RULES AND REGULATIONS INDEX. Sale for Resale Community Solar Service Economy Energy Transactions Regulatory Cost Charge...

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1 RCA o.: 8 5 th Revision Sheet o th Revision Sheet o. 6.5 RULES AD REGULATIOS IDEX RETAIL AD WHOLESALE RATES (COTIUED) Sheet o. Sale for Resale Community Solar Service Economy Energy Transactions Regulatory Cost Charge Calculation of Chugach G&T Losses Green Energy RULE 10 - O-UTILITY GEERATIO ITERCOECTIO AD OPERATIG GUIDELIES, AD PURCHASES AD SALES OF ELECTROIC POWER TO AD FROM QUALIFYIG FACILITIES 10.1 Definitions Interconnection and Operating Guidelines Power Purchases From Qualifying Facilities Power Sales to Qualifying Facilities. 116 Tariff Advice o.: Effective: May 07, 2018

2 RCA o.: 8 2 nd Revision Sheet o st Revision Sheet o. 100 COMMUITY SOLAR SERVICE Community solar is a voluntary program available to residential and commercial members on a firstcome, first served basis. The solar facility is owned, operated and maintained by Chugach Electric Association, Inc. (Chugach). Members who voluntarily enroll in the program pay a subscription fee to receive a portion or block of the energy output of the solar facility. Five hundred (500) blocks are available. Each block represents approximately 1 kw of the solar facility s installed capacity. Each residential and commercial metered customer location may subscribe for 1 to 25 blocks and the energy is used to offset part or all of the member s energy requirements. If a member participates in the net metering program described in Tariff Sheet o. 89.3, the limit of onpremises net metered generation combined with the customer s community solar installed capacity shall not exceed 25 kw. Rates Electric bills for members participating in the community solar program shall be computed in accordance with the applicable retail service rates contained in the operating tariff, including members who also receive service under the net metering tariff. The term of the community solar program is 25 years. Members may enroll to receive a block of the energy output from the community solar project through a levelized monthly subscription payment or through a pre-payment subscription, as listed below: Monthly Subscription: $24 per month, or Pre-Payment Subscription, as set forth according to the schedule below. Purchased in Pre-Payment Amount per Purchased in Pre-Payment Amount per Purchased in Pre-Payment Amount per 1 $4, $2, $1,201 2 $4, $2, $1,027 3 $4, $2, $854 4 $3, $2, $681 5 $3, $2, $510 6 $3, $1, $339 7 $3, $1, $169 8 $3, $1,553 9 $2, $1,377 Tariff Advice o.: Effective: May 07, 2018

3 RCA o.: 8 Original Sheet o Sheet o COMMUITY SOLAR SERVICE (COTIUED) Energy Credit Members participating in the community solar program shall receive credit on their monthly electric bill of 1/500 th of the kilowatt hour (kwh) energy output of the community solar facility during the bill cycle days multiplied by the number of blocks held. Electric bills for community solar participants shall be computed in accordance with the applicable retail service rates contained in this operating tariff, with electric energy (kwh) calculated as follows: 1) If the member uses more electric energy than the member s block(s) of the community solar facility supplied during the monthly billing period, Chugach shall bill the member for the net kwh used during the monthly billing period at the applicable retail rates contained in the operating tariff. The net kwh is the number of kwh of electricity delivered by Chugach minus the number of kwh of community solar energy generated by the member s block(s); or, 2) If the member s block(s) of community solar supplies more electric energy than the member uses during the monthly billing period, Chugach shall credit the member s account with an amount derived by multiplying the difference between the community solar kwh and the kwh used by the non-firm buyback power rate for purchases less than 200 kw contained on Tariff Sheet o. 97; or, 3) If the member s account participates in net metering described in Tariff Sheet o. 89.3, the member s monthly kwh energy bill will be calculated as kwh delivered to the customer s meter by Chugach, minus energy delivered by the customer s distributed generation facility to the grid, minus kwh delivered by the community solar project. If the result is a positive number, Chugach will bill the member for the net number of kwh as described in item number one above. If the result is a negative number Chugach will issue a credit as described in item number two above. Dollar amounts credited to the account of a member participating in the community solar program shall be used to reduce amounts owed by the member in subsequent monthly billing periods. Dollar amounts credited do not expire or otherwise revert to Chugach. Unused credits will be paid to the member in the event electric service is terminated. Tariff Advice o.: Effective: May 07, 2018

4 RCA o.: 8 Original Sheet o Sheet o COMMUITY SOLAR SERVICE (COTIUED) Energy Credit and Payment Timing Following enrollment, community solar energy credits (kwh) will start to accumulate the day after the next meter read date for the subscribed meter, so long as the enrollment occurred three days prior to the meter read date. Enrollments within three business days of the read date may take effect following the next monthly meter read date. The solar energy produced and the payment for monthly community solar subscriptions will appear on subsequent bills. Enrollments prior to community solar commercial operations will be billed and will receive solar energy credits (kwh) when a full month of solar power is available for the member s bill cycle. When cancelling a subscription, the cancellation becomes effective at the end of the same day. The next bill for that period will include the partial month of solar energy credits (kwh) and the monthly subscription fee. Subscription fees will not be prorated for partial months. or Gifting Subscriptions 1. Monthly Subscription: Members with monthly subscriptions may cancel at any time following the initial 12-month minimum subscription term. If a monthly subscription is cancelled prior to the 12- month minimum, an early cancellation fee of $100 per block will be applied to the canceling member s next bill. Members who cancel early may not re-enroll in the program for one year from the date of early cancellation. 2. Pre-Paid Subscriptions: Members who pre-pay subscriptions may gift their block(s) to another member (subject to the other terms, conditions and limitations of the program) or sell their block(s) back to Chugach at the values listed below. Sold in Sell-Back Price per Sold in Sell-Back Price per Sold in Sell-Back Price per 1 $4, $2, $807 2 $3, $2, $634 3 $3, $2, $462 4 $3, $1, $290 5 $3, $1, $119 6 $3, $1, $0 7 $2, $1, $0 8 $2, $1,157 9 $2, $982 Tariff Advice o.: Effective: May 07, 2018

