Rules & Regulations s1

RULES & REGULATIONS

AND

SERVICE AGREEMENTS

1. INTRODUCTION

The Rules and Regulations contained herein are a part of the tariff of Sharyland Utilities, L.P. (the “Company”) and are intended to establish the governing policy in rendering electric service. The Company reserves the right to amend or alter the rules at any time. The rules do not relieve in any way a continuity of any of its duties under the laws of this State or of the United States. These rules shall not be construed as to enlarge, diminish, modify, or alter the jurisdiction, powers or authority of the Company, regulatory bodies or the substantive rights of any person. These rules and regulations are applicable to all standard service agreements and contracts now existing or which may be entered into by the Company.

The Rules and Regulations, in accordance with law, are on file at the Company's office, 4403 West Military Highway, Suite 712, McAllen, TX 78503.

All rate schedules and agreements for electric service are subject to the terms and conditions set forth in the Rules and Regulations.

In case of conflict between any rate schedule or agreement for electric service and the Rules and Regulations, the rate schedule shall apply.

Copies of the Rules and Regulations shall be available to customers at the Company's principal office.

2. DEFINITIONS

As used in these Rules and Regulations or any rate schedule or agreement for electric service, unless the context requires otherwise, the following words and phrases have the indicated meaning:

(1)  Agreement for Electric Service: A legal document between the Company and the customer which is used to document the rights and responsibilities of the parties.

(2)  Ampere: A unit in the measure of electric current or the rate of flow of electricity, and measured by a suitable instrument (Amp-Meter).

(3)  Apartment: A building containing more than two dwelling units, each of which is rented primarily for extended intervals as a primary residence.

(4)  Applicant: Any person, firm, corporation or body politic or subdivision thereof, requesting electric service or action from the Company or any person or entity reapplying for electric service at a new or existing location after discontinuance of service.

(5)  Basic Service Charge: The minimum monthly charge for providing service to a customer.

(6)  Billing Cycle: A period of approximately one month, and may begin on any day within a month and end approximately thirty (30) days later.

(7)  Billing Demand: kW demand used for billing purposes as stated in the applicable tariff or rider.

(8)  Billing Month: The month in which a bill for electric service is rendered. Such bill may be for a period covering all or portions of the previous month and portions of the current month.

(9)  Codes: Rules or regulations governing electrical installation as set forth in the National Electric Code, the National Electric Safety Code and any additional conditions as adopted by an inspection authority.

(10)  Coincident Peak: Maximum peak kW demand for a customer that coincides with the time of another peak (e.g., the Company’s system peak, the ERCOT peak, the power supplier’s peak, etc.).

(11)  Commercial Customer: A customer who utilizes electric service in the conduct of a commercial/business enterprise.

(12)  Commission: The Public Utility Commission of Texas (“PUCT” or “PUC”)

(13)  Company: Sharyland Utilities, L.P., its successors, and assigns.

(14)  Company Owned Facilities: Equipment (transformers, cable, etc.) owned and maintained by Sharyland Utilities.

(15)  Connected Load: A total of the rated capacities of energy consuming equipment committed to a customer’s service.

(16)  Connection: The mechanical connection of the Company's service conductor to the customer's service leads. All connections at the point of delivery shall be performed by the Company.

(17)  Contribution-In-Aid of Construction: A payment made to the Company for reimbursement of expenditures incurred in constructing facilities at the customer’s request, where the expenditures exceed those necessary for basic items or facilities to provide service.

(18)  Customer: Any individual, partnership, association, firm, governmental agency, public or private corporation, or body politic, utilizing electric service provided by the Company under the Company's rules for service.

(19)  Customer Classification: A group of customers who exhibit similar characteristics of energy consumption, such as nature of use or type of rate.

(20)  Customer's Electrical Facilities: The customer's electrical equipment, apparatus, wiring, and facilities upon his premises beyond the point of delivery.

(21)  Customer Owned and Operated Power Production Equipment: Any generation equipment a customer owns and operates to produce electricity.

