The Board of Public Utilities received approval from the New York State Department of Public Service in January 2003 to implement economic development rates in the BPU service territory. The BPU has been actively promoting this region and its utility divisions, especially the electric division, for the past two years and intends to continue this effort. The utility's economic development rates are intended to be but one tool to be used to encourage potential and existing customers to expand their businesses in the Jamestown area.

ELIGIBILITY GUIDELINES

Any new or existing General Service Customers served under BPU Service Classification No. 3 (usually industrial users), that meet all of the criteria explained in the rate riders are eligible for these rates.

RIDER #1 - the customer must have additional or incremental load of at least 100kilowatts monthly peak demand. Existing customers must have maintained a monthly load factor of 50%, based upon the company's billing demand for the 12-month period immediately before the date of application for service under this Rider. If a new or existing customer's load factor based upon their billing demand falls below 50% for three consecutive months they will no longer qualify for the rate reduction until their monthly load factor based upon their billing demand equals or exceeds 50% for three consecutive months.

The customer qualifying for this Rider shall receive a reduction in the demand charge for a three-year period.

First 12 months 75% of kW incremental billing demand
($3.00 demand charge)
Second 12 months 50% of kW incremental billing demand
Third 12 months 25% of kW incremental billing demand

RIDER #2 - the customer must have additional or incremental load of at least 200 kilowatts of monthly peak demand. The customer must meet the requirements of the New York State Power Authority 1991 amendment to the Jamestown-PASNY Power Supply Agreement called the Municipal and Rural Cooperative Industrial Economic Development Program Guidelines. The customer will work with the BPU to receive an allocation of additional firm demand and energy from the Power Authority. When that allocation is received from the Power Authority, the BPU will purchase the allocated firm demand and energy from PASNY for subsequent sale to the customer. The cost of the Power Authority demand and energy will be adjusted annually for three years. The first year will incorporate 100% of the savings of $0.01683/kWh; the second year will incorporate 66% of the savings or $0.01111/kWh; the third year will incorporate 33% of the savings or $0.00555/kWh including all transportation costs.

RIDER #3 - the customer must have additional or incremental load of at least 1.0 megawatt of monthly peak demand. The customer must meet the requirements of the New York State Power Authority 1991 amendment to the Jamestown-PASNY Power Supply Agreement called the Municipal and Rural Cooperative Industrial Economic Development Program Guidelines. The customer shall work with the BPU to receive an allocation of additional firm demand and energy from the Power Authority. When that allocation is received from the Power Authority, the BPU will purchase the allocated demand and energy from PASNY for sale to the customer. The rate for demand and energy from the Power Authority, including all delivery costs, will incorporate 100% of the savings of $0.01683/kWh. The rates in the succeeding years will incorporate the following percent of savings:

Year Savings Savings per kWh
2 80% $0.01346
3 60% $0.01010
4 40% $0.00673
5 20% $0.00337

RIDER #4 - the customer must have additional or incremental load of at least 200kilowatts of monthly peak load. Customers qualifying for this rate will receive Power Authority firm demand for up to one half of their demand and utility energy for the other half of their demand. The rate for PASNY demand and energy, including all delivery costs, will incorporate 100% of the savings of $0.01683/kWh. The rates for the second year will incorporate 66% of the savings or $0.01111/kWh. In the third year, the demand and energy will incorporate 33% of the savings or $0.00555/kWh.

RIDER #5 - Service under this rider is available to existing or new Class 3 customers that also meet all of the criteria for Riders 1, 2, 3, or 4. The rate will pay for up to 100% of the cost of line extension on public or private property that is the responsibility of the customer with a maximum payment per single customer not to exceed $100,000.



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