CITY OF PARIS BOARD OF PUBLIC UTILITIES SCHEDULE OF RULES AND REGULATIONS

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1 CITY OF PARIS BOARD OF PUBLIC UTILITIES SCHEDULE OF RULES AND REGULATIONS 1. Application for Service. The City of Paris Board of Public Utilities (BPU) requires each prospective Customer desiring electric service to sign a standard form of Application for Service, contract, or request for service form (service order) before service is connected. 2. Deposit. A deposit or suitable guarantee may be required of any Customer before electric service is supplied. Interest is accrued monthly and paid annually as credit to accounts receivable in May based on current interest rates on passbook savings accounts. The deposit balance including earned interest as well as the adequacy of such deposit shall be subject to review by Customer and BPU. Upon termination of service, deposit will be applied against unpaid bills of Customer, and if any balance remains after such application is made, said balance shall be refunded to Customer. 1. Commercial Deposits: Deposit will be set based on two times the highest bill in the last 24 months. If history on the account is not adequate to determine an appropriate deposit amount, history from a similar location will be used. In lieu of cash deposit, a commercial customer may choose to provide a Letter of Credit or a Certificate of Deposit (CD) made to the customer AND the Board of Public Utilities. If a customer chooses a CD, they must endorse the certificate and BPU will keep the original on file. Second Meters such as service for wells, barns, shops, etc, deposit shall equal two (2) times highest bill based on prior 24-month history with a $50 minimum. 2. Residential Deposits: Residential deposits are a flat fee and are equal to or less than twice the highest average monthly bill for the residential rate class. Customers need six (6) months of pay history with no penalties charged in order to have adequate BPU Credit History. If customer does not have adequate BPU Credit History, the deposit requirement is based on Beacon score from Equifax. NEW SERVICE Accounts: BEACON Score: Deposit Amount: 690 & Above No Deposit Required EL = $300 Below 690 WT = $25 WW = $25 TRANSFER of Existing Service: BPU s billing software computes the BPU Credit Rating based on weighted variables that result in a composite score of Excellent, Good, Normal, Fair,

2 Poor, or Very Poor. The following table outlines the deposit requirements based on the BPU Credit Rating: BPU Credit Rating: Excellent / Good Normal Fair to Very Poor Deposit Amount: No change required in deposit status Deposit requirement is based on customer s Beacon Score with the same guidelines as NEW SERVICE Accounts in above table. Upgrade Deposit to current maximum Residential fees Additional Deposit Information: Service disconnection for non-payment of utility bill All customers If a customer s service is disconnected for non-payment, a deposit / deposit upgrade will be billed on the next monthly bill. Exception: If customer has had service for 3 full years and only disconnected once, no deposit is required. Returned Checks, ACH, or Credit / Debit card payments: Per guidelines of the Returned Check policy, if BPU no longer accepts certain payment types due to returns from the bank or if a payment is returned due to Account Closed, customers will be required to pay a deposit if they do not have one or to upgrade if their deposit is not current. INTEREST Paid on Deposits: Interest will be paid on active deposits based on the following criteria: Interest rate will be based on current interest rates on passbook savings accounts Interest will be paid in May of each year Credit will be applied to customer s account 3. Point of Delivery. The point of delivery is the point, as designated by BPU, on Customer s premises where current is to be delivered to building or premises. All wiring and equipment beyond this point of delivery shall be provided and maintained by Customer at no expense to BPU. 4. Customer s Wiring Standards. All wiring of Customer must conform to BPU s requirements and accepted modern standards, as exemplified by the requirements of the National Electrical Safety Code and the National Electrical Code. 5. Inspections. BPU shall have the right, but shall not be obligated, to inspect any installation before electricity is introduced or at any later time, and reserves the right to reject any wiring or appliances not in accordance with BPU s standards; but such inspection or failure to inspect or reject shall not render BPU liable or responsible for any loss or damage resulting from defects in the installation, wiring, or appliances, or from violation of BPU s rules, or from accidents which may occur upon Customer s premises.

