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FORTISALBERTA INC. INTERIM 2008 DISTRIBUTION TARIFF

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					                                                  FORTISALBERTA INC.
                   INTERIM 2008 DISTRIBUTION TARIFF APPLICATION
                                                        November 5, 2007
                                                                  INDEX

FORTISALBERTA INC. INTERIM 2008 DISTRIBUTION TARIFF APPLICATION .............................. I

SECTION 1          OVERVIEW.............................................................................................................................1

SECTION 2          2008 DISTRIBUTION COMPONENT COSTS....................................................................2

         2.1       2008 DISTRIBUTION REVENUE REQUIREMENT IN 2008/2009 NSA.............................................2
SECTION 3          2008 TRANSMISSION COMPONENT COSTS ..................................................................3

         3.1       TRANSMISSION COST FORECAST ................................................................................................3
SECTION 4          2008 INTERIM TARIFF PROPOSAL ..................................................................................4

         4.1       INTERIM TARIFF RATE DESIGN ...................................................................................................4
         4.2       TYPICAL BILL IMPACTS ..............................................................................................................5
         4.3       TERMS AND CONDITIONS ............................................................................................................5

APPENDIX 1:        INTERIM 2008 RATES, OPTIONS AND RIDERS SCHEDULES

APPENDIX 2:        INTERIM 2008 CUSTOMER TERMS AND CONDITIONS OF DISTRIBUTION ACCESS SERVICE
                   INTERIM 2008 RETAILER TERMS AND CONDITIONS OF DISTRIBUTION ACCESS SERVICE




November 5, 2007                                                              FortisAlberta Interim 2008 Distribution Tariff Application
                                                                                                                                  Index
           BEFORE THE ALBERTA ENERGY AND UTILITIES BOARD (“BOARD”)

             IN THE MATTER OF the Electric Utilities Act, S.A. 2003, C. E-5.1 (the
             “EUA”)

             AND IN THE MATTER OF an Application made by FortisAlberta Inc.
 5           (“FortisAlberta”), for approval of the 2008/2009 Negotiated Settlement
             Agreement and implementation of final tariffs for 2008 and 2009 as the owner
             of an electric distribution system (the “2008/2009 NSA”)

             AND IN THE MATTER OF an Application made by FortisAlberta for
             approval of final 2006 AESO charges deferral accounts amounts and a 2008
10           transmission adjustment rider (the “Final 2006 ACDA and 2008 TAR
             Application”)

             AND IN THE MATTER OF an application by FortisAlberta being made
             herein for an interim tariff effective January 1, 2008 (the “Interim Tariff
             Application” or “this Application”)

15   FORTISALBERTA INC. INTERIM 2008 DISTRIBUTION TARIFF APPLICATION

     1. FortisAlberta, as the owner of an electric distribution system to which the EUA applies,
         has made separate application to the Board for approval of a 2008/2009 NSA and
         implementation of final rates and terms and conditions for 2008 and for 2009, and also
         has made a separate application to the Board for approval of Final 2006 AESO charges
20       deferral account amounts and a revised 2008 transmission adjustment rider.

     2. In accordance with the 2008/2009 NSA, the Final 2006 ACDA and 2008 TAR Application,
         FortisAlberta hereby applies for an order or orders of the Board for approval of:

                 a. the current approved rates in place for FortisAlberta, as established effective
                        January 1, 2007 pursuant to Decision 2006-099 and Order U2006-323, be
25                      scaled “across the board” as further described herein, and be rendered interim
                        refundable effective January 1, 2008;

                 b. the terms and conditions, approved in those same orders, be amended to
                        reflect the agreed-to maximum investment levels in the 2008/2009 NSA and
                        be made effective for January 1, 2008; and


     November 5, 2007                                      FortisAlberta Interim 2008 Distribution Tariff Application
                                                                                                               Page i
                 c. the 2008 transmission adjustment rider percentages as approved in Decision
                        2007-049 be updated and revised in accordance with the Final 2006 ACDA
                        and 2008 TAR Application and be made effective from January 1, 2008,
                        through December 31, 2008.

 5   3. The grounds upon which the request for approval of the interim tariff is made may be
         summarized as follows.

         a. The Distribution Revenue Requirement reflected in the interim tariff corresponds to
             the forecast for 2008 in the 2008/2009 NSA, such that an increase of 6.8% is required
             to the distribution component of the rates for 2008 interim tariff purposes.

10       b. With respect to the Transmission Revenue Requirement, the transmission cost
             forecast for 2008 in Appendix B of the 2008/2009 NSA related to distribution
             connected load, and before consideration of the AESO’s Rider F, gives rise to an
             interim base transmission component rate increase effective January 1, 2008 of 2.7%
             as set out in this Application. This level of increase, combined with the increase to the
15           AESO’s Rider F refund in 2008, gives rise to a combined FortisAlberta overall
             transmission revenue requirement decrease of 22.7%, effective January 1, 2008.
             These numbers reflect the effects of Rate 65 transmission connected services for
             which the AESO tariff applies. This also includes the effects of Rider F - Balancing
             Pool Consumer Allocation Rider, as applied for by the AESO in Application No.
20           1530909, which as noted above has been forecast to reduce the increase in
             transmission costs in 2008.

         c. The total combined 2008 revenue change for both transmission and distribution
             components, including Rider F, is a decrease of 6.7%.

         d. The rate design methodology in this interim application remains consistent with the
25           methodology used to determine the current approved tariff in place for FortisAlberta,
             as established effective January 1, 2007 pursuant to Decision 2006-099 and Order


     November 5, 2007                                   FortisAlberta Interim 2008 Distribution Tariff Application
                                                                                                           Page ii
                U2006-323, and each of the transmission and distribution components have been
                scaled “across the board” in accordance with the 2008/2009 NSA. The proposed
                transmission, distribution and combined total revenue changes that result are
                displayed on Schedule 4.1 of this Application.

 5       e. The Terms & Conditions of Service proposed for interim approval effective January
                1, 2008 are the same as those approved by the Board Order U2006-323, save for the
                changes to the maximum investment levels as agreed to in the 2008/2009 NSA.

     4. Board Order U2006-323 established, for the period January 1, 2007 to December 31,
         2007, a 2007 Distribution Adjustment Rider, which will terminate according to its terms
10       effective December 31, 2007.

     5. Board Order U2006-323 also established, for the period January 1, 2007 to December 31,
         2007, a 2007 Transmission Adjustment Rider, which will also terminate according to its
         terms effective December 31, 2007.

     6. Board Decision 2007-049 established, for the period January 1, 2008 to December 31,
15       2008, a 2008 Transmission Adjustment Rider, which FortisAlberta has recalculated as
         detailed in the Final 2006 ACDA and 2008 TAR Application, and has further requested
         that such revised 2008 TAR be made effective from January 1, 2008, through December
         31, 2008, effectively replacing the initially approved 2008 TAR in Decision 2007-049.

     7. FortisAlberta accordingly requests that, effective January 1, 2008, its tariff be rendered
20       interim, and that the interim tariff to be in place effective January 1, 2008 consist of:

         (i)       the Rates, Options and Riders Schedules attached to and forming part of this
                   Interim Tariff Application as Appendix 1; and

         (ii)      the Customer Terms and Conditions of Distribution Access Service and Retailer
                   Terms and Conditions of Distribution Access Service, attached to and forming
25                 part of this Interim Tariff Application as Appendix 2.




     November 5, 2007                                     FortisAlberta Interim 2008 Distribution Tariff Application
                                                                                                            Page iii
     8. FortisAlberta further requests that once the Board has issued its orders with respect to
         approval of the 2008/2009 NSA Application and the Final 2006 ACDA and 2008 TAR
         Application, that the interim tariff for 2008 be rendered final, subject to the ongoing true-
         up obligation in respect of ACDA matters.

 5   9. Given the interim nature of the relief sought in this Application and the desirability of
         commencing billing effective January 1, 2008 to reflect the changes in this Application,
         FortisAlberta suggest that a written process be used to consider this Application.

     10. Notices and communications in connection with this Application should be directed to:

             Miles Stroh
10           Director, Regulatory Affairs
             FortisAlberta Inc.
             320 – 17th Avenue SW
             Calgary, AB T2S 2V1
             Phone: (403) 514-4229
15           Fax: (403) 514-5229
             E-mail: miles.stroh@fortisalberta.com and
             E-mail:regdept@fortisalberta.com

     With a copy to:
20
             Terence Dalgleish, Q.C.
             Davis LLP
             3000 Shell Centre, 400 4th Avenue SW
             Calgary, AB T2P 0J4
25           Phone: (403) 698-8740
             Fax: (403) 697-6605
             E-mail: tdalgleish@davis.ca

     All of which is respectfully submitted by FortisAlberta Inc. this 5th day of November, 2007.

30           “original signed”
     Per:________________________________________
         Miles Stroh
         Director, Regulatory Affairs




     November 5, 2007                                   FortisAlberta Interim 2008 Distribution Tariff Application
                                                                                                          Page iv
 1   SECTION 1 OVERVIEW

 2   FortisAlberta is filing this 2008 Interim Tariff Application separate from its request to the
 3   Board for approval of its 2008/2009 NSA and its Final 2006 ACDA amounts and 2008 TAR,
 4   to allow adequate time for Board approval and FortisAlberta billing implementation of the
 5   interim rates sufficiently in advance of the proposed effective date of January 1, 2008. The
 6   proposed 2008 Interim Tariff changes are being driven by the agreed-to revenue
 7   requirements and maximum investment levels in the 2008/2008 NSA and the requested
 8   revision to the 2008 TAR in the Final 2006 ACDA and 2008 TAR Application. The
 9   particulars of this Interim Tariff Application conform to those that have been filed in those
10   other Applications to the Board.

11   Section 2 provides the basis upon which the distribution component of base rates has been
12   designed while Section 3 provides the basis upon which the transmission component of base
13   rates has been designed.

14   Section 4 sets out the rate design methodology for the interim rates and amendments to the
15   Terms and Conditions to reflect the 2008/2009 NSA. Further, FortisAlberta has provided
16   typical bill impacts on January 1, 2008 for select sizes within each customer class based on
17   the proposed Interim Tariff. These are provided for “wires only” bills with and without the
18   effect of riders, and an estimated “bundled” bill with all riders, energy and retail charges.




     November 5, 2007                                    FortisAlberta Interim 2008 Distribution Tariff Application
                                                                                                            Page 1
1   SECTION 2 2008 DISTRIBUTION COMPONENT COSTS


2           2.1        2008 Distribution Revenue Requirement in 2008/2009 NSA

3   For purposes of this Interim Tariff Application, the distribution component of base rates is
4   designed to recover the 2008 Distribution Revenue Requirement of $256.2 million as
5   provided in Schedule 1 of Appendix A of the 2008/2009 NSA.

6   In the event of any change to this distribution revenue requirement amount as a result of a
7   refiling and subsequent Board order(s) reflecting such matters as Board-approved 2008
8   return on equity and other matters contemplated in the 2008/2009 NSA, FortisAlberta would
9   intend to address the refund or recovery of any difference in a future rate or rider application.




    November 5, 2007                                   FortisAlberta Interim 2008 Distribution Tariff Application
                                                                                                          Page 2
 1   SECTION 3 2008 TRANSMISSION COMPONENT COSTS


 2           3.1        Transmission Cost Forecast

 3   For purposes of this Interim Tariff Application and in accordance with the 2008/2009 NSA,
 4   the transmission cost forecast reflects the volumes forecast in Schedules 7.2-A (2008) and
 5   applies the proposed DTS tariff structure and rates filed by the AESO on November 3, 2006.
 6   FortisAlberta used the proposed 2007 AESO DTS rate structure as the basis for the
 7   Transmission Volumes Forecast as it is the most current filed information on which to
 8   forecast 2008 transmission costs. These rates are the basis for the FortisAlberta transmission
 9   cost forecast used in this filing. FortisAlberta notes that this includes the updated rate for
10   Rider F - Balancing Pool Consumer Allocation Rider (from $3.00 per MWh on 2007 to $5.00
11   per MWh in 2008), filed by the AESO on October 23, 2007 and being Application No.
12   1530909, which has been forecast to reduce transmission costs in 2008.

13   The 2008 transmission cost forecast for distribution-connected load is shown in Schedule
14   7.2-B (2008) in Appendix B of the 2008/2009 NSA. Similarly, the 2008 transmission cost
15   forecast for transmission-connected load is shown in Schedule 7.2-C (2008) and is provided
16   for illustrative purposes only.

17   In summary, the forecast transmission costs for 2008 are:
18                                                                                             2008
19                                                                                          ($ millions)
20   Distribution Connected Load                                                               $ 195.1
21   Distribution Connected Load - Balancing Pool Refund                                         (83.1)
22   Transmission Connected Load (flow-through)                                                    94.0
23   Transmission Connected Load - Balancing Pool Refund                                         (46.4)
24   Transmission Connected DOS Load (flow-through)                                                 3.5
25       Total Forecast Transmission Costs                                                     $ 163.0




     November 5, 2007                                    FortisAlberta Interim 2008 Distribution Tariff Application
                                                                                                            Page 3
 1   SECTION 4 2008 INTERIM TARIFF PROPOSAL


 2            4.1       Interim Tariff Rate Design

 3   FortisAlberta’s rate design methodology for purposes of its 2008 Interim Tariff remains
 4   consistent with the methodology used to determine the distribution and transmission
 5   components of the current approved tariff in place for FortisAlberta, as established effective
 6   January 1, 2007 pursuant to Decision 2006-099 and Order U2006-323.

 7   In accordance with the 2008/2009 NSA, FortisAlberta is proposing the 2008 Interim Rates
 8   based on an across-the-board pro-rating of its 2007 Distribution Tariff Rates. To collect the
 9   proposed 2008 revenue requirement for rates starting January 1, 2008, FortisAlberta is
10   proposing to scale the distribution components of all the distribution rates by a scaling factor
11   to recover costs specifically assigned to the distribution function, while the scaling
12   adjustment to the transmission component is based on collecting forecast transmission costs.
13   The 6.8% Distribution rate increase is calculated as the difference between 2008 forecast
14   distribution revenue on existing rates compared to the 2008 Revenue Requirement. Similarly,
15   the 2.7% Transmission rate increase is calculated as the difference between 2008 forecast
16   transmission revenue on existing rates compared to the 2008 Transmission Cost Forecast.
17   The 65.9% increase to FortisAlberta’s Balancing Pool Allocation Rider (BPAR) will bring
18   the total BPAR forecast to be refunded to FortisAlberta customers in 2008 equal to the 2008
19   Rider F Amount forecast to be refunded to FortisAlberta from the AESO.

20   The following table shows how the required rate changes are derived:
      Rate                    Revenue        Forecast Revenue          Difference           Required Rate
      Component              Requirement     on Existing Rates                                Change
      Distribution              256.2              240.0                   16.2                6.8 %
      Transmission               195.1               189.9                  5.2                   2.7 %
      (excluding Rate 65)
      BPAR                       (83.1)              (50.1)               (33.0)                 65.9 %
      (excluding Rate 65)                                                                * increase to refund rider




     November 5, 2007                                     FortisAlberta Interim 2008 Distribution Tariff Application
                                                                                                             Page 4
 1   The resultant rate component scaling factors are summarized as such:
       Rate Component              Distribution Rate    Transmission Rate             Balancing Pool
       Scaling Factors               Component             Component                  Allocation Rider
       All Rate Classes                  1.068                  1.027                        1.659
       Excluding Rate 65
       Rate 65                           1.068              AESO Tariff                  AESO Tariff
                                                           Flow-Through                 Flow-Through

 2   The proposed revenue changes that result are displayed on Schedule 4.1-A of this Interim
 3   Tariff Application.
 4   The proposed Interim 2008 Rates, Options and Riders Schedules are attached as Appendix 1.

 5           4.2        Typical Bill Impacts

 6   Please refer to Schedule 4.2 entitled “2008 Bill Impacts”. FortisAlberta has provided bill
 7   impacts on January 1, 2008 for a low, typical and high usage customer in each rate class
 8   comparing a bill in 2007 and a bill after the January 1, 2008 effective date. These are
 9   provided for both a “wires only” bill including riders in Schedule 4.2-B and an estimated
10   “bundled” bill with energy, retail and riders in Schedule 4.2-A, based on the proposed
11   Interim 2008 Distribution Tariff.

12           4.3        Terms and Conditions

13   The Customer Terms and Conditions of Distribution Access Service approved for 2007 in
14   Board Order U2006-323 are proposed to remain effective January 1, 2008, with the
15   exception of the being amended to reflect the maximum investment levels as agreed to in the
16   2008/2009 NSA. This corresponds to the maximum investment levels (MILs) as proposed in
17   the FortisAlberta’s 2008/2009 DTA (Appendix N) with the exception of residential and street
18   lighting, which are being increased over 2007 levels by 10% effective January 1, 2008 and
19   by a further 10% over 2008 levels effective January 1, 2009.

20   The Retailer Terms and Conditions of Distribution Access Service approved for 2007 in
21   Board Order U2006-323 are proposed to remain unchanged and effective on January 1, 2008.

