520ORDINANCE N0. "~ ~ t
AN ORDINANCE SETTING FORTH AND AUTHORIZING THE
EXECUTION OF AN AGREEMENT BETWEEN THE ARKANSAS
POWER & LIGHT COMPANY AND THE CITY OF WEST MEMPHIS,
ARKANSAS, FOR THE PURCHASE OF POWER AND ENERGY BY
THE CITY FOR DISTRIBUTION THROUGH ITS ELECTRICAL
SYSTEM AND THE SUPPLYING OF POWER AND ENERGY BY THE
ARKANSAS POWER & LIGHT COMPANY, DECLARING AN EMERGENCY,
AND FOR OTHER PURPOSES.
WHEREAS, at a lawful meeting of the West Memphis Utility
Commission, held February 1 1967, the Commission reviewed
and approved a proposed form of a twenty-year contract with
the Arkansas Power & Light Company for the purchase of elec-
tric power and energy by the City and has recommended to the
City Council that the contract be approved; and
WHEREAS, the Council and its consultants have reviewed
the contract and find it to be fair and reasonable and in
the best interests of the City;
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL
OF THE CITY OF WEST MEMPHIS, ARKANSAS:
Section 1. That an agreement for the purchase of elec-
tric power and energy from Arkansas Power & Light Company
shall be .entered into between the City of West Memphis,
Arkansas and the Arkansas Power & Light Company, and shall con-
tain substantially the following terms and conditions, to-wit:
.,
SERVICE AGREEMENT
BETWEEN
CITY OF WEST MEMPHIS
AND
ARKANSAS POWER 8c LIGHT COMPANY
THIS AGREEMENT made this 2nd day of February
1967 between the CITY OF WEST MEMPHIS, ARKANSAS (hereinafter
called "City") and the ARKANSAS POWER 8c LICTHT COMPANY (here-
inafter called "Company"),
W I T N E S S E T H:
WHEREAS, the City of West Memphis owns an electric
system supplying the electric power and energy requirements
of the City of West Memphis and its inhabitants, said
electric system being operated and managed by the West Memphis
Utility Commission; and
WHEREAS, City has for a number of years purchased from
Company substantially all of the electric power and energy
required for City's electric system and desires to enter
into a contract for a supply of power and energy adequate to
meet not only its present requirements but also its future
requirements for the ensuing 20-year period; and
WHEREAS, Company has made a substantial capital ir~vest-
ment in facilities dedicated to serving City's power require-
menu, and is willing to make investment in any additional
facilities as they are required and to commit itself for the
term of this agreement to provide City's entire purchased
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power .requirements in accordance with the terms and
provisions set forth herein;
NOWT THEREFORE, it is agreed and understood between
the parties hereto as follows;
1. Term. For a term of twenty years, beginning on
22nd day of November, 1966, or the date on which the agree-
ment is permitted to become effective by regulatory
authorities having jurisdiction, whichever is later, City
agrees to purchase and receive and Company agrees to sell
and deliver, in accordance with the terms of this agreement,
all of the electric power and energy required by City's
electric system as above described; except City shall have
the right to utilize such amounts of power and energy as
it may generate from time to time by use of the generating
facilities as presently constructed and owned by the City
of West Memphis, Arkansas, subject to the terms of this
agreement and applicable exhibits, The "Usable Capacity"
of such generating facilities is hereby agreed to be 700
kilowatts.
2. Company Facilities. Company agrees to install
additional facilities in its present 161/13.8 kv substations
located at Polk Avenue and Woods Street and on a part of
East 1/2, Southeast 1/4, Section 10, Township 6 North,
Range 8 East, Crittenden County, Arkansas, and at other
mutually agreed points of delivery, to increase the 13.8 kv
3 _
capacity available to the City, as needed to provide
service under this agreement. Company agrees to provide,
operate and maintain these facilities, together with re-
lated transmission facilities, at no additional cost to
the City over and above the rate as provided in Section 5,
during the 20-year term of this agreement. Company~s
service provided hereunder at any delivery point shall not
require the City to install 13.8 kv switching equipment with
interrupting capacity in excess of 500 MVA.
3. Points of Deliver City will accept delivery of
13.8 kv, 3 phase, 60 cycle electric power and energy as
follows:
Location
Max. KW Provided
Service Date
City's Polk Avenue and
Second Street 13.8 KV
Switch Station
Near SE Cor. SW u, Section
11, T6N, R8 E,
Crittenden County, at a
point adjacent to the
present city limits
30, o00
10, 000
Now in service
June 1, 1867
and/or any additional points of delivery mutually agreed upon
and specified in an amendment to this agreement and City
will provide whatever additions to its electric distribution
system which may be required to effectively accept and
utilize the delivered electric power and energy.