3 6. Underground Distribution and Service Facilities. The furnishings of underground distribution and service facilities to customers and/or developers will be in accordance with BPU s standard policies for such installations. A statement of these policies is available upon request to BPU. 7. Customer s Responsibility for Distributor s Property. All meters, service connections, and other equipment furnished by BPU shall be, and remain, the property of BPU. Customer shall provide a space for and exercise proper care to protect the property of BPU on its premises, and, in the event of loss or damage to BPU s property arising from neglect of Customer to care for same, the cost of the necessary repairs or replacements shall be paid by Customer. 8. Right of Access. BPU s identified employees shall have access to Customer s premises at all reasonable times for the purpose of reading meters, testing, repairing, removing, or exchanging any or all equipment belonging to BPU. 9. Billing. Bills will be rendered monthly and shall be paid at the BPU office or at other locations designated by BPU. Failure to receive bill will not release Customer from payment obligation. Net payment period is a minimum of fifteen (15) days after the Billing Date. Should bills not be paid by due date specified on bill, BPU may at any time thereafter discontinue service. Bills paid on or before the final date of payment shall be payable at the net rates, but thereafter the gross rates. Penalties are calculated and added based on 5% for the first $250 in charges and 1% on charges in excess of $250. Should the final date for payment of the bill at the net rates fall on a weekend or holiday, the business day next following the final date will be held as a day of grace for delivery of payment. Net rate remittances received by mail after the time limit for payment of said net rates will be accepted by BPU if the incoming envelope bears United States Post Office date stamp of the final date for payment of the net amount or any date prior thereto. Pre-Pay. BPU offers a Pre-Pay program for those customers who prefer to purchase / pay for electricity daily. Pre-Pay allows customers to structure payments in a way that best fits their needs. Customers electing to participate in Pre-Pay are required to remain in the program for six (6) months. After that period, customers may choose to return to the traditional billing method. Customers who are required to participate in Pre-Pay due to disconnection of service for nonpayment are required to remain on Pre-Pay until service is disconnected by customer request. 10. Termination of Service by Distributor. BPU may refuse to connect or may discontinue service for the violation of any of its Rules and Regulations, or for violation of any of the provisions of the Schedule of Rates and Charges, or of the application of Customer or contract with Customer. BPU may discontinue service to Customer for the theft of current or the appearance of current theft devices on the premises of Customer. The discontinuance of service by BPU for any causes as stated in this rule does not release Customer from his obligation to BPU for the payment of minimum bills as specified in application of Customer or contract with Customer. Termination of Service for non-payment of electric bills will occur based on the following guidelines: Customer will be allowed a minimum of five (5) days after Due Date before termination of service

4 BPU will provide a separate notice via a phone call two (2) business days prior to disconnection of service. BPU informs customers of second notice procedures by posting notices at each Customer Service station. The notification calls are made between 4:30 p.m. and 8:00 p.m. and include ten (10) attempts to reach the customer. It is the customer s responsibility to maintain current information for phone calls. An incorrect phone number or inability to reach a customer by phone does not limit BPU s right to terminate service due to nonpayment. Rights and remedies for bill questions or issues are provided via the phone call which includes the BPU phone number for billing disputes. Customers who have been disconnected for non-payment two (2) times in a 6-month period will be transferred to the Pre-Pay program. Extreme Weather: o for Zip Code (Paris, TN) will be used to determine weather conditions o o Weather conditions will be researched daily at 8:00 a.m. Termination of Service will be postponed during summer months if there is a Heat Advisory in place and during winter months if the predicted low temperature for the coming night is expected to be 25 Fahrenheit or below. o Extreme weather policy does not apply to General Power customers. Medical Hardship: o Customer or person living in the home must be a hospice patient o Customer must provide a written statement from hospice provider stating they are under hospice care. BPU personnel may follow-up to verify the validity of the statement. o Customer will be allowed seven (7) days to make other arrangements. After this period, service will be disconnected. 11. Reconnection Charge. Whenever service has been discontinued by BPU, as provided above, current Reconnect Fees and/or Collection Fees apply. 12. Termination of Contract by Customer. Customers who have fulfilled their contract terms and wish to discontinue service must give at least thirty (30) days written notice to that effect, unless contract specifies otherwise. Notice to discontinue service prior to expiration of contract term will not relieve Customer from any minimum or guaranteed payment under any contract or rate. 13. Service Charges for Temporary Service. Customers requiring electric service on a temporary basis may be required by BPU to pay all costs for connection and disconnection incidental to the supplying and removing of service. This rule applies to circuses, carnivals, fairs, temporary construction, and the like. 14. Interruption of Service. BPU will use reasonable diligence in supplying current, but shall not be liable for breach of contract in the event of, or for loss, injury, or damage to persons or property resulting from, interruptions in service, excessive or inadequate voltage, single-phasing, or otherwise unsatisfactory service, whether or not caused by negligence. 15. Shortage of Electricity. In the event of an emergency or other condition causing a shortage in the amount of electricity for BPU to meet the demand on its system, BPU may, by an allocation method deemed equitable by BPU, fix the amount of electricity to be made available for use by Customer and/or may otherwise restrict the time during which Customer may make use of electricity and the uses which Customer may make of electricity. If such actions become