22   These proposed Interim 2008 Terms and Conditions of Distribution Access Service are
23   attached as Appendix 2.

     November 5, 2007                                  FortisAlberta Interim 2008 Distribution Tariff Application
                                                                                                          Page 5
FortisAlberta Inc.                                                                                                                                                                                                                         Schedule 4.1-A
2008 Interim Distribution Tariff Application                                                                                                                                                                                             November 5, 2007

                                                                                                                          2008 Revenue Change

                                                                                     A                      B                    C                        D                      E                    F             G              H            I

                                                                                         2008 Revenue on 2007 Rates                                   2008 Revenue on 2008 Proposed Rates                                 Revenue Change

  Line     Rate Class                                                        Transmission            Distribution             Total                Transmission            Distribution            Total       Transmission   Distribution    Total
                                                           Rate Code
  No.      Description                                                          $ 000                   $ 000                 $ 000                   $ 000                   $ 000                $ 000            %              %           %

   1       Residential                                         11            $        24,982         $     79,660         $ 104,642               $        20,573         $      84,974         $ 105,547        -17.7%          6.7%         0.9%

   2       FortisAlberta Farm                               21 - 23                      6,900             29,007               35,907                        5,740              30,977              36,717      -16.8%          6.8%          2.3%
   3       REA Farm                                  (1)    24 - 25                      4,868                335                5,203                        4,049                 358               4,407      -16.8%          6.8%         -15.3%
   4       FortisAlberta Irrigation                           26                         2,440              4,423                6,863                        2,181               4,726               6,907      -10.6%          6.8%          0.6%
   5       REA Irrigation                            (1)      29                            60                  1                   61                           53                   1                  54      -10.6%          6.8%         -10.3%

   6       Exterior Lighting                                31 - 38                       789              12,185               12,974                         676               12,992              13,668      -14.4%          6.6%         5.3%

   7       Small General Service                              41                      11,770               31,692               43,462                        9,534              33,836              43,370      -19.0%          6.8%         -0.2%
   8       Oil and Gas                                      44 - 45                    6,867               24,357               31,224                        5,137              26,005              31,143      -25.2%          6.8%         -0.3%

    9      General Service                                     61                     54,111               48,254             102,364                      42,441                51,520              93,962      -21.6%          6.8%          -8.2%
   10      Large General Service                               63                     27,055                9,511              36,566                      21,570                10,154              31,724      -20.3%          6.8%         -13.2%
   11      Transmission Connected                    (2)       65                     69,616                  616              70,233                      51,061                   658              51,719      -26.7%          6.8%         -26.4%
   12      Opportunity Transmission                  (3)       66

   13      Total FortisAlberta                                               $      209,457          $    240,042         $ 449,499               $       163,015         $    256,203          $ 419,218        -22.2%          6.8%         -6.7%




   Notes: (1) REA Farm and Irrigation shows FortisAlberta DT Total Revenue only as those REA wire owners have their own distribution costs and DTs that are not considered in this Application.
           (2) The Transmission component of Rate 65 Transmission Connected Service is shown for illustrative purposes only as these customers receive a flow-through of the AESO Tariff.
           (3) Rate 66 - Opportunity Transmission Service has not been forecast as it is zero or relatively small, and subject to deferral treatment in the Rate 66 Opportunity Transmission Margin Account.
FortisAlberta Inc.                                                                                                                                                                                                  Schedule 4.1-B
2008 Interim Distribution Tariff Application                                                                                                                                                                      November 5, 2007

                                                                                                         2008 Proposed Rates

                                        Transmission Charges                                         Base Rates         BPAR        Distribution Charges                                            Base Rates
                                       2008 Proposed Interim Increase:                                      2.7%          65.9%     2008 Proposed Interim Increase:                                      6.8%


   Rate Codes                                         Energy                            Capacity                        BPAR*                   Energy                           Capacity / Distance / Idle          Fixed ($/day)
                                            Block 1            Block 2   Block 1         Block 2           Block 3                    Block 1            Block 2      Block 1          Block 2          Block 3
   11 - Residential                         1.3292¢                                                                    (0.5230)¢     1.1865¢                                                                            $0.451

   21 - FortisAlberta Farm                   1.395¢                                                                    (0.5324)¢                                      $0.2754          $0.2289
   23 - FortisAlberta Grain Dryer            1.395¢                                                                    (0.5324)¢     0.9972¢                          $0.2754          $0.1441
   24 - REA Farm                             1.395¢                                                                    (0.5324)¢                                                                                       $0.0299
   25 - REA Large Farm                      0.4654¢                      $0.08650       $0.08650          $0.08650     (0.5324)¢                                                                                       $0.0299
   26 - FortisAlberta Irrigation             1.838¢                                                                    (0.5158)¢     0.3940¢                          $0.0702          $0.0603
   29 - REA Irrigation                       1.838¢                                                                    (0.5158)¢                                                                                       $0.0299

   31 - Street (investment)                                              0.0208¢                                       (0.0071)¢                                      0.0196¢                                           $0.403
   33 - Street (no investment)                                           0.0208¢                                       (0.0071)¢                                      0.0196¢                                           $0.112
   38 - Yard                                                             0.0208¢                                       (0.0071)¢                                      0.0196¢                                           $0.252

   41 - Small General Service               0.4695¢            0.4695¢   $0.0573         $0.0573                       (0.5226)¢     0.6332¢             0.0000¢      $0.25720         $0.13091
   44 - Oil and Gas (Demand)                                             $0.1193         $0.1193                       ($0.0590)                                      $0.39439         $0.26521
   45 - Oil and Gas (Energy)                0.4878¢                      $0.0668         $0.0668                       (0.5424)¢                                      $0.39439         $0.26521

   61 - General Service                  0.4654¢                         $0.0865         $0.0865          $0.0865      (0.5180)¢                                      $0.16656         $0.07474       $0.05712
   63 - Large General Service            0.4575¢                         $0.09990                                      (0.5095)¢                                      $0.01868         $10.2263
   65 - Transmission Connected         (See Schedule 7.2)                           (See Schedule 7.2)               AESO Rider F                                                                                       $20.67
   66 - Opportunity Transmission           8.2¢                                                                                        1.6¢

   *BPAR: Balancing Pool Allocation Rider
FortisAlberta Inc.                                                                                                      Schedule 4.1-C
2008 Interim Distribution Tariff Application                                                                          November 5, 2007

                                                     2008 Billing Determinants


                                                   Energy                            Capacity / Distance                    Fixed
   Rate Codes                            Block 1            Block 2      Block 1          Block 2          Block 3         Block 1
   11 - Residential                      2,551,807                                                                          121,280

   21 - FortisAlberta Farm                 661,020                         13,664            52,244
   23 - FortisAlberta Grain Dryer            4,399                             78               832
   24 - REA Farm                           469,416                                                                           11,965
   26 - FortisAlberta Irrigation           164,947                         57,248               828
   29 - REA Irrigation                       4,025                                                                               41

   31 - Street (investment)                                              3,284,001                                           25,295
   33 - Street (no investment)                                           1,279,165                                            5,986
   38 - Yard                                                               369,972                                            4,608

   41 - Small General Service              918,200           361,273       36,430          141,820
   44 - Oil and Gas (Demand)                                                26,237           58,959
   45 - Oil and Gas (Energy)               922,507

   61 - General Service                  6,656,455                        135,538           309,516          86,076
   63 - Large General Service            3,199,982                        232,569               586
   65 - Transmission Connected              (See Schedule 7.2)                                                               31,842
   66 - Opportunity Transmission               -
FortisAlberta Inc.                                                                                                                         Schedule 4.1-D
2008 Interim Distribution Tariff Application                                                                                             November 5, 2007

                                                     2008 Distribution Revenue on 2008 Proposed Rates
                                                                           ($000)


                                                                 Capacity                                         Options                      Total
                                        Energy                                             Fixed
   Rate Codes                                        Block 1      Block 2     Block 3                   Opt A      Opt I    Opt J             Revenue
   11 - Residential                    $ 30,277                                             54,697                               (0.1)    $      84,974

   21 - FortisAlberta Farm                             18,816      11,959                                                       (68.0)            30,707
   23 - FortisAlberta Grain Dryer              44         107         120                                                        (0.3)               271
   24 - REA Farm                                                                              358                                                    358
   26 - FortisAlberta Irrigation               650      4,019          50                                               7                          4,726
   29 - REA Irrigation                                                                             1                                                   1

   31 - Street (investment)                               644                               10,194                               (0.2)            10,837
   33 - Street (no investment)                            251                                  670                                                   921
   38 - Yard                                               73                                1,161                                                 1,234

   41 - Small General Service              5,814        9,370      18,566                                              87                         33,836
   44 - Oil and Gas (Demand)                           10,348      15,636                                              21                         26,005
   45 - Oil and Gas (Energy)

   61 - General Service                                22,575      23,133        4,917                     -14        909                         51,520
   63 - Large General Service                           4,344       5,995                                 -185                                    10,154
   65 - Transmission Connected                            658                                                                                        658
   66 - Opportunity Transmission                                                                                                                       0

   Total                               $ 36,785      $ 71,204    $ 75,458    $   4,917   $ 67,082       $ (199)   $ 1,024   $    (69)     $     256,203
FortisAlberta Inc.                                                                                                                         Schedule 4.1-E
2008 Interim Distribution Tariff Application                                                                                             November 5, 2007

                                                          2008 Distribution Revenue on 2007 Rates
                                                                            ($000)


                                                                 Capacity                                         Options                      Total
                                        Energy                                             Fixed
   Rate Codes                                        Block 1      Block 2     Block 3                   Opt A      Opt I    Opt J             Revenue
   11 - Residential                    $ 28,358                                              51,301                              (0.1)    $      79,660

   21 - FortisAlberta Farm                             17,620       11,201                                                      (68.0)            28,754
   23 - FortisAlberta Grain Dryer              41         101          112                                                       (0.3)               254
   24 - REA Farm                                                                               335                                                   335
   26 - FortisAlberta Irrigation               609      3,761          47                                               7                          4,423
   29 - REA Irrigation                                                                              1                                                  1

   31 - Street (investment)                               604                                 9,561                              (0.2)            10,165
   33 - Street (no investment)                            235                                   629                                                  864
   38 - Yard                                               68                                 1,088                                                1,156

   41 - Small General Service              5,445        8,776       17,390                                             81                         31,692
   44 - Oil and Gas (Demand)                            9,692       14,645                                             20                         24,357
   45 - Oil and Gas (Energy)

   61 - General Service                                21,144       21,666       4,605                     -13        851                         48,254
   63 - Large General Service                           4,070        5,615                                -173                                     9,511
   65 - Transmission Connected                            616                                                                                        616
   66 - Opportunity Transmission                                                                                                                       0

   Total                               $ 34,453      $ 66,688    $ 70,676    $   4,605    $ 62,915      $ (186)   $   959   $    (69)     $     240,042
FortisAlberta Inc.                                                                                                                                                       Schedule 4.1-F
2008 Interim Distribution Tariff Application                                                                                                                           November 5, 2007

                                                                2008 Transmission Revenue under 2008 Proposed Rates
                                                                                       ($000)


                                                     Energy                              Capacity                                                   Balancing Pool            Total
                                                                                                                          Fixed       Total
   Rate Codes                              Block 1            Block 2     Block 1         Block 2         Block 3                                   Allocation Rider         Revenue
   11 - Residential                    $     33,919                                                                               $    33,919       $       (13,346)     $     20,573

   21 - FortisAlberta Farm                     9,221                                                                                     9,221                -3,519             5,702
   23 - FortisAlberta Grain Dryer                 61                                                                                        61                   -23                38
   24 - REA Farm                               6,548                                                                                     6,548                -2,499             4,049
   26 - FortisAlberta Irrigation               3,032                                                                                     3,032                  -851             2,181
   29 - REA Irrigation                            74                                                                                        74                   -21                53

   31 - Street (investment)                                                    683                                                            683               -233              450
   33 - Street (no investment)                                                 266                                                            266                -91              175
   38 - Yard                                                                    77                                                             77                -26               51

   41 - Small General Service                  6,007                         2,087           8,126                                      16,221                -6,687             9,534
   44 - Oil and Gas (Demand)                                                 3,130           7,034                                      10,164                -5,027             5,137
   45 - Oil and Gas (Energy)                                                                                                                 0                                       0

   61 - General Service                      30,979                         11,724          26,773            7,446                     76,922               -34,480            42,441
   63 - Large General Service                14,640                         23,234                                                      37,874               -16,304            21,570
   65 - Transmission Connected               (See Schedule 7.2)                      (See Schedule 7.2)                                 97,449               -46,388            51,061
   66 - Opportunity Transmission                                                                                                             0                                       0

   Total                               $ 104,481          $        -     $ 41,201        $ 41,933         $   7,446   $      -    $   292,511       $      (129,495)     $    163,015
FortisAlberta Inc.                                                                                                                                                         Schedule 4.1-G
2008 Interim Distribution Tariff Application                                                                                                                             November 5, 2007

                                                                        2008 Transmission Revenue on 2007 Rates
                                                                                         ($000)


                                                     Energy                                Capacity                                                   Balancing Pool            Total
                                                                                                                            Fixed       Total
   Rate Codes                              Block 1            Block 2       Block 1         Block 2         Block 3                                   Allocation Rider         Revenue
   11 - Residential                    $     33,028                                                                                 $    33,028       $        (8,046)     $     24,982

   21 - FortisAlberta Farm                     8,977                                                                                       8,977                -2,122             6,855
   23 - FortisAlberta Grain Dryer                 60                                                                                          60                   -14                46
   24 - REA Farm                               6,375                                                                                       6,375                -1,507             4,868
   26 - FortisAlberta Irrigation               2,953                                                                                       2,953                  -513             2,440
   29 - REA Irrigation                            72                                                                                          72                   -13                60

   31 - Street (investment)                                                      667                                                            667               -141              525
   33 - Street (no investment)                                                   260                                                            260                -55              205
   38 - Yard                                                                      75                                                             75                -16               59

   41 - Small General Service                  5,850                           2,034           7,918                                      15,801                -4,032            11,770
   44 - Oil and Gas (Demand)                                                   3,049           6,851                                       9,900                -3,033             6,867
   45 - Oil and Gas (Energy)                                                                                                                   0                                       0

   61 - General Service                      30,167                           11,415          26,067            7,249                     74,899               -20,788            54,111
   63 - Large General Service                14,256                           22,629                                                      36,885                -9,830            27,055
   65 - Transmission Connected               (See Schedule 7.2)                        (See Schedule 7.2)                                 97,449               -27,833            69,616
   66 - Opportunity Transmission                                                                                                               0                                       0

   Total                               $ 101,736          $        -       $ 40,128        $ 40,836         $   7,249   $      -    $   287,399       $       (77,942)     $    209,457
FortisAlberta Inc.                                                                                                                                                         Schedule 4.1-H
2008 Interim Distribution Tariff Application                                                                                                                             November 5, 2007

                                                                        2007 Transmission Revenue on 2007 Rates
                                                                                         ($000)


                                                     Energy                                Capacity                                                   Balancing Pool            Total
                                                                                                                            Fixed       Total
   Rate Codes                              Block 1            Block 2       Block 1         Block 2         Block 3                                   Allocation Rider         Revenue
   11 - Residential                    $     30,419                                                                                 $    30,419       $        (7,410)     $     23,008

   21 - FortisAlberta Farm                     8,728                                                                                       8,728                -2,063             6,665
   23 - FortisAlberta Grain Dryer                 60                                                                                          60                   -14                46
   24 - REA Farm                               6,293                                                                                       6,293                -1,487             4,805
   26 - FortisAlberta Irrigation               2,946                                                                                       2,946                  -512             2,435
   29 - REA Irrigation                            55                                                                                          55                   -10                45

   31 - Street (investment)                                                      647                                                            647               -137              510
   33 - Street (no investment)                                                   255                                                            255                -54              201
   38 - Yard                                                                      79                                                             79                -17               62

   41 - Small General Service                  5,347                           1,910           7,140                                      14,397                -3,685            10,711
   44 - Oil and Gas (Demand)                                                   3,009           6,786                                       9,794                -3,001             6,794
   45 - Oil and Gas (Energy)                                                                                                                   0                                       0

   61 - General Service                      28,293                           10,553          23,889            6,914                     69,648               -19,497            50,152
   63 - Large General Service                14,250                           21,568                                                      35,818                -9,826            25,991
   65 - Transmission Connected               (See Schedule 7.2)                        (See Schedule 7.2)                                 98,975               -26,988            71,987
   66 - Opportunity Transmission                                                                                                               0                                       0

   Total                               $     96,391       $        -       $ 38,020        $ 37,814         $   6,914   $      -    $   278,114       $       (74,701)     $    203,413
FortisAlberta Inc.                                                                                                                                                    Schedule 4.1-I
2008 Interim Distribution Tariff Application                                                                                                                       November 5, 2007

                                                                                      2007 Existing Rates



                                                              Transmission Charges (per unit)                                 Distribution Charges (per unit)
   Rate Codes                                Energy                    Capacity                     BPAR*        Energy               Capacity / Distance             Fixed ($/day)
                                                           Block 1      Block 2       Block 3                              Block 1        Block 2        Block 3
   11 - Residential                          1.2943¢                                               (0.3153)¢     1.1113¢                                                $0.4230

   21 - FortisAlberta Farm                    1.358¢                                               (0.3210)¢               $0.2579       $0.2144
   23 - FortisAlberta Grain Dryer             1.358¢                                               (0.3210)¢     0.934¢    $0.2579       $0.1350
   24 - REA Farm                              1.358¢                                               (0.3210)¢                                                             $0.0280
   25 - REA Large Farm                       0.4532¢      $0.08422      $0.08422      $0.08422     (0.3210)¢                                                            $0.02800
   26 - FortisAlberta Irrigation              1.790¢                                               (0.3110)¢     0.369¢    $0.0657       $0.0564
   29 - REA Irrigation                        1.790¢                                               (0.3110)¢                                                            $0.02800

   31 - Street (investment)                                0.0203¢                                 (0.0043)¢               0.01840¢                                     $0.37800
   33 - Street (no investment)                             0.0203¢                                 (0.0043)¢               0.01840¢                                     $0.10500
   38 - Yard                                               0.0203¢                                 (0.0043)¢               0.01840¢                                     $0.23600

   41 - Small General Service                0.4572¢      $0.05583      $0.05583                   (0.3151)¢     0.593¢    $0.24090     $0.12262
   44 - Oil and Gas (Demand)                               $0.1162       $0.1162                   ($0.0356)               $0.36940     $0.24840
   45 - Oil and Gas (Energy)                 0.4750¢       $0.0650       $0.0650                   (0.3270)¢               $0.36940     $0.24840

   61 - General Service                       0.4532¢      $0.08422      $0.08422      $0.08422    (0.3123)¢               $0.15600     $0.07000       $0.05350
   63 - Large General Service                 0.4455¢      $0.09730                                (0.3072)¢               $0.01750     $9.57810
   65 - Transmission Connected              (See Schedule 7.2)      (See Schedule 7.2)            AESO Rider F                                                           $19.36
   66 - Opportunity Transmission                8.0¢                                                              1.5¢

   *BPAR: Balancing Pool Allocation Rider
FortisAlberta Inc.                                                                                                       Schedule 4.1-J
2008 Interim Distribution Tariff Application                                                                          November 5, 2007

                                                     2007 Billing Determinants


                                                   Energy                            Capacity / Distance                    Fixed
   Rate Codes                            Block 1            Block 2      Block 1          Block 2          Block 3         Block 1
   11 - Residential                      2,350,191                                                                           115,965

   21 - FortisAlberta Farm                 642,731                         67,068            50,707
   23 - FortisAlberta Grain Dryer            4,435                             64               828
   24 - REA Farm                           463,375                                                                            11,746
   26 - FortisAlberta Irrigation           164,606                         68,479               844
   29 - REA Irrigation                       3,071                                                                               30

   31 - Street (investment)                                              3,189,495                                            24,366
   33 - Street (no investment)                                           1,254,367                                             5,800
   38 - Yard                                                               388,993                                             4,887