5 RCA o.: 8 Original Sheet o Sheet o COMMUITY SOLAR SERVICE (COTIUED) If a subscriber ends electric service without instruction to Chugach regarding the disposal of their block(s), Chugach will supply the power generated by the member s block(s) to the retail distribution grid and no member will receive energy credits from such block(s). s may not be transferred by any member for any consideration paid by or to such member other than as described above. Additional Conditions of Service 1. The term of the community solar program is 25 years. Chugach will operate and maintain the solar facility. As owner of the project, Chugach retains the right to determine what action to take at the end of the program term. 2. Participating members pay a service fee in exchange for a portion of the Chugach-owned community solar facility s kwh energy output. Participants receive this solar-generated electricity as a service from Chugach; they do not own the community solar project or any portion thereof. 3. Renewable Energy Certificates generated by each MWh of solar power generated will be retired on behalf of the participating members, thereby conveying the renewable energy benefits to the participating members. 4. Subscriptions shall remain in effect until: a. Cancelled by the member through the Chugach online member service, or by phone with, or in writing to, Chugach customer service; b. the member breaches or fails to satisfy or follow any term or condition of Chugach s tariff; or, c. the community solar program is terminated. 5. A cancellation fee of $100 per block will apply if a subscribing member s subscription is voluntarily cancelled by the member or terminated by Chugach due to breach (as described in 4b above) prior to the 12-month minimum enrollment term. The early cancellation fee will be waived in the event of the member moving outside the service territory or in the event of the member s death. 6. The program is portable for members moving within Chugach s service territory. Tariff Advice o.: Effective: May 07, 2018

6 RCA o.: 8 Original Sheet o Sheet o COMMUITY SOLAR SERVICE (COTIUED) 7. Each block may be upgraded from a monthly subscription to a pre-paid subscription by paying the applicable amount due in the year in which the member elects to upgrade. 8. All blocks subscribed on the same meter must be of one subscription type (monthly or pre-paid). 9. Participating members must remain current in their payment of bills as required in the operating tariff. If this is prior to the 12-month minimum period, the $100 per block early cancellation fee will apply. Pre-paid members delinquent on their electric bill payments are subject to the termination of one or more of their blocks. If a pre-paid subscription is terminated, the proceeds from the applicable sell-back credit will be applied to the member s past due balance and other fees accrued and the remaining amount, if any, will be paid to the member. 10. Chugach shall account for the metered output of the solar facility and account for and provide the solar energy credit as set forth in this tariff. 11. Chugach makes no warranty or representation, express or implied, as to the energy production of or energy credits available from the community solar facility. Solar energy credits will vary significantly from month to month based on seasonal solar intensity, weather and other conditions. 12. The solar facility may become subject to physical damage, equipment failure, or other events that may degrade the facility s efficiency. Chugach shall be under no obligation to issue any refund or credit to participating members based on the efficiency or output of the solar facility. In no event shall a refund or credit be issued if the solar facility performance is degraded as a result of a force majeure event. 13. Receipt of energy credits pursuant to this tariff may result in taxable income to a subscriber, and each subscriber is solely responsible for determination, payment and reporting with respect to such subscriber s taxes. 14. Chugach reserves the right to adjust rates upward or downward, if necessary, if system conditions change or unforeseen costs or benefits arise. Any change would not affect prepaid blocks already paid or the amounts paid prior to the change for monthly subscriptions. Chugach further reserves the right to adjust the rates for costs associated with the integration of the energy produced by the solar facility into the Chugach system. Tariff Advice o.: Effective: May 07, 2018

7 RCA o.: 8 Original Sheet o Sheet o COMMUITY SOLAR SERVICE (COTIUED) 15. Chugach has marketed the community solar program as a voluntary means to participate in a renewable energy program and has highlighted the premium-cost nature of this energy service. Chugach has made no warranty or representation, express or implied, that participating members may or will derive an economic benefit from its subscription. Participating members further acknowledge that Chugach makes no warranty or representation, express or implied, regarding the efficiency of the solar facility, or the amount of production credit, if any, that the participating member will receive during any billing period during the term. 16. Each subscribing member represents and warrants that he or she is (a) subscribing to the community solar program solely to receive energy credits as described in this tariff, not for investment or speculation, not with a profit expectation, and not with a view to the resale of any credit or other benefits and (b) aware that he or she does not have an interest in the solar facility. 17. Chugach makes no warranty or representation, express or implied, concerning the applicability or inapplicability of any federal or state securities laws on or in relation to the community solar program. Tariff Advice o.: Effective: May 07, 2018