(22)  Demand: The rate at which electric power is used at any instant and which is measured as kW.

(23)  Demand Interval: A rolling period of time used to measure kW demand, usually 15-minute, 30-minute, or 1-hour.

(24)  Demand Meter: A device to measure kilowatt hours consumed and amount of kW demand (rate of power use) placed on Company's electrical system for a specified time interval period.

(25)  Dwelling Unit: A dwelling unit will consist of one or more rooms for the use of one or more persons as a housekeeping unit with space for eating, living, and sleeping, and permanent provisions for cooking, drinking water and sanitation, and serve through one meter.

(26)  Electric Service or Service: The actual delivery of electric power to the customer and including any and all acts done, rendered, or performed in the delivery of electric power by the Company operating under the jurisdiction of the Commission.

(27)  Energy Charge: The charge for electric service based upon the electric energy consumed and expressed in $/kWh or cents/kWh.

(28)  Horsepower: A unit of measure of motor output power as rated by the manufacturer, and is the equivalent of 746 watts.

(29)  Gross Receipts Fee Adjustment: The charge set out in Section __.

(30)  Individual Metered Apartment: A dwelling unit located in a building with two or more dwelling units, each dwelling unit having its own electric meter.

(31)  Inductive Type Electric Device: Electric device utilizing electromagnetic force when operated (usually a motor).

(32)  Industrial Customer: A customer who utilizes electric service in the manufacture, production, or processing of a product as a part of a business enterprise.

(33)  Inspection Authority: A governmental body with authority to enforce codes; generally, an agency of an incorporated city or town, but may be an agency of the county, state or federal government.

(34)  Kilovolt-ampere (kVA): The instantaneous quantity of electric capacity delivered, and is equal to 1000 Volt-amperes. The unit of this "apparent" electric power is the Kilovolt-Ampere.

(35)  Kilowatt (kW): 1000 watts, a term used to describe the size of equipment, or the demand which the equipment imposes on an electric system.

(36)  Kilowatt-hour (kWh): A unit of electric energy measured by a Kilowatt-hour meter. Kilowatts x hours used = kilowatt-hours.

(37)  kW Demand: The Kilowatts supplied during any defined period of maximum use within a current month.

(38)  Largest Motor: Motor that has the highest nameplate horsepower rating.

(39)  Levelized Payment Plan: A payment plan designed to spread payment of electric service costs over a specified period of time.

(40)  Load Factor: A percentage of the maximum possible use of the demand.

* Typical annual hours are: 8760, 8784; typical monthly hours are: 720, 744, 672, and 696 with an annual monthly average of 730.

(41)  Meter Base: The apparatus required to receive the Company's meter and/or equipment, contained in the service entrance and which shall be furnished by the Company.

(42)  Meter Loop: See service entrance.

(43)  Meter Tampering: Any unauthorized act or acts designed or intended to interfere with the proper measurement of electric power and energy used by customer, including bypassing of the meter, or other means of diversion such as physically disconnecting the meter, attaching objects to the meter to interfere with its operation, insertion of objects into the meter and/or any other electrical or mechanical means of interfering with or bypassing the Company's metering equipment or otherwise diverting electric service or receiving the use of unmetered or unauthorized electric service, and specifically including the falsification of meter readings and the unauthorized connection or reconnection of service.

(44)  Metering Voltage: Service voltage at the point of metering.

(45)  Minimum Monthly Charge: The minimum dollar amount the customer is required to pay the Company for electric service or for other services rendered within the billing period or cycle.

(46)  Month: The period of approximately 30 days.

(47)  Non-Coincident Peak: Maximum kW demand for a customer regardless of when the Company’s peak occurs. All references to demand noted on tariffs are non-coincident peak unless otherwise specified.

(48)  PCRF: These letters indicate the power cost recovery factor. The PCRF factor(s), multiplied by the applicable billing unit(s), is/are intended to recover the wholesale power cost to the extent that such cost varies from any amount of purchased power costs utilized to fix the base rates of the Company.

