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A.         Availability

                This tariff is available for service to  each member consumer of 
                Southeastern Indiana REMC (Cooperative) that contracts after the
                effective date of this tariff for new and/or expanded service.  
This tariff is offered in conjunction with Hoosier Energy’s
                 Economic Development Rate No. 4 and with Hoosier Energy’s
                 Standard Wholesale Tariff. 

                The availability of this tariff is limited to an aggregate amount of
                100mw demand for the entire Hoosier Energy system.  (Excluding
                 the aggregate demand from Economic Development
                 Rate Nos. 1,2 and 3). 

        B.      Applicability

                Southeastern Indiana REMC shall provide this retail service to
                qualifying member-consumers for new or expanded electric power
                customers that meet the following conditions: 

1. The new or expanded electric power service of any such retail customer must be contracted for between the customer, Southeastern Indiana REMC and Hoosier Energy for a time period of 5 to 10 years from the start date specified in the contract. The start date shall not be later than December 31, 2002. 

2. The new or expanded electric power service load measures at least 500 kW monthly non-coincident maximum demand (measured over a 30 minute interval) for at least six months of any contract year.  Expanded electric power service is in addition to the load utilized by the retail customer prior to such expansion and shall be metered be metered separately to assure compliance with this condition.

3. The retail customer shall certify to Southeastern Indiana REMC and Hoosier Energy that the new or expanded power service meets two of the following criteria: 

a) Results in the creation of a minimum of five full-time equivalent jobs.

b) Pays an average wage above the average County wage.

c) Selected location is in an area with an unemployment rate higher than the State average unemployment rate.

d) Selected site requires some form of environmental reclamation, or represents re-use of an existing industrial site where the former industry has ceased operations, or the new or expanded service replaces internal combustion engines thereby reducing air emissions.

e) Improves Hoosier Energy’s load factor or the load factor of Southeastern Indiana REMC

f) Receives commitment of federal, state or local incentives, including sewer lines, water lines, road improvements and/or other infrastructure investment.

g) The retail customer provides documentation that without EDR No. 4, it would be financially advantageous for the retail customer to build the proposed new facility elsewhere.


Southeastern Indiana REMC and Hoosier Energy have the final determination of whether the retail customer meets the above criteria.  Documentation of compliance with the above criteria shall be the retail customer’s responsibility. 

             C.       Monthly Rate C.    Monthly Rate

                       Demand Charge:  Equal to the non-coincident Demand
                      Charge of Hoosier 

Energy’s Economic Development Rate No. 4, discounted as
follows, times the Billing Demand:          

Term of Average                    Total                          Maximum
Service                      Annual              Cumulative                        Annual
(years)                       Discount            Discount                            Discount 
     5                                5%                       25%                                  25%
     6                                6%                       36%                                  30%
     7                                7%                        49%                                 30%
     8                                8%                        64%                                 30%
     9                                9%                        81%                                  30%
    10                              10%                      100%                                30%

                                                                                                                                The Total Cumulative Discount is the product of the Term of Service and the Average Annual Discount.  The Total Cumulative Discount may be utilized in  

any pattern through the years of the contract term as long as the Maximum Annual Discount is not exceeded.

      The contract between the qualifying retail customer, Southeastern Indiana
      REMC, and Hoosier Energy shall specify the demand charge discount
      for each year of the contract.

      Energy Charge:          Standard Energy Charge (as defined in this tariff)   

      Distribution  Charge:                  0.50 per kW of billing Demand
                                                            2 mils per kWh for all kWh usage

   D.   Determination of Billing Demand

                The Billing Demand shall be the highest consecutive 30 minute kilowatt demand occurring between the hours of 7:00 am to 11:00 pm EST, or 500 kW, whichever is greater.  For the first six contract months, the Billing Demand shall be the highest 

consecutive 30 minute kilowatt demand occurring between the hours of 7:00 am to 11:00 pm EST.  

        E.     Standard Energy Charge

                Standard Energy Charge shall be defined as the energy charge of the Standard Wholesale Tariff then in effect and approved for service to Southeastern REMC. 

         F.     Facilities Cost

                Customers requesting  facilities in addition to those normally provided may be required to pay Southeastern Indiana REMC and Hoosier Energy either a contribution-in-aid-of-construction equal to the cost of the additional facilities or the monthly carrying charge of such cost, whichever is mutually agreed upon and specified in the contract.

         G.      Rate and Fuel Cost Adjustment 

                The Energy Charge shall be adjusted  by the fuel cost adjustment as defined in Appendix B

         H.       Power Factor Adjustment

                If the average power factor for the month is determined to be less than 93 percent, the Billing Demand shall be adjusted by multiplying the Billing Demand by 93 percent and dividing the product by the measured average power factor.

           I.        Prospective Only

                This rate shall be applicable only to new and expanded service
           contracted for after the effective date hereof.  Customers contracting
           for service under and Economic Development Rate heretofore in
           effect shall continue to be served under the terms and co

Schedule A-5 - residential electric service rate
Schedule B-5 - small commercial electric rate/without demand
Schedule BD-5 - small commercial electric rate with demand
Schedule C-5 - large power service
Schedule SL - security lighting service
Schedule EDR4 Economic Development Rate NO. 4
Schedule GP  Green Power
SCHEDULE IIP - 1 Interruptible Power Service
SCHEDULE IP - 1 Industrial Power Service
SCHEDULE IPS - 1 Industrial Power Service
Appendix A
Appendix B