~. Availability and Continuity of Service. Company,
during the term of this agreement, will make available
electric power and energy for City's use, subject to unavoidable
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breakdowns and interruptions, climatic and weather con-
ditions, strikes, acts of God, act of the public enemy,
and national emergency and national defense.
City shall have the right to receive a quantity of
power in excess of the X0,000 kilowatts or the capacity
of Company~s then existing facilities, due to the load
growth on its electric system resulting from increase in
population and commercial, industrial and economic develop-
ment, and Company shall make available such greater quantity
of power, provided Company is given eighteen months advance
written notice by City that its electric power requirements
will exceed ~F0,000 kilowatts or the .capacity of Company~s
then existing facilities. During the first fifteen years
of this agreement, Company will make available to City such
additional capacity and points of delivery as may be mutually
agreed upon and specified in an amendment to this agreement.
Additional capacity and/or points of delivery requested
during the last five years of the term of this agreement
shall be negotiated as to contract term for such additional
Capacity and/or points of delivery.
5. Rates] Charges and Regulation. Company will supply,
and City will take and/or pay for all electric service re-
quired by City for the operation of its electric distribution
system (except for such electric power and energy as may be
generated by City) under Rate Schedules U3, Ml and M2 and
Company's Service Regulations, copies of which are attached
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hereto and made a part hereof and marked Exhibits A, B,
C, and D, or other superseding Rate Schedules and Service
Regulations effective as hereinafter provided.
This agreement and the rates and charges herein are
subject to approval, amendment and change by any and all
State or Federal Regulatory bodies having jurisdiction
thereof. Both Company and City reserve the right to seek
amendments, changes, increases or. decreases in the rates
and charges set forth herein, in accordance with law,
from any State or Federal regulatory body having juris-
diction thereof .
Service under this agreement is subject to the Service
Regulations of the Company as they are now on file and as
they may in the future be amended and filed with and approved
by the Arkansas Public Service Commission or any other State
or Federal regulatory body having jurisdiction thereof.
The minimum monthly bill rendered by Company to City
during the term of this agreement shall be in accordance with
the provisions of the applicable rate schedules,
6. Periodic Review of Electric Service Agreement, The
parties agree that, at the request of either party, they
will periodically review the provisions of this agreement for
possible amendment by mutual agreement. In any such review,
consideration will be given to scientific and technological
developments, increase or decrease in labor and material ex-
penses and other :.factors affecting Company's costs of producing
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~.nd delivering electric power and energy. Any such mutually
agreeable amendments are subject to all required regulatory
approval.
7. Rendition of Electric Bills by Company and Payment
by .City. A11 bills for electric service under this afire e-
ment will be rendered monthly by Company to City and are due
and payable within ten days after mailed by the Company.
Bills rendered hereunder are payable by City at Company's
office at Marion, Arkansas. It is further understood and
agreed that all' charges and payments for electric service
required to be paid by the City under this agreement shall
be made only from the gross revenues of the City's electric
system, as a necessary expense of operation thereof.
8. Suspension of Service for Breach by City. Any
suspension of electric service for nonpayment of bills shall
be without prejudice to the terms of this agreement or to
any other right of action to which Company is entitled. In
the event of cancellation of this agreement by Company for
any breach or default on the part of City, there shall
immediately become due and payable, in addition to the amount
then due for service hereunder, as liquidated damages and not
by way of penalty, a further sum equal to the total minimum
amounts guaranteed for the unexpired term hereof.
9. Successors and Assigns. This agreement shall be
binding upon and inure to the benefit of the parties and their
respective successors and assigns but no assignment shall be
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' binding upon the Company until accepted in writing by
the latter.
10. Extensions of Term. The term of this agree-
merit shall be twenty years as provided in Section 1, above,
and it shall be automatically extended for successive
period of one year each until terminated by written notice
given by one party to the other, not more than six months
nor less than three months prior to the expiration of the
original term or any anniversary thereof.
11. City's System. City represents that its electric
distribution system is in good operating condition, and
agrees that it assumes all responsibility and liability
for the electric power and energy delivered to its system at
the point of delivery described in this agreement and/or
any additional points of delivery that are made a part of
the agreement by amendments thereto. City further agrees
that there will be no liability on the part of the Company
for the use or flow of electricity on City's electric
distribution system after such electricity leaves Company's
system at the present and/or future points of delivery.
