AGREEMENT BETWEEN TVA AND WEST KENTUCKY R.E.C.C.

SCHEDULE OF RULES AND REGULATIONS

1. Application for Service. Each prospective Customer desiring electric service shall be required to sign Distributor’s Service/Membership Application for Service to be supplied by the Cooperative. A Customer shall have a signed application on file for each location receiving electric service. Any customer desiring electric service who owes the Cooperative for prior electric service received must pay all past due amounts due to the Cooperative, including late payment fees, before new service will be provided.

2. Deposit. A deposit based upon credit score may be required of any Customer before residential electric service is supplied. A deposit or suitable guarantee equal to two months’ average bill or to the two highest months’ average bill may be required of any general power Customer before electric service is supplied. Additional deposits may be required of Customers involved with delinquent bills or bankruptcy. Deposits retained longer than twelve months will accrue interest at the annualized interest rate the Cooperative earns on its general fund checking account and will be credited annually to the Customer’s account. Upon termination of service, the deposit, including any accrued interest, shall be applied by the Cooperative against unpaid bills of the Customer, and if any balance remains after such application is made, said balance shall be refunded to the Customer. Upon written request by the Customer or at the sole discretion of the Cooperative, the deposit requirement may be re-evaluated based upon the most recent electricity usage and/or rates. Additional information related to deposits can be found in West Kentucky RECC Financial Policy #220 – Member Deposits.

3. Point of Delivery. The point of delivery is the point, as designated by Cooperative, on Customer’s premises where current is to be delivered to building or premises. Said delivery point is defined as the connector(s) utilized to dead-end the Cooperative’s supply conductor and all wiring, equipment and appurtenances beyond the connector(s), with the exception of the Cooperative’s meter, shall be provided and maintained by Customer at no expense to Cooperative.

4. Customer’s Wiring-Standards. All wiring of Customer must conform to Cooperative’s requirements and accepted modern standards, as exemplified by the requirements of the National Electrical Safety Code and the National Electrical Code.

5. Inspections. Cooperative shall have the right, but shall not be obligated, to inspect any installation before electricity is introduced or at any later time, and reserves the right to reject any wiring or appliances not in accordance with Cooperative’s standards; but such inspection or failure to inspect or reject shall not render Cooperative liable or responsible for any loss or damage resulting from defects in the installation, wiring, or appliances, or from violation of Cooperative’s rules, or from accidents which may occur upon Customer’s premises.

6. Underground Service Lines. Customers desiring underground service lines from Cooperative’s overhead system must bear the excess cost incident thereto. Specifications and terms for such construction will be furnished by Cooperative on request.

7. Customer’s Responsibility for Cooperative’s Property. All meters, service connections, and other equipment furnished by Cooperative shall be, and remain, the property of Cooperative. Customer shall provide a space for and exercise proper care to protect the property of Cooperative on its premises and, in the event of loss or damage to Cooperative’s property arising from neglect of Customer to care for same, the cost of the necessary repairs or replacements shall be paid by Customer.

8. Right of Access. Cooperative’s identified employees or agents shall have the right to ingress and egress the Customer’s premises at all times for the purpose of reading meters, testing, repairing, removing or exchanging any or all equipment belonging to the Cooperative. All equipment belonging to the Cooperative must be accessible at all times. If customer fails to provide access for the above stated purposes, Cooperative, at its sole discretion, may discontinue service upon notification of such termination through means of regular mail service, posting notice at the door of the business/residence, or by any other generally accepted notification means.

9. Billing. Bills will be rendered monthly and shall be paid within 15 days from the date on the bill at the office of Cooperative or at the other locations designated by Cooperative. Bills that are paid after the due date on the billing statement provided shall be subject to an additional charge of five percent (5%). Failure to receive bill will not release Customer from payment obligation. Should the due date of bill fall on Sunday or holiday, the business day next following the due date will be held as a day of grace for delivery of payment. Remittances received by mail after the due date will not be subject to such additional charges if the incoming envelope bears United States Postal Service date stamp of the due date or any date prior thereto. In months where weather or other conditions make it difficult for the Cooperative to read its meters, the Cooperative reserves the right to estimate the Customer’s bill for that month. Any variances in the amount billed will be reconciled once an accurate reading is obtained. Additional information related to billing can be found in West Kentucky RECC Financial Policy #210 – Billing Collections.

