CHOCTAWHATCHEE ELECTRIC COOPERATIVE, INC RESIDENTIAL SERVICE--NET METERING RIDER

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RS-N SECOND REVISED SHEET NO. 8.2.1 CANCELLING FIRST SHEET NO. 8.2.1 NAME OF UTILITY CHOCTAWHATCHEE ELECTRIC COOPERATIVE, INC RESIDENTIAL SERVICE--NET METERING RIDER DEFINITION Net Metering means calculating the difference in an applicable billing period between: 1) the charges for the electricity supplied by the Cooperative to a Residential Customer served under Rate RS-N, and 2) the credit to the customer for electricity generated by such Customer that is delivered to the Cooperative. APPLICABILITY Applicable to all members for residential uses. AVAILABILITY This Rider is available to residential customers who are provided single-phase service, or three phase service and who have installed electric generation of 50 kw alternating current or less on their premises. Customers must meet the Generator System Requirements and Interconnection Requirements specified below. BILLING Rate RS-N The charges for the electricity supplied by the Cooperative to a Residential Customer served under Rate RS-N shall be determined as follows: Customer Charge Single Phase Same as Under RS Rate Sheet 8.0 Three Phase Same as Under RS Rate Sheet 8.0 Energy Charge Purchased Power $0.03979 per kwh Power $0.01368 per kwh Demand $0.05347 Same as Under RS Rate Sheet 8.0 Distribution Delivery Same as Under RS Rate Sheet 8.0 Wholesale Power Adjustment See Sheet 18.0 Taxes See Sheet 19.0 FRR See Sheet 20.0 The credit to the Customer served under Rate RS-N for electricity generated by the Customer that is delivered to the Cooperative shall be determined as follows: $0.03979 plus current month s Wholesale Power Adjustment for all kwh delivered to the Cooperative. The customer's bill will be calculated by subtracting the credit to the customer from the Cooperative's charges to the customer. If the credit to the customer is greater than the Cooperative's charges to the customer, the Customer's bill shall be zero for the current billing cycle with the difference credited to the Customer in subsequent billing cycles. When the Customer discontinues Net Metering Rider service, any unused credit will revert to the Cooperative. Issued by: Leigh V. Grantham Effective: May 1, 2012 Chief Executive Officer

SECOND REVISED SHEET NO. 8.2.2 CANCELLING FIRST SHEET NO. 8.2.2 (Continued from Sheet No. 8.2.1) METERING If the Customer s standard meter is capable of measuring electricity in both directions, it will be used for purposes of this Rider. If a Customer s standard meter is not capable of measuring electricity in both directions, the customer will pay the incremental cost for the Cooperative to install a meter that is capable of measuring electricity in both directions. The Cooperative s General Terms and Conditions Applicable to Electric Service will govern meter testing procedures. In addition, the Cooperative reserves the right to install, at its own expense, a meter to measure the output of the Customer s generator. GENERATOR SYSTEM REQUIREMENTS The Customer s generator system must meet the following requirements: 1. The nameplate rating of Customer s generator system must not exceed 50 kw; 2. The generator system must be owned and operated by the Customer and must be located on the Customer s premises; 3. The Customer s generator system must be intended primarily to offset part or all of the Customer s requirements for electricity; 4. The generator system must operate in parallel with the Cooperative s distribution facilities; and 5. The generator system must satisfy the Interconnection Requirements specified below. INTERCONNECTION REQUIREMENTS 1. The Customer shall comply with the Cooperative s technical interconnection requirements. For generator systems 50 kw or smaller eligible for this rider, the Cooperative s technical requirements consist of: a) IEEE 1547-2003, IEEE Standard for Interconnecting Distributed Resources with Electric Power Systems (IEEE 1547). b) Current version of ANSI/NFPA 70, National Electrical Code (NEC). c) Any other applicable local building codes. The interconnection must be inspected by local code officials prior to its operation to ensure compliance with applicable local codes. Inverter based systems listed by Underwriters Laboratories (UL) to UL Standard 1741, published May 7, 1999, as revised January 17, 2001 (UL 1741), are accepted by the Cooperative as meeting the technical requirements of IEEE 1547 tested by UL 1741. 2. The Customer shall provide proof of homeowners or other insurance providing coverage in the amount of at least one hundred thousand dollars ($100,000) for the liability of the insured against loss arising out of the use of a net metering facility. This coverage must be maintained as long as the Customer is interconnected with the Cooperative s distribution 3. Conformance with these requirements does not convey any liability to the Cooperative for injuries or damages arising from the installation or operation of the generator 4. The Customer shall execute the Cooperative s standard Net Metering Interconnection Application form and provide other information reasonably requested by the Cooperative for service under this Rider. The Cooperative shall require proof of qualified installation prior to acceptance and completion of the interconnection agreement. Certification by a licensed electrician shall constitute acceptable proof. The cooperative will charge a fee of $25 for processing the application for interconnection.