It is understood that the City does not at this time
desire to sell or lease its electric distribution system
although City reserves the right to institute negotiations
for such sale or lease if it so desires. Company agrees that
no authorized officer of the Company will make any formal or
public offer to purchase or lease said electric distribution
-.8 -
system, unless requested to do so by governing body of
the City.
12, This agreement constitutes the entire and only
agreement between the parties hereto with reference to ,the
subject matter hereof, and supersedes all previous
respresentations and understandings whether written or oral.
THIS AGREEMENT executed by and between the CITY OF
WEST MEMPHIS, ARKANSAS by its Mayor and City Clerk and the
ARKANSAS POWER & LIGHT COMPANY by its Vice President and
Assistant Secretary on the 2nd day of February 1867.
CITY OF IS ARKANSAS
~.
By
Mayo .
ATT ~ :~
~~~
Ci y C er
.ARKANSAS POWER 8c LIGHT COMPANY
By
Vice Presi en
ATTEST:
Assis an Secre ary
Section 2. The Mayor and City Clerk of the City of
West Memphis are hereby authorized, directed and empowered
to execute the foregoing agreement with the Arkansas Power &
Light Company for and on behalf of the City of West Memphis,
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Arkansas as set forth in Section 1 hereof, and the Mayor,
C:l.erk, Treasurer and other officers of the City are hereby
authorized and directed to take such other actions as may be
necessary t•o effectuate and carry out said agreement.
Section 3. All ordinances or parts of ordinances in
conflict herewith are hereby repealed.
Section ~. It has been found, and is hereby declared,
x>y the City Council of the City of West Memphis, Arkansas,
that it is necessary for the operation and planning for the
municipal electric system that a long term source of power be
,-a.vailable, and that said twenty-year agreement will make avail-
<_~ble a discount .which will reduce the cost of power to the
G3_ty; it is imperative, in the interest ,of the City and its
citizens, 'shat there be no delay in ;,entering into said agreement.
Therefore, ,an emergency is declared,to exist and this ordinance
being necessary for the preservation and advancement of the
peace, health aid safety, shall take effect and be in full
force and effect from and aftter the ;date of its approval.
ADOPTED February 2 , 1967
APPRO~FE
or
AT . , -- ~ ~
~~~~~
CiyCe,r
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• • FORM 755 I
ARKANSAS POWER & LIGHT COMPANY
ELECTRIC RATE SCHEDULE
ISSUED BY O. V. HOLEMAN, DIRECTOR OF RATES ~. RESEARCH
ARKANSAS PUBLIC SERVICE COMMISSION
RECEIVED: JULY 9, 1985
APPROVED: JULY 9, 1985
AUTHORITY: DOCKET NO. U-1901
LARGE PUBLIC UTILITY RESALE SERVICE
RATE SGHEDULE U3
EFFECTIVE JULY 9, 1985 -PAGE 1 OF 2
SUPERSEDES SCHEDULE NO. 21-A, EFFECTIVE 11.9-82
SUPERSEDED BY SCHEDULE NO. EFFECTIVE
AVAILABILITY
At points on existing facilities having adequate capacity and suitable voltage for delivery of service from
the Company's interconnected transmission system.
APPLICATION
To resale service to public utilities (including publicly owned electric systems) when Customer contracts with
Company for its entire purchased power and energy requirements. All service generally to be supplied at
one point of delivery and measured through one kilowatt hour meter, except that Company may make avail-
ble additional points of delivery as may be reasonably required, each such additional point of delivery to
be separately metered and the sum of the loads so determined at all points of delivery shall be used as the
Load in the application of the Net Monthly Rate; however, for points of delivery supplied as of the effective
date hereof, Company may continue to use the method of metering being used as of such effectfve date.
Applicable to standby or supplementary service and to interruptible service only in conjunction with the
applicable rider for such service.
CHARACTER OF SERVICE
Three phase, 60 cycles and at one standard delivery voltage required by Customer and available at Cus-
tomer's service location.
NET MONTHLY RATE
$15,700.00 for the first 7,000 Kw or less of Load
$1.60 per Kw for all additional Kw of Lodd
4.95 Mills per Kwh for the first 360 Kwh per Kw of Load
3.70 Mills per Kwh for all additional Kwh
Minimum
The Load Charge for the current month, but not less than $15,700.00 monthly.
