications and Procedures

1.New installations shall be inspected by a representative of the Cooperative to verify that the electric equipment meets the established minimum standards, that prudent care has been exercised in the installation and that the equipment is intended for use by the member-consumer at a location served by the Cooperative.

2.Low-interest loans shall be available to qualified member-consumers for the installation of new electric equipment, for upgrading the existing electric service entrance in conjunction with the installation of new equipment and for eligible large commercial and industrial installations.  See the Cooperative’s Member Loans policy.

3.The member-consumer shall sign any applicable agreements and waivers before any rebates and/or low-interest loans are made available.

4.The amount of rebates and/or low-interest loans shall not exceed the member-consumer’s actual out-of-pocket cost.

D.Water Heaters-Rebates and Incentives

1.The Cooperative shall offer East River rebates to its member-consumers on a “flow-through” basis.  The Cooperative shall provide a per gallon rebate for ‘lifetime’ warranty or 10-year warranty water heaters with a volume of 50 gallons or more. The amount of the Cooperative’s per gallon rebate shall be approved by the Board of Directors.  Electric water heaters qualifying for rebate payments shall meet all of the following stipulations:

a.   The water heater shall be connected to the East River Load Management System with an approved, operational load management receiver/controller.

b.   The water heater shall be a storage type water heater.

c.   The water heater shall be a new water heater, which has an energy efficiency rating certified by GAMA.

d.   Rebates shall not apply for electric water heaters replaced while under the manufacturer’s warranty.

e.   Rebates shall be limited to the actual cost of the water heater, excluding installation costs.

E.Electric Equipment-Rebates and Incentives

1.The Cooperative shall offer East River rebates and low-interest loans to its member-consumers on a “flow-through” basis.

2.To qualify for rebates and incentives, heat pump installations must meet all East River requirements.

3.Special rates may be available for various loads depending on the type of electric equipment being utilized and whether or not those loads are subject to load control.  All special rates will be incorporated into rate schedules and will be subject to the approval of the Board of Directors.

III.       RESPONSIBILITY

The General Manager shall be responsible for administering this policy and for recommending to the Board any changes deemed desirable.

EFFECTIVE DATE:   April 20, 2017

DATE ADOPTED:     April 19, 2001

DATE REVISED:       March 21, 2002

DATE REVISED:       January 22, 2009

DATE REVISED:       December 20, 2012

DATE REVIEWED:   June 19, 2014

DATE REVISED:       November 19, 2015

DATE REVISED:       April 20, 2017

ATTESTED:   __________________________________

Chris Hofer, Secretary

I.          OBJECTIVE

To assist in the marketing of new electric loads that will improve the Cooperative’s load factor and to encourage the wise and safe use of electric energy by the member-consumers, the Cooperative will offer 5%-interest loans to help members finance the purchase and installation of electric equipment, weatherization and electrical service entrance upgrades for their home or business.

II.         CONTENT

A.    Marketing Loans

1.  5%-interest marketing loans shall be available to qualified member-consumers for the installation of new electric equipment, for upgrading the existing electric service entrance in conjunction with the installation of new equipment and for eligible large commercial and industrial installations based on the following terms and conditions.

a.      The member-consumer shall sign any applicable agreements and waivers before any rebates and 5%-interest loans are made available.

b.     The amount of rebates plus 5%-interest loans shall not exceed the member-consumer’s actual out-of-pocket cost.

c.      The member-consumer shall be required to use automatic payment processing for all related electric billing and loan repayments.

2.  5%-interest marketing loans shall be based on the following criteria:

a.      The applicant shall complete a loan application.  All loan applications shall be reviewed with the Board of Directors prior to approval or denial by management.

b.     The specific terms of each loan shall be established by the Cooperative; however, repayment terms may not exceed eighty-four (84) equal monthly installments.

c.      Loan requests for residential installations shall be limited to a maximum amount of $10,000.00 and eighty-four (84) equal monthly installments.

d.     Loan requests for grain drying installations shall be limited to a maximum amount of $5,000.00 and sixty (60) equal monthly installments.

e.      Loan requests for large commercial and industrial installations in excess of $10,000.00 shall require the approval of the Cooperative’s Board of Directors.

B.    Weatherization Loans.  The Cooperative shall make weatherization loans available to eligible consumers for improvements to structures receiving electric service from the Cooperative.  5%-interest weatherization loans shall be based on the following criteria:

1.A loan application shall be completed by the applicant and approved or denied by management.

2.Weatherization loans may be approved to finance material and labor costs for caulking, weather stripping, ceiling insulation, wall insulation, floor insulation, duct installation, pipe installation, water heater insulation, storm windows, thermal windows, storm or thermal doors, programmable thermostats and attic ventilation fans.  If the consumer provides the labor, the weatherization loan will be limited to material costs only.

3.The specific terms of each loan shall be established by the Cooperative; however, repayment terms may not exceed sixty (60) equal monthly installments.

4.Loan requests for weatherization improvements shall be limited to a maximum amount of $3,000.00.