(Continued from Sheet No. 8.2.2) SECOND REVISED SHEET NO. 8.2.3 CANCELLING FIRST SHEET NO. 8.2.3 5. The cooperative shall provide the customer with written notice that it has received the Net Metering Interconnection Application and any supporting documents within 10 business days of receipt. The customer shall not begin parallel operations until the customer has received this written notice. TERMS AND CONDITIONS OF SERVICE 1. Any characteristic of the Customer s generator that degrades or otherwise compromises the quality of service provided to other Cooperative customers will not be permitted. 2. The Customer shall agree that the Cooperative shall at all times have immediate access to the Customer s metering, control, and protective equipment. 3. The Customer shall install, operate and maintain the net metering facility in accordance with the manufacturer s suggested practices for safe, efficient and reliable operation in parallel with the Cooperative s 4. The Cooperative may, at its own discretion, isolate any net metering facility if the Cooperative has reason to believe that continued interconnection with the net metering facility creates or contributes to a system emergency. 5. A disconnecting device must be located at the point of common coupling for all interconnections. For three-phase interconnections, the disconnecting device must be gang operated. The disconnecting device must be accessible to Cooperative personnel at all times and be suitable for use by the Cooperative as a protective tagging location. The disconnecting device shall have a visible open gap when in the open position and be capable of being locked in the open position. The cost and ownership of the main disconnect switch shall reside with the Customer. 6. The Cooperative reserves the right to witness compliance testing at the time of installation and maintenance testing of the interconnection system for compliance with these conditions of service. 7. The Customer is responsible for establishing a program for and performing periodic scheduled maintenance on the net metering facility s interconnection system (relays, interrupting devices, control schemes and batteries that involve the protection of the Cooperative s distribution system). A periodic maintenance program is to be established in accordance with the requirements of IEEE 1547. The Cooperative may examine copies of the periodic test reports or inspection logs associated with the periodic maintenance program. Upon the Cooperative s request, the Cooperative shall be informed of the next scheduled maintenance and be able to witness the maintenance performed and any associated testing. 8. The interconnection system hardware and software design requirements in the conditions of service are intended to assure protection of the Cooperative s distribution Any additional hardware and software necessary to protect equipment at the net metering facility is solely the responsibility of Customer to determine, design and apply. 9. The Customer agrees that the Cooperative shall not be liable for any damage to or breakdown of the Customer s equipment operated in parallel with the Cooperative s electric 10. The Customer shall agree to release, indemnify, and hold harmless the Cooperative from any and all claims for injury to persons or damage to property due to or in any way connected with the operation of Customer-owned equipment and/or generators. FOOTNOTE: PSC 25-6.065 Interconnection of Small Photovoltaic Systems.

GS-N SECOND REVISED SHEET NO. 9.2.1 CANCELLING FIRST SHEET NO. 9.2.1 NAME OF UTILITY CHOCTAWHATCHEE ELECTRIC COOPERATIVE, INC GENERAL SERVICE NON DEMAND NET METERING RIDER DEFINITION Net Metering means calculating the difference in an applicable billing period between: 1) the charges for the electricity supplied by the Cooperative to a General Service Non-Demand Customer served under Rate GS-N, and 2) the credit to the customer for electricity generated by such Customer that is delivered to the Cooperative. AVAILABILITY This Rider is available to general service non-demand customers who are provided single-phase service, or three phase service and who have installed electric generation of 50 kw alternating current or less on their premises. Customers must meet the Generator System Requirements and Interconnection Requirements specified below. BILLING Rate GS-N The charges for the electricity supplied by the Cooperative to a General Service Non-Demand Customer served under Rate GS-N shall be determined as follows: Customer Charge Single Phase Same as Under GS Rate Sheet 9.0 Three Phase Same as Under GS Rate Sheet 9.0 Energy Charge Purchased Power $0.04031 per kwh Power $0.01143 per kwh Demand $0.05174 Same as Under GS Rate Sheet 9.0 Distribution Delivery Same as Under GS Rate Sheet 9.0 Wholesale Power Adjustment See Sheet 18.0 Taxes See Sheet 19.0 FRR See Sheet 20.0 The credit to the Customer served under Rate GS-N for electricity generated by the Customer that is delivered to the Cooperative shall be determined as follows: $0.04031 plus current month s Wholesale Power Adjustment for all kwh Energy Delivered to the Cooperative. The customer's bill will be calculated by subtracting the credit to the customer from the Cooperative's charges to the customer. If the payment to the customer is greater than the Cooperative's charges to the customer, the Customer's bill shall be zero for the current billing cycle with the difference credited to the Customer in subsequent billing cycles. When the Customer discontinues Net Metering Rider service, any unused credit will revert to the Cooperative. Issued by: Leigh V. Grantham Effective: May 1, 2012 Chief Executive Officer

