NORTHEAST NEBRASKA PUBLIC POWER DISTRICT RATE SCHEDULE LP-2 Large Power Service. Effective: For bills rendered on and after January 1, 2014.

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NORTHEAST NEBRASKA PUBLIC POWER DISTRICT RATE SCHEDULE LP-2 Large Power Service Effective: For bills rendered on and after January 1, 2014. SECTION 1. AVAILABILITY AND APPLICABILITY 1.1 This Rate Schedule LP-2 is offered for the entire electrical requirements at a single location of any industrial or manufacturing Customer requiring 5,000 kva or more of installed transformer capacity, and for which there exists an executed Power Purchase Contract between the Customer and the District. Resale of energy taken under this rate schedule by the Customer is not permitted. 1.2 This Rate Schedule LP-2 is made available in conjunction with rate schedules that are a part of a Wholesale Power Agreement between the District and Nebraska Electric Generation and Transmission Cooperative, Inc. ( NEG&T ). In the event there is any inconsistency between the provisions of this Rate Schedule LP-2 and those rate schedules, which are a part of the District/NEG&T Wholesale Power Agreement, then the provisions of the District/NEG&T Power Contract rate schedules shall govern. SECTION 2. TYPE OF SERVICE 2.1 Three-phase current, alternating at a frequency of approximately sixty (60) Hertz and at standard District voltages (but not less than 2.4 kv). SECTION 3. DEFINITION OF TERMS 3.1 "Billing Demand" shall mean the Customer s Measured Demand upon which the billing is based as specified in this rate schedule. 3.2 "Billing Period" shall mean any calendar month commencing at the hour ending 0100 on the first day of the month and ending with the hour ending 2400 on the last day of such calendar month. 3.3 "Customer" shall mean that industrial or manufacturing entity that currently has a Power Purchase Contract with the District, of which this rate schedule is made a part. 3.4 "Demand" shall mean the number of kilowatts which is equal to the number of kilowatthours delivered during any clock hour, or such other time period as is utilized for determining capacity purchases by the District. 3.5 "Energy" shall mean the electric energy expressed in kilowatthours (kwh) associated with the meter readings taken for a given billing period. LP-2 2014 Page 1 of 8

3.6 "Measured Demand" shall mean the Customer s Demand at which power is delivered to the Customer at a point during a Billing Period. In determining the Measured Demand, the District may exclude any abnormal Demand such as that due to or resulting from emergencies, or scheduled maintenance with appropriate advance notice from the Customer. 3.7 "NEG&T" shall refer to the Nebraska Electric Generation and Transmission Cooperative, Inc. 3.8 "Point of Delivery" shall mean the point at which the Customer facilities are interconnected with the District for the purpose of purchasing power and energy from the District. 3.9 "Point of Measurement" shall mean that point where purchased power and energy are metered for the purpose of billing the Customer for said purchases. 3.10 "Point of Receipt" shall mean the point at which the District facilities are interconnected with the 115 kv facilities for the purpose of taking receipt of power and energy for resale to the Customer. 3.11 On-Peak Demand Hours shall be that subset of hours as defined in Section 6 of this Rate Schedule LP-2 3.12 Summer Demand Season The Billing Periods June through September 3.13 Summer Energy Season The Billing Periods June through September 3.14 Winter Demand Season The Billing Periods October through May 3.15 Winter Energy Season The Billing Periods October through May LP-2 2014 Page 2 of 8

SECTION 4. MONTHLY RATES Monthly Demand Charges Per Kilowatt (kw) of Billing Production Transmission Sub-Transmission Demand Demand Season: Summer Winter Lines Substation Lines Substation Monthly Rates $13.54 $12.67 $2.95 $0.44 $0.86 $0.88 Per Kilowatthour (kwh) Summer Energy Season On-Peak $0.0340 Off-Peak $0.0260 Winter Energy Season On-Peak $0.0310 Off-Peak $0.0222 Per kilowatthour Charge:$0.000136 Monthly Energy Charges Administrative Assessment SECTION 5. BILLING DEMAND 5.1 The production kw billing demand for the monthly Billing Periods of October through May (winter season) shall be the Customer s highest Measured Demand during onpeak hours of the current Billing Period with adjustments to such Measured Demand for Kilowatt Loss Factor (Section 8) and Power Factor Adjustment (Section 7). 5.2 The production kw billing demand for the Monthly Billing Periods of June through September (summer season) shall be determined by applying the following procedure: The average of the Customer s highest Measured Demands during on-peak hours of four separate days, each of which may occur during the current Billing Period or the three (3) summer season monthly Billing Periods immediately preceding the current Billing Period. Each such Measured Demand shall LP-2 2014 Page 3 of 8