Adjustments
1. Tmcea The above rate shall be subject to an increase or decrease in proportion to the amount of new
taxes or increased taxes which the Company may hereafter have to pay, which are levied or imposed,
or increased, or decreased by laws or ordinances which are not in effect on July 1, 1965, provided, how-
ever, that this Adjustment shall only be applied when authorized by order of the Arkansas Public Service
Commission.
2. Fuel The above energy charge(s) will be increased or decreased one-thousandth (.001) mill per Kwh for
each one-thousandth (.001) mill per Kwh by which the weighted average cost of fuel, adjusted for losses,
burned in the Company's fossil fuel burning generating stations during the second preceding calendar
month for the supply of service hereunder exceeds or is less than the following amounts per Kwh deliver-
ed to Customer.
(a) For delivery at nominal voltages of 13,800 or higher: 2.862 Mills
(b) For delivery at nominal voltages of less than 13,800: 2.938 Mills
(CONTINUED ON REVERSE SIDE)
EXHIBIT "A"
TRANSMISSION VObTAlGS DELIVERY
Where Customer provides all facilities at the point of delivery for the transformation of the energy delivered
hereunder from Company's transmission voltage of 115,000 volts or higher to Customer's distribution voltage,
a discount of fifteen cents (15c) per Kw of Load will be allowed on the billing under the above Net Monthly
Rate or Minimum. Customer shall provide suitable space for metering equipment on the low voltage side of
its transformer.
LOAD
The Kw, as shown by or computed from the readings of Company's demand meters for the 15 minute period
of Customer's greatest use during the month, but not less than 7,000 Kw nor less than 70% of the highest
Load established during the 12 months ending with the current month.
If the power factor at point of measurement is found to be less than 85%, load measurement may also be
made by Kva demand meter, in which case one Kva as registered will be considered as 0.85 Kw, but not less
that the actual Kw.
PAYMENT
Sills are due and payable each month upon presentation.
CONTRACT PERIOD
Not less than one year.
TERM DLSCOUNT
2% for a new 5 year agreement (Not cumulative)
5 % for a new 10 year agreement (Not cumulative)
10% for a new 20 year agreement (Not cumulative)
This discount will begin with the date on which it is accepted by Customer in a new agreement. It will not
apply on bills rendered after the earliest date such agreement may be terminated unless the Customer ac-
cepts the discount in a new agreement for a like period at that time.
SERVICE REGULATIONS
Service under this schedule is subiect to the Service Regulations of the Company as they are now on file,
and as they may in the future be filed, with the Arkansas Public Service Commission, State of Arkansas.
Page 2
• FORM 764
~~
ARKANSAS POWER & LIGHT COMPANY
ELECTRIC RATE SCHEDULE
ISSUED BY O. V. HOLEMAN, DIRECTOR OF RATES d. RESEARCH
ARKANSAS PUBLIC SERVICE COMMISSION
RECEIVED: JULY 9, 1985
APPROVED: JULY 9, 1985
AUTHORITY: DOCKET NO. U-1901
PRIMARY SERVICE RIDER
RATE SCHEDULE M1
EFFECTIVE JULY 9, 1985 -PAGE 1 OF 1
SUPERSEDES SCHEDULE NO. 18, EFFECTIVE 11.9-82
8UPERSEDED BV SCHEDULE NO. EFFECTIVE
APPLICATION
Applicable to Rate Schedule G1, G2, G3, G5, G6, P1, P2, U1, U2 and U3. When Customer contracts to take ser-
vice at a nominal voltage of not less than 13,800y/7960 and provides all facilities (except metering equip-
ment) necessary to take service at such voltage, the following discounts will apply to the Net Monhly Rate
provided in the applicable rate schedule.
(1) Primary Service and Primary Metering-5%
(2) Primary Service and Secondary Metering
(Secondary metering at the option of Company)-3%
In the event Company owns any part of the substation (other than metering equipment) or service trans-
formers and service is metered, at the option of the Company, at the primary voltage, a discount of 2%
will be applied to the Net Monthly Rate provided in the applicable rate schedule.
DELIVERY OF SERVICE
The point of delivery, the location of meter(s) and the location of Company's equipment on Customer's prop-
erty agreed upon shall be shown by sketch on the reverse side of this rider.
