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Rate Schedules and Policies

RSP H- 4
Extension of Facilities - Overhead

Payments and Refunds - Cont'd

Refund of Customer Contribution

Customers will be entitled to a refund if additional development on the extension takes place within five (5) years from the date the contribution was paid.

Refunds are non-interest bearing and will be made either on the customer's request or by Maritime Electric automatically during the fifth year following the date the contribution was paid.

The total amount of the refund will not exceed the original refundable contribution. Any balance of the contribution that has not been refunded during this five (5) year period is retained by Maritime Electric.

If Maritime Electric utilized the extension for its own operating purposes such as a tieline during this five (5) year period, the total amount of the refundable contribution, less any previous refunds, will be returned.In order for the customer to be eligible for any refund, a Customer Facility Contribution Refund Agreement must be signed by the customer.Refunds are calculated as shown in Section O - Fees and Charges, Extension of Overhead Facilities; Refunds.

Basis for Refunds

Distribution Line Extensions:Extension of a distribution line (750 volts or less) from a section of line upon which a contribution has been paid will entitle the original contributing customer to one (1) refund for each permanent customer added.

Extension of a distribution line (over 750 volts) from a section of line upon which a contribution has been paid will entitle the original contributing customer to one (1) refund per primary extension.

RSP H- 5
Extension of Facilities - Overhead

Payments and Refunds - Cont'd

The contributing customer will normally receive refunds based on the standard facility distance allowance times the average per meter Construction Charge of the extension.

However, if the customer contributed to a three-phase extension and the service added is single-phase, the refund will be adjusted by one-half.

If a customer upgraded from single to three-phase service and contributed based on the addition of two-phases, and a single-phase customer requests service from that section of facilities, then the customer who contributed to the facility is not entitled to a refund.

Extension of Transmission Facilities

Large Industrial

Maritime Electric will extend the transmission system to the customer's substation terminating structure. The customer will provide a guarantee for the total cost of the line.

Guarantees may be in the form of cash, letters of guarantee from chartered Canadian banks or trust companies, bearer bonds guaranteed by either the Government of Canada or the Province of Prince Edward Island, or surety bonds issued by a duly authorized company.

This guarantee is reduced each year by an amount equal to 10% of the total of the previous twelve months' paid bills for power and energy. If the guarantee is not fully refunded within the first five (5) years, Maritime Electric will demand payment for the remaining amount of the guarantee.

When the guarantee is cash, the interest rate is set at the beginning of the calendar quarter in which it is received and then remains constant for as long as any part of the deposit is held.

The interest rate will be the rate prevailing on five (5) year Government of Canada bonds.Interest on all cash security deposits is compounded semi-annually as long as any portion of the deposit remains.