include adjustments for the Kilowatt Loss Factor (Section 8), and Power Factor Adjustment (Section 7). 5.3 The high-voltage transmission kw billing demand for the monthly Billing Periods of October through May (winter season) shall be determined by applying the following procedure: One hundred percent (100%) of the Customer's highest Measured Demand during on-peak hours of the preceding four (4) months of June through September (summer season) with adjustment to such Measured Demand for Kilowatt Loss Factor (Section 8) and Power Factor Adjustment (Section 7). 5.4 The high-voltage transmission kw billing demand for the monthly Billing Periods of June through September (summer season) shall be determined by applying the following procedure: One hundred percent (100%) of the Customer's highest Measured Demand during on-peak hours of the current Billing Period or the three (3) summer season monthly Billing Periods immediately preceding the current Billing Period with adjustments to such Measured Demand for Kilowatt Loss Factor (Section 8) and Power Factor Adjustment (Section 7). 5.5 The high-voltage transformation kw billing shall be determined by applying the following procedure: One hundred percent (100%) of the Customer's highest Measured Demand during on-peak or off-peak hours of the current or preceding eleven Billing Periods with adjustment to such Measured Demand for Kilowatt Loss Factor (Section 8) and Power Factor Adjustment (Section 7). 5.6 The subtransmission line and subtransmission substation kw billing demand(s), to the extent the Customer utilizes such facilities provided by the District, shall be determined as follows: One hundred percent (100%) of the Customer's single highest Measured Demand during on-peak or off-peak hours of the current or preceding eleven Billing Periods with adjustment to such highest Measured Demand for Kilowatt Loss Factor (Section 8) and Power Factor Adjustment (Section 7). 5.7 The kilowatthour billing energy shall be determined as follows: (1) The total measured energy during the current Billing Period with adjustment, if any, to such measured energy for kilowatthour loss factor (Section 8). (2) For the monthly Billing Periods the on and off-peak hours for energy (all based on Central Time) are as follows: LP-2 2014 Page 4 of 8

Energy Season On-Peak Off-Peak Summer 0901-2300 Mon-Sat All Other Hours Winter 0801-2200 Mon-Sat All Other Hours All hours on New Year s Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, and Christmas Day shall be considered off-peak hours for energy. SECTION 6. DEMAND WAIVER 6.1 This Section 6 sets forth procedures and conditions regarding the waiver by the District to the Customer of certain Measured Demands with respect to the sale of electric power and energy to Customer's purchasing service under this Rate Schedule. 6.2 Off-Peak Hours. Until and unless notice of revision is given by NEG&T to the District, the Off-Peak Hours for the purposes of this Section 6 shall mean: (1) All hours on Sundays. (2) All hours of the following holidays: New Year's Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, and Christmas Day. (3) A 10-hour period on all other days during the Billing Periods of June, July, August, and September, commencing at 11:00 p.m. (2300 hour) through 9:00 a.m. (0900 hour) of the following day based on Central Daylight Savings Time, except that all hours on the days from September 16 through September 30 shall be deemed Off-Peak Hours. (4) A 10-hour period on all other days during the Billing Periods of October, November, December, January, February, March, April, and May, commencing at 10:00 p.m. (2200 hour) through 8:00 a.m. (0800 hour) of the following day based on either Central Standard Time or Central Daylight Savings Time, whichever is applicable. (5) Any other hours waived by NEG&T for the District pursuant to Paragraphs 6.3, 6.4, and 6.5. **** All other hours are eligible to be On-Peak Hours. **** 6.3 Measured Demands during the above Off-Peak Hours in 6.2 shall be waived by the District to the Customer for purposes of determining the production and high-voltage transmission Billing Demands to the Customer during the Billing Period. However, Measured Demands of the Customer, whether recorded during On-Peak or Off-Peak Hours, shall be used for purposes of determining the Billing Demand for high-voltage transformation charges, and if applicable, the single highest Measured Demand of the Customer, whether recorded during On-Peak or Off-Peak Hours, shall be used for purposes of determining the Billing Demand for subtransmission line and subtransmission substation charges. LP-2 2014 Page 5 of 8