   41 - Small General Service              863,726           305,852       34,206           127,883
   44 - Oil and Gas (Demand)                                               25,891            58,399
   45 - Oil and Gas (Energy)               916,967

   61 - General Service                  6,242,924                        125,299          283,648           82,095
   63 - Large General Service            3,198,638                        221,663              587
   65 - Transmission Connected              (See Schedule 7.2)
   66 - Opportunity Transmission               -
FortisAlberta Inc.                                                                                                   4.2-A Bundled Bill
2008 Interim Distribution Tariff Application                                                                         November 5, 2007

                                          Typical Bill Impacts by Rate Class -
                                   Including Energy, Retail, and DT Rates & Riders

                                                                                A                     B                     C
                                                                           Monthly / Seasonal Bill
Line                                                                                                                 2008 vs. 2007
               Rate Class Description                  Usage               2007 Bill             2008 Bill
No.                                                                                                                  [(B-A)/A]

  1                                                     Low            $         56.48      $          57.44              1.7%
  2      Rate 11 - Residential                         Typical                   90.81                 91.84              1.1%
  3                                                     High                    159.49                160.62              0.7%

  4                                                     Low            $        142.29      $         144.93              1.9%
  5      Rate 21 - FortisAlberta Farm                  Typical                  211.45                215.08              1.7%
  6                                                     High                    968.23                976.69              0.9%

  7                                                     Low            $        102.36      $         101.69              -0.7%
  8      Rate 24 - REA Farm (1)                        Typical                  154.51                153.43              -0.7%
  9                                                     High                    790.75                784.58              -0.8%

 10                                                     Low            $      2,808.20      $       2,898.46              3.2%
 11      Rate 26 - FortisAlberta Irrigation            Typical                4,887.54              5,013.62              2.6%
 12                                                     High                  6,966.88              7,128.78              2.3%

 13                                                     Low            $      2,080.50      $       2,109.92              1.4%
 14      Rate 29 - REA Irrigation (1)                  Typical                4,068.58              4,127.02              1.4%
 15                                                     High                  6,056.66              6,144.12              1.4%

 16      Rate 3X - Exterior Lighting                   Rate 31         $      1,673.87      $       1,782.42              6.5%
 17                                                    Rate 33                  773.40                809.95              4.7%
 18                                                    Rate 38                1,191.70              1,263.98              6.1%

 19                                                     Low            $        150.84      $         153.19              1.6%
 20      Rate 41 - Small General Service               Typical                  287.59                291.63              1.4%
 21                                                     High                  1,381.63              1,399.19              1.3%

 22                                                     Low            $        297.34      $         302.00              1.6%
 23      Rate 44/45 - Oil & Gas Service                Typical                  573.34                581.06              1.3%
 24                                                     High                  2,781.34              2,813.50              1.2%

 25                                                     Low            $     4,883.04       $       4,883.56               0.0%
 26      Rate 61 - General Service                     Typical              23,408.30              23,362.20              -0.2%
 27                                                     High                69,426.87              69,217.40              -0.3%

 28                                                     Low            $ 126,927.17         $     126,464.77              -0.4%
 29      Rate 63 - Large General Service               Typical           275,251.45               273,425.57              -0.7%
 30                                                     High             618,842.77               613,722.88              -0.8%

Notes:
REA Farm, REA Irrigation and Wholesale are shown without those wire owners distribution costs and as a result, FortisAlberta would
expect that the impacts would actually be much lower when their DTs are considered.
Rate 65 Customers receive a flow through of AESO DTS costs

Riders Included:
- Municipal Franchise Fee (avg. of 4.16% of DT)
- Municipal Assessment Rider (2.46% on July 1, 2007)
- 2007 & 2008 BPAR
- 2007 & 2008 TAR
- 2007 DAR

Retail / Energy Price Assumptions:
Rates 11 thru 44 -- Jan to Oct 2007 Average EEAI RRT Rates
Rates 61 & 63 -- EPCOR Default Supply Rates
FortisAlberta Inc.                                                                                         4.2-B Base DT + Riders Bill
2008 Interim Distribution Tariff Application                                                                       November 5, 2007

                                              Typical Bill Impacts by Rate Class -
                                                 Including DT Rates & Riders

                                                                                A                     B                     C
                                                                           Monthly / Seasonal Bill
Line                                                                                                                 2008 vs. 2007
               Rate Class Description                  Usage               2007 Bill             2008 Bill
No.                                                                                                                  [(B-A)/A]

  1                                                     Low            $         20.61      $             21.80           5.8%
  2      Rate 11 - Residential                         Typical                   27.96                    29.00           3.7%
  3                                                     High                     42.20                    43.35           2.7%

  4                                                     Low            $         51.11      $          53.75              5.2%
  5      Rate 21 - FortisAlberta Farm                  Typical                   73.87                 77.50              4.9%
  6                                                     High                    264.57                273.03              3.2%

  7                                                     Low            $         11.18      $             10.51           -6.0%
  8      Rate 24 - REA Farm (1)                        Typical                   16.93                    15.85           -6.4%
  9                                                     High                     87.09                    80.92           -7.1%

 10                                                     Low            $      1,012.10      $       1,102.36              8.9%
 11      Rate 26 - FortisAlberta Irrigation            Typical                1,381.78              1,507.87              9.1%
 12                                                     High                  1,751.47              1,913.38              9.2%

 13                                                     Low            $        284.39      $         313.81             10.3%
 14      Rate 29 - REA Irrigation (1)                  Typical                  562.82                621.26             10.4%
 15                                                     High                    841.25                928.71             10.4%

 16      Rate 3X - Exterior Lighting                   Rate 31         $      1,355.45      $       1,464.00              8.0%
 17                                                    Rate 33                  483.72                520.27              7.6%
 18                                                    Rate 38                  902.03                974.30              8.0%

 19                                                     Low            $         44.93      $          47.28              5.2%
 20      Rate 41 - Small General Service               Typical                   82.32                 86.36              4.9%
 21                                                     High                    381.48                399.04              4.6%

 22                                                     Low            $        101.02      $         105.68              4.6%
 23      Rate 44/45 - Oil & Gas Service                Typical                  182.70                190.42              4.2%
 24                                                     High                    836.15                868.31              3.8%

 25                                                     Low            $        726.63      $         727.14               0.1%
 26      Rate 61 - General Service                     Typical                3,086.27              3,040.17              -1.5%
 27                                                     High                  8,460.78              8,251.31              -2.5%

 28                                                     Low            $    15,675.17       $      15,212.77              -2.9%
 29      Rate 63 - Large General Service               Typical              28,438.45              26,612.57              -6.4%
 30                                                     High                54,698.77              49,578.88              -9.4%

Notes:
REA Farm, REA Irrigation and Wholesale are shown without those wire owners distribution costs and as a result, FortisAlberta would
expect that the impacts would actually be much lower when their DTs are considered.
Rate 65 Customers receive a flow through of AESO DTS costs

Riders Included:
- Municipal Franchise Fee (avg. of 4.16% of DT)
- Municipal Assessment Rider (2.46% on July 1, 2007)
- 2007 & 2008 BPAR
- 2007 & 2008 TAR
- 2007 DAR

Retail / Energy Price Assumptions:
n/a
FortisAlberta Inc.                                                                                 4.2-C Base DT (no riders) Bill
2008 Interim Distribution Tariff Application                                                                 November 5, 2007

                                           Typical Bill Impacts by Rate Class -
                                                      DT Rates only

                                                                             A                    B                     C
                                                                         Monthly / Seasonal Bill
Line                                                                                                             2008 vs. 2007
              Rate Class Description                 Usage               2007 Bill           2008 Bill
No.                                                                                                              [(B-A)/A]

 1                                                    Low            $        20.08      $            21.27           5.9%
 2       Rate 11 - Residential                      Typical                   27.30                   28.82           5.6%
 3                                                    High                    41.73                   43.91           5.2%

 4                                                   Low             $        51.44      $          54.44             5.8%
 5       Rate 21 - FortisAlberta Farm               Typical                   74.54                 78.82             5.7%
 6                                                   High                    271.50                285.76             5.3%

 7                                                    Low            $        13.07      $            13.46           3.0%
                               (1)
 8       Rate 24 - REA Farm                         Typical                   19.86                   20.44           2.9%
 9                                                    High                   102.70                105.53             2.8%

 10                                                   Low            $     1,061.00      $       1,118.59             5.4%
 11      Rate 26 - FortisAlberta Irrigation         Typical                1,495.86              1,568.16             4.8%
 12                                                   High                 1,930.73              2,017.72             4.5%

 13                                                   Low            $       366.50      $         376.58             2.7%
                                     (1)
 14      Rate 29 - REA Irrigation                   Typical                  727.05                746.79             2.7%
 15                                                   High                 1,087.59              1,117.00             2.7%

 16      Rate 3X - Exterior Lighting                Rate 31          $     1,305.72      $       1,388.61             6.3%
 17                                                 Rate 33                  475.34                503.49             5.9%
 18                                                 Rate 38                  873.80                929.32             6.4%

 19                                                   Low            $        45.27      $            47.78           5.5%
 20      Rate 41 - Small General Service            Typical                   83.35                   87.88           5.4%
 21                                                   High                   387.95                408.65             5.3%

 22                                                   Low            $       101.58      $         107.36             5.7%
 23      Rate 44/45 - Oil & Gas Service             Typical                  184.75                195.08             5.6%
 24                                                   High                   850.15                896.81             5.5%

 25                                                   Low            $       781.18      $         816.26             4.5%
 26      Rate 61 - General Service                  Typical                3,382.71              3,522.73             4.1%
 27                                                   High                 9,384.68              9,752.96             3.9%

 28                                                   Low            $    17,103.81      $     17,759.25              3.8%
 29      Rate 63 - Large General Service            Typical               32,337.70            33,455.77              3.5%
 30                                                   High                64,431.54            66,518.68              3.2%

Notes:
REA Farm, REA Irrigation and Wholesale are shown without those wire owners distribution costs and as a result, FortisAlberta would
expect that the impacts would actually be much lower when their DTs are considered.
Rate 65 Customers receive a flow through of AESO DTS costs

Riders Included:
n/a




Retail / Energy Price Assumptions:
n/a
Residential Service Rate 11- Low Scenario
                                                         January 1, 2006

Base Charges                             Transmission       Distribution     Energy     Retail                  Units    Charges
Energy Charge (¢/kWh)                      1.286¢/kWh        1.27¢/kWh     8.026¢/kWh                           300       $31.75
Basic Monthly Charge ($/month)                                $12.25                    $8.43                    1        $20.68
Total Base Charges                          $3.86             $16.06        $24.08      $8.43                             $52.43


Riders                                     T Riders          D Riders      G Riders              Other Riders
Balancing Pool Adjustment Rider          - 0.104¢/kWh                                                           300.00    ($0.31)
Municipal Assessment Rider                                    1.89%                                             19.92      $0.38
Municipal Franchise (Local Access) Fee                                                              3.35%       19.92      $0.67
Total Riders                                ($0.31)           $0.06                                 $1.04                  $0.73

Final Charges                               $3.55             $16.12        $24.08      $8.43       $1.04                 $53.16
Percentage                                    7%                30%          45%         16%         2%                     100%




                                                         January 1, 2007

Base Charges                             Transmission       Distribution     Energy     Retail                  Units    Charges
Energy Charge (¢/kWh)                      1.29¢/kWh        1.1113¢/kWh    9.070¢/kWh                           300       $34.43
Basic Monthly Charge ($/month)                                $12.87                    $8.43                    1        $21.30
Total Base Charges                          $3.88             $16.20        $27.21      $8.43                             $55.73


Riders                                      T Riders         D Riders      G Riders              Other Riders
Transmission Adjustment Rider                11.45%                                                              3.88      $0.44
Balancing Pool Adjustment Rider           - 0.32¢/kWh                                                           300.00    ($0.95)
Distribution Adjustment Rider                                 -1.87%                                            16.20     ($0.07)
Municipal Assessment Rider                                     2.46%                                            20.08      $0.49
Municipal Franchise (Local Access) Fee                                                              4.16%       20.08      $0.84
Total Riders                                ($0.50)           $0.19                                 $0.84                  $0.75

Final Charges                               $3.38             $16.39        $27.21      $8.43       $0.84                 $56.48
Percentage                                    6%                29%          48%         15%         1%                     100%




                                                         January 1, 2008

Base Charges                             Transmission       Distribution     Energy     Retail                  Units    Charges
Energy Charge (¢/kWh)                     1.3292¢/kWh       1.1865¢/kWh    9.070¢/kWh                           300       $34.76
Basic Monthly Charge ($/month)                                $13.72                    $8.43                    1        $22.15
Total Base Charges                          $3.99             $17.28        $27.21      $8.43                             $56.91


Riders                                      T Riders         D Riders      G Riders              Other Riders
Transmission Adjustment Rider                17.62%                                                              3.99      $0.70
Balancing Pool Adjustment Rider          - 0.5230¢/kWh                                                          300.00    ($1.57)
Municipal Assessment Rider                                    2.46%                                             21.27      $0.52
Municipal Franchise (Local Access) Fee                                                              4.16%       21.27      $0.88
Total Riders                                ($0.87)           $0.52                                 $0.88                  $0.53

Final Charges                               $3.12             $17.80        $27.21      $8.43       $0.88                 $57.44
Percentage                                    5%                31%          47%         15%         2%                     100%


Consumption                                   300
Period                                         1
Residential Service Rate 11- Typical Scenario
                                                         January 1, 2006

Base Charges                             Transmission       Distribution     Energy     Retail                  Units    Charges
Energy Charge (¢/kWh)                      1.286¢/kWh        1.27¢/kWh     8.026¢/kWh                           600       $63.49
Basic Monthly Charge ($/month)                                $12.25                    $8.43                    1        $20.68
Total Base Charges                          $7.72             $19.87        $48.16      $8.43                             $84.17


Riders                                     T Riders          D Riders      G Riders              Other Riders
Balancing Pool Adjustment Rider          - 0.104¢/kWh                                                           600.00    ($0.62)
Municipal Assessment Rider                                    1.89%                                             27.59      $0.52
Municipal Franchise (Local Access) Fee                                                              3.35%       27.59      $0.92
Total Riders                                ($0.62)           ($0.10)                               $0.92                  $0.82

Final Charges                               $7.72             $19.77        $48.16      $8.43       $0.92                 $84.99
Percentage                                    9%                23%          57%         10%         1%                     100%




                                                         January 1, 2007

Base Charges                             Transmission       Distribution     Energy     Retail                  Units    Charges
Energy Charge (¢/kWh)                      1.29¢/kWh         1.11¢/kWh     9.070¢/kWh                           600       $68.85
Basic Monthly Charge ($/month)                                $12.87                    $8.43                    1        $21.30
Total Base Charges                          $7.77             $19.53        $54.42      $8.43                             $90.15


Riders                                      T Riders         D Riders      G Riders              Other Riders
Transmission Adjustment Rider                11.45%                                                              7.77      $0.89
Balancing Pool Adjustment Rider           - 0.32¢/kWh                                                           600.00    ($1.89)
Distribution Adjustment Rider                                 -1.87%                                            19.53     ($0.15)
Municipal Assessment Rider                                     2.46%                                            27.30      $0.67
Municipal Franchise (Local Access) Fee                                                              4.16%       27.30      $1.14
Total Riders                                ($1.00)           $0.52                                 $1.14                  $0.66

Final Charges                               $6.77             $20.05        $54.42      $8.43       $1.14                 $90.81
Percentage                                    7%                22%          60%         9%          1%                     100%




                                                         January 1, 2008

Base Charges                             Transmission       Distribution     Energy     Retail                  Units    Charges
Energy Charge (¢/kWh)                     1.3292¢/kWh       1.1865¢/kWh    9.070¢/kWh                           600       $69.51
Basic Monthly Charge ($/month)                                $13.72                    $8.43                    1        $22.15
Total Base Charges                          $7.98             $20.84        $54.42      $8.43                             $91.66


Riders                                      T Riders         D Riders      G Riders              Other Riders
Transmission Adjustment Rider                17.62%                                                              7.98      $1.41
Balancing Pool Adjustment Rider          - 0.5230¢/kWh                                                          600.00    ($3.14)
Municipal Assessment Rider                                    2.46%                                             28.82      $0.71
Municipal Franchise (Local Access) Fee                                                              4.16%       28.82      $1.20
Total Riders                                ($1.73)           $0.71                                 $1.20                  $0.18

Final Charges                               $6.25             $21.55        $54.42      $8.43       $1.20                 $91.84
Percentage                                    7%                23%          59%         9%          1%                     100%


Consumption                                   600
Period                                         1
Residential Service Rate 11- High Scenario
                                                        January 1, 2006

Base Charges                             Transmission      Distribution     Energy     Retail                   Units    Charges
Energy Charge (¢/kWh)                      1.286¢/kWh       1.27¢/kWh     8.026¢/kWh                            1200     $126.98
Basic Monthly Charge ($/month)                               $12.25                    $8.43                     1        $20.68
Total Base Charges                          $15.43           $27.49        $96.31      $8.43                             $147.66


Riders                                     T Riders         D Riders      G Riders              Other Riders
Balancing Pool Adjustment Rider          - 0.104¢/kWh                                                          1200.00    ($1.25)
Municipal Assessment Rider                                   1.89%                                              42.92      $0.81
Municipal Franchise (Local Access) Fee                                                             3.35%        42.92      $1.44
Total Riders                                ($1.25)          ($0.44)                               $1.44                   $1.00

Final Charges                               $15.43           $27.05        $96.31      $8.43       $1.44                 $148.67
Percentage                                   10%               18%          65%         6%          1%                      100%




                                                        January 1, 2007

Base Charges                             Transmission      Distribution     Energy     Retail                   Units    Charges
Energy Charge (¢/kWh)                      1.29¢/kWh        1.11¢/kWh     9.070¢/kWh                            1200     $137.71
Basic Monthly Charge ($/month)                               $12.87                    $8.43                     1        $21.30
Total Base Charges                          $15.53           $26.20       $108.84      $8.43                             $159.01


Riders                                      T Riders        D Riders      G Riders              Other Riders
Transmission Adjustment Rider                11.45%                                                             15.53      $1.78
Balancing Pool Adjustment Rider           - 0.32¢/kWh                                                          1200.00    ($3.78)
Distribution Adjustment Rider                                -1.87%                                             26.20     ($0.29)
Municipal Assessment Rider                                   2.46%                                              41.73      $1.03
Municipal Franchise (Local Access) Fee                                                             4.16%        41.73      $1.74
Total Riders                                ($2.01)          $0.74                                 $1.74                   $0.48

