FOR COMMERCIAL, INDUSTRIAL AND LIGHTING CUSTOMERS

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1 Electricity Rates FOR COMMERCIAL, INDUSTRIAL AND LIGHTING CUSTOMERS At Puget Sound Energy our goal is to meet your needs as a full service natural gas and electric utility. As the largest energy utility headquartered in Washington state, we provide electricity, natural gas and energyrelated services to more than 1.2 million homes and businesses throughout the greater Puget Sound region and beyond. From installing automated meter reading technology to creating a state-of-the-art customer service center, we are harnessing new technologies to efficiently provide you with reliable and responsive service. And, we do it for less, delivering this service at among the lowest operating costs in the nation. If you would like more information about our rates for residential or commercial electric or natural gas service, details about your rights and responsibilities as our customer, or a copy of our latest annual performance report card, please call us at ( from outside Washington) during business hours, or visit us at 24 hours a day, seven days a week. The energy to do great things. Rates Effective July 1,

2 RATES: SCHEDULES 24 and 8* GENERAL SERVICE For commercial or industrial customers with demand less than 50 kw. Effective date: July 1, Customer charge: $5.50 single phase or $13.60 three phase. Base rate Apr-Sep Low Income Program Effective rate per kwh Electric Conservation Program Charge per kwh * Monthly rates for Schedules 8, 10, 11, and 12 are identical, respectively, to Schedules 24, 25, 26 and 31, except energy charges are reduced by Schedule 194: Residential and Farm Energy Exchange credit of per kwh. SCHEDULES 25 and 11* SMALL DEMAND GENERAL SERVICE For commercial or industrial customers with demand greater than 50 kw but less than or equal to 350 kw. Effective date: July 1, Customer charge:... $ No charge for the first 50 kw of billing demand. For all over 50 kw of billing demand, Apr-Sep... $4.44 per kw Base rate Apr-Sep Low Income Program Total for the first 20,000 kwh per kwh Base rate Apr-Sep Low Income Program Total for all over 20,000 kwh per kwh Electric Conservation Program Charge per kwh per reactive kilovolt ampere-hour (KVARH).

3 SCHEDULES 26 and 12* LARGE DEMAND GENERAL SERVICE For commercial or industrial customers with demand greater than 350 kw. Effective date: July 1, Customer charge:... $ Per kw of billing demand Apr-Sep... $ 4.70 per kw Base rate Low Income Program Effective rate per kwh Electric Conservation Program Charge per kwh per reactive kilovolt ampere-hour (KVARH). SCHEDULE 29** SEASONAL IRRIGATION AND DRAINAGE PUMPING SERVICE For irrigation and/or drainage pumping on agricultural land used in the production of plant crops. Effective date: July1, Customer charge: $5.50 single phase or $18.10 three phase. No charge for the first 50 kw of billing demand. For all over 50 kw of billing demand, Apr-Sep... $3.28 per kw Base rate Apr-Sep Low Income Program Total for the first 20,000 kwh per kwh Base rate Apr-Sep Low Income Program Total for all over 20,000 kwh per kwh Electric Conservation Program Charge per kwh Energy Exchange Credit... (1.740 ) per kwh per reactive kilovolt ampere-hour (KVARH).

4 SCHEDULES 31 and 10* PRIMARY GENERAL SERVICE For commercial or industrial customers with delivery at primary voltage (600 volts or higher). Customer provides all transformation and facilities beyond the point of delivery. Effective date: July 1, Customer charge:... $ Per kw of billing demand Apr-Sep... $ 4.19 per kw Base rate Oct-Mar Low Income Program Effective rate per kwh Electric Conservation Program Charge per kwh per reactive kilovolt ampere-hour (KVARH). **Schedules 29 and 35 energy charges are reduced by Schedule 194, Residential and Farm Exchange Credit. SCHEDULE 35** PRIMARY SEASONAL IRRIGATION AND DRAINAGE PUMPING SERVICE For irrigation and/or drainage pumping on agricultural land used in the production of plant crops with delivery at primary voltage (600 volts or higher). Customer provides all transformation and facilities beyond the point of delivery. Effective date: July 1, Customer charge:... $ Per kw of billing demand Oct-Mar... $ 2.22 per kw Base rate Apr-Sep Low Income Program Effective rate per kwh Electric Conservation Program Charge per kwh Energy Exchange Credit... (1.740 ) per kwh per reactive kilovolt ampere-hour (KVARH).

