ENCOURAGING GROWTH
Economic Development Rider
In an effort to inspire business and industry development, CEL&P has established an application for limited-term billing of utility fees.
Economic Development - Retail
Availability of Service
In order to encourage economic development in the Utility’s service area, limited-term reductions in billing demands described herein are offered to qualifying new and existing customers who make application for service under this Rider prior to January 1, 2025.
Service under this Rider is intended for specific types of commercial and industrial customers whose operations, by their nature, will promote sustained economic development based on plant and facilities investment and job creation. This Rider is available to commercial and industrial customers served under Tariff PP or Tariff IP who meet the following requirements:
Size: A new customer must have a billing demand of 1,000 kW or more over the maximum billing demand during the 12 months prior to the date of application by the customer for service under this Rider (Base Maximum Billing Demand).
THD: Total Harmonic Distortion. Both new and existing customers must comply with Standard IEEE 519-2014 or its most contemporary version, should the standard be revised.
Load Factor: Both new and existing customers must maintain a monthly load factor of at least 70%. Load factor shall be calculated as follows: “Total monthly kWH”/{peak k WD” x ”Days in Billing Period” x “24 hours”}
Power Factor: Both new and existing customers must maintain a monthly power factor of at least 98%.
Applicable Standards: Both new and existing customers shall comply with the most contemporary versions of National Electric Code, National Fire Protection Association Code, and relevant IEEE standards.
Business Type: In no event shall service under this Rider be available to a customer whose principal business at the service location is classified in one of the following SIC Major Groups:
Standard Industrial Classification (SIC per US Dept. of Labor)
01: Agriculture Production Crops
02: Agriculture production livestock and animal specialties
07: Agriculture Services
08: Forestry
09: Fishing, hunting, and trapping
15: Building Construction General Contractors and Operative Builders
16: Heavy Construction Other Than Building Construction Contractors
17: Construction Special Trade Contractors
50: Wholesale Trade-durable Goods
51: Wholesale Trade-non-durable Goods
52: Building Materials, Hardware, Garden Supply, and Mobile Home Dealers
53: General Merchandise Stores
54: Food Stores
55: Automotive Dealers and Gasoline Service Stations
56: Apparel and Accessory Stores
57: Home Furniture, Furnishings, and Equipment Stores
58: Eating and Drinking Places
59: Miscellaneous Retail
64: Insurance Agents, Brokers, and Service
65: Real Estate
67: Holding and Other Investment Offices
70: Hotels, Rooming Houses, Camps, and Other Lodging Places
78: Motion Pictures
79: Amusement and Recreation Services
North American Industry Classification System
(NAICS per OMB post 1997)
11: Agriculture, Forestry, Fishing and Hunting
22: Utilities
23: Construction
42: Wholesale Trade
44: Retail Trade
45: Retail Stores
48: Transportation
53: Real Estate Rental and Leasing
71: Arts, Entertainment, and Recreation
72: Accommodation and Food Service
81: Other Services (except Public Administration)
(3) A new customer, or the expansion by an existing customer, must result in the creation of at least 10 full-times equivalent jobs (FTE) maintained over the contract term at the service location. Utility reserves the right to verify FTE job counts. Failure to maintain the minimum required FTE jobs will result in the termination of this Rider.
(4) The customer must demonstrate through form SB-1 to the Utility’s satisfaction that, absent the availability of this Rider, the qualifying new or increased demand would be located outside of the Utility’s service territory or would not be placed in service due to poor operating economics.
Availability is limited to customers on a first-come, first-served basis for loads aggregating to 25 MVA.
Terms and Conditions
To receive service under this Rider, the customer shall make written application to the Utility, using form SB-1, with sufficient information contained therein to determine the customer’s eligibility for service.
For new customers, billing demands for which deductions will be applicable under this Rider shall be for service at a new location and not merely the result of a change of ownership. Relocation of the delivery point of the Utility’s service does not qualify as a new service location.
For existing customers, billing demands for which deductions will be applicable under this Rider shall be the result of an increase in business activity and not merely the result of resumption of normal operations following a force majeure, strike, equipment failure, renovation or refurbishment, or other such abnormal operating condition. In the event that such an occurrence has taken this Rider, the monthly billing demands during the 12-month period shall be adjust as appropriate to eliminate the effects of such occurrence.
All demand adjustments offered under this Rider shall terminate no later than December 31, 2020.
The existing local facilities of the Utility must be deemed adequate, in the judgment of the Utility, to supply the new or expanded electrical capacity requirements of the customer. If construction of new or expanded local facilities by the Utility is required, the customer may be required to make a contribution-in-aid of construction for the installed cost of such facilities pursuant to the provisions of the Utility’s Terms and Conditions of Service.
Determination of Monthly Adjusted Billing Demand
The qualifying incremental billing demand shall be determined as the amount by which the billing demand, as determined according to Tariff PP or IP for the current billing period without this Rider, exceeds the Base Maximum Billing Demand. Such incremental billing demand shall be considered to be zero, however, unless it is at least 1,000 kW for new customers or existing customers.