Final Charges                               $13.52           $26.94       $108.84      $8.43       $1.74                 $159.49
Percentage                                    8%               17%          68%         5%          1%                      100%




                                                        January 1, 2008

Base Charges                             Transmission      Distribution     Energy     Retail                   Units    Charges
Energy Charge (¢/kWh)                     1.3292¢/kWh      1.1865¢/kWh    9.070¢/kWh                            1200     $139.03
Basic Monthly Charge ($/month)                               $13.72                    $8.43                     1        $22.15
Total Base Charges                          $15.95           $27.96       $108.84      $8.43                             $161.18


Riders                                      T Riders        D Riders      G Riders              Other Riders
Transmission Adjustment Rider                17.62%                                                             15.95      $2.81
Balancing Pool Adjustment Rider          - 0.5230¢/kWh                                                         1200.00    ($6.28)
Municipal Assessment Rider                                   2.46%                                              43.91      $1.08
Municipal Franchise (Local Access) Fee                                                             4.16%        43.91      $1.83
Total Riders                                ($3.47)          $1.08                                 $1.83                  ($0.56)

Final Charges                               $12.48           $29.04       $108.84      $8.43       $1.83                 $160.62
Percentage                                    8%               18%          68%         5%          2%                      100%


Consumption                                  1,200
Period                                         1
FortisAlberta Farm Service Rate 21 - Low Scenario
                                                         January 1, 2006

Base Charges                             Transmission       Distribution     Energy     Retail                  Units    Charges
Energy Charge (¢/kWh)                      1.440¢/kWh                      8.442¢/kWh                            900      $88.94
Capacity Charge ($)
      First 5 kV.A                                            $32.02                                              5       $32.02
      all additional kV.A                                     $5.40                                               0        $0.00
Monthly Charge ($)                                                                      $7.66                     1        $7.66
Total Base Charges                          $12.96            $32.02        $75.98      $7.66                            $128.62


Riders                                      T Rider           D Rider       G Rider              Other Riders
Balancing Pool Adjustment Rider          - 0.109¢/kWh                                                            900      ($0.98)
Municipal Franchise (Local Access) Fee                                                              3.35%       44.98      $1.51
Total Riders                                ($0.98)                                                 $1.51                  $0.53


Final Charges                                11.98             32.02         75.98      7.66         1.51                $129.14
Percentage                                    9%                25%          59%         6%          1%                     100%




                                                         January 1, 2007

Base Charges                             Transmission       Distribution     Energy     Retail                  Units    Charges
Energy Charge (¢/kWh)                      1.358¢/kWh                      9.280¢/kWh                            900      $95.74
Capacity Charge ($)
      First 5 kV.A                                            $39.22        0.2579                                5       $39.22
      all additional kV.A                                     $6.15                                               0        $0.00
Monthly Charge ($)                                                                      $7.66                     1        $7.66
Total Base Charges                          $12.22            $39.22        $83.52      $7.66                            $142.62


Riders                                      T Rider           D Rider       G Rider              Other Riders
Transmission Adjustment Rider                8.33%                                                              12.22      $1.02
Balancing Pool Adjustment Rider           - 0.32¢/kWh                                                           900.00    ($2.89)
Distribution Adjustment Rider                                 -1.55%                                              39      ($0.61)
Municipal Franchise (Local Access) Fee                                                              4.16%       51.44      $2.14
Total Riders                                ($1.87)           ($0.61)                               $2.14                 ($0.34)


Final Charges                                10.35             38.61         83.52      7.66         2.14                $142.29
Percentage                                    7%                27%          59%         5%          2%                     100%




                                                         January 1, 2008

Base Charges                             Transmission       Distribution     Energy     Retail                  Units    Charges
Energy Charge (¢/kWh)                      1.395¢/kWh                      9.280¢/kWh                            900      $96.08
Capacity Charge ($)
      First 5 kV.A                                           $0.2754                                              5       $41.88
      all additional kV.A                                    $0.2289                                              0        $0.00
Monthly Charge ($)                                                                      $7.66                     1        $7.66
Total Base Charges                          $12.56            $41.88        $83.52      $7.66                            $145.62


Riders                                       T Rider          D Rider       G Rider              Other Riders
Transmission Adjustment Rider                14.64%                                                             12.56      $1.84
Balancing Pool Adjustment Rider          - 0.5324¢/kWh                                                          900.00    ($4.79)
Municipal Franchise (Local Access) Fee                                                              4.16%       54.44      $2.26
Total Riders                                ($2.95)                                                 $2.26                 ($0.69)
FortisAlberta Farm Service Rate 21 - Low Scenario

Final Charges                       9.60            41.88   83.52   7.66   2.26   $144.93
Percentage                           7%             29%     58%     5%     2%        100%


Consumption                          900
kV.a                                 5.0
Load Factor                         27.4%
Demand                                5
Horsepower                            6
Billing Cycle (Monthly)               1
FortisAlberta Farm Service Rate 21 - Typical Scenario
                                                         January 1, 2006

Base Charges                             Transmission       Distribution     Energy     Retail                  Units   Charges
Energy Charge (¢/kWh)                      1.440¢/kWh                      8.442¢/kWh                           1400    $138.35
Capacity Charge ($)
      First 5 kV.A                                            $32.02                                              5      $32.02
      all additional kV.A                                     $5.40                                               3      $13.50
Monthly Charge ($)                                                                      $7.66                     1       $7.66
Total Base Charges                          $20.16            $45.52       $118.19      $7.66                           $191.53


Riders                                      T Rider           D Rider       G Rider              Other Riders
Balancing Pool Adjustment Rider          - 0.109¢/kWh                                                            1400    ($1.53)
Municipal Franchise (Local Access) Fee                                                              3.35%       65.68     $2.20
Total Riders                                ($1.53)                                                 $2.20                 $0.67


Final Charges                                18.63             45.52        118.19      7.66         2.20               $192.20
Percentage                                   10%                24%          61%         4%          1%                    100%




                                                         January 1, 2007

Base Charges                             Transmission       Distribution     Energy     Retail                  Units   Charges
Energy Charge (¢/kWh)                      1.358¢/kWh                      9.280¢/kWh                           1400    $148.93
Capacity Charge ($)
      First 5 kV.A                                            $39.22                                              5      $39.22
      all additional kV.A                                     $6.52                                              2.5     $16.30
Monthly Charge ($)                                                                      $7.66                     1       $7.66
Total Base Charges                          $19.01            $55.53       $129.92      $7.66                           $212.12


Riders                                      T Rider           D Rider       G Rider              Other Riders
Transmission Adjustment Rider                8.33%                                                              19.01     $1.58
Balancing Pool Adjustment Rider           - 0.32¢/kWh                                                           1400     ($4.49)
Distribution Adjustment Rider                                 -1.55%                                            55.53    ($0.86)
Municipal Franchise (Local Access) Fee                                                              4.16%       74.54     $3.10
Total Riders                                ($2.91)           ($0.86)                               $3.10                ($0.67)


Final Charges                                16.10             54.66        129.92      7.66         3.10               $211.45
Percentage                                    8%                26%          61%         4%          1%                    100%




                                                         January 1, 2008

Base Charges                             Transmission       Distribution     Energy     Retail                  Units   Charges
Energy Charge (¢/kWh)                      1.395¢/kWh                      9.280¢/kWh                           1400    $149.45
Capacity Charge ($)
      First 5 kV.A                                           $0.2754                                              5      $41.88
      all additional kV.A                                    $0.2289                                             2.5     $17.41
Monthly Charge ($)                                                                      $7.66                     1       $7.66
Total Base Charges                          $19.53            $59.29       $129.92      $7.66                           $216.40


Riders                                       T Rider          D Rider       G Rider              Other Riders
Transmission Adjustment Rider                14.64%                                                             19.53     $2.86
Balancing Pool Adjustment Rider          - 0.5324¢/kWh                                                          1400     ($7.45)
Municipal Franchise (Local Access) Fee                                                              4.16%       78.82     $3.28
Total Riders                                ($4.59)                                                 $3.28                ($1.32)
FortisAlberta Farm Service Rate 21 - Typical Scenario

Final Charges                        14.94         59.29   129.92   7.66   3.28   $215.08
Percentage                            7%            28%     60%     4%     2%        100%


Consumption                           1400
kV.a                                   7.5
Load Factor                          28.4%
Demand                                  7
Horsepower                              9
Billing Cycle (Monthly)                 1
FortisAlberta Farm Service Rate 21 - High Scenario
                                                        January 1, 2006

Base Charges                             Transmission      Distribution     Energy     Retail                  Units    Charges
Energy Charge (¢/kWh)                      1.440¢/kWh                     8.442¢/kWh                           7500     $741.15
Capacity Charge ($)
      First 5 kV.A                                           $32.02                                              5       $32.02
      all additional kV.A                                    $5.40                                               20     $108.00
Monthly Charge ($)                                                                     $7.66                     1        $7.66
Total Base Charges                         $108.00          $140.02       $633.15      $7.66                            $888.83


Riders                                      T Rider          D Rider       G Rider              Other Riders
Balancing Pool Adjustment Rider          - 0.109¢/kWh                                                           7500     ($8.18)
Municipal Franchise (Local Access) Fee                                                             3.35%       248.02     $8.31
Total Riders                                ($8.18)                                                $8.31                  $0.13


Final Charges                                99.83           140.02        633.15      7.66         8.31                $888.96
Percentage                                   11%               16%          71%         1%          1%                     100%




                                                        January 1, 2007

Base Charges                             Transmission      Distribution     Energy     Retail                  Units    Charges
Energy Charge (¢/kWh)                      1.358¢/kWh                     9.280¢/kWh                           7500     $797.85
Capacity Charge ($)
      First 5 kV.A                                           $39.22                                              5       $39.22
      all additional kV.A                                    $6.52                                               20     $130.43
Monthly Charge ($)                                                                     $7.66                     1        $7.66
Total Base Charges                         $101.85          $169.65       $696.00      $7.66                            $975.16


Riders                                      T Rider          D Rider       G Rider              Other Riders
Transmission Adjustment Rider                8.33%                                                             101.85     $8.48
Balancing Pool Adjustment Rider           - 0.32¢/kWh                                                           7500    ($24.08)
Distribution Adjustment Rider                                -1.55%                                            169.65    ($2.63)
Municipal Franchise (Local Access) Fee                                                            4.16%        271.50    $11.29
Total Riders                               ($15.59)          ($2.63)                              $11.29                 ($6.93)


Final Charges                                86.26           167.02        696.00      7.66        11.29                $968.23
Percentage                                    9%               17%          72%         1%          1%                     100%




                                                        January 1, 2008

Base Charges                             Transmission      Distribution     Energy     Retail                  Units    Charges
Energy Charge (¢/kWh)                      1.395¢/kWh                     9.280¢/kWh                           7500     $800.63
Capacity Charge ($)
      First 5 kV.A                                          $0.2754                                              5       $41.88
      all additional kV.A                                   $0.2289                                              20     $139.25
Monthly Charge ($)                                                                     $7.66                     1        $7.66
Total Base Charges                         $104.63          $181.13       $696.00      $7.66                            $989.42


Riders                                       T Rider         D Rider       G Rider              Other Riders
Transmission Adjustment Rider                14.64%                                                            104.63    $15.32
Balancing Pool Adjustment Rider          - 0.5324¢/kWh                                                          7500    ($39.93)
Municipal Franchise (Local Access) Fee                                                            4.16%        285.76    $11.89
Total Riders                               ($24.61)                                               $11.89                ($12.73)
FortisAlberta Farm Service Rate 21 - High Scenario

Final Charges                       80.01       181.13   696.00   7.66   11.89   $976.69
Percentage                           8%          19%      71%     1%      1%        100%


Consumption                          7500
kV.a                                 25.0
Load Factor                         45.7%
Demand                                23
Horsepower                            30
Billing Cycle (Monthly)                1
REA Farm Service Rate 24 - Low Scenario

                                                  January 1, 2006
Base Charges                      Transmission       Distribution     Energy     Retail     Riders       Units    Charges
Energy Charge (¢/kWh)               1.440¢/kWh                      8.442¢/kWh                            900      $88.94
Basic Monthly Charge ($/month)                         $1.12                     $7.66                     1        $8.78
Total Base Charges                   $12.96            $1.12         $75.98      $7.66                             $97.72

Riders                               T Rider           D Rider       G Rider              Other Riders
Balancing Pool Adjustment Rider   - 0.109¢/kWh                                                           900.00    ($0.98)
Total Riders                         ($0.98)                                                                       ($0.98)

Final Charges                        $11.98            $1.12         $75.98      $7.66       $0.00                 $96.74
Percentage                            12%                1%           79%         8%          0%                     100%




                                                  January 1, 2007
Base Charges                      Transmission       Distribution     Energy     Retail     Riders       Units    Charges
Energy Charge (¢/kWh)               1.36¢/kWh                       9.280¢/kWh                            900      $95.74
Basic Monthly Charge ($/month)                         $0.852                    $7.66                     1        $8.51
Total Base Charges                   $12.22            $0.85         $83.52      $7.66                            $104.25

Riders                               T Rider           D Rider       G Rider              Other Riders
Transmission Adjustment Rider         8.33%                                                              12.22      $1.02
Balancing Pool Adjustment Rider    - 0.32¢/kWh                                                           900.00    ($2.89)
Distribution Adjustment Rider                          -2.23%                                             0.85     ($0.02)
Total Riders                         ($1.87)           ($0.02)                                                     ($1.89)

Final Charges                        $10.35            $0.83         $83.52      $7.66       $0.00                $102.36
Percentage                            10%                1%           82%         7%          0%                     100%




                                                  January 1, 2008
Base Charges                      Transmission       Distribution     Energy     Retail     Riders       Units    Charges
Energy Charge (¢/kWh)               1.395¢/kWh                      9.280¢/kWh                            900      $96.08
Basic Monthly Charge ($/month)                        $0.9095                    $7.66                     1        $8.57
Total Base Charges                   $12.56            $0.91         $83.52      $7.66                            $104.64

Riders                                T Rider          D Rider       G Rider              Other Riders
Transmission Adjustment Rider         14.64%                                                             12.56      $1.84
Balancing Pool Adjustment Rider   - 0.5324¢/kWh                                                          900.00    ($4.79)
Total Riders                          ($2.95)                                                                      ($2.95)

Final Charges                        $9.60             $0.91         $83.52      $7.66       $0.00                $101.69
Percentage                             9%                1%           82%         8%          0%                     100%


Consumption                           900
kV.a                                  5.0
Load Factor                          27.4%
Demand                                 5
Horsepower                             6
Period                                 1
REA Farm Service Rate 24 - Typical Scenario

                                                  January 1, 2006
Base Charges                      Transmission       Distribution      Energy     Retail     Riders        Units    Charges
Energy Charge (¢/kWh)               1.440¢/kWh                       8.442¢/kWh                            1400     $138.35
Basic Monthly Charge ($/month)                         $1.12                      $7.66                     1         $8.78
Total Base Charges                   $20.16            $1.12         $118.19      $7.66                             $147.13

Riders                               T Rider           D Rider        G Rider              Other Riders
Balancing Pool Adjustment Rider   - 0.109¢/kWh                                                            1400.00    ($1.53)
Total Riders                         ($1.53)                                                                         ($1.53)

Final Charges                        $18.63            $1.12         $118.19      $7.66       $0.00                 $145.60
Percentage                            13%                1%            81%         5%          0%                      100%




                                                   January 1, 2007
Base Charges                      Transmission       Distribution      Energy     Retail     Riders        Units    Charges
Energy Charge (¢/kWh)               1.36¢/kWh                        9.280¢/kWh                            1400     $148.93
Basic Monthly Charge ($/month)                         $0.852                     $7.66                     1         $8.51
Total Base Charges                   $19.01            $0.85         $129.92      $7.66                             $157.44

Riders                               T Rider           D Rider        G Rider              Other Riders
Transmission Adjustment Rider         8.33%                                                                19.01      $1.58
Balancing Pool Adjustment Rider    - 0.32¢/kWh                                                            1400.00    ($4.49)
Distribution Adjustment Rider                          -2.23%                                               0.85     ($0.02)
Total Riders                         ($2.91)           ($0.02)                                                       ($2.93)

Final Charges                        $16.10            $0.83         $129.92      $7.66       $0.00                 $154.51
Percentage                            10%                1%            84%         5%          0%                      100%




                                                  January 1, 2008
Base Charges                      Transmission       Distribution      Energy     Retail     Riders        Units    Charges
Energy Charge (¢/kWh)               1.395¢/kWh                       9.280¢/kWh                            1400     $149.45
Basic Monthly Charge ($/month)                         $0.909                     $7.66                     1         $8.57
Total Base Charges                   $19.53            $0.91         $129.92      $7.66                             $158.02

Riders                                T Rider          D Rider        G Rider              Other Riders
Transmission Adjustment Rider         14.64%                                                               19.53      $2.86
Balancing Pool Adjustment Rider   - 0.5324¢/kWh                                                           1400.00    ($7.45)
Total Riders                          ($4.59)                                                                        ($4.59)

Final Charges                        $14.94            $0.91         $129.92      $7.66       $0.00                 $153.43
Percentage                            10%                1%            85%         5%          0%                      100%


Consumption                           1400
kV.a                                   7.5
Load Factor                          28.4%
Demand                                  7
Horsepower                              9
Period                                  1
REA Farm Service Rate 24 - High Scenario

                                                  January 1, 2006
Base Charges                      Transmission      Distribution     Energy     Retail     Riders        Units    Charges
Energy Charge (¢/kWh)               1.440¢/kWh                     8.442¢/kWh                            7500     $741.15
Basic Monthly Charge ($/month)                        $1.12                     $7.66                     1         $8.78
Total Base Charges                  $108.00           $1.12        $633.15      $7.66                             $749.93

Riders                               T Rider          D Rider       G Rider              Other Riders
Balancing Pool Adjustment Rider   - 0.109¢/kWh                                                          7500.00    ($8.18)
Total Riders                         ($8.18)                                                                       ($8.18)

Final Charges                        $99.83           $1.12        $633.15      $7.66       $0.00                 $741.76
Percentage                            13%               0%           85%         1%          0%                      100%




                                                 January 1, 2007
Base Charges                      Transmission      Distribution     Energy     Retail     Riders        Units    Charges
Energy Charge (¢/kWh)               1.36¢/kWh                      9.280¢/kWh                            7500     $797.85
Basic Monthly Charge ($/month)                        $0.852                    $7.66                     1         $8.51
Total Base Charges                  $101.85           $0.85        $696.00      $7.66                             $806.36

