RSP N-11
Rate Schedules and Rate Application Guidelines

Large Industrial Rate Schedule - Cont'd

Interruptible Energy Charge

Maritime Electric will supply interruptible energy in excess of the demand reserved for the Customer up to the amount of the Customer's unused generation capability, if such energy is available at the Delivery Point, and can be produced with available Maritime Electric Facilities over and above the requirement of other firm commitments of Maritime Electric. The rate will be based on Maritime Electric's incremental cost of providing such energy.

Surplus Energy Charge

To qualify for new Surplus Energy, the Customer must sign a minimum three-year contract with Maritime Electric as its sole electricity supplier. Surplus Energy is supplied only if it can be provided with available Maritime Electric Facilities over the above the requirement of other firm commitments of Maritime Electric. The Customer must interrupt Surplus Energy use within ten (10) minutes of a request from Maritime Electric. Customers can purchase Surplus Energy for load additions of 2,000 kilowatts or more.

Customers will be required to interrupt Surplus Energy to meet Maritime Electric financially firm export obligations. When Surplus Energy is interrupted to meet financially firm export obligations, the Customer is reimbursed 50 percent of the cost of the replacement energy that Maritime Electric would have otherwise incurred to supply the export sales.

Customers who fail to interrupt will be billed on additional charge which is the higher of:

(i) two times the monthly demand charge per kilowatt for the Large Industrial rate classification multiplied by the kilowatts that were not interrupted plus any incremental cost of supplying the energy, or

(ii) the costs incurred by Maritime Electric for replacement energy to supply financially firm export obligations.

Energy Cost Adjustment Mechanism: This rate is subject to the Energy Cost Adjustment Mechanism


RSP N-12
Rate Schedules and Rate Application Guidelines

Large Industrial Rate Schedule - Cont'd

Surplus Energy Charge (continued)

Up to March 2001, Customers can purchase Surplus Energy for load additions of 2000 kW or more. The total annual sales are limited to 500 million kilowatthours. Because of the limited amount of available Surplus Energy, preference will be given to the Customers who sign a power purchase contract with Maritime Electric until March 2001.

This Surplus Energy is supplied only if it can be provided with available Maritime Electric Facilities. The Customer must interrupt Surplus Energy use within 10 minutes of a request from Maritime Electric. The rate will be based on Maritime Electric's incremental cost of providing such energy.

Pricing of Interruptible And Surplus Energy

The price is based on Maritime Electric's incremental cost of providing such energy. Incremental cost is defined as Maritime Electric's incremental generation or purchased power cost after supplying in-province firm load and other firm supply commitments.

Interruptible and Surplus Energy price will be:

On peak price = incremental cost during on peak hours +1.23¢/kWh.
Off peak price = incremental cost during off peak hours +0.41¢/kWh.

The on peak period is defined as 0800 to 2400 hours Atlantic Prevailing Time on all weekdays, except statutory holidays in Prince Edward Island. All other hours are considered to be off peak.

Maritime Electric will provide a week ahead forecast and day ahead firm quotes of the on and off peak prices to be paid by the customer.


Schedulable Energy

To qualify for Schedulable Energy, the Customer must sign a minimum five-year contract with Maritime Electric as its sole electricity supplier. Schedulable Energy is supplied only if it can be provided with available Maritime Electric facilities over and above the requirement of other firm commitments, including financially firm export obligations of Maritime Electric. The Customer must interrupt Schedulable Energy use within ten (10) minutes of a request from Maritime Electric, or arrange for a third party supply.

Customers, who are serviced directly from Maritime Electric's transmission system, can purchase Schedulable Energy for load additions of 10,000 kilowatts or more up to March 31, 2008.