EXHIBIT "B"
FORM 785 ~'
• t ,
ARKANSAS POWER & LIGHT COMPANY
ELECTRIC RATE SCHEDULE
188UED BY O. V. HOLEMAN, DIRECTOR OF RATES d RESEARCH
ARKANSAS PUBLIC SERVICE COMMISSION
RECEIVED: JULY 9, 1985
APPROVED: JULY 9, 1985
AUTHORITY: DOCKET NO. U-1901
APPLICATION
EMERGENCY PLANT OPERATION RIDER
RATE SCHEDULE M2
EFFECTIVE JULY 9, 1985 -PAGE 1 OF 2
SUPERSEDES SCHEDULE NO. 17, EFFECTIVE 7-23.84
SUPERSEDED BY SCHEDULE NO. EFFECTIVE
Applicable to Rate Schedules U1, U2, and U3 when Customer owns a generating plant that can be operated
in accordance with this Rider and the Agreement for Electric Service. The provisions of the applicable rate
schedule are modified only as specified herein.
OPERATION OF CUSTOMER'S PLANT
During times of emergency affecting either Company's or Customer's system, Customer will, at request of
Company, operate its plant fn order that service to its customers may be maintained so far as possible. At
other times, Customer's plant will be operated as provided for in the Agreement for Electric Service.
CAPACITY OF CUSTOMER'S PLANT
The "Usable Capacity" of Customer's plant shall be determined from time to time at request of Company as
the highest 15 minute net output in Kw measured at the end of a sustained trial run of sufficient duration to
determine capability, but it will at no time exceed the lower of the two following Kw values:
(a) 67% of the continuous horsepower rating of the serviceable prime movers installed.
(b) 80% of the continuous Kva rating of the serviceable generators installed.
The "Usable Capacity" of Customer's generating plant will be tabulated in the Agreement for Electric Ser-
vice.
BILLING
1. For months during which Customer's generating plant is not operated at all, except for emergencies, there
will be a credit of $0.75 per Kw of Load up to the Usable Capacity of Customer's plant.
2. For months during which Customer's generating plant is operated during other than times of emergency,
there will be a credit of $0.75 per Kw of Load as provided under condition 1 above, except that for this
purpose Usable Capacity shall be reduced by the Kw supplied by Customer's plant during the 15 minute
period of maximum net output of such plant during the month, as measured by demand meter installed
and maintained by Company.
In the event that the amount of power supplied Customer when Customer's plant is being operated in
the manner requested by Company is less than the minimum amount for which the Customer would
otherwise be obligated to pay, such minimum amount shall be considered reduced to the amount actual-
ly so supplied until modified by a further request from Company.
(CONTINUED ON REVERSE 81DE)
EXHIBIT "C"
3. For months during which both conditions 1 and 2 above occur, the Load and the energy used for the
periods during which each condition obtained will be determined separately, and billing will be com-
puted on a prorated basis in accordance with the number of days during which each condition obtained.
4. If during any month Customer, as a result of an emergency in its generating plant, imposes a load on
Company in excess of the load which would have been imposed in the absence of such emergency, such
excess load shall not be considered in determining billing load for subsequent months pursuant to the
"Load" provisions of the applicable rate schedule.
Page 2
- Form 455 `
ARKANSAS POWER & LIGHT COMPANY
SERVICE REGULATIONS
EFFECTIVE: OCTOBER 7, 1963
1. DEFINITIONS
i
The following expressions when used in these Service Regulations, Rate Schedules, and in Service Agree•
ments, shall, unless otherwise indicated, have the meanings given below:
A. Point of Delivery: The point at which Company ownership of facilities terminates and at which Customer's
ownership of facilities begins, or as otherwise defined and agreed upon in Service Agreement.
B. Customer's Installation: In general, all electrical circuits and facilities of any kind or nature on Customer's
side of the point of delivery (except Company's meter installations).
C. Service Drop: The wires owned by Company connecting Company's distribution mains to Customer's ser-
vice terminals.
D. Month: An interval of approximately 30 days, except when the calendar month is specified.
E. Notice: A written notification delivered personally or mailed by one party to the other at such other
party's last known address-the period of notice being computed from the date of such personal delivery or
mailing.
F. Meter: The meter or meters, together with auxiliary devices, if any, constituting the complete installation
needed to measure the power and energy supplied to any individual Customer at a single point of delivery.
G. Company Extension to Customer: Any branch from, or continuation of, an exisiting line to the point of
delivery to Customer, including increases in capacity of any of Company's exisiting facilities, or the changing of
any lines to meet the Customer's requirements, including all transformers, service drops, meters, and installed
service facilities owned by Company.