Riders                               T Rider          D Rider       G Rider              Other Riders
Transmission Adjustment Rider         8.33%                                                             101.85      $8.48
Balancing Pool Adjustment Rider    - 0.32¢/kWh                                                          7500.00   ($24.08)
Distribution Adjustment Rider                         -2.23%                                              0.85     ($0.02)
Total Riders                        ($15.59)          ($0.02)                                                     ($15.61)

Final Charges                        $86.26           $0.83        $696.00      $7.66       $0.00                 $790.75
Percentage                            11%               0%           88%         1%          0%                      100%




                                                 January 1, 2008
Base Charges                      Transmission      Distribution     Energy     Retail     Riders        Units    Charges
Energy Charge (¢/kWh)               1.395¢/kWh                     9.280¢/kWh                            7500     $800.63
Basic Monthly Charge ($/month)                        $0.909                    $7.66                     1         $8.57
Total Base Charges                  $104.63           $0.91        $696.00      $7.66                             $809.19

Riders                                T Rider         D Rider       G Rider              Other Riders
Transmission Adjustment Rider         14.64%                                                            104.63     $15.32
Balancing Pool Adjustment Rider   - 0.5324¢/kWh                                                         7500.00   ($39.93)
Total Riders                         ($24.61)                                                                     ($24.61)

Final Charges                        $80.01           $0.91        $696.00      $7.66       $0.00                 $784.58
Percentage                            10%               0%           89%         1%          0%                      100%


Consumption                           7500
kV.a                                   25
Load Factor                          45.7%
Demand                                 23
Horsepower                             30
Period                                  1
FortisAlberta Irrigation Service Rate 26 - Low Scenario                                                                                                                          FortisAlberta Irrigation Service Rate 26 - Typical Scenario

                                                                                 January 1, 2006                                                                                                                                                                  January 1, 2006
Base Charges                                                Transmission         Distribution            Energy             Retail                        Units      Charges     Base Charges                                                Transmission          Distribution           Energy             Retail
Energy Charge (¢/kWh)                                         1.708¢/kWh          0.300¢/kWh           7.602¢/kWh                                         20142     $1,935.57    Energy Charge (¢/kWh)                                         1.708¢/kWh           0.300¢/kWh          7.602¢/kWh
Capacity Charge ($/kW/season)                                                                                                                                                    Capacity Charge ($/kW/season)
       all kW of capacity                                                         $11.64/kW                                                                45        $521.01            all kW of capacity                                                         $11.64/kW
Idle Service Charge                                                                $9.60/kW                                                                 5         $48.00     Idle Service Charge                                                                $9.60/kW
Monthly Charge                                                                                                             $12.35                           7          $86.45    Monthly Charge                                                                                                             $12.35
Total Base Charges                                             $343.95              $581.43            $1,531.19           $86.45                                   $2,543.03    Total Base Charges                                             $687.90              $641.86            $3,062.39           $86.45

Riders                                                          T Rider             D Rider              G Rider                          Other Riders                           Riders                                                          T Rider             D Rider              G Rider
Balancing Pool Adjustment Rider                             - 0.103¢/kWh                                                                                 20142.00     ($20.75)   Balancing Pool Adjustment Rider                             - 0.103¢/kWh
Municipal Franchise (Local Access) Fee                                                                                                        3.35%      925.38       $31.00     Municipal Franchise (Local Access) Fee
Total Riders                                                   ($20.75)                                                                       $31.00                  $10.25     Total Riders                                                   ($41.49)

Final Charges                                                  $323.20              $581.43            $1,531.19           $86.45             $31.00                $2,553.28    Final Charges                                                  $646.41              $641.86            $3,062.39           $86.45
Percentage                                                        13%                  23%                 60%                3%                   1%                    100%    Percentage                                                        14%                  14%                 68%                2%




                                                                                 January 1, 2007                                                                                                                                                                  January 1, 2007
Base Charges                                                Transmission         Distribution            Energy             Retail                        Units      Charges     Base Charges                                                Transmission          Distribution           Energy             Retail
Energy Charge (¢/kWh)                                         1.790¢/kWh          0.3690¢/kWh          8.488¢/kWh                                         20142     $2,144.52    Energy Charge (¢/kWh)                                         1.790¢/kWh          0.3690¢/kWh          8.488¢/kWh
Capacity Charge ($/kW/season)                                                                                                                                                    Capacity Charge ($/kW/season)
       all kW of capacity                                                         $13.99/kW                                                                45        $626.13            all kW of capacity                                                         $13.99/kW
Idle Service Charge                                                               $12.01/kW                                                                 5         $60.04     Idle Service Charge                                                               $12.01/kW
Monthly Charge                                                                                                             $12.35                           7          $86.45    Monthly Charge                                                                                                             $12.35
Total Base Charges                                             $360.54              $700.45            $1,709.65           $86.45                                   $2,857.10    Total Base Charges                                             $721.08              $774.78            $3,419.31           $86.45

Riders                                                          T Rider             D Rider              G Rider                          Other Riders                           Riders                                                          T Rider             D Rider              G Rider
Distribution Adjustment Rider                                                        -1.56%                                                               700.45      ($10.93)   Distribution Adjustment Rider                                                        -1.56%
Transmission Adjustment Rider                                   -5.40%                                                                                    360.54      ($19.47)   Transmission Adjustment Rider                                   -5.40%
Balancing Pool Adjustment Rider                              - 0.31¢/kWh                                                                                 20142.00     ($62.64)   Balancing Pool Adjustment Rider                              - 0.31¢/kWh
Municipal Franchise (Local Access) Fee                                                                                                        4.16%      1061.00       $44.14    Municipal Franchise (Local Access) Fee
Total Riders                                                   ($82.11)             ($10.93)                                                  $44.14                  ($48.90)   Total Riders                                                   ($164.22)            ($12.09)

Final Charges                                                  $278.43              $689.53            $1,709.65           $86.45             $44.14                $2,808.20    Final Charges                                                  $556.86              $762.69            $3,419.31           $86.45
Percentage                                                        10%                  25%                 61%                3%                   2%                    100%    Percentage                                                        11%                  16%                 70%                2%




                                                                                 January 1, 2008                                                                                                                                                                  January 1, 2008
Base Charges                                                Transmission         Distribution            Energy             Retail                        Units      Charges     Base Charges                                                Transmission          Distribution           Energy             Retail
Energy Charge (¢/kWh)                                         1.838¢/kWh          0.3940¢/kWh          8.488¢/kWh                                         20142     $2,159.22    Energy Charge (¢/kWh)                                         1.838¢/kWh          0.3940¢/kWh          8.488¢/kWh
Capacity Charge ($/kW/season)                                                                                                                                                    Capacity Charge ($/kW/season)
       all kW of capacity                                                        $0.0702/kW                                                                45        $669.02            all kW of capacity                                                         $0.0702/kW
Idle Service Charge                                                              $0.0603/kW                                                                 5         $64.52     Idle Service Charge                                                               $0.0603/kW
Monthly Charge                                                                                                             $12.35                           7          $86.45    Monthly Charge                                                                                                             $12.35
Total Base Charges                                             $370.21              $748.38            $1,709.65           $86.45                                   $2,914.69    Total Base Charges                                             $740.42              $827.74            $3,419.31           $86.45

Riders                                                          T Rider             D Rider              G Rider                          Other Riders                           Riders                                                          T Rider             D Rider              G Rider
Transmission Adjustment Rider                                   11.11%                                                                                    370.21      $41.13     Transmission Adjustment Rider                                   11.11%
Balancing Pool Adjustment Rider                            - 0.5158¢/kWh                                                                                 20142.00   ($103.89)    Balancing Pool Adjustment Rider                             - 0.5158¢/kWh
Municipal Franchise (Local Access) Fee                                                                                                        4.16%      1118.59       $46.53    Municipal Franchise (Local Access) Fee
Total Riders                                                   ($62.76)                                                                       $46.53                  ($16.23)   Total Riders                                                   ($125.52)

Final Charges                                                  $307.45              $748.38            $1,709.65           $86.45             $46.53                $2,898.46    Final Charges                                                  $614.90              $827.74            $3,419.31           $86.45
Percentage                                                        11%                  26%                 59%                3%                   2%                    100%    Percentage                                                        12%                  17%                 68%                2%



*For the purposes of billing, Rate 26 is billed twice during the irrigation season, once during mid season and once after service disconnection*                                 *For the purposes of billing, Rate 26 is billed twice during the irrigation season, once during mid season and once after service discon

Seasonal Consumption                                             20142                                                                                                           Seasonal Consumption                                             40284
Demand (kW)                                                       45                                                                                                             Demand (kW)                                                       45
Horsepower                                                        60                                                                                                             Horsepower                                                        60
Hours Operated                                                    450                                                                                                            Hours Operated                                                    900
Irrigation Season (Apr 1 to Oct 31) (Monthy)                       7                                                                                                             Irrigation Season (Apr 1 to Oct 31) (Monthy)                       7
                                          FortisAlberta Irrigation Service Rate 26 - High Scenario

                                                                                                                           January 1, 2006
                   Units      Charges     Base Charges                                                Transmission         Distribution            Energy             Retail                         Units      Charges
                   40284     $3,871.14    Energy Charge (¢/kWh)                                         1.708¢/kWh          0.300¢/kWh           7.602¢/kWh                                          60426     $5,806.71
                                          Capacity Charge ($/kW/season)
                    45        $521.01            all kW of capacity                                                         $11.64/kW                                                                 45        $521.01
                     5         $48.00     Idle Service Charge                                                                $9.60/kW                                                                  5         $48.00
                     7          $86.45    Monthly Charge                                                                                                             $12.35                            7          $86.45
                             $4,478.60    Total Base Charges                                            $1,031.85             $702.28            $4,593.58           $86.45                                    $6,414.17

   Other Riders                           Riders                                                          T Rider             D Rider              G Rider                           Other Riders
                  40284.00     ($41.49)   Balancing Pool Adjustment Rider                             - 0.103¢/kWh                                                                                  60426.00     ($62.24)
         3.35%    1329.76      $44.55     Municipal Franchise (Local Access) Fee                                                                                                        3.35%       1734.13      $58.09
         $44.55                 $3.05     Total Riders                                                   ($62.24)                                                                       $58.09                   ($4.15)

         $44.55              $4,481.65    Final Charges                                                  $969.61              $702.28            $4,593.58           $86.45             $58.09                 $6,410.02
           1%                     100%    Percentage                                                        15%                  11%                 72%                1%                   1%                     100%




                                                                                                                           January 1, 2007
                   Units      Charges     Base Charges                                                Transmission         Distribution            Energy             Retail                         Units      Charges
                   40284     $4,289.04    Energy Charge (¢/kWh)                                         1.790¢/kWh          0.3690¢/kWh          8.488¢/kWh                                          60426     $6,433.56
                                          Capacity Charge ($/kW/season)
                    45        $626.13            all kW of capacity                                                         $13.99/kW                                                                 45        $626.13
                     5         $60.04     Idle Service Charge                                                               $12.01/kW                                                                  5         $60.04
                     7          $86.45    Monthly Charge                                                                                                             $12.35                            7          $86.45
                             $5,001.62    Total Base Charges                                            $1,081.63             $849.10            $5,128.96           $86.45                                    $7,146.14

   Other Riders                           Riders                                                          T Rider             D Rider              G Rider                           Other Riders
                   774.78      ($12.09)   Distribution Adjustment Rider                                                        -1.56%                                                                849.10      ($13.25)
                   721.08      ($38.94)   Transmission Adjustment Rider                                   -5.40%                                                                                    1081.63      ($58.41)
                  40284.00   ($125.28)    Balancing Pool Adjustment Rider                              - 0.31¢/kWh                                                                                  60426.00   ($187.92)
         4.16%    1495.86      $62.23     Municipal Franchise (Local Access) Fee                                                                                                        4.16%       1930.73      $80.32
         $62.23              ($114.08)    Total Riders                                                   ($246.33)            ($13.25)                                                  $80.32                 ($179.26)

         $62.23              $4,887.54    Final Charges                                                  $835.29              $835.86            $5,128.96           $86.45             $80.32                 $6,966.88
           1%                     100%    Percentage                                                        12%                  12%                 74%                1%                   1%                     100%




                                                                                                                           January 1, 2008
                   Units      Charges     Base Charges                                                Transmission         Distribution            Energy             Retail                         Units      Charges
                   40284     $4,318.44    Energy Charge (¢/kWh)                                         1.838¢/kWh          0.3940¢/kWh          8.488¢/kWh                                          60426     $6,477.67
                                          Capacity Charge ($/kW/season)
                    45        $669.02            all kW of capacity                                                        $0.0702/kW                                                                 45        $669.02
                     5         $64.52     Idle Service Charge                                                              $0.0603/kW                                                                  5         $64.52
                     7          $86.45    Monthly Charge                                                                                                             $12.35                            7          $86.45
                             $5,073.91    Total Base Charges                                            $1,110.63             $907.09            $5,128.96           $86.45                                    $7,233.13

   Other Riders                           Riders                                                          T Rider             D Rider              G Rider                           Other Riders
                   740.42      $82.26     Transmission Adjustment Rider                                   11.11%                                                                                    1110.63     $123.39
                  40284.00   ($207.78)    Balancing Pool Adjustment Rider                            - 0.5158¢/kWh                                                                                  60426.00   ($311.68)
         4.16%    1568.16       $65.24    Municipal Franchise (Local Access) Fee                                                                                                        4.16%       2017.72      $83.94
         $65.24                ($60.29)   Total Riders                                                   ($188.29)                                                                      $83.94                 ($104.35)

         $65.24              $5,013.62    Final Charges                                                  $922.34              $907.09            $5,128.96           $86.45             $83.94                 $7,128.78
           1%                     100%    Percentage                                                        13%                  13%                 72%                1%                   1%                     100%



nnecti                                    *For the purposes of billing, Rate 26 is billed twice during the irrigation season, once during mid season and once after service disconnection*

                                          Seasonal Consumption                                             60426
                                          Demand (kW)                                                       45
                                          Horsepower                                                        60
                                          Hours Operated                                                   1350
                                          Irrigation Season (Apr 1 to Oct 31) (Monthy)                       7
REA Irrigation Service Rate 29 - Low Scenario
                                                      January 1, 2006
Base Charges                          Transmission     Distribution     Energy     Retail                   Units      Charges
Energy Charge (¢/kWh)                   1.708¢/kWh                    7.602¢/kWh                           20142      $1,875.14
Monthly Charge                                           $0.97                     $12.35                    7           $93.24
Total Base Charges                      $343.95          $6.79        $1,531.19    $86.45                             $1,968.38

Riders                                  T Riders        D Riders      G Riders              Other Riders
Balancing Pool Adjustment Rider       - 0.103¢/kWh                                                         20142.00     ($20.75)
Total Riders                             ($20.75)        $0.00                                                          ($20.75)

Final Charges                           $323.20          $6.79        $1,531.19    $93.24      $0.00                  $1,947.64
Percentage                                 17%             0%            79%         5%         0%                         100%




                                                      January 1, 2007
Base Charges                          Transmission     Distribution     Energy     Retail                   Units      Charges
Energy Charge (¢/kWh)                   1.79¢/kWh                     8.488¢/kWh                           20142      $2,070.19
Monthly Charge                                           $0.85                     $12.35                    7           $92.41
Total Base Charges                      $360.54          $5.96        $1,709.65    $86.45                             $2,162.61

Riders                                   T Riders       D Riders      G Riders              Other Riders
Transmission Adjustment Rider             -5.40%                                                            361         ($19.47)
Balancing Pool Adjustment Rider        - 0.31¢/kWh                                                         20142        ($62.64)
Distribution Adjustment Rider                                                                                             $0.00
Total Riders                             ($82.11)        $0.00                                                          ($82.11)

Final Charges                           $278.43          $5.96        $1,709.65    $86.45      $0.00                  $2,080.50
Percentage                                 13%             0%            82%         4%         0%                         100%




                                                      January 1, 2008
Base Charges                          Transmission     Distribution     Energy     Retail                   Units      Charges
Energy Charge (¢/kWh)                   1.838¢/kWh                    8.488¢/kWh                           20142      $2,079.86
Monthly Charge                                           $0.030                    $12.35                    7           $92.82
Total Base Charges                      $370.21          $6.37        $1,709.65    $86.45                             $2,172.68

Riders                                   T Riders       D Riders      G Riders              Other Riders
Transmission Adjustment Rider             11.11%                                                            370          $41.13
Balancing Pool Adjustment Rider       - 0.5158¢/kWh                                                        20142       ($103.89)
Total Riders                             ($62.76)                                                                       ($62.76)

Final Charges                           $307.45          $6.37        $1,709.65    $86.45      $0.00                  $2,109.92
Percentage                                 15%             0%            81%         4%         0%                         100%


Seasonal Consumption                      20142
Demand                                      45
Horsepower                                  60
Hours Operated                             450
Irrigation Season (Apr 1 to Oct 31)         7
REA Irrigation Service Rate 29- Typical Scenario
                                                      January 1, 2006
Base Charges                          Transmission     Distribution     Energy     Retail                   Units      Charges
Energy Charge (¢/kWh)                   1.708¢/kWh                    7.602¢/kWh                           40284      $3,750.29
Monthly Charge                                           $0.97                     $12.35                    7           $93.24
Total Base Charges                      $687.90          $6.79        $3,062.39    $86.45                             $3,843.53

Riders                                  T Riders        D Riders      G Riders              Other Riders
Balancing Pool Adjustment Rider       - 0.103¢/kWh                                                         40284.00     ($41.49)
Total Riders                             ($41.49)        $0.00                                                          ($41.49)

Final Charges                           $646.41          $6.79        $3,062.39    $93.24      $0.00                  $3,802.04
Percentage                                 17%             0%            81%         2%         0%                         100%




                                                      January 1, 2007
Base Charges                          Transmission     Distribution     Energy     Retail                   Units      Charges
Energy Charge (¢/kWh)                   1.79¢/kWh                     8.488¢/kWh                           40284      $4,140.39
Monthly Charge                                           $0.85                     $12.35                    7           $92.41
Total Base Charges                      $721.08          $5.96        $3,419.31    $86.45                             $4,232.80

Riders                                   T Riders       D Riders      G Riders              Other Riders
Transmission Adjustment Rider             -5.40%                                                            721         ($38.94)
Balancing Pool Adjustment Rider        - 0.31¢/kWh                                                         40284       ($125.28)
Distribution Adjustment Rider                                                                                             $0.00
Total Riders                            ($164.22)        $0.00                                                         ($164.22)