5 necessary, Customer may request a variance because of unusual circumstances including matters adversely affecting the public health, safety and welfare. If Customers fail to comply with such allocation or restriction, BPU may take such remedial actions as it deems appropriate under the circumstances including temporarily disconnecting electric service and charging additional amounts because of the excess use of electricity. The provisions of the Section entitled Interruption of Service of this Schedule of Rules and Regulations are applicable to any such allocation or restriction. 16. Voltage Fluctuations Caused by Customer. Electric service must not be used in such a manner as to cause unusual fluctuations or disturbances to BPU s system. BPU may require Customer, at his own expense, to install suitable apparatus which will reasonably limit such fluctuations. 17. Motor Load. Motors rated less than 15 horsepower may be served single-phase or threephase as determined by the Customer after consultation with BPU. Motors rated greater than 15 horsepower shall be served three phase. Phase conversion equipment may be applied subject to manufacture specifications and BPU approval. The Customer shall pay any applicable charges for services required to serve motor load. BPU must be consulted on starting methods of all motors rated 15 horsepower or larger. All motors shall be provided with devices that protect the motor and motor circuits against under-voltage, over-voltage, phase failure, phase reversal and short circuit. 18. Additional Load. The service connection, transformers, meters, and equipment supplied by BPU for each Customer have definite capacity, and no addition to the equipment or load connected thereto will be allowed except by consent of BPU. Failure to give notice of additions or changes in load, and to obtain BPU s consent for same, shall render Customer liable for any damage to any of BPU s lines or equipment caused by the additional or changed installation. 19. Standby and Resale Service. All purchased electric service (other than emergency or standby service) used on the premises of Customer shall be supplied exclusively by BPU, and Customer shall not, directly or indirectly, sell, sublet, assign, or otherwise dispose of the electric service or any part thereof without special contract agreements with BPU. 20. Notice of Trouble. Customer shall notify BPU immediately should the service be unsatisfactory for any reason, or should there be any defects, trouble, or accidents affecting the supply of electricity. Such notices, if verbal, should be confirmed in writing. 21. Non-Standard Service. Customer shall pay the cost of any special installation necessary to meet his peculiar requirements for service at other than standard voltages, or for the supply of closer voltage regulation than required by standard practice. 22. Meter Tests. BPU will, at its own expense, make periodical tests and inspections of its meters in order to maintain a high standard of accuracy. BPU will make additional tests or inspections of its meters at the request of Customer. If tests made at Customer s request show that the meter is accurate within two percent (2%), slow or fast, no adjustment will be made in Customer s bill, and current Meter Test Fees will apply. In case the test shows meter to be in excess of two percent (2%), fast or slow, an adjustment shall be made in Customer s bill over a

6 period of not over thirty (30) days prior to date of such test, and cost of making test shall be borne by BPU. 23. Relocation of Outdoor Lighting Facilities. BPU shall, at the request of Customer, relocate or change existing BPU-owned equipment. Customer shall reimburse BPU for such changes at actual cost including appropriate overheads. 24. Billing Adjusted to Standard Periods. The demand charges and the blocks in the energy charges set forth in the rate schedules are based on billing periods of approximately one month. In the case of the first billing of new accounts (temporary service, cotton gins, and other seasonal customers excepted) and final billings of all accounts (temporary service excepted) where the period covered by the billing involves fractions of a month, the demand charges and the blocks of the energy charge will be adjusted to a basis proportionate with the period of time during which service is extended. 25. Information To Customers. Upon request by the customer, BPU will make available a customer s energy consumption data for the prior 12-month period. Customers may also register for SmartHub which provides customer access via web or mobile device to account information including usage history and bill payments. Current month s retail rates and SmartHub information are available on BPU s website at All retail rate actions initiated by BPU shall be communicated to customers by public statement issued through print media or electronic media. Scope: This Schedule of Rules and Regulations is a part of all contracts for receiving electric service from BPU, and applies to all service received from BPU, whether the service is based upon contract, agreement, signed application, or otherwise. A copy of this schedule, together with a copy of BPU s Schedule of Rates and Charges, shall be kept open to inspection at the BPU office located at 117 E. Washington St., Paris, TN. Copies are also made available upon Customer s request for service and on BPU s website at Revisions. These Rules and Regulations may be revised, amended, supplemented, or otherwise changed from time to time, without notice. Such changes, when effective, shall have the same force as the present Rules and Regulations. 27. Conflict. In case of conflict between any provision of any rate schedule and the Schedule of Rules and Regulations, the rate schedule shall apply.