H. National Electrical Code: The National Electrical Code Standard of the National Board of Fire Under-
writers for Electric Wiring and Apparatus as recommended by the National Fire Protection Association, 1962
edition, or as such edition may from time to time be amended or revised.
11. AGREEMENTS FOR SERVICE
A. Customer's Right to Cancel Agreement for Service or Suspend Service: Unless Company has made an out
of the ordinary investment, or has a specific contract to provide service to Customer for a term of years, under
the Agreement for Service, Customer, after giving 10 days written notice and receiving Company's written ap-
proval, may suspend operation provided no electric service is required during the period of suspension. In the
event of such suspension of operation, the expiration date of Agreement for Service shall be extended for a
period of time equal to the period of suspension. Under like circumstances Customer may give Company 30
days written notice of desire to cancel the Agreement, if due to permanent and total abandonment of opera-
tion, electric service is no• longer required on the premises. If Company is satisfied that Customer no longer
requires any electric service, the Agreement may be cancelled by Company at its option giving Customer written
acceptance of such notice of permanent and total abandonment.
B. Company's Right to Cancel Agreement for Service or to Suspend Service: For any default or breach of
Agreement for Service by Customer, Company may terminate the Agreement for Service or suspend supply of
electric service. No notice of termination or suspension need be given in cases of unauthorized use or disposi-
tion of electric service by Customer or in the case of a dangerous condition on Customer's side of the point of
delivery, or in the case of utilization by Customer of electric service in such manner as to cause danger to per-
sons or property or to jeopardize electric service to Customer or others when such condition is actually known to
Company. For any other default or breach of Agreement for Service by Customer including non-payment of
bills, no termination or suspension will be made by Company without giving at least five (5) days written notice
to Customer, stating in what particular the Agreement for Service has been violated. Failure of Company to act
at any time after such default or breach shall not affect any of the Company's right hereunder or constitute a
waiver of any remedy or defense afforded by law.
111. SUPPLYING AND TAKING OF ELECTRIC SERVICE
A. Continuity of Electric Service: Company will use all reasonable diligence in providing a regular and un-
interrupted supply of electric service; but does not guarantee the electric service against interruptions or ir-
regularities; in case the supply of electricity shall fail, or be interrupted, or become defective through an act of
God, or the public enemy, or state, municipal or other public authority, or because of accident, strike, or any
other causes beyond the reasonable control of the Company, Company shall not be liable for such failure, in-
terruption or defect.
1
EXHIBIT "D"
4 ,. ,
B. Suspension of Electric Service for Repairs and Changes: When necessary to make repairs to or changes,
in Company's plant, transmission or distribution system, or other property, Company may, without incurring any
liability, suspend electric service for such periods as may be reasonably necessary. Company will notify Cus-
tomer in advance of such suspension whenever possible.
There shall be no reduction of demand, minimum or similar charges for months in which such suspensions
do not exceed an aggregate of twenty-four hours. There shall be a pro rata reduction in such charges for
months in which such suspensions do exceed that amount, which reductions shall be liquidated damages to
Customers for all defaults of Company in electric service rendition.
C. Use of Electric Service: Customer shall use service only for the purpose specified in the Agreement for
Service and in accordance with the provisions of the Rate Schedule designated therein.
In no case shall Customer extend or connect his installation to lines across or under a street, alley, lane,
court, avenue or other public space in order to obtain electric service for adjacent property through one meter
even though such adjacent property be owned by Customer.
D. Refusal of Service: Company shall have the right to refuse to commence or to continue electric service
whenever it appears that Customer's installation is not in good operating condition. Company does not in any
event assume any responsibility whatever in connection with such matters.
E. Lighting on Power Rates: Lighting service will b~ supplied under a power rate schedule only if it is
specifically provided for in the schedule. When lighting is supplied in accordance with provisions of the power
rate schedule, the Customer will provide and maintain all transformation equipment including necessary auxili-
ary apparatus. Service supplied to motor generators, any portion of the output of which is used for lighting
purposes, shall be considered as lighting service.
F. Customer's Responsibility: Customer assumes all responsibility on Customer's side of the point of delivery
for the electric service supplied or taken, as well as for the electrical installation, appliances and apparatus used
in connection therewith, and shall save Company harmless from and against all claims for injury or damage to
persons or property occasioned by or in any way resulting from such electric service or the use thereof on Cus-
tomer's side of the point of delivery.
G. Right of Way: Without reimbursement Customer shall make or procure conveyance to Company of
right of way (to include licenses for franchises, if essential) for all Company owned facilities whether installed
by Company, purchased by Company or contributed to Company by Customer and for all future extensions and
modifications to such facilities, satisfactory to Company for Company's extension and shall protect Company
in its peaceful use and occupancy of such right of way.