10. Discontinuance of Service by Cooperative. The Cooperative may refuse to connect or may discontinue service for violation of its bylaws or any of its rules and regulations, policies or for non-payment. The Cooperative may postpone discontinuance of service due to extreme weather conditions or for documented medical hardships. Discontinuance of service by Cooperative for any causes stated below does not release Customer from his obligation to Cooperative for the payment of minimum bills due the Cooperative. Additional information related to discontinuance of service by the Cooperative can be found in West Kentucky RECC Financial Policy #221 – Discontinuance of Service by Cooperative.

Violations of the Cooperative’s Bylaws, Rules & Regulations and Policies

Cooperative may discontinue service or refuse to provide service to any Customer who fails to meet the provisions of the Cooperative’s Bylaws, who violates the Cooperative’s Rules and Regulations, who provides the Cooperative with inaccurate information on the Membership Application or who fails to uphold contractual obligations with the Cooperative. Cooperative may discontinue service to Customer for the theft of current or the appearance of current theft devices on the premises of Customer. Cooperative may discontinue service if the Customer’s electric service is deemed unsafe.

Non-payment by the Customer

If payment is not received by the due date on the bill, the Cooperative will provide a service discontinuance notice by mail on the Customers next bill or by other acceptable notification method to the Customer informing the Customer that service may be discontinued ten (10) days after the disconnect date provided on the Customer’s past due bill. The service discontinuance notice will notify the Customer of his available rights and remedies to dispute the bill with the Cooperative and provide Customer with the Cooperative’s telephone number. The Cooperative will leave a door hanger whenever service is disconnected for non-payment.

Extreme Weather Postponement

The Cooperative evaluates weather conditions daily on the National Weather Service website www.weather.gov for Mayfield, KY, 42066. Cooperative will postpone the disconnection of service of residential customers scheduled for disconnection due to non-payment on extreme weather days. The Cooperative defines an extreme weather day as a day on which the National Weather Service issues a hazardous weather advisory due to extreme hot or cold temperatures. The disconnection postponement will not extend beyond the extreme weather condition.

Medical Hardship Postponement

Customer can submit a completed Cooperative medical necessity form requesting postponement of service disconnection for thirty (30) days from the original disconnection date. The medical necessity form must be completed by a medical doctor or other medical expert licensed to practice medicine in the state of Kentucky (or other state that is acceptable to the Cooperative) and must certify that disconnection of electric service would create a life-threatening medical situation for the Customer or other permanent resident of the Customer’s household. The Customer is responsible for ensuring that the form has been approved by the Cooperative. A life-threatening medical condition does not relieve Customer form his obligation to pay for any electric service provided. The Cooperative may limit the amount of electricity available to the household using a current limiting device during the thirty (30) day period. If full payment of the past due amount, including all late fees, is not received by the end of the thirty (30) day postponement period, electric service will be disconnected without further notice.

11. Connection, Reconnection, and Disconnection Charges. Cooperative may establish and collect standard charges to cover the reasonable average cost, including administration, of connecting or reconnecting service, or disconnecting service as provided above. Higher charges may be established and collected when connections and reconnections are performed after normal office hours, or when special circumstances warrant.

12. Termination of Contract by Customer. Customers who have fulfilled their contract terms and wish to discontinue service must give at least thirty (30) days’ written notice to that effect, unless contract specifies otherwise. Notice to discontinue service prior to expiration of contract term will not relieve Customer from any minimum or guaranteed payment under any contract or rate.

13. Service Charges for Temporary Service. Customers requiring electric service on a temporary basis may be required by Cooperative to pay all costs for connection and disconnection incidental to the supplying and removing of service. This rule applies to circuses, carnivals, fairs, temporary construction, and the like.

14. Interruption of Service. Cooperative will use reasonable diligence in supplying current, but shall not be liable for breach of contract in the event of, or for loss, injury, or damage to persons or property resulting from, interruptions in service, excessive or inadequate voltage, single-phasing, or otherwise unsatisfactory service, whether or not caused by negligence.

15. Shortage of Electricity. In the event of an emergency or other condition causing a shortage in the amount of electricity available to the Cooperative necessary to meet the demand for electricity on its system, Cooperative may, by an allocation method deemed equitable by Cooperative, fix the amount of electricity to be made available for use by Customer and/or may otherwise restrict the time during which Customer may make use of electricity and the uses which Customer may make of electricity. If such actions become necessary, Customer may request a variance because of unusual circumstances including matters adversely affecting the public health, safety and welfare. If Customer fails to comply with such allocation or restriction, Cooperative may take such remedial actions as it deems appropriate under the circumstances including temporarily disconnecting electric service and charging additional amounts because of the excess use of electricity. The provisions of the Section entitled Interruption of Service of this Schedule of Rules and Regulations are applicable to any such allocation or restriction.