Final Charges                           $556.86          $5.96        $3,419.31    $86.45      $0.00                  $4,068.58
Percentage                                 14%             0%            84%         2%         0%                         100%




                                                      January 1, 2008
Base Charges                          Transmission     Distribution     Energy     Retail                   Units      Charges
Energy Charge (¢/kWh)                   1.838¢/kWh                    8.488¢/kWh                           40284      $4,159.73
Monthly Charge                                           $0.030                    $12.35                    7           $92.82
Total Base Charges                      $740.42          $6.37        $3,419.31    $86.45                             $4,252.54

Riders                                   T Riders       D Riders      G Riders              Other Riders
Transmission Adjustment Rider             11.11%                                                            740          $82.26
Balancing Pool Adjustment Rider       - 0.5158¢/kWh                                                        40284       ($207.78)
Total Riders                             ($125.52)                                                                     ($125.52)

Final Charges                           $614.90          $6.37        $3,419.31    $86.45      $0.00                  $4,127.02
Percentage                                 15%             0%            83%         2%         0%                         100%


Seasonal Consumption                      40284
Demand                                      45
Horsepower                                  60
Hours Operated                             900
Irrigation Season (Apr 1 to Oct 31)         7
REA Irrigation Service Rate 29- High Scenario
                                                      January 1, 2006
Base Charges                          Transmission     Distribution     Energy     Retail                   Units      Charges
Energy Charge (¢/kWh)                   1.708¢/kWh                    8.043¢/kWh                           60426      $5,891.91
Monthly Charge                                           $0.97                     $12.35                    7           $93.24
Total Base Charges                     $1,031.85         $6.79        $4,860.06    $86.45                             $5,985.15

Riders                                  T Riders        D Riders      G Riders              Other Riders
Balancing Pool Adjustment Rider       - 0.103¢/kWh                                                         60426.00     ($62.24)
Total Riders                             ($62.24)        $0.00                                                          ($62.24)

Final Charges                           $969.61          $6.79        $4,860.06    $93.24      $0.00                  $5,922.91
Percentage                                 16%             0%            82%         2%         0%                         100%




                                                      January 1, 2007
Base Charges                          Transmission     Distribution     Energy     Retail                   Units      Charges
Energy Charge (¢/kWh)                   1.79¢/kWh                     8.488¢/kWh                           60426      $6,210.58
Monthly Charge                                           $0.85                     $12.35                    7           $92.41
Total Base Charges                     $1,081.63         $5.96        $5,128.96    $86.45                             $6,303.00

Riders                                   T Riders       D Riders      G Riders              Other Riders
Transmission Adjustment Rider             -5.40%                                                            1082        ($58.41)
Balancing Pool Adjustment Rider        - 0.31¢/kWh                                                         60426       ($187.92)
Distribution Adjustment Rider                                                                                             $0.00
Total Riders                            ($246.33)        $0.00                                                         ($246.33)

Final Charges                           $835.29          $5.96        $5,128.96    $86.45      $0.00                  $6,056.66
Percentage                                 14%             0%            85%         1%         0%                         100%




                                                      January 1, 2008
Base Charges                          Transmission     Distribution     Energy     Retail                   Units      Charges
Energy Charge (¢/kWh)                   1.838¢/kWh                    8.488¢/kWh                           60426      $6,239.59
Monthly Charge                                           $0.030                    $12.35                    7           $92.82
Total Base Charges                     $1,110.63         $6.37        $5,128.96    $86.45                             $6,332.40

Riders                                   T Riders       D Riders      G Riders              Other Riders
Transmission Adjustment Rider             11.11%                                                            1111        $123.39
Balancing Pool Adjustment Rider       - 0.5158¢/kWh                                                        60426       ($311.68)
Total Riders                             ($188.29)                                                                     ($188.29)

Final Charges                           $922.34          $6.37        $5,128.96    $86.45      $0.00                  $6,144.12
Percentage                                 15%             0%            83%         1%         0%                         100%


Seasonal Consumption                      60426
Demand                                      45
Horsepower                                  60
Hours Operated                             1350
Irrigation Season (Apr 1 to Oct 31)         7
Exterior Lighting Rate 31

                                                              January 1, 2006
Base Charges                               Transmission         Distribution     Energy      Retail                   Units      Charges
Energy Charge (¢/watt/month)              0.665¢/Watt/Mo       0.12¢/Watt/Mo    6.597¢/kWh                            13250      $498.28
Fixture Charge                                                    $10.79                     $3.61                     100      $1,082.61
Total Base Charges                            $88.11             $1,095.17      $394.01      $3.61                              $1,580.89

Riders                                        T Riders           D Riders       G Riders              Other Riders
Balancing Pool Adjustment Rider           (0.044¢/Watt/Mo)                                                           13250.00      ($5.83)
Municipal Assessment Rider                                         1.89%                                             1183.28      $22.36
Municipal Franchise (Local Access) Fee                                                                   3.35%       1183.28      $39.64
Total Riders                                  ($5.83)             $16.53                                $39.64                    $56.17

Final Charges                                 $88.11             $1,111.70      $394.01      $3.61      $39.64                  $1,637.07
Percentage                                      5%                  68%            24%        0%          2%                         100%




                                                              January 1, 2007
Base Charges                               Transmission         Distribution     Energy      Retail                   Units      Charges
Energy Charge (¢/watt/month)              0.617¢/Watt/Mo      0.5597¢/Watt/Mo   5.271¢/kWh                            13250      $470.78
Fixture Charge                                                    $11.50                     $3.61                     100      $1,153.36
Total Base Charges                            $81.81             $1,223.91      $314.81      $3.61                              $1,624.14

Riders                                        T Riders           D Riders       G Riders              Other Riders
Distribution Adjustment Rider                                     -1.64%                                             1223.91      ($20.07)
Transmission Adjustment Rider                  0.85%                                                                  81.81         $0.70
Balancing Pool Adjustment Rider           (0.13¢/Watt/Mo)                                                            13250.00     ($17.33)
Municipal Assessment Rider                                         2.46%                                             1305.72      $32.12
Municipal Franchise (Local Access) Fee                                                                   4.16%       1305.72      $54.32
Total Riders                                  ($16.63)            $12.05                                $54.32                    $49.73

Final Charges                                 $65.18             $1,235.95      $314.81      $3.61      $54.32                  $1,673.87
Percentage                                      4%                  74%            19%        0%          3%                         100%




                                                              January 1, 2008
Base Charges                               Transmission         Distribution     Energy      Retail                   Units      Charges
Energy Charge (¢/day/month)              0.0208¢/Watt/Mo      0.0196¢/Watt/Mo   5.271¢/kWh                            13250      $477.63
Fixture Charge                                                    $0.403                     $3.61                     100      $1,229.40
Total Base Charges                            $83.83             $1,304.78      $314.81      $3.61                              $1,707.03

Riders                                        T Riders           D Riders       G Riders              Other Riders
Transmission Adjustment Rider                 14.40%                                                                  83.83       $12.07
Balancing Pool Adjustment Rider          - 0.0071¢/Watt/day                                                          13250.00     ($28.61)
Municipal Assessment Rider                                         2.46%                                             1388.61      $34.16
Municipal Franchise (Local Access) Fee                                                                   4.16%       1388.61      $57.77
Total Riders                                  ($16.54)            $34.16                                $57.77                    $75.38

Final Charges                                 $67.29             $1,338.94      $314.81      $3.61      $57.77                  $1,782.42
Percentage                                      4%                  75%            18%        0%          3%                         100%


Consumption (kWh)                               5973
Demand                                           1
Period                                           1
Watts                                          13250
Fixtures                                        100
Exterior Lighting Rate 33

                                                               January 1, 2006
Base Charges                               Transmission         Distribution     Energy      Retail                   Units     Charges
Energy Charge (¢/watt/month)              0.665¢/Watt/Mo       0.12¢/Watt/Mo    6.597¢/kWh                            13250     $462.31
Fixture Charge                                                     $3.01                     $3.61                     100      $304.61
Total Base Charges                            $88.11              $317.17       $358.03      $3.61                              $766.92

Riders                                        T Riders           D Riders       G Riders              Other Riders
Balancing Pool Adjustment Rider           (0.04¢/Watt/Mo)                                                            13250.00    ($5.83)
Municipal Assessment Rider                                         1.89%                                             405.28       $7.66
Municipal Franchise (Local Access) Fee                                                                   3.35%       405.28      $13.58
Total Riders                                  ($5.83)              $1.83                                $13.58                   $15.41

Final Charges                                 $82.28              $318.99       $358.03      $3.61      $21.24                  $782.33
Percentage                                      11%                 41%            46%        0%          3%                       100%




                                                               January 1, 2007
Base Charges                               Transmission         Distribution     Energy      Retail                   Units     Charges
Energy Charge (¢/watt/month)              0.617¢/Watt/Mo      0.5597¢/Watt/Mo   5.271¢/kWh                            13250     $442.04
Fixture Charge                                                     $3.19                     $3.61                     100      $322.99
Total Base Charges                            $81.81              $393.53       $286.07      $3.61                              $765.02

Riders                                        T Riders           D Riders       G Riders              Other Riders
Distribution Adjustment Rider                                     -1.64%                                              393.53     ($6.45)
Transmission Adjustment Rider                  0.85%                                                                  81.81       $0.70
Balancing Pool Adjustment Rider           (0.13¢/Watt/Mo)                                                            13250.00   ($17.33)
Municipal Assessment Rider                                         2.46%                                             475.34      $11.69
Municipal Franchise (Local Access) Fee                                                                   4.16%       475.34      $19.77
Total Riders                                  ($16.63)             $5.24                                $19.77                    $8.38

Final Charges                                 $65.18              $398.77       $286.07      $3.61      $19.77                  $773.40
Percentage                                      8%                  52%            37%        0%          3%                       100%




                                                               January 1, 2008
Base Charges                               Transmission         Distribution     Energy      Retail                   Units     Charges
Energy Charge (¢/watt/month)             0.0208¢/Watt/Mo      0.0196¢/Watt/Mo   5.271¢/kWh                            13250     $448.89
Fixture Charge                                                     $0.112                    $3.61                     100      $344.28
Total Base Charges                            $83.83              $419.66       $286.07      $3.61                              $793.17

Riders                                        T Riders           D Riders       G Riders              Other Riders
Transmission Adjustment Rider                 14.40%                                                                  83.83      $12.07
Balancing Pool Adjustment Rider          - 0.0071¢/Watt/day                                                          13250.00   ($28.61)
Municipal Assessment Rider                                         2.46%                                             503.49      $12.39
Municipal Franchise (Local Access) Fee                                                                   4.16%       503.49      $20.95
Total Riders                                  ($16.54)            $12.39                                $20.95                   $16.79

Final Charges                                 $67.29              $432.04       $286.07      $3.61      $20.95                  $809.95
Percentage                                      8%                  53%            35%        0%          3%                       100%


Consumption (kWh)                               5427
Demand                                           1
Period                                           1
Watts                                          13250
Fixtures                                        100
Exterior Lighting Rate 38

                                                               January 1, 2006
Base Charges                               Transmission         Distribution     Energy      Retail                   Units      Charges
Energy Charge (¢/watt/month)              0.665¢/Watt/Mo       0.12¢/Watt/Mo    6.597¢/kWh                            13250      $462.31
Fixture Charge                                                     $6.75                     $3.61                     100        $678.61
Total Base Charges                            $88.11              $691.17       $358.03      $3.61                              $1,140.92

Riders                                        T Riders           D Riders       G Riders              Other Riders
Balancing Pool Adjustment Rider           (0.04¢/Watt/Mo)                                                            13250.00      ($5.83)
Municipal Assessment Rider                                         1.89%                                             779.28       $14.73
Municipal Franchise (Local Access) Fee                                                                   3.35%       779.28       $26.11
Total Riders                                  ($5.83)              $8.90                                $26.11                    $35.00

Final Charges                                 $88.11              $700.06       $358.03      $3.61      $26.11                  $1,175.92
Percentage                                      7%                  60%            30%        0%          2%                         100%




                                                               January 1, 2007
Base Charges                               Transmission         Distribution     Energy      Retail                   Units      Charges
Energy Charge (¢/watt/month)              0.617¢/Watt/Mo      0.5597¢/Watt/Mo   5.271¢/kWh                            13250      $442.04
Fixture Charge                                                     $7.18                     $3.61                     100        $721.44
Total Base Charges                            $81.81              $791.99       $286.07      $3.61                              $1,163.48

Riders                                        T Riders           D Riders       G Riders              Other Riders
Distribution Adjustment Rider                                     -1.64%                                              791.99      ($12.99)
Transmission Adjustment Rider                  0.85%                                                                  81.81         $0.70
Balancing Pool Adjustment Rider           (0.13¢/Watt/Mo)                                                            13250.00     ($17.33)
Municipal Assessment Rider                                         2.46%                                             873.80       $21.50
Municipal Franchise (Local Access) Fee                                                                   4.16%       873.80       $36.35
Total Riders                                  ($16.63)             $8.51                                $36.35                    $28.22

Final Charges                                 $65.18              $800.50       $286.07      $3.61      $36.35                  $1,191.70
Percentage                                      5%                  67%            24%        0%          3%                         100%




                                                               January 1, 2008
Base Charges                               Transmission         Distribution     Energy      Retail                   Units      Charges
Energy Charge (¢/watt/month)             0.0208¢/Watt/Mo      0.0196¢/Watt/Mo   5.271¢/kWh                            13250      $448.89
Fixture Charge                                                     $0.252                    $3.61                     100        $770.11
Total Base Charges                            $83.83              $845.49       $286.07      $3.61                              $1,219.00

Riders                                        T Riders           D Riders       G Riders              Other Riders
Transmission Adjustment Rider                 14.40%                                                                  83.83       $12.07
Balancing Pool Adjustment Rider          - 0.0071¢/Watt/day                                                          13250.00     ($28.61)
Municipal Assessment Rider                                         2.46%                                             929.32       $22.86
Municipal Franchise (Local Access) Fee                                                                   4.16%       929.32       $38.66
Total Riders                                  ($16.54)            $22.86                                $38.66                    $44.98

Final Charges                                 $67.29              $868.35       $286.07      $3.61      $38.66                  $1,263.98
Percentage                                      5%                  69%            23%        0%          3%                         100%


Consumption (kWh)                               5427
Demand                                           1
Period                                           1
Watts                                          13250
Fixtures                                        100
Small General Service Rate 41 - Low Scenario
                                                         January 1, 2006

Base Charges                             Transmission       Distribution    Energy      Retail                   Units    Charges
Energy Charge (¢/kWh)
      first 200 kWh/mo/kW                 0.455¢/kWh         0.603¢/kWh    8.086¢/kWh                            1000      $91.44
      remaining                           0.455¢/kWh                       8.086¢/kWh                             95        $8.11
Capacity Charges
      first 2 kW                           $1.77/kW          $7.46/kW                                             2        $18.46
      all remaining                        $1.77/kW          $3.78/kW                                             3        $16.65
Monthly Charges                                                                         $6.55                     1         $6.55
Total Base Charges                          $13.83            $32.29        $88.54      $6.55                             $141.21

Riders                                     T Riders          D Riders      G Riders              Other Riders
Balancing Pool Adjustment Rider          - 0.105¢/kWh                                                           1095.00    ($1.15)
Municipal Assessment Rider                                     1.89%                                             46.12      $0.87
Municipal Franchise (Local Access) Fee                                                              3.35%        46.12      $1.55
Total Riders                                ($1.15)           ($0.28)                               $1.55                   $1.27

Final Charges                               $13.83            $32.01        $88.54      $6.55       $1.55                 $142.48
Percentage                                   10%                22%          62%         5%          1%                      100%




                                                         January 1, 2007

Base Charges                             Transmission       Distribution    Energy      Retail                   Units    Charges
Energy Charge (¢/kWh)
     first 200 kWh/mo/kW                  0.457¢/kWh         0.593¢/kWh    9.074¢/kWh                            1000     $101.24
     remaining                            0.457¢/kWh                       9.074¢/kWh                             95        $9.05
Capacity Charges
     first 2 kW                            $1.70/kW          $7.33/kW                                             2        $18.05
      all remaining                        $1.70/kW          $3.73/kW                                             3        $16.28
Monthly Charges                                                                         $6.55                     1         $6.55
Total Base Charges                          $13.50            $31.77        $99.36      $6.55                             $151.18

Riders                                     T Riders          D Riders      G Riders              Other Riders
Distribution Adjustment Rider                                 -1.90%                                             31.77     ($0.60)
Transmission Adjustment Rider                5.30%                                                               13.50      $0.72
Balancing Pool Adjustment Rider          - 0.315¢/kWh                                                           1095.00    ($3.45)
Municipal Assessment Rider                                     2.46%                                             45.27      $1.11
Municipal Franchise (Local Access) Fee                                                              4.16%        45.27      $1.88
Total Riders                                ($2.73)            $0.51                                $1.88                  ($0.34)

Final Charges                               $10.76            $32.28        $99.36      $6.55       $1.88                 $150.84
Percentage                                    7%                21%          66%         4%          1%                      100%




                                                         January 1, 2008

Base Charges                             Transmission       Distribution    Energy      Retail                   Units    Charges
Energy Charge (¢/kWh)
     first 200 kWh/mo/kW                  0.4695¢/kWh        0.633¢/kWh    9.074¢/kWh                            1000     $101.77
     remaining                            0.4695¢/kWh                      9.074¢/kWh                             95        $9.07
Capacity Charges
      first 2 kW                         $0.05730/kW        $0.25720/kW                                           2        $19.13
      all remaining                      $0.05730/kW        $0.13091/kW                                           3        $17.17
Monthly Charges                                                                         $6.55                     1         $6.55
Total Base Charges                          $13.86            $33.92        $99.36      $6.55                             $153.69

Riders                                      T Riders         D Riders      G Riders              Other Riders
Transmission Adjustment Rider                14.84%                                                              13.86      $2.06
Balancing Pool Adjustment Rider          - 0.5226¢/kWh                                                          1095.00    ($5.72)
Municipal Assessment Rider                                     2.46%                                             47.78      $1.18
Municipal Franchise (Local Access) Fee                                                              4.16%        47.78      $1.99
Total Riders                                ($3.67)            $1.18                                $1.99                  ($0.50)

Final Charges                               $10.19            $35.10        $99.36      $6.55       $1.99                 $153.19
Percentage                                    7%                23%          65%         4%          1%                      100%


Consumption                                  1095
Load Factor                                  30%
Demand                                        5
Month                                         1
Small General Service Rate 41 - Typical Scenario
                                                         January 1, 2006

