COGENERATION AND SMALL POWER PRODUCTION PURCHASED ENERGY RATE

AVAILABLE: To cogeneration and small power production facilities with production capacity of 100 kW and less that qualify under the guidelines for implementing PURPA Sections 201 and 210 as adopted by the LES Administrative Board.

CHARACTER OF SERVICE: Unless otherwise provided by contract, the character of purchased power will be single or three phase alternating electric current at 60 hertz. Voltage shall be determined by the voltage of LES’ distribution system in the vicinity unless otherwise agreed.

PURCHASE OF OUTPUT FROM QUALIFYING FACILITIES: Owners of Qualifying Facilities will be allowed the option to either (1) sell the entire electrical output of their Qualifying Facilities to LES, or (2) use the electrical output of their Qualifying Facilities to instantaneously supply all or a portion of their own load and sell the instantaneous surplus to LES.

PURCHASE PRICE: Energy from qualifying small power production and cogeneration facilities will be paid for on the following basis:

1. For Qualifying Facilities of 100 kW and less without time of day metering, payment on a monthly basis of an amount of $0.0284 per kilowatt-hour for the summer season and $0.0227 per kilowatt-hour for the winter season for all power and/or energy delivered to the Lincoln Electric System.

2. The purchase price shall be adjusted up or down to reflect the savings or costs resulting from variations in losses compared to if LES had generated or purchased elsewhere an equivalent amount of energy. Such an adjustment factor shall be identified in the contract between the qualifying facility’s owner and LES.

ACCOUNTING CHARGE: The owner of the Qualifying Facility will pay to LES the following monthly charges for additional energy accounting expenses incurred by LES:

• kWh Meter  $3.90 per meter*

• Interval Meter  $19.50 per meter

*For customer-owned generation facilities utilizing kWh meters, the energy accounting charge will be waived until Dec. 31, 2009.

SEASONAL PERIODS:

• Summer Season: June through and including September

• Winter Season: October through and including May

ADJUSTMENTS TO BILLING: Monthly adjustments will be made to the purchased power billing to reflect costs incurred by LES above and beyond a normal customer interconnection. These monthly adjustments will be identified in the standard contract which the owner of the Qualifying Facility will be required to execute with LES. These adjustments will reflect the investment costs to LES for such items among others as metering and interconnection costs which are being amortized over the contract’s term or otherwise recovered.

For customer-owned generation facilities utilizing kWh meters which can be installed at or near LES’ standard cost, the amortized cost of additional metering will be waived until Dec. 31, 2009.

TERMS AND CONDITIONS:

1. A signed written agreement between the Qualifying Facility and LES will be required.

2. Unless modified by contract, the System's Service Regulations shall apply to this schedule.

3. For facilities with more than 100 kilowatts of capacity, the purchase rate and other terms and conditions will be determined on a case-by-case basis.

NOTE: LES recommends you contact appropriate staff to answer questions and confirm your analysis of LES' electric rates. For questions about how rates are established, contact LES' manager of rates, forecasting and load research (402-473-3471). For questions about the application of rates for your home, such as the proper rates, costs, etc., contact an Energy Services Representative (402-473-3270).

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