16. Voltage Fluctuations Caused by Customer. Electric service must not be used in such a manner as to cause unusual fluctuations or disturbances to Cooperative’s system. Cooperative may require Customer, at his own expense, to install suitable apparatus which will reasonably limit such fluctuations. In the event the Customer is unable to limit such fluctuations or refuses to install the necessary equipment to limit such fluctuations, the Cooperative reserves the right to refuse service or discontinue service to that Customer.

17. Additional Load. The service connection, transformers, meters, and equipment supplied by Cooperative for each Customer have definite capacity, and no addition to the equipment or load connected thereto will be allowed except by consent of Cooperative. Failure to give notice of additions or changes in load, and to obtain Cooperative’s consent for same, shall render Customer liable for any damage to any of Cooperative’s lines or equipment caused by the additional or changed installation.

18. Standby and Resale Service. All purchased electric service (other than emergency or standby service) used on the premises of Customer shall be supplied exclusively by Cooperative, and Customer shall not, directly or indirectly, sell, sublet, assign, or otherwise dispose of the electric service or any part thereof. Any Customer desiring to interconnect a generation source at/on his premises must comply with the Cooperative’s Interconnection Standards and sign any and all agreements as required by the Cooperative prior to interconnection.

19. Notice of Trouble. Customer shall notify Cooperative immediately should the service be unsatisfactory for any reason, or should there be any defects, trouble, or accidents affecting the supply of electricity. Such notices, if verbal, should be confirmed in writing.

20. Non-Standard Service. Customer shall pay the cost of any special installation necessary to meet his peculiar requirements for service at other than standard voltages, or for the supply of closer voltage regulation than required by standard practice.

21. Meter Tests. Cooperative will, at its own expenses, make periodical tests and inspections of its meters in order to maintain a high standard of accuracy. Cooperative will make additional tests or inspections of its meters at the request of Customer. If tests made at Customer’s request show that the meter is accurate within two percent (2%), slow or fast, no adjustment will be made in Customer’s bill, and Cooperative’s standard testing charge will be paid by Customer. In case the test shows meter to be in excess of two percent (2%) fast or slow, an adjustment shall be made in Customer’s bill over a period of not over thirty (30) days prior to date of such test, and cost of making test shall be borne by Cooperative.

22. Relocation of Cooperative Owned Facilities. Cooperative shall, at the request of the Customer, relocate or change existing Cooperative-owned equipment or facilities. Cooperative may require Customer to reimburse Cooperative for such changes at actual cost including appropriate overheads.

23. Billing Adjusted to Standard Periods. The charges set forth in the rate schedules are based on billing periods of approximately one month. In the case of the first billing of new accounts (temporary service, cotton gins and other seasonal customers excepted) and final billings of all accounts (temporary service excepted) where the period covered by the billing involves fractions of a month, the Cooperative will not adjust the base customer charge on the account, however, applicable demand charges will be adjusted to a basis proportionate with the period of time during which service is extended unless the Customer is obligated otherwise by contract with the Cooperative or TVA.

24. Reimbursement for Special Activities. It is recognized that TVA and Cooperative may from time to time agree that additional activities such as temporary special advertising or promotional activities or distribution of questionnaires are necessary or desirable to increase Program participation or otherwise permit expeditious implementation of the Program. Prior to Cooperative’s carrying out any such activities, TVA and Cooperative will agree upon the amounts, if any, to be reimbursed for the costs incurred by Cooperative in performing such activities.

25. Customer’s Energy Use Data. Upon request by Customer, Cooperative will make available a customer’s energy consumption data for the prior twenty (24) months’ period.

26. Scope. This Schedule of Rules and Regulations is a part of all contracts for receiving electric service from Cooperative, and applies to all service received from Cooperative, whether the service is based upon contract agreement signed application, or otherwise. A copy of this schedule, together with a copy of Cooperative’s Schedule of Rates and Charges will be provided to new customers upon application for service and will be made available at the offices of Cooperative and on the Cooperative’s website at www.wkrecc.com.

27. Cooperative Rate Changes. Cooperative retail rate changes will be communicated to the Customer via electronic and/or written media-and will be posted on the Cooperative’s website at www.wkrecc.com.

28. Revisions. These Rules and Regulations may be revised, amended, supplemented, or otherwise changed from time to time, without notice. Such changes, when effective, shall have the same force as the present Rules and Regulations.

29. Conflict. In case of conflict between any provision of any rate schedule and the Schedule of Rules and Regulations, the rate schedule shall apply.

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