Base Charges                             Transmission       Distribution    Energy      Retail                   Units    Charges
Energy Charge (¢/kWh)
      first 200 kWh/mo/kW                 0.455¢/kWh         0.603¢/kWh    8.086¢/kWh                            2000     $182.88
      remaining                           0.455¢/kWh                       8.086¢/kWh                            190       $16.23
Capacity Charges
      first 2 kW                           $1.77/kW          $7.46/kW                                             2        $18.46
      all remaining                        $1.77/kW          $3.78/kW                                             8        $44.40
Monthly Charges                                                                         $6.55                     1         $6.55
Total Base Charges                          $27.66            $57.22       $177.08      $6.55                             $268.52

Riders                                     T Riders          D Riders      G Riders              Other Riders
Balancing Pool Adjustment Rider          - 0.105¢/kWh                                                           2190.00    ($2.30)
Municipal Assessment Rider                                    1.89%                                              84.88      $1.60
Municipal Franchise (Local Access) Fee                                                              3.35%        84.88      $2.84
Total Riders                                ($2.30)           ($0.70)                               $2.84                   $2.15

Final Charges                               $27.66            $56.52       $177.08      $6.55       $2.84                 $270.67
Percentage                                   10%                21%          65%         2%          1%                      100%




                                                         January 1, 2007

Base Charges                             Transmission       Distribution    Energy      Retail                   Units    Charges
Energy Charge (¢/kWh)
     first 200 kWh/mo/kW                  0.457¢/kWh         0.593¢/kWh    9.074¢/kWh                            2000     $202.48
     remaining                            0.457¢/kWh                       9.074¢/kWh                            190       $18.11
Capacity Charges
     first 2 kW                            $1.70/kW          $7.33/kW                                             2        $18.05
      all remaining                        $1.70/kW          $3.73/kW                                             8        $43.42
Monthly Charges                                                                         $6.55                     1         $6.55
Total Base Charges                          $26.99            $56.35       $198.72      $6.55                             $288.62

Riders                                     T Riders          D Riders      G Riders              Other Riders
Distribution Adjustment Rider                                 -1.90%                                             56.35     ($1.07)
Transmission Adjustment Rider                5.30%                                                               26.99      $1.43
Balancing Pool Adjustment Rider          - 0.315¢/kWh                                                           2190.00    ($6.90)
Municipal Assessment Rider                                    2.46%                                              83.35      $2.05
Municipal Franchise (Local Access) Fee                                                              4.16%        83.35      $3.47
Total Riders                                ($5.47)           $0.98                                 $3.47                  ($1.02)

Final Charges                               $21.52            $57.33       $198.72      $6.55       $3.47                 $287.59
Percentage                                    7%                20%          69%         2%          1%                      100%




                                                         January 1, 2008

Base Charges                             Transmission       Distribution    Energy      Retail                   Units    Charges
Energy Charge (¢/kWh)
     first 200 kWh/mo/kW                  0.4695¢/kWh        0.633¢/kWh    9.074¢/kWh                            2000     $203.53
     remaining                            0.4695¢/kWh                      9.074¢/kWh                            190       $18.13
Capacity Charges
      first 2 kW                         $0.05730/kW       $0.25720/kW                                            2        $19.13
      all remaining                      $0.05730/kW       $0.13091/kW                                            8        $45.80
Monthly Charges                                                                         $6.55                     1         $6.55
Total Base Charges                          $27.71            $60.17       $198.72      $6.55                             $293.15

Riders                                      T Riders         D Riders      G Riders              Other Riders
Transmission Adjustment Rider                14.84%                                                              27.71      $4.11
Balancing Pool Adjustment Rider          - 0.5226¢/kWh                                                          2190.00   ($11.44)
Municipal Assessment Rider                                    2.46%                                              87.88      $2.16
Municipal Franchise (Local Access) Fee                                                              4.16%        87.88      $3.66
Total Riders                                ($7.33)           $2.16                                 $3.66                  ($1.52)

Final Charges                               $20.38            $62.33       $198.72      $6.55       $3.66                 $291.63
Percentage                                    7%                21%          68%         2%          1%                      100%


Consumption                                  2190
Load Factor                                  30%
Demand                                        10
Month                                         1
Small General Service Rate 41 - High Scenario
                                                        January 1, 2006

Base Charges                             Transmission      Distribution    Energy      Retail                   Units      Charges
Energy Charge (¢/kWh)
      first 200 kWh/mo/kW                 0.455¢/kWh        0.603¢/kWh    8.086¢/kWh                            10000      $914.40
      remaining                           0.455¢/kWh                      8.086¢/kWh                             950        $81.14
Capacity Charges
      first 2 kW                          $1.77/kW          $7.46/kW                                             2           $18.46
      all remaining                       $1.77/kW          $3.78/kW                                             48        $266.40
Monthly Charges                                                                        $6.55                     1            $6.55
Total Base Charges                         $138.32          $256.66       $885.42      $6.55                              $1,286.95

Riders                                     T Riders         D Riders      G Riders              Other Riders
Balancing Pool Adjustment Rider          - 0.105¢/kWh                                                          10950.00     ($11.50)
Municipal Assessment Rider                                   1.89%                                              394.98        $7.47
Municipal Franchise (Local Access) Fee                                                            3.35%         394.98      $13.23
Total Riders                                                 ($4.03)                              $13.23                     $9.20

Final Charges                              $138.32          $252.63       $885.42      $6.55      $13.23                  $1,296.15
Percentage                                   11%               19%          68%         1%          1%                         100%




                                                        January 1, 2007

Base Charges                             Transmission      Distribution    Energy      Retail                   Units      Charges
Energy Charge (¢/kWh)
     first 200 kWh/mo/kW                  0.457¢/kWh        0.593¢/kWh    9.074¢/kWh                            10000     $1,012.42
     remaining                            0.457¢/kWh                      9.074¢/kWh                             950        $90.55
Capacity Charges
     first 2 kW                           $1.70/kW          $7.33/kW                                              2         $18.05
      all remaining                       $1.70/kW          $3.73/kW                                             48        $260.54
Monthly Charges                                                                        $6.55                     1            $6.55
Total Base Charges                         $134.97          $252.98       $993.60      $6.55                              $1,388.10

Riders                                     T Riders         D Riders      G Riders              Other Riders
Distribution Adjustment Rider                                -1.90%                                             252.98       ($4.81)
Transmission Adjustment Rider                5.30%                                                              134.97        $7.15
Balancing Pool Adjustment Rider          - 0.315¢/kWh                                                          10950.00     ($34.50)
Municipal Assessment Rider                                   2.46%                                              387.95       $9.54
Municipal Franchise (Local Access) Fee                                                            4.16%         387.95      $16.14
Total Riders                               ($27.35)          $4.74                                $16.14                    ($6.47)

Final Charges                              $107.62          $257.72       $993.60      $6.55      $16.14                  $1,381.63
Percentage                                   8%                19%          72%         0%          1%                         100%




                                                        January 1, 2008

Base Charges                             Transmission      Distribution    Energy      Retail                   Units      Charges
Energy Charge (¢/kWh)
     first 200 kWh/mo/kW                  0.4695¢/kWh       0.633¢/kWh    9.074¢/kWh                            10000     $1,017.67
     remaining                            0.4695¢/kWh                     9.074¢/kWh                             950         $90.66
Capacity Charges
      first 2 kW                         $0.05730/kW      $0.25720/kW                                            2           $19.13
      all remaining                      $0.05730/kW      $0.13091/kW                                            48        $274.79
Monthly Charges                                                                        $6.55                     1            $6.55
Total Base Charges                         $138.55          $270.09       $993.60      $6.55                              $1,408.80

Riders                                     T Riders         D Riders      G Riders              Other Riders
Transmission Adjustment Rider               14.84%                                                              138.55       $20.56
Balancing Pool Adjustment Rider          - 0.523¢/kWh                                                          10950.00     ($57.22)
Municipal Assessment Rider                                   2.46%                                              408.65       $10.05
Municipal Franchise (Local Access) Fee                                                            4.16%         408.65      $17.00
Total Riders                               ($36.66)          $10.05                               $17.00                    ($9.61)

Final Charges                              $101.89          $280.15       $993.60      $6.55      $17.00                  $1,399.19
Percentage                                   7%                20%          71%         0%          1%                         100%


Consumption                                 10950
Load Factor                                  30%
Demand                                        50
Month                                         1
Oil and Gas (Capacity) Service Rate 44 - Low Scenario

                                                        January 1, 2006
Base Charges                             Transmission      Distribution    Energy      Retail                  Units    Charges
Energy Charges
      all kWh                                                             7.960¢/kWh                           2190     $174.32
Capacity Charges
      first 5 kW                          $3.66/kW          $9.04/kW                                             5       $63.50
      all remaining                       $3.66/kW          $6.07/kW                                             3       $24.33
Monthly Charges                                                                        $2.00                     1        $2.00
Total Base Charges                         $27.45            $60.38       $174.32      $2.00                            $264.15

Riders                                     T Riders         D Riders      G Riders              Other Riders
Balancing Pool Adjustment Rider           ($0.36/kW)                                                            7.50     ($2.70)
Municipal Assessment Rider                                    1.89%                                            87.83      $1.66
Municipal Franchise (Local Access) Fee                                                             3.35%       87.83      $2.94
Total Riders                                ($2.70)           $1.66                                $2.94                  $1.90

Final Charges                              $24.75            $62.03       $174.32      $2.00       $2.94                $266.05
Percentage                                    9%               23%           66%        1%          1%                     100%




                                                        January 1, 2007
Base Charges                             Transmission      Distribution    Energy      Retail                  Units    Charges
Energy Charges
      all kWh                                                             8.873¢/kWh                           2190     $194.32
Capacity Charges
      first 5 kW                          $3.53/kW          $11.24/kW                                            5       $73.85
      all remaining                       $3.53/kW           $7.56/kW                                            3       $27.72
Monthly Charges                                                                        $2.00                     1        $2.00
Total Base Charges                         $26.51            $75.07       $194.32      $2.00                            $297.90

Riders                                     T Riders         D Riders      G Riders              Other Riders
Distribution Adjustment Rider                                -1.52%                                             75.07    ($1.14)
Transmission Adjustment Rider               7.48%                                                               26.51     $1.98
Balancing Pool Adjustment Rider           ($1.08/kW)                                                            7.50     ($8.12)
Municipal Assessment Rider                                    2.46%                                            101.58     $2.50
Municipal Franchise (Local Access) Fee                                                             4.16%       101.58     $4.23
Total Riders                                ($6.14)           $1.36                                $4.23                 ($0.56)

Final Charges                              $20.37            $76.43       $194.32      $2.00       $4.23                $297.34
Percentage                                    7%               26%           65%        1%          1%                     100%




                                                        January 1, 2008
Base Charges                             Transmission      Distribution    Energy      Retail                  Units    Charges
Energy Charges
      all kWh                                                             8.873¢/kWh                           2190     $194.32
Capacity Charges
      first 5 kW                         $0.1193/kW        $0.39439/kW                                           5       $78.12
      all remaining                      $0.1193/kW        $0.26521/kW                                          2.5      $29.24
Monthly Charges                                                                        $2.00                     1        $2.00
Total Base Charges                         $27.22            $80.15       $194.32      $2.00                            $303.68

Riders                                     T Riders         D Riders      G Riders              Other Riders
Transmission Adjustment Rider               17.17%                                                              27.22     $4.67
Balancing Pool Adjustment Rider          - 0.0590$/kW                                                           7.50    ($13.46)
Municipal Assessment Rider                                    2.46%                                            107.36     $2.64
Municipal Franchise (Local Access) Fee                                                             4.16%       107.36     $4.47
Total Riders                                ($8.79)           $2.64                                $4.47                 ($1.68)

Final Charges                              $18.43            $82.79       $194.32      $2.00       $4.47                $302.00
Percentage                                    6%               27%           64%        1%          1%                     100%


Consumption                                  2190
Load Factor                                  40%
Demand                                        7.5
Months                                         1
Oil and Gas (Capacity) Service Rate 44 - Typical Scenario

                                                        January 1, 2006
Base Charges                             Transmission       Distribution    Energy      Retail                  Units    Charges
Energy Charges
      all kWh                                                              7.960¢/kWh                           4380     $348.65
Capacity Charges
      first 5 kW                          $3.66/kW           $9.04/kW                                            5        $63.50
      all remaining                       $3.66/kW           $6.07/kW                                            10       $97.30
Monthly Charges                                                                         $2.00                    1         $2.00
Total Base Charges                         $54.90            $105.90       $348.65      $2.00                            $511.45

Riders                                     T Riders          D Riders      G Riders              Other Riders
Balancing Pool Adjustment Rider           ($0.36/kW)                                                             15.00    ($5.40)
Municipal Assessment Rider                                     1.89%                                            160.80     $3.04
Municipal Franchise (Local Access) Fee                                                              3.35%       160.80     $5.39
Total Riders                                ($5.40)            $3.04                                $5.39                  $3.03

Final Charges                              $49.50            $108.94       $348.65      $2.00       $5.39                $514.47
Percentage                                   10%                21%           68%        0%          1%                     100%




                                                        January 1, 2007
Base Charges                             Transmission       Distribution    Energy      Retail                  Units    Charges
Energy Charges
      all kWh                                                              8.873¢/kWh                           4380     $388.64
Capacity Charges
      first 5 kW                          $3.53/kW          $11.24/kW                                            5        $73.85
      all remaining                       $3.53/kW           $7.56/kW                                            10      $110.90
Monthly Charges                                                                         $2.00                    1         $2.00
Total Base Charges                         $53.02            $131.73       $388.64      $2.00                            $575.39

Riders                                     T Riders          D Riders      G Riders              Other Riders
Distribution Adjustment Rider                                 -1.52%                                            131.73    ($2.00)
Transmission Adjustment Rider               7.48%                                                                53.02     $3.97
Balancing Pool Adjustment Rider           ($1.08/kW)                                                             15.00   ($16.24)
Municipal Assessment Rider                                     2.46%                                            184.75     $4.54
Municipal Franchise (Local Access) Fee                                                              4.16%       184.75     $7.69
Total Riders                               ($12.28)            $2.54                                $7.69                 ($2.05)

Final Charges                              $40.74            $134.28       $388.64      $2.00       $7.69                $573.34
Percentage                                    7%                23%           68%        0%          1%                     100%




                                                        January 1, 2008
Base Charges                             Transmission       Distribution    Energy      Retail                  Units    Charges
Energy Charges
      all kWh                                                              8.873¢/kWh                           4380     $388.64
Capacity Charges
      first 5 kW                         $0.1193/kW        $0.39439/kW                                           5        $78.12
      all remaining                      $0.1193/kW        $0.26521/kW                                           10      $116.96
Monthly Charges                                                                         $2.00                    1         $2.00
Total Base Charges                         $54.43            $140.65       $388.64      $2.00                            $585.72

Riders                                     T Riders          D Riders      G Riders              Other Riders
Transmission Adjustment Rider               17.17%                                                               54.43     $9.35
Balancing Pool Adjustment Rider          - 0.0590$/kW                                                            15.00   ($26.92)
Municipal Assessment Rider                                     2.46%                                            195.08     $4.80
Municipal Franchise (Local Access) Fee                                                              4.16%       195.08     $8.12
Total Riders                               ($17.57)            $4.80                                $8.12                 ($4.66)

Final Charges                              $36.86            $145.45       $388.64      $2.00       $8.12                $581.06
Percentage                                    6%                25%           67%        0%          1%                     100%


Consumption                                  4380
Load Factor                                  40%
Demand                                        15
Months                                         1
Oil and Gas (Capacity) Service Rate 44 - High Scenario

                                                        January 1, 2006
Base Charges                             Transmission      Distribution    Energy      Retail                  Units     Charges
Energy Charges
      all kWh                                                             7.960¢/kWh                           21900    $1,743.24
Capacity Charges
      first 5 kW                          $3.66/kW          $9.04/kW                                            5          $63.50
      all remaining                       $3.66/kW          $6.07/kW                                            70        $681.10
Monthly Charges                                                                        $2.00                    1           $2.00
Total Base Charges                         $274.50           $470.10      $1,743.24    $2.00                            $2,489.84

Riders                                     T Riders         D Riders      G Riders              Other Riders
Balancing Pool Adjustment Rider           ($0.36/kW)                                                            75.00     ($27.00)
Municipal Assessment Rider                                    1.89%                                            744.60      $14.07
Municipal Franchise (Local Access) Fee                                                            3.35%        744.60      $24.94
Total Riders                               ($27.00)          $14.07                               $24.94                   $12.02

Final Charges                              $247.50           $484.17      $1,743.24    $2.00      $24.94                $2,501.86
Percentage                                   10%               19%           70%        0%          1%                       100%




                                                        January 1, 2007
Base Charges                             Transmission      Distribution    Energy      Retail                  Units     Charges
Energy Charges
      all kWh                                                             8.873¢/kWh                           21900    $1,943.19
Capacity Charges
      first 5 kW                          $3.53/kW          $11.24/kW                                           5          $73.85
      all remaining                       $3.53/kW           $7.56/kW                                           70        $776.29
Monthly Charges                                                                        $2.00                    1           $2.00
Total Base Charges                         $265.08           $585.06      $1,943.19    $2.00                            $2,795.33

Riders                                     T Riders         D Riders      G Riders              Other Riders
Distribution Adjustment Rider                                -1.52%                                            585.06      ($8.89)
Transmission Adjustment Rider               7.48%                                                              265.08      $19.83
Balancing Pool Adjustment Rider           ($1.08/kW)                                                            75.00     ($81.21)
Municipal Assessment Rider                                    2.46%                                            850.15      $20.91
Municipal Franchise (Local Access) Fee                                                            4.16%        850.15      $35.37
Total Riders                               ($61.38)          $12.02                               $35.37                  ($14.00)

Final Charges                              $203.70           $597.09      $1,943.19    $2.00      $35.37                $2,781.34
Percentage                                    7%               21%           70%        0%          1%                       100%




                                                        January 1, 2008
Base Charges                             Transmission      Distribution    Energy      Retail                  Units     Charges
Energy Charges
      all kWh                                                             8.873¢/kWh                           21900    $1,943.19
Capacity Charges
      first 5 kW                         $0.1193/kW        $0.39439/kW                                          5          $78.12
      all remaining                      $0.1193/kW        $0.26521/kW                                          70        $818.69
Monthly Charges                                                                        $2.00                    1           $2.00
Total Base Charges                         $272.15           $624.66      $1,943.19    $2.00                            $2,842.00