H. Access to Premises: Duly authorized agents of Company shall at all reasonable hours have access to the
premises of Customer for the purpose of inspecting, operating, maintaining, removing or replacing Company
property and for the reading of Company meters and all other purposes incidental to the supplying of service;
and shall be furnished such access at any time for emergency repairs, removal, replacement or operation of
Company facilities.
IV. CUSTOMER'S INSTALLATION
A. Compliance with Recognized Standards: Customer's installation shall meet or exceed all requirements of
the National Electrical Code and all state and local regulations applicable thereto, at the time of such installation.
B. Service From Company: In all cases where new installations or alterations and additions to existing in-
stallations are to be made, Company shall be consulted as to the location of all service connections and/or
meters and metering equipment. The Company shall also be consulted regarding the size and character of
load to be connected or added and the characteristics of service to be supplied.
The point of attachment of Company's facilities to the Customer's building and the nature and characteristics
of service will be given in writing for all new installations and for alterations or additions to existing installa-
tions. The Company will not be responsible when such information is given verbally.
C. Nature and Use of Installations: Customer will select and operate his equipment in such manner that it
will not adversely affect Company's electric service either to the Customer or to others. When Company supplies
three phase service, the Customer will control his use of the electric service so that the load at the point of de-
livery will be maintained in reasonable electrical balance between the phases.
Customer will so select and operate his equipment as to maintain a power factor of not less than 85% at
the point of metering, except that neon, fluorescent, or other lighting equipment with similar power factor
characteristics connected or reconnected shall be provided with the necessary corrective equipment to main-
tain the power factor of such equipment at not less than 90% lagging.
Company may, at its option, install meters or other instruments to measure the kilovolt-ampere demand or
power factor or for other tests. If a condition of low power factor is found and such condition is not promptly
remedied by Customer, the KW demand as measured may be adjusted to correspond to the Customer's maximum
kilovolt-ampere demand.
2
i c~
• R.~ Grounding: Customer shall be responsible for the installation and maintenance of an electrical ground
which meets or exceeds all requirements of the National Electrical Code, and all state and local regulations ap-
plicable thereto at the time of such installation for grounding the neutral bus of the service entrance panel, main
disconnecting switch or main circuit breaker.
V. COMPANY'S INSTALLATION
A. Installation and Maintenance: Except as otherwise provided in these Service Regulations, in Agreements
for Service or Rate Schedules, Company will install and maintain its lines and equipment on its side of point of
delivery. Company shall not be required to install, inspect, or maintain any lines or equipment except meters
on Customer's side of the point of delivery. Only Company's employees are authorized to connect Company's
service drop to Customer's service terminals.
B. Protection by Customer: Customer shall protect Company's wiring and apparatus on Customer's premises
and shall permit no one but Company employees or persons authorized by law to inspect or handle same. In
the event of any loss or damage to the Company's property arising out of carelessness, neglect, or misuse by
Customer or other unauthorized persons, the cost of making good such loss or repairing such damage shall be
paid by Customer.
All wiring and apparatus supplied by Company, purchased by Company or contributed to Company by
Customer shall remain its property, and if in Customer's possession, shall on termination of Agreement for Ser-
vice be returned to Company by Customer in as good condirion as when received by Customer, ordinary wear
and tear excepted. Company may at any time examine, change or repair its property on the premises of Cus-
tomer and may remove its property upon or at any time after termination of Agreement for Service.
VI. METERING
A. Installation: Company wilt furnish and install the necessary meter(s), and Customer shall without reim-
bursement provide and maintain a location satisfactory to the Company for its installation.
No retail customer will furnish or install any meter or other measuring device for the purpose of measuring
electric service for resale to any person, firm, corporation, association, or to any third party.
B. Evidence of Consumption: The registration of Company's meter shall be accepted and received at all times
and places as prima facie evidence of the amount of service taken by Customer.
C. Tests: Company will test its meters and maintain their accuracy of registration in accordance with good
practice and in accordance with the rules and regulations of the Arkansas Public Service Commission. On re-
quest of Customer, Company wiFl make special tests. If such special test shows the average registration of a
meter to be in error by more than 3%, Company will bear the cost of the test. If the amount of this error is less
than 3%, Customer shall bear the cost of the test, and minimum charge therefor will be $2.00.
