INDUSTRIAL RATES

Enhanced Growth Credit | Industrial Rates | Key Information for Industries | Major Industrial Accounts

General Power Rate Schedule

(Rates Effective July 1, 2008)

TVA institued a Fuel Cost Adjustment (FCA) effective October 1, 2006. The energy component of the below firm rates will be adjusted in the monthly bill by the FCA. TVA recalculates the FCA each quarter and it can add or subtract to the firm rate. For more information on the Fuel Cost Adjustment see www.tva.gov/news/releases/julsep06/board_approves.htm.

AVAILABILITY

These rates shall apply to commercial, industrial, governmental, and institutional customers. The conditions below are general and special conditions such as minimum billing and seasonal service may apply. A contract is required for loads exceeding 50 kW.

CONTRACT DEMAND OF 5,000 KW OR LESS

•GSA-1: Less than 50 kW

Monthly charges for annual billing demand less than 50 kW, and for monthly energy consumption less than 15,000 kWh.

Customer Charge:	$21.50 per delivery point
Energy Charge:	8.928 cents per kWh

•GSA-2: Between 50 kW and 1,000 kW

Monthly charges for annual billing demand between 50 kW and 1,000 kW, or for demand below 50 kW but greater than 15,000 kWh use.

Customer Charge:	$127.00 per delivery point
Demand Charge:	First 50 kW - no charge Excess over 50 kW @ $12.52 per kW
Energy Charge:	First 15,000 kWh @ 8.361 cents per kWh Additional kWh @ 5.044 cents per kWh

•GSA-3: Between 1,000 kW and 5,000 kW

Monthly charges for annual billing demand between 1,000 kW and 5000 kW

Customer Charge:	$266.00 per delivery point
Demand Charge:	First 1000 kW @ $12.54 per kW Excess over 1,000 kW @ $13.87 per kW Plus $13.87 per kW of the amount the demand exceeds the higher of contract demand or 2,500 kW
Energy Charge:	5.086 cents per kWh

•MSB (Manufacturing) - CONTRACT DEMAND OF GREATER THAN 5,000 KW BUT LESS THAN 15,000 KW

MSB1 - Metered Demand For the Month Is Less Than 5,000 kW:

Customer Charge:	$1,500 per delivery point per month
Demand Charge:	$11.89 per kW of billing demand Plus $11.89 per KW of the amount the customer's billing demand exceeds the contract demand.
Energy Charge:	3.847 cents per kWh up to 620 hours use of metered demand 3.253 cent per kWh for all additional kWh

MSB2 - Metered Demand For the Month Is Greater Than 5,000 kW:

Customer Charge:	$1,500 per delivery point per month
Demand Charge:	$11.28 per kW of billing demand Plus $11.28 per KW of the amount the customer's billing demand exceeds the contract demand.
Energy Charge:	3.671 cents per kWh up to 620 hours use of metered demand 3.128 cents per kWh for all additional kWh

•GSB (non-manufacturing) - CONTRACT DEMAND OF GREATER THAN 5,000 kW BUT LESS THAN 15,000 kW

Customer Charge:	$1,500 per delivery point per month
Demand Charge:	$13.78 per kW of billing demand Plus $13.78 per kW of the amount the customer's billing demand exceeds the contract demand
Energy Charge:	4.374 cents per kWh up to 620 hours use of metered demand 3.699 cents per kWh for all additional kWh

*Note! The TVA Fuel Cost Adjustment changes every quarter. The above listed FCA is for July, August, and September 2008.

AVAILABILITY OF INTERRUPTIBLE RATES

5-Minute Response (5MR) and 60-Minute Response (60MR) Interruptible Power
Fixed firm rates with a credit for the amount of interruptible demand load over a pre-determined firm level. Available for loads exceeding 1000 kW demand with either 5 or 60 minute curtailment notice.

CHARACTER OF SERVICE

Morristown Power System provides power to industrial, commercial and residential customers at the following nominal voltages:

120/240 V	3 wire, single phase, 400A maximum
120/240V	4 wire, three phase delta
120/208V	4 wire, three phase wye
277/480V	4 wire, three phase wye
480V	3 wire, three phase delta
7620/13200V	4 wire, grounded wye
Pad mounted transformers in a delta connected secondary are not provided.

Morristown Power System normally operates under the American National Standards Institute (ANSI) Standard [2] for voltage levels, with all voltages within the favorable or preferred zone as set out by the standard.

*These rates are subject to change. For the most up-to-date rates contact Customer Service at 586-4121.