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

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.

This Schedule of Rules and Regulations is a part of all contracts for receiving electric service from Distributor, and applies to all service received from Distributor, whether the service is based upon contract, agreement, signed application, or otherwise. A copy of this schedule, together with a copy of Distributor’s Schedule of Rates and Charges, shall be kept open to inspection at the offices of Distributor and/or on the website at our website. A customer shall also receive such information upon application for electrical service and anytime upon request. All retail rate actions initiated by Distributor will be communicated to the public via the website and through advertisements in the local newspapers. Also, the customer’s bill will show the energy consumption for the prior 12 months’ billing period, if applicable. See Operational Policy 219 for additional information.

Distributor, in fulfillment of the purposes and provisions of the Tennessee Valley Authority Act (TVA) and as part of its electric service, may make available funds to eligible electric Customers for energy improvements identified in a survey for the Customer’s dwelling under the Residential Energy Services Program being conducted by Distributor and TVA. Eligible Customers must sign repayment agreements under which the funds made available will be repaid to Distributor. Monthly repayment amounts due for this service will be included as part of the electric bills from Distributor. Except as otherwise agreed in the repayment agreement, the provisions of the section entitled Billing of this Schedule of Rules and Regulations shall apply to bills for the amounts made available by Distributor as part of its electric service for weatherization measures. Distributor may also make available disbursements to participants to encourage the installation and efficient use of electric appliances and devices in dwellings.

The demand charges and the blocks in the energy 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 excepted) and final billing of all accounts (temporary service excepted) where the period covered by the billing involves fractions of a month, the demand charges and the blocks of the energy charges will be adjusted on a basis proportionate with the period of time during which service is extended.

Distributor shall, at the request of Customer, relocate or change existing Distributor-owned equipment. Customer shall reimburse Distributor for such changes at actual cost including appropriate overheads.

Distributor will, at its own expense, make periodical tests and inspections of its meters in order to maintain a high standard of accuracy. Distributor 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 2%, slow or fast, no adjustment will be made in Customer’s bill, and Distributor’s standard testing charge will be paid by the customer. In case the test shows meter to be in excess of 2% fast or slow, an adjustment shall be made in Customer’s bill over a period of not over 30 days prior to the date of such test, and cost of making test shall be borne by Distributor.

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.

All purchased electric service (other than emergency or standby service) used on the premises of Customer shall be supplied exclusively by Distributor, and Customer shall not directly or indirectly, sell, sublet, assign, or otherwise dispose of the electric service or any part thereof.

Notice of Trouble. Customer shall notify Distributor 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.

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

In the event of an emergency or other condition causing a shortage in the amount of electricity for Distributor to meet the demand on its system, Distributor may, by an allocation method deemed equitable by Distributor, 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, Distributor 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.

Voltage Fluctuations Caused by Customer. Electric service must not be used in such a manner as to cause unusual fluctuations or disturbances to Distributor’s system. Distributor may require customer, at his own expense, to install suitable apparatus which will reasonably limit such fluctuations.

Distributor 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.

Customers requiring electric service on a temporary basis may be required by Distributor 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.

Customers who have fulfilled their contract terms and wish to discontinue service must give at least 3 days’ written notice to that effect unless the contract specifies otherwise. Notice to discontinue service prior to the expiration of contract term will not relieve Customer from any minimum or guaranteed payment under any contract or rate.

Distributor 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.

Distributor may refuse to connect or may discontinue service for the violation of any of its Rules and Regulations, or for violation of any of the provisions of the Schedule of Rates and Charges, or of the application of Customer or contract with Customer. Distributor may discontinue service to Customer for the theft of current or the appearance of current theft devices on the premises of Customer. The discontinuance of service by Distributor for any causes as stated in the rule does not release Customer from his obligation to Distributor for the payment of minimum bills as specified in the application of Customer or contract with Customer. See Operational Policy 219 for additional information.Upon Distributor’s approval of the customer’s medical necessity, disconnection of service will be postponed for 30 days from the originally scheduled disconnection date to allow customer time to make payment or alternative shelter arrangements. A physician’s statement must be completed by a medical doctor or nurse practitioner licensed to practice in the states of Alabama or Tennessee certifying that the disconnection of electric service would create a life-threatening medical situation for the customer or another permanent resident of the customer’s household. It is the responsibility of the customer to ensure that the medical necessity has been approved by Distributor. A life threatening medical condition does not relieve a customer of the obligation to pay for electric service, including any late fees incurred or other applicable charges. Distributor will only grant this postponement for termination 2 times in a 12 month period. If full payment of the past due amount, including all late fees, is not received by the end of the 30 day postponement period, electric service will be disconnected without further notice. Distributor evaluates weather conditions daily from the National Weather Service for Decatur, Alabama and Huntsville Alabama. In the event the forecasted temperature is expected to exceed 98 degrees Fahrenheit (F) or is expected to be below 32 degrees (F) on that day, Distributor will postpone the disconnection of service of residential customers scheduled for such disconnection due to non-payment. Where disconnection is postponed due to an extreme weather condition, the postponement will not extend beyond the extreme weather condition.

Distributor’s identified employees shall have access to Customer’s premises at all reasonable times for the purpose of reading meters, testing, repairing, removing, or exchanging any or all equipment belonging to Distributor.

Bills will be rendered monthly and shall be paid at the office of Distributor or at other locations designated by Distributor. Failure to receive a bill will not release Customer from payment obligation. Should bills not be paid by the due date specified on the bill, Distributor may at any time thereafter, upon 5 days’ written notice to Customer, discontinue service. Bills paid after the due date specified on the bill may be subject to additional charges, not to exceed 5%. Should the due date of bill fall on a 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. See Operational Policy 219 for additional information.

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

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

Distributor 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 Distributor’s standards: but such inspection or failure to inspect or reject shall not render Distributor liable or responsible for any loss or damage resulting from defects in the installation, wiring, or appliances, or from violation of Distributor’s rules, or from accidents which may occur upon Customer’s premises.

All wiring of the customer must conform to Distributor’s requirements and accepted modern standards, as exemplified by the requirements of the National Electrical Safety Code and the National Electrical Code.

The point of delivery is the point, as designated by Distributor, on Customer’s premises where the current is to be delivered to building or building premises. All wiring and equipment beyond this point of delivery shall be provided and maintained by Customer at no expense to Distributor.

Each prospective Customer desiring electric service may be required to sign Distributor’s standard form of application for service or contract before service is supplied by the Distributor.

A deposit or suitable guarantee approximately equal to twice the highest monthly bill may be required of any Customer before electric service is supplied. The distributor may at its option return deposit to Customer after one year. Upon termination of service, the deposit may be applied by Distributor against unpaid bills of Customer, and if any balance remains after such application is made, said balance shall be refunded to Customer. See Operational Policy 201 for additional information.