VII. BILLING
A. Billing Periods: Customarily bills for electric service supplied will be rendered at regular intervals. Non-
receipt of bills by Customer shall not release or diminish the obligation of Customer with respect to payment
thereof.
B. Separate Billing for Each Point of Delivery: Service at separate locations or addresses will not be com-
bined for billing. At each point of delivery, service shall be metered and billed separately for each Customer
served. Whenever for any reason Company furnishes service to a single customer at two or more points of
metering, each point of metering shall be considered a separate point of delivery and shall be covered by a
separate Agreement for Service.
C. Adjustment for Inaccurate Meter Registration: (n the event that any routine or special test of a Company
meter discloses an average accuracy of registration in error by more than three per cent (3%) (or 1 ~/s~o fast in
case of meter found to have been in service without a record test for a period longer than that prescribed by the
Commission for each kind of meter) as determined by the method prescribed in Paragraph VI-C hereof, a correc-
tion to the Customer shall be made as follows:
1. If the date the meter first became incorrect can be definitely ascertained, the correction shall be for the
amount charged since that date over or below what the billing would have been had the meter registered with
one hundred per cent (100%) accuracy.
2. In all other cases, the correction shall be calculated as follows: The Customer's metered consumption
for a period of two (2) months in cases of back billing, or six (6) months in cases of refunds, next preceding the
date of the test or the date -fine meter was removed for the purpose of test shall be reduced or increased by the
application of the percentage of error related to one hundred per cent (100%) accuracy as determined by the
test. The rates effective during said period shall be applied to this adjusted consumption and the difference
between the amount so obtained and the actual billing shall be refunded or charged to the Customer; pro-
vided, however, that no refund shall be allowed in any case if the seal on the Customer's meter is found to
be broken or if there is any other evidence that the meter has been tampered with.
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D. Unauthorized Use of Electric Service: If electric service has been suspended, or the Agreement 'for EIEC-
tric Service terminated, because of unauthorized use or disposition of such electric service by Customer, Com-
pony shall be entitled to collect from Customer at the appropriate rate for any electric service not properly re-
corded on the meter (the amount of which may be estimated by Company from the best available data), and
also for all expenses incurred by Company on account of such unauthorized act or acts.
E. Selection of Rate Schedule: When a prospective Customer makPS application for electric service, the
Company will upon request assist in the selection of the rate schedule most favorable to Customer for the elec-
tric service requested. The selection will be based on the prospective Customer's statement as to the class of
electric service desired, the amount and manner of use, and any other pertinent information, which statement
will be recorded and filed with the application. Company shall not be liable for any errors in connection herewith.
If, for any cause an Agreement for Service is entered into in which is specified a Rate Schedule not applic- t,.~
able to the class of electric service taken, on discovery of the error all bills rendered during the preceding
twelve months shall be recalculated in accordance with the lowest applicable Rate Schedule; and any excess
paid shall be refunded by Company or any balance due shall be paid by Customer, as the case may be.
A Customer being billed under one of two or more optional schedules applicable to his class of electric
service may elect to be billed on any other applicable schedule by notifying Company in writing, and Company
will bill Customer under such elected schedule from and after the date of the next meter reading. However,
a Customer having made such change of schedule may not make another such change within the next twelve
months.
VIII. DEPOSITS
A. When Required: In order to secure due payment of any indebtedness for electric service due Company
and for proper return to Company by Customer of meter and other Company property, Company may at any
time require a deposit or guarantee satisfactory to Company. The amount of such deposit required shall not be
more than two times the estimated maximum monthly bill of Customer, and may be held in its entirety by Com-
pany until final settlement of Customer's accounts. Any balance remaining will be held subject to Customer's
order without interest from the date of termination of electric service.
B. Application of Deposit: Upon Customer's failure to pay any service bill within the period specified in
the rate schedule, Company may immediately apply Customer's deposit in liquidation of such bill and suspend
service until such bill is paid and the deposit restored. If Customer should fail to pay the bill and restore the
deposit within ten days after suspension of service, Company may apply any unused portion of the deposit to
any just demand of Company and shall refund any remainder of the deposit to Customer.
C. Interest: Interest will be paid by Company at the rate prescribed by the rules and regulations of the
Arkansas Public Service Commission upon all cash deposits which have remained with Company undiminished
for a period of not less than 12 months immediately prior thereto. Interest on the deposits of Customers who
have discontinued electric service, when such deposits have remained undiminished for a period of not less than
12 months immediately prior to such discontinuance, will be credited on the final bill.
d