5 SCHEDULES 36, 38 and 39 INTERRUPTIBLE SERVICE CREDITS Limited experimental schedules are now closed to new customers but were available to customers on Schedules 26, 31 and 49 meeting specific criteria. These schedules provide a credit toward demand charges as well as for interrupted energy usage. Specific schedules and information are available upon request. SCHEDULE 43 LIMITED INTERRUPTIBLE PRIMARY SERVICE, ALL- ELECTRIC SCHOOLS Delivered at primary voltage (600 volts or higher) and customer provides all transformation and facilities beyond the point of delivery. This schedule is closed to new customers. Effective date: July 1, Customer charge:... $ Per kw of billing demand... $ 3.63 per kw Plus $2.60 per kw of Critical Demand established in the preceding 11 months Base rate Low Income Program Effective rate per kwh Electric Conservation Program Charge per kwh per reactive kilovolt ampere-hour (KVARH). SCHEDULE 46 HIGH VOLTAGE INTERRUPTIBLE SERVICE For commercial or industrial customers with billing demands not less than 4,400 kva who may be interrupted during certain hours of the day. Customer provides all transformation and facilities beyond the point of delivery with delivery at high voltage (50,000 volts or higher). Effective date: July 1, Per kva of billing demand... $ 1.58 per kva Base rate Low Income Program Effective rate per kwh Electric Conservation Program Charge per kwh

6 SCHEDULE 49 HIGH VOLTAGE GENERAL SERVICE For commercial or industrial customers with billing demands not less than 4,400 kva. Delivered at high voltage (50,000 volts or higher) and the customer provides all transformation and facilities beyond the point of delivery. Effective date: July 1, Per kva of billing demand... $ 2.79 per kva Base rate Low Income Program per kwh Electric Conservation Program Charge per kwh SCHEDULE OUTDOOR LIGHTING SCHEDULES These schedules provide incandescent, mercury vapor, metal halide, and sodium vapor street lighting service along with traffic control lighting. Specific schedules and information can be obtained upon request. SCHEDULES 73 and 74 CONVERSION TO UNDERGROUND-RESIDENTIAL AND NONRESIDENTIAL Schedules 73 and 74 provide for conversion of existing overhead electric systems to underground. Specific schedules and information are available upon request. SCHEDULE 80 GENERAL RULES AND PROVISIONS This schedule adopts the rules and regulations for electric service prescribed by the Washington Utilities and Transportation Commission, as well as other operating rules of the Company, and provides for miscellaneous charges. A copy of this schedule is available upon request. SCHEDULE 81 TAX ADJUSTMENT SCHEDULE Provides for adjustment of electric charges in those cities and towns levying a tax on electric service. Information about specific tax rates is available upon request. SCHEDULE 83 ENERGY CONSERVATION SERVICE Provides for services to reduce electrical energy usage in residential, commercial and industrial facilities. Additional information is available upon request.

7 SCHEDULES 85 and 86 LINE EXTENSIONS (CONSTRUCTION) AND SERVICE LINES (INSTALLATION) Schedules 85 and 86 provide for construction of new distribution systems and service lines. Specific schedules and information are available upon request. SCHEDULE 91 COGENERATION AND SMALL POWER PRODUCTION Limited to qualifying facilities within the Company s service area. Specific details and current rates are available upon request. SCHEDULE 93 VOLUNTARY LOAD CURTAILMENT RIDER Available to those customers taking service on schedules 49, 31, 26, 10 or 12 who have the ability to curtail 500 kw or greater of demand for electric service at certain times when requested by the Company. Specific details and current rates are available upon request. SCHEDULE 120 ELECTRIC CONSERVATION SERVICE RIDER This rate adjustment collects costs incurred for providing electricity conservation services. Rates shown in this brochure reflect the Schedule 120 rider. SCHEDULE 129 LOW INCOME PROGRAM This rate adjustment collects costs incurred for providing low income services. SCHEDULE 135 GREEN ENERGY OPTION Available to all customers as an option designed to provide customers an opportunity to purchase qualified alternative energy resources. Customers may purchase an unlimited number of blocks of green energy at $2.00 each in addition to all other charges contained in the rate schedule under which the Customer receives service. A block is equivalent to a 100 kwh purchase. Monthly minimum purchase is two blocks per month.

8 SCHEDULE 150 NET METERING SERVICES FOR CUSTOMER- GENERATOR SYSTEMS Available to customer generators taking service on schedules 7, 24, 25 and 29 who operate fuel cells or hydroelectric, solar or wind power generators with a total capacity of no more than 25kW. Specific details are available upon request. SCHEDULE 194 RESIDENTIAL AND FARM ENERGY EXCHANGE Under the Residential and Farm Energy Exchange agreement between the Company and the Bonneville Power Administration, credits are available for residential and small farm customers. Credits automatically are passed through to residential electricity customers. Farm customers must apply and qualify for the credit. Per kwh credit per kwh

9 EXAMPLE: HOW YOUR BILL IS CALCULATED The following example is provided to help you understand how the electricity you use is priced. This example uses summer, small demand general service rates. SCHEDULE 25 SMALL DEMAND GENERAL SERVICE For a customer who used 30,000 kwh and 125 kw during one month (assuming 30 days of service). Customer charge:... $ First 20,000 kwh x , Remaining 10,000 kwh x First 50 kw Remaining 75 kw x $ Electric Conservation Program Charge: 30,000 kwh x Subtotal... $2, City tax (if any) Total bill... $2, NOTE: The Schedule 11 calculation is the same as the above, but would be reduced by the Schedule 194 Residential and Farm Energy Exchange credit of $ (30,000 kwh x credit).

10 Puget Sound Energy P.O. Box Bellevue, WA All rates shown in this brochure are subject to adjustment by such other schedules in the company s tariff as may apply. #1216 KS 16m 7/03 Printed on recycled paper.

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