(Continued from Sheet No. 9.2.1) SECOND REVISED SHEET NO. 9.2.2 CANCELLING FIRST SHEET NO. 9.2.2 METERING If the Customer s standard meter is capable of measuring electricity in both directions, it will be used for purposes of this Rider. If a Customer s standard meter is not capable of measuring electricity in both directions, the customer will pay the incremental cost for the Cooperative to install a meter that is capable of measuring electricity in both directions. The Cooperative s General Terms and Conditions Applicable to Electric Service will govern meter testing procedures. In addition, the Cooperative reserves the right to install, at its own expense, a meter to measure the output of the Customer s generator. GENERATOR SYSTEM REQUIREMENTS The Customer s generator system must meet the following requirements: 1. The nameplate rating of Customer s generator system must not exceed 50 kw; 2. The generator system must be owned and operated by the Customer and must be located on the Customer s premises; 3. The Customer s generator system must be intended primarily to offset part or all of the Customer s requirements for electricity; 4. The generator system must operate in parallel with the Cooperative s distribution facilities; and 5. The generator system must satisfy the Interconnection Requirements specified below. INTERCONNECTION REQUIREMENTS 1. The Customer shall comply with the Cooperative s technical interconnection requirements. For generator systems 50 kw or smaller eligible for this rider, the Cooperative s technical requirements consist of: a) IEEE 1547-2003, IEEE Standard for Interconnecting Distributed Resources with Electric Power Systems (IEEE 1547). b) Current version of ANSI/NFPA 70, National Electrical Code (NEC). c) Any other applicable local building codes. The interconnection must be inspected by local code officials prior to its operation to ensure compliance with applicable local codes. Inverter based systems listed by Underwriters Laboratories (UL) to UL Standard 1741, published May 7, 1999, as revised January 17, 2001 (UL 1741), are accepted by the Cooperative as meeting the technical requirements of IEEE 1547 tested by UL 1741. 2. The Customer shall provide proof of homeowners or other insurance providing coverage in the amount of at least one hundred thousand dollars ($100,000) for the liability of the insured against loss arising out of the use of a net metering facility. This coverage must be maintained as long as the Customer is interconnected with the Cooperative s distribution 3. Conformance with these requirements does not convey any liability to the Cooperative for injuries or damages arising from the installation or operation of the generator 4. The Customer shall execute the Cooperative s standard Net Metering Interconnection Application form and provide other information reasonably requested by the Cooperative for service under this Rider. The Cooperative shall require proof of qualified installation prior to acceptance and completion of the interconnection agreement. Certification by a licensed electrician shall constitute acceptable proof. The cooperative will charge a fee of $25 for processing the application for interconnection.

(Continued from Sheet No. 9.2.2) SECOND REVISED SHEET NO. 9.2.3 CANCELLING FIRST SHEET NO. 9.2.3 5. The cooperative shall provide the customer with written notice that it has received the Net Metering Interconnection Application and any supporting documents within 10 business days of receipt. The customer shall not begin parallel operations until the customer has received this written notice. TERMS AND CONDITIONS OF SERVICE 1. Any characteristic of the Customer s generator that degrades or otherwise compromises the quality of service provided to other Cooperative customers will not be permitted. 2. The Customer shall agree that the Cooperative shall at all times have immediate access to the Customer s metering, control, and protective equipment. 3. The Customer shall install, operate and maintain the net metering facility in accordance with the manufacturer s suggested practices for safe, efficient and reliable operation in parallel with the Cooperative s 4. The Cooperative may, at its own discretion, isolate any net metering facility if the Cooperative has reason to believe that continued interconnection with the net metering facility creates or contributes to a system emergency. 5. A disconnecting device must be located at the point of common coupling for all interconnections. For three-phase interconnections, the disconnecting device must be gang operated. The disconnecting device must be accessible to Cooperative personnel at all times and be suitable for use by the Cooperative as a protective tagging location. The disconnecting device shall have a visible open gap when in the open position and be capable of being locked in the open position. The cost and ownership of the main disconnect switch shall reside with the Customer. 6. The Cooperative reserves the right to witness compliance testing at the time of installation and maintenance testing of the interconnection system for compliance with these conditions of service. 7. The Customer is responsible for establishing a program for and performing periodic scheduled maintenance on the net metering facility s interconnection system (relays, interrupting devices, control schemes and batteries that involve the protection of the Cooperative s distribution system). A periodic maintenance program is to be established in accordance with the requirements of IEEE 1547. The Cooperative may examine copies of the periodic test reports or inspection logs associated with the periodic maintenance program. Upon the Cooperative s request, the Cooperative shall be informed of the next scheduled maintenance and be able to witness the maintenance performed and any associated testing. 8. The interconnection system hardware and software design requirements in the conditions of service are intended to assure protection of the Cooperative s distribution Any additional hardware and software necessary to protect equipment at the net metering facility is solely the responsibility of Customer to determine, design and apply. 9. The Customer agrees that the Cooperative shall not be liable for any damage to or breakdown of the Customer s equipment operated in parallel with the Cooperative s electric 10. The Customer shall agree to release, indemnify, and hold harmless the Cooperative from any and all claims for injury to persons or damage to property due to or in any way connected with the operation of Customer-owned equipment and/or generators. FOOTNOTE: PSC 25-6.065 Interconnection of Small Photovoltaic Systems.