C.    Service Entrance Upgrade Loans.  The Cooperative shall make service entrance upgrade loans available to eligible consumers for upgrades to the service entrance in structures receiving electric service from the Cooperative.  5%-interest service entrance upgrade loans shall be based on the following criteria:

1.A loan application shall be completed by the applicant and approved or denied by management.

2.The specific terms of each loan shall be established by the Cooperative; however, repayment terms may not exceed sixty (60) equal monthly installments.

3.Loan requests for service entrance upgrades shall be limited to a maximum amount of $3,000.00.

D.    The aggregate outstanding loan balance of an individual member-consumer shall be limited to a maximum amount of $13,000.00.

E.     Upon approval of a loan application, all required loan documents shall be executed and recorded with the appropriate county’s Register of Deeds.

1.A loan-processing fee of $100.00 shall be collected when the loan documents are executed to help offset the filing fees.

2.If the Cooperative is required to make additional filings due to subordination or similar circumstances, an additional fee of $50.00 shall apply.

F.     Employees who are not members of the Cooperative shall also be eligible for a 5%-interest loan to finance the costs of new electric equipment, weatherization or service entrance upgrades, subject to the terms and conditions noted above.

III.       RESPONSIBILITY

The General Manager is responsible for administering this policy and for recommending to the Board any changes deemed desirable.

EFFECTIVE DATE:   July 1, 2012

DATE ADOPTED:     April 19, 2001

DATE REVISED:       June 22, 2006

DATE REVISED:       May 30, 2007

DATE REVISED:       June 21, 2012

DATE REVIEWED:   July 31, 2014

ATTESTED:                                                              

Chris Hofer, Secretary

1. OBJECTIVE
   
   1. To establish guidelines for donations and contributions which are consistent with the mission and priorities of the Cooperative and provide the greatest good for our communities and members.
   2. To ensure fair and reasonable consideration of requests for financial and/or in-kind assistance from by the Cooperative.
2. CONTENT
   
   1. Requests for donations and contributions in excess of $250.00 shall be submitted in writing, preferably on a form provided by the Cooperative, and presented to the Board for consideration at their next regular meeting.
   2. Requests for donations and contributions of $250.00 or less shall be subject to the discretion of management, however, discretionary donations and contributions shall be limited to $2,500.00 per year.
   3. A list of donations and contributions shall be presented to the Board annually and in conjunction with the budgeting process.
   4. All donations and contributions shall:
      1. Directly or indirectly benefit all or a portion of the Cooperative membership.
      2. Improve the community’s perception of the Cooperative as being a good community member.
      3. Be generally targeted toward the following types of organizations/services:
         
         1. Community Service and Economic Development – Programs and organizations which are important components of a community’s overall quality of life, with emphasis on public safety, community service, economic development and the cultural environment.
         2. Environmental – Programs that promote environmental stewardship.
         3. Education – Programs that reflect the Cooperative’s business and membership interests.
         4. Non-Profits – Charitable organizations such as United Way, March of Dimes, Make-A-Wish or Special Olympics located within the Cooperative’s service area.
   5. When considering requests for donations and contributions, both financial and in-kind, the following principles shall serve as a guide to determine the Cooperative’s level of support.
      1. The Cooperative’s participation can be accommodated within the budgeted and available resources.
      2. The cause provides benefits within the geographical area, community or development area served by the Cooperative and will therefore provide benefits to the Cooperative and it members.
      3. The group or organization requesting assistance is a not-for-profit.
      4. The cause will enhance the Cooperative’s value in the community.
   6. A cause that includes a publication including the promotion of the Cooperative name or logo may be considered advertising rather than a donation and contribution.  Items of this nature would include community billboards, public safety, quality of life, handouts and county fair promotional materials.
   7. In-kind donations and contributions for community, school or charitable organizations in the form of labor and/or authorized equipment use shall be authorized by the General Manager or a member of the management staff.
   8. In an effort to promote fairness, the Cooperative may make unsolicited donations and contributions, not to exceed $100.00 each, to the high schools and volunteer fire departments from the service area on an annual basis.  The high schools receiving electric service from the Cooperative shall be eligible for donations and contributions at a higher level than the other schools.
   9. Donations and contributions in the memory of a deceased individual that had an affiliation, affinity or other known connection with the Cooperative may be authorized by the General Manager or a member of the management staff.  Memorials shall not exceed $100.00 each.
   10. The Cooperative shall not approve any request for donations and contributions for individuals, political campaigns, religious organizations or groups that discriminate on the basis of age, race, sex or national origin or that do not advance the public purpose of the Cooperative.
3. RESPONSIBILITY
   The General Manager is responsible for administering this policy and for recommending to the Board any changes deemed desirable.

EFFECTIVE DATE:   April 20, 2017

DATE ADOPTED:     April 19, 2001

DATE REVISED:       July 19, 2007

DATE REVIEWED:   May 23, 2013

DATE REVIEWED:   July 31, 2014

DATE REVISED:       April 20, 2017

ATTESTED:

Chris Hofer, Secretary