(49)  Permanent Residential Dwelling: A residential dwelling constructed or placed on and permanently affixed to a foundation and requiring electric service on a permanent year-round basis and which shall be occupied on a more or less full-time basis by the owner, or shall be the principal place of residence of the occupant. Such permanent dwelling shall consist of one or more rooms for the use of one or more persons as a housekeeping unit and shall contain full kitchen and living facilities (bedrooms, bathrooms, eating area, etc.) and shall have permanent provisions for potable water and sanitary sewer or septic tank. Permanent is also interpreted to mean that monthly bills will be rendered throughout the year and that electric service will not be periodically disconnected and reconnected. A mobile home will be considered a permanent residential dwelling where the mobile home has been placed on a foundation and/or permanent under-skirting has been constructed, and the axles and tongue have been removed.

(50)  Platted Development: A platted development shall be a tract of land that has been subdivided for tract development purposes only, with a plat prepared by a surveyor or engineer, registered to practice in the State of Texas. The plat shall be approved by the proper authority of the jurisdiction in which the development is located, and shall also be recorded with the proper authority of the jurisdiction in which the development is located, and a copy showing the approval and recording information provided to the Company.

(51)  Point of Attachment: The point of connection of the Customer's electrical facilities to the Company's service conductor upon the Customer’s premises.

(52)  Point of Delivery: The point of termination of the Company’s facilities and where power is received by the Customer either at primary or secondary voltage levels, regardless of the location of such point.

(53)  Power Factor: Is the ratio of "real" electric power (kW) to the actual or "apparent" power (kVA).

(54)  Primary Residence: A permanent dwelling occupied by the same person, group of people, or family. A primary residence must be connected twelve (12) months of the year and have usage greater than zero (0) for at least nine (9) months of the year.

(55)  Primary Voltage: Service supplied at a voltage level that is one transformation below transmission level voltage, normally 12.47 kV. Refer to Section E, Subsection 18(B)(2), for voltage listing.

(56)  Public Buildings: Buildings or other electric services utilized in the public or group interest.

(57)  Qualifying Facility: A co-generation facility or small power production facility which is a qualifying facility under Subpart B of the Federal Energy Regulatory Commission’s regulations under the Public Utility Regulatory Policies Act of 1978, Section 201.

(58)  Reactive Kilovolt-Ampere: The inactive component of apparent electric power, termed Kilovar (kVAR). The Kilowatt is the active component.

(59)  Regular Business Hours: Shall be from 8:00 A.M. to 6:00 P.M., Monday - Friday.

(60)  Resale Service: The service of providing electric power which is purchased by a customer and then resold to other parties.

(61)  Residential Customer: A customer who utilizes electric service for household or dwelling use and including other non-commercial home and uses incidental thereto.

(62)  Retail Customer: A customer who does not buy power for resale, but for his own use.

(63)  Revenue Month: See “Billing Month.”

(64)  Rider: An attachment to a rate schedule, which defines additional service options, pricing, conditions, and limitations for that class of service.

(65)  Seasonal Customer: A customer who will utilize electric service less than 12 months per year, or whose usage varies significantly by season of the year, such as certain agricultural uses, resort residential facilities, hunting/fishing cabins, etc.

(66)  Secondary Voltage: Service supplied to a customer at a voltage level that is two or more transformations below transmission level voltage 18(B)(2), normally 120/240, 277/480. Refer to Section 18(B)(2) for additional voltage information.

(67)  Security Light: One or more single fixture outdoor dusk-to-dawn lighting installations served under rates for such service as provided in the tariff.

(68)  Service: (See definition 25)

(69)  Service Call: At the customer’s request, a dispatch of a Company representative to a service address.

(70)  Service Drop: Overhead conductors that extend from the Company’s overhead distribution system to the point of delivery where connection is made to customer-owned electrical facilities.

(71)  Service Entrance: The Customer's electric conductors extending from the point of attachment to the Company's facilities, through the meter base, to the Customer’s electric service panel.