The monthly adjusted billing demand under this Rider shall be the billing demand as determined according to Tariff PP or IP for the current billing period without this Rider less the product of the qualifying incremental billing demand and the applicable Adjustment Factor. No Adjustment Factors shall be applied to any portion of minimum billing demands as calculated under Tariff PP or IP.
Determination of Adjustment Factor
Standard New Development Customers-customers meeting all availability and terms and conditions above shall contract for service for a period of five (5) years with a scheduled Adjustment Factors as followers:
Year 1 15%
Year 2 10%
Year 3 10%
Year 4 10%
Year 5 05%
Urban Redevelopment Customers – customers meeting all availability and terms and conditions above, and that (1) are locating a new business in an existing building that has been unoccupied and/or has remained dormant for at least one or more years and has no current or prior relationship with the precious occupant, as determined by the Utility, and (2) taking delivery at one point that does not require significant distribution or transmission system investment, other than the connection of service, shall qualify the same as a Standard New Development Customer.
The Appropriate adjustment factor shall be applicable over a period of 60 consecutive billing months beginning with the first such month following the end of the start-up period. The start-up period shall commence with the effective date of the contract addendum for service under this Rider and shall terminate by mutual agreement between the Utility and the customer. In no event shall the start-up period exceed 12 months.
Written Annual Statement of Substantial Compliance
Customers must apply for the Economic Development Rider using Form SB-1 “Statement of Benefits” which can be found as Attachment A.
Subsequent to qualifying the Economic Development Rider, the Customer MUST file an updated SB-1 at least 30 days prior to the anniversary of the state date identified in the Utility’s confirmation that Customer is eligible for the Economic Development Rider. Failure to comply with the reporting requirements will result in termination of eligibility for the Economic Development Rider.
Terms of Contract
A contract or agreement addendum for service under this Rider, in addition to service under Tariff PP or IP, shall be executed by the customer and the Utility for the time period which includes the start-up period and the five-year period immediately following the end of the start-up period. The contract addendum shall specify the Base Maximum Billing Demand, the anticipated total demand, the Adjustment Factor and related provisions to be applicable under this Rider, and the effective date for the contract addendum.
The customer may discontinue service under this Rider before the end of the contract or agreement addendum only by reimbursing the Utility for any demand adjustments received under this Rider billed at the applicable rate.
Special Terms and Conditions
Except as otherwise provided in this Rider, written agreements shall remain subject to all of the provisions of Tariff PP or IP. This Rider is subject to the Utility’s Terms and Conditions of Service.
Economic Development - IMPA
Availability
This Rider is available to a Qualifying Customer (as defined herein) to encourage large power users to expand or create new operations within the Utility’s service territory.
Qualifications
A “Qualifying Customer” is a new or existing non-residential customer in the Utility’s service territory that is establishing new operations or expanding existing operations such that the new or expanded operations will result in new or additional demand of at least one (1) MW (1,000 kW) at one delivery point (the “Qualifying Demand”) and the new or expanded operations has involved a capital investment of at least one million dollars ($1,000,000) within the Utility’s service territory.
For a Qualifying Customer that is expanding operations, Qualifying Demand is measured from the average monthly peak demand for the twelve (12) months immediately preceding the effective date of the Service Application. For a Qualifying Customer that is establishing new operations, Qualifying Demand is measured from zero.
A Qualifying Customer is not a customer: (1) with “new” demand that results from a change in ownership of an existing establishment without qualifying new load; (2) renewing service following interruptions such as equipment failure, temporary plant shutdown, strike, economic conditions or natural disaster; or (3) that has shifted its load from one operation or customer to another within the Utility’s service territory. The Utility may determine exclusively, without recourse by the customer, whether an event has occurred that would prevent a customer from being a Qualifying Customer.
Rate Incentive
Beginning with the effective date indicated in the Service Application submitted by the Qualifying Customer, Utility will receive a credit on its wholesale bill for the qualifying new load. The incentive amount received by Utility from the Indiana Municipal Power Agency for such load will be passed in full to Qualifying Customers. For references purposes, the discount to the Qualifying Customer’s wholesale cost for qualifying new load will be calculated according to the following schedule:
Month 1-2 20%
Month 13-24 15%
Months 25-35 10%
Months 37-48 10%
Months 49-60 5%
The Qualifying Customer must meet the minimum Qualifying Demand during each month of the incentive period (i.e., months 1 through 60, as designated above). Failure to meet the minimum Qualifying Demand in a particular month will result in a 0% reduction in that month.
Terms and Conditions
The Qualifying Customer must submit a Service Application to the Utility specifying: (1) a description of the amount and nature of the net load; (2) the basis on which the Qualifying Customer meets the requirements of this Rider; (3) the Qualifying Customer’s desired effective date; and (4) any other information required by the Utility.
This Rider will terminate on the same date that IMPA’s economic development rider terminates, except that any Qualifying Customer receiving the rate incentive at the time of the Rider’s termination may continue receiving the incentive for the remainder of the applicable incentive period (as long as it continues to meet the Rider’s requirements).
Applicable Rate Schedules
This Rider is applicable to the following rate schedules: Industrial Power Service (Rate Schedule IP) and Primary Power Service (Rate Schedule PP).