6.4 Customer Load Control Program. In addition to the waiver under Paragraph 6.2 of this Section 6, when a Customer has implemented a program to control such Customer's receipt of power and energy from the District during the On-Peak Hours for any or all of the months of January through December and such Customer desires to have its Measured Demands waived by the District pursuant to Paragraph 6.5 hereof, such Customer shall make that request in writing 30 days prior to implementation of the request, and such notice shall include the following information: A) Name of Customer. B) Effective date of the request. C) Estimate by Customer of the maximum kilowatt load to be off due to control at any time during the On-Peak Hours. Upon written acknowledgment by the District to the Customer that the District has received the request, the Measured Demands for the Customer making said request to the District, shall be waived for purposes of determining the production and highvoltage transmission Billing Demands to such Customer during such other Off-Peak Hours provided by the District pursuant to Paragraph 6.5. 6.5 The District may, from time to time, provide for additional Off-Peak Hours solely for the purpose of a waiver of Measured Demands pursuant to Paragraph 6.4 of this Section 6. This provision shall be achieved through a notification, termed On-Peak Notice, from the District to the Customer that certain hours are to be considered On-Peak and subject to the determination of production and high-voltage transmission Billing Demands. Hours eligible for On-Peak Notice may include weekdays and Saturdays from the hours of 9:00 a.m. (0900 hour) through 11:00 p.m. (2300 hour), based on Central Daylight Savings Time, for the months of June, July, August, and September, or any portion of this 14-hour period; or from the hours of 8:00 a.m. (0800 hour) through 10:00 p.m. (2200 hour), based on either Central Standard Time or Central Daylight Savings Time, whichever is applicable, for the months of October through May, or any portion of this 14-hour period. While these hours are eligible for On-Peak Notice, the Customer may consider the Measured Demands during the above On- Peak Hours waived by the District to the Customer for purposes of determining the production and high-voltage transmission Billing Demands to the Customer during the Billing Period until said On-Peak Notice is given. However, Measured Demands of the Customer coincident with the District, whether recorded during On-Peak or Off-Peak Hours, shall be used for purposes of determining the Billing Demand for high-voltage transformation charges, and if applicable, the single highest Measured Demand of the Customer, whether recorded during On-Peak or Off-Peak Hours, shall be used for purposes of determining the Billing Demand for subtransmission line and subtransmission substation charges. The District shall have the sole responsibility and authority for determining whether the Measured Demands shall be waived, and/or On- Peak Notice is given. 6.6 Promptness and ease of providing notice to the Customer of the On-Peak Hours determined by the District pursuant to Paragraph 6.5 becomes critical to the success and fairness of the waiver of Measured Demands; therefore, each Customer and the LP-2 2014 Page 6 of 8

District shall work to achieve the necessary communication links to facilitate such notice. However, the Customer shall have the sole responsibility for receiving any demand waiver notice pursuant to this paragraph. Any installation of equipment and all costs associated with the implementation of this Section 6 will be the responsibility of, and be borne by, the Customer. 6.7 The District reserves the right to modify or revise this Section #6 from time to time. SECTION 7. POWER FACTOR ADJUSTMENT 7.1 If a Customer's power factor at any Point of Delivery at the time of the highest Measured Demand(s) used in the Billing Demand determination is less than ninety-five percent (95%), the District may adjust such Demand to a ninety-five percent (95%) power factor, in accordance with adjustments made with respect to capacity purchases by the District. SECTION 8. LOSS FACTORS 8.1 For billing Purposes, the Point of Receipt shall be Bus A, and each Point of Receipt and Point of Delivery to the Customer will be shown on an exhibit which will reflect the physical arrangements for delivery of the power and energy. All power and energy sold and purchased under this Rate Schedule shall be billed as specified in Paragraphs 8.2 below. 8.2 In the event the Point of Measurement is located beyond Bus A at a voltage of 69 kv or lower, the measured power and energy shall be adjusted for losses back to Bus A. The multipliers to adjust the measured power and energy to Bus A for line and/or transformer losses shall be in accordance with loss adjustments made with respect to wholesale purchases by the District. The Bus A power and energy shall be the billing demand and energy subject to adjustments, if any, as provided in this Rate Schedule. SECTION 9. TRANSMISSION AND SUBTRANSMISSION FACILITIES 9.1 Service provided under the provisions of this Rate Schedule includes the District s use of an interconnected high voltage transmission system network consisting of transmission line and substation facilities rated 115,000 volts and above, and may also include the use of the District transmission line and substation facilities rated 69,000 volts and below (hereinafter called "subtransmission"). All transmission lines rated 115,000 volts and above and substation facilities that provide for transformation to voltages at or above 115,000 volts are, for purposes of this Rate Schedule, included as high-voltage transmission facilities. The High-Voltage Transmission Line Charge set forth in Section 4 will be applicable to any Customer purchasing power and energy from the District under the provisions of this Rate Schedule. LP-2 2014 Page 7 of 8

9.2 Where the District has also provided, or caused to have provided, the facilities required for service hereunder from the high voltage transmission network or from the subtransmission facilities of the District, the High-Voltage Transformation, Subtransmission Line, and Subtransmission Substation Charges in Section 4 will be applied as follows: (1) Where the District has provided for the availability of the high voltage transmission substation facilities required for the first transformation below 115,000 volts, the High-Voltage Transformation Charge set forth in Section 4 will be applicable to Customer s power and energy deliveries at such Points. (2) Where the District has provided both the subtransmission line and substation facilities beyond Bus A, the Subtransmission Line and Subtransmission Substation Charges set forth in Section 4 will be applicable to the Customer s power and energy deliveries. SECTION 10. APPROVAL AND MODIFICATION OF SCHEDULE 10.1 This Rate Schedule LP-2 has been approved by the Northeast Nebraska Public Power District Board of Directors on November 19, 2013 with Board Resolution 2013-11-03. 10.2 The District retains and reserves the right, power and authority to modify, revise, amend, replace or repeal this Rate Schedule LP-2, in whole or in part, by resolution adopted by the District Board of Directors. LP-2 2014 Page 8 of 8