Riders                                     T Riders         D Riders      G Riders              Other Riders
Transmission Adjustment Rider               17.17%                                                             272.15      $46.73
Balancing Pool Adjustment Rider          - 0.0590$/kW                                                           75.00    ($134.59)
Municipal Assessment Rider                                    2.46%                                            896.81      $22.06
Municipal Franchise (Local Access) Fee                                                            4.16%        896.81      $37.31
Total Riders                               ($87.87)          $22.06                               $37.31                  ($28.50)

Final Charges                              $184.29           $646.72      $1,943.19    $2.00      $37.31                $2,813.50
Percentage                                    7%               23%           69%        0%          1%                       100%


Consumption                                 21900
Load Factor                                  40%
Demand                                        75
Months                                         1
General Service Rate 61- Low Scenario

                                                         January 1, 2006
Base Charges                             Transmission       Distribution     Energy       Retail                               Charges
Energy Charge (¢/kWh)
      all kWh consumed                    0.4534¢/kWh                       8.800¢/kWh   1.390¢/kWh                  40004    $4,257.79
Capacity Charges ($)
      First 50 kW                          $2.57/kW          $5.44/kW                                                 50       $400.35
      Next 450 kW                          $2.57/kW          $2.43/kW                                                 50       $249.85
      All Remaining                        $2.57/kW          $1.86/kW                                                 0          $0.00
Monthly Charges                                                                                          0.00%        1
Total Base Charges                         $438.08           $393.50        $3,520.35    $556.06                              $4,907.99

Riders                                      T Riders         D Riders       G Riders                  Other Riders
Balancing Pool Adjustment Rider          - 0.1041¢/kWh                                                               40004      ($41.64)
Municipal Assessment Rider                                     1.89%                                                 831.58      $15.72
Municipal Franchise (Local Access) Fee                                                                  3.35%        831.58      $27.86
Total Riders                               ($41.64)           $15.72                                    $27.86                    $1.93

Final Charges                              $396.43           $409.22        $3,520.35    $556.06        $27.86                $4,909.92
Percentage                                    8%                8%             72%          11%           1%                       100%




                                                         January 1, 2007
Base Charges                             Transmission       Distribution     Energy       Retail                               Charges
Energy Charge (¢/kWh)
      all kWh consumed                    0.4532¢/kWh                       9.000¢/kWh   1.390¢/kWh                  40004    $4,337.71
Capacity Charges ($)
      First 50 kW                          $2.56/kW          $4.75/kW                                                 50       $365.33
      Next 450 kW                          $2.56/kW          $2.13/kW                                                 50       $234.54
      All Remaining                        $2.56/kW          $1.63/kW                                                 0          $0.00
Monthly Charges                                                                                          0.00%        1
Total Base Charges                         $437.47           $343.71        $3,600.36    $556.06                              $4,937.59

Riders                                     T Riders          D Riders       G Riders                  Other Riders
Distribution Adjustment Rider                                 -2.09%                                                 343.71      ($7.18)
Transmission Adjustment Rider                5.91%                                                                   437.47      $25.85
Balancing Pool Adjustment Rider          - 0.3123¢/kWh                                                               40004     ($124.93)
Municipal Assessment Rider                                     2.46%                                                 781.18      $19.22
Municipal Franchise (Local Access) Fee                                                                  4.16%        781.18      $32.50
Total Riders                               ($99.08)           $12.03                                    $32.50                  ($54.55)

Final Charges                              $338.39           $355.74        $3,600.36    $556.06        $32.50                $4,883.04
Percentage                                    7%                7%             74%          11%           1%                       100%




                                                          January 1, 2008
Base Charges                             Transmission       Distribution     Energy       Retail                               Charges
Energy Charge (¢/kWh)
      all kWh consumed                    0.4654¢/kWh                       9.000¢/kWh   1.390¢/kWh                  40004    $4,342.59
Capacity Charges ($)
      First 50 kW                        $0.08650/kW       $0.16656/kW                                                50       $384.86
      Next 450 kW                        $0.08650/kW       $0.07474/kW                                                50       $245.22
      All Remaining                      $0.08650/kW       $0.05712/kW                                                0          $0.00
Monthly Charges                                                                                                       1
Total Base Charges                         $449.28           $366.98        $3,600.36    $556.06                              $4,972.68

Riders                                      T Riders         D Riders       G Riders                  Other Riders
Transmission Adjustment Rider                14.26%                                                                  449.28      $64.07
Balancing Pool Adjustment Rider          - 0.5180¢/kWh                                                               40004     ($207.22)
Municipal Assessment Rider                                     2.46%                                                 816.26      $20.08
Municipal Franchise (Local Access) Fee                                                                  4.16%        816.26      $33.96
Total Riders                               ($143.15)          $20.08                                    $33.96                  ($89.12)

Final Charges                              $306.13           $387.06        $3,600.36    $556.06        $33.96                $4,883.56
Percentage                                    6%                8%             74%          11%           1%                       100%


Consumption                                  40004
Load Factor                                  54.8%
Demand                                        100
Months                                         1
General Service Rate 61- Typical Scenario

                                                         January 1, 2006
Base Charges                             Transmission    Distribution    Energy        Retail                                Charges
Energy Charge (¢/kWh)
      all kWh consumed                    0.4534¢/kWh                   8.800¢/kWh   1.160¢/kWh                  200020    $20,828.88
Capacity Charges ($)
      First 50 kW                          $2.57/kW       $5.44/kW                                                 50        $400.35
      Next 450 kW                          $2.57/kW       $2.43/kW                                                450       $2,248.65
      All Remaining                        $2.57/kW       $1.86/kW                                                 0            $0.00
Monthly Charges                                                                                      0.00%         1
Total Base Charges                        $2,190.39       $1,365.50     $17,601.76   $2,320.23                             $23,477.88

Riders                                      T Riders       D Riders      G Riders                 Other Riders
Balancing Pool Adjustment Rider          - 0.1041¢/kWh                                                           200020      ($208.22)
Municipal Assessment Rider                                  1.89%                                                3555.89       $67.21
Municipal Franchise (Local Access) Fee                                                               3.35%       3555.89      $119.12
Total Riders                               ($208.22)       $67.21                                   $119.12                   ($21.89)

Final Charges                             $1,982.17       $1,432.71     $17,601.76   $2,320.23      $119.12                $23,455.99
Percentage                                    8%             6%            75%          10%           1%                         100%




                                                         January 1, 2007
Base Charges                             Transmission    Distribution    Energy        Retail                                Charges
Energy Charge (¢/kWh)
      all kWh consumed                    0.4532¢/kWh                   9.000¢/kWh   1.160¢/kWh                  200020    $21,228.52
Capacity Charges ($)
      First 50 kW                          $2.56/kW       $4.75/kW                                                 50        $365.33
      Next 450 kW                          $2.56/kW       $2.13/kW                                                450       $2,110.89
      All Remaining                        $2.56/kW       $1.63/kW                                                 0            $0.00
Monthly Charges                                                                                      0.00%         1
Total Base Charges                        $2,187.34       $1,195.38     $18,001.80   $2,320.23                             $23,704.74

Riders                                     T Riders        D Riders      G Riders                 Other Riders
Distribution Adjustment Rider                               -2.09%                                               1195.38      ($24.98)
Transmission Adjustment Rider                5.91%                                                               2187.34      $129.27
Balancing Pool Adjustment Rider          - 0.3123¢/kWh                                                           200020      ($624.66)
Municipal Assessment Rider                                  2.46%                                                3382.71       $83.21
Municipal Franchise (Local Access) Fee                                                               4.16%       3382.71      $140.72
Total Riders                               ($495.39)       $58.23                                   $140.72                  ($296.44)

Final Charges                             $1,691.95       $1,253.61     $18,001.80   $2,320.23      $140.72                $23,408.30
Percentage                                    7%             5%            77%          10%           1%                         100%




                                                         January 1, 2008
Base Charges                             Transmission    Distribution    Energy        Retail                                Charges
Energy Charge (¢/kWh)
      all kWh consumed                    0.4654¢/kWh                   9.000¢/kWh   1.160¢/kWh                  200020    $21,252.93
Capacity Charges ($)
      First 50 kW                        $0.08650/kW     $0.16656/kW                                               50        $384.86
      Next 450 kW                        $0.08650/kW     $0.07474/kW                                              450       $2,206.97
      All Remaining                      $0.08650/kW     $0.05712/kW                                               0            $0.00
Monthly Charges                                                                                      0.00%         1
Total Base Charges                        $2,246.41       $1,276.31     $18,001.80   $2,320.23                             $23,844.76

Riders                                      T Riders       D Riders      G Riders                 Other Riders
Transmission Adjustment Rider                14.26%                                                              2246.41      $320.34
Balancing Pool Adjustment Rider          - 0.5180¢/kWh                                                           200020    ($1,036.10)
Municipal Assessment Rider                                  2.46%                                                3522.73       $86.66
Municipal Franchise (Local Access) Fee                                                               4.16%       3522.73      $146.55
Total Riders                               ($715.76)       $86.66                                   $146.55                  ($482.56)

Final Charges                             $1,530.65       $1,362.97     $18,001.80   $2,320.23      $146.55                $23,362.20
Percentage                                    7%             6%            77%          10%           1%                         100%


Consumption                                 200020
Load Factor                                 54.8%
Demand                                       500
Months                                        1
General Service Rate 61- High Scenario

                                                          January 1, 2006
Base Charges                             Transmission    Distribution    Energy        Retail                                Charges
Energy Charge (¢/kWh)
      all kWh consumed                    0.4534¢/kWh                   8.800¢/kWh   1.160¢/kWh                  600060    $62,486.65
Capacity Charges ($)
      First 50 kW                          $2.57/kW       $5.44/kW                                                 50         $400.35
      Next 450 kW                          $2.57/kW       $2.43/kW                                                450       $2,248.65
      All Remaining                        $2.57/kW       $1.86/kW                                                1000      $4,427.00
Monthly Charges                                                                                      0.00%         1
Total Base Charges                        $6,571.17       $3,225.50     $52,805.28   $6,960.70                             $69,562.65

Riders                                      T Riders       D Riders      G Riders                 Other Riders
Balancing Pool Adjustment Rider          - 0.1041¢/kWh                                                           600060      ($624.66)
Municipal Assessment Rider                                  1.89%                                                9796.67      $185.16
Municipal Franchise (Local Access) Fee                                                               3.35%       9796.67      $328.19
Total Riders                               ($624.66)       $185.16                                  $328.19                  ($111.32)

Final Charges                             $5,946.51       $3,410.66     $52,805.28   $6,960.70      $328.19                $69,451.33
Percentage                                    9%             5%            76%          10%           0%                         100%




                                                          January 1, 2007
Base Charges                             Transmission    Distribution    Energy        Retail                                Charges
Energy Charge (¢/kWh)
      all kWh consumed                    0.4532¢/kWh                   9.000¢/kWh   1.160¢/kWh                  600060    $63,685.57
Capacity Charges ($)
      First 50 kW                          $2.56/kW       $4.75/kW                                                 50         $365.33
      Next 450 kW                          $2.56/kW       $2.13/kW                                                450       $2,110.89
      All Remaining                        $2.56/kW       $1.63/kW                                                1000      $4,188.98
Monthly Charges                                                                                      0.00%         1
Total Base Charges                        $6,562.01       $2,822.67     $54,005.40   $6,960.70                             $70,350.77

Riders                                     T Riders        D Riders      G Riders                 Other Riders
Distribution Adjustment Rider                               -2.09%                                               2822.67      ($58.99)
Transmission Adjustment Rider                5.91%                                                               6562.01      $387.81
Balancing Pool Adjustment Rider          - 0.3123¢/kWh                                                           600060    ($1,873.99)
Municipal Assessment Rider                                  2.46%                                                9384.68      $230.86
Municipal Franchise (Local Access) Fee                                                               4.16%       9384.68      $390.40
Total Riders                              ($1,486.17)      $171.87                                  $390.40                  ($923.90)

Final Charges                             $5,075.84       $2,994.54     $54,005.40   $6,960.70      $390.40                $69,426.87
Percentage                                    7%             4%            78%          10%           1%                         100%




                                                          January 1, 2008
Base Charges                             Transmission    Distribution    Energy        Retail                                Charges
Energy Charge (¢/kWh)
      all kWh consumed                    0.4654¢/kWh                   9.000¢/kWh   1.160¢/kWh                  600060    $63,758.78
Capacity Charges ($)
      First 50 kW                        $0.08650/kW     $0.16656/kW                                               50         $384.86
      Next 450 kW                        $0.08650/kW     $0.07474/kW                                              450       $2,206.97
      All Remaining                      $0.08650/kW     $0.05712/kW                                              1000      $4,368.44
Monthly Charges                                                                                      0.00%         1
Total Base Charges                        $6,739.24       $3,013.71     $54,005.40   $6,960.70                             $70,719.05

Riders                                      T Riders       D Riders      G Riders                 Other Riders
Transmission Adjustment Rider                14.26%                                                              6739.24      $961.02
Balancing Pool Adjustment Rider          - 0.5180¢/kWh                                                           600060    ($3,108.31)
Municipal Assessment Rider                                  2.46%                                                9752.96     $239.92
Municipal Franchise (Local Access) Fee                                                               4.16%       9752.96      $405.72
Total Riders                              ($2,147.29)      $239.92                                  $405.72                ($1,501.65)

Final Charges                             $4,591.95       $3,253.64     $54,005.40   $6,960.70      $405.72                $69,217.40
Percentage                                    7%             5%            78%          10%           1%                         100%


Consumption                                 600060
Load Factor                                 54.8%
Demand                                       1500
Months                                        1
Large General Service Rate 63 - Low Scenario

                                                                     January 1, 2006
Base Charges                                         Transmission       Distribution      Energy       Retail                                  Charges
Energy Charge (¢/kWh)
      all kWh delivered                               0.447¢/kWh                        8.800¢/kWh    1.16¢/kWh                  1095000    $113,956.65
Capacity Charges ($)
      all kW of Capacity                               $2.66/kW         $0.683/kW                                                 2500        $8,357.50
Contract Kilometre Charge ($/km)                                        $350.00/km                                                 12         $4,200.00
Monthly Charge                                                                                                       0.00%          1
Total Base Charges                                    $11,544.65         $5,907.50      $96,360.00   $12,702.00                             $126,514.15

Riders                                                 T Riders          D Riders        G Riders                 Other Riders
Balancing Pool Adjustment Rider                      - 0.103¢/kWh                                                                1095000     ($1,127.85)
Municipal Assessment Rider                                                 1.89%                                                 17452.15      $329.85
Municipal Franchise (Local Access) Fee                                                                               3.35%       17452.15       $584.65
Total Riders                                          ($1,127.85)         $329.85                                   $584.65                    ($213.36)

Final Charges                                         $10,416.80         $6,237.35      $96,360.00   $12,702.00     $584.65                 $126,300.79
Percentage                                                8%                5%             76%          10%           0%                           100%




                                                                     January 1, 2007
Base Charges                                         Transmission       Distribution      Energy       Retail                                  Charges
Energy Charge (¢/kWh)
      all kWh delivered                               0.446¢/kWh                        9.000¢/kWh    1.16¢/kWh                  1095000    $116,130.23
Capacity Charges ($)
      all kW of Capacity                               $2.96/kW         $0.532/kW                                                 2500        $8,729.58
Contract Kilometre Charge ($/km)                                        $291.33/km                                                 12         $3,496.01
Monthly Charge                                                                                                       0.00%          1
Total Base Charges                                    $12,277.08         $4,826.74      $98,550.00   $12,702.00                             $128,355.81

Riders                                                 T Riders          D Riders        G Riders                 Other Riders
Distribution Adjustment Rider                                             -2.34%                                                 4826.74       ($112.95)
Transmission Adjustment Rider                           7.46%                                                                    12277.08      $915.87
Balancing Pool Adjustment Rider                      - 0.307¢/kWh                                                                1095000     ($3,363.84)
Municipal Assessment Rider                                                 2.46%                                                 17103.81      $420.75
Municipal Franchise (Local Access) Fee                                                                               4.16%       17103.81       $711.52
Total Riders                                          ($2,447.97)         $307.81                                   $711.52                  ($1,428.64)

Final Charges                                         $9,829.11          $5,134.54      $98,550.00   $12,702.00     $711.52                 $126,927.17
Percentage                                                8%                4%             78%          10%           1%                           100%




                                                                      January 1, 2008
Base Charges                                         Transmission       Distribution      Energy       Retail                                  Charges
Energy Charge (¢/kWh)
      all kWh delivered                               0.4575¢/kWh                       9.000¢/kWh    1.16¢/kWh                  1095000    $116,261.63
Capacity Charges ($)
      all kW of Capacity                             $0.09990/kW       $0.01868/kW                                                2500        $9,017.02
Contract Kilometre Charge ($/km)                                        $10.2263/km                                                12         $3,732.60
Monthly Charge                                                                                                                      1
Total Base Charges                                    $12,606.19         $5,153.06      $98,550.00   $12,702.00                             $129,011.25

Riders                                                 T Riders          D Riders        G Riders                 Other Riders
Transmission Adjustment Rider                           14.73%                                                                   12606.19     $1,856.89
Balancing Pool Adjustment Rider                      - 0.5095¢/kWh                                                               1095000     ($5,579.03)
Municipal Assessment Rider                                                 2.46%                                                 17759.25      $436.88
Municipal Franchise (Local Access) Fee                                                                               4.16%       17759.25       $738.78
Total Riders                                          ($3,722.13)         $436.88                                   $738.78                  ($2,546.47)

Final Charges                                         $8,884.05          $5,589.94      $98,550.00   $12,702.00     $738.78                 $126,464.77
Percentage                                                7%                4%             78%          10%           1%                           100%


Consumption                              1,095,000
Load Factor                              60%
Demand                                   2500
Distance                                  12
Months                                     1
Large General Service Rate 63 - Typical Scenario

                                                                     January 1, 2006
Base Charges                                         Transmission     Distribution     Energy        Retail                                     Charges
Energy Charge (¢/kWh)
      all kWh delivered                               0.447¢/kWh                      8.800¢/kWh    0.66¢/kWh                  2555000      $253,123.85
Capacity Charges ($)
      all kW of Capacity                               $2.66/kW        $0.683/kW                                                5000         $16,715.00
Contract Kilometre Charge ($/km)                                      $350.00/km                                                 12           $4,200.00
Monthly Charge                                                                                                     0.00%          1
Total Base Charges                                    $24,720.85       $7,615.00     $224,840.00   $16,863.00                               $274,038.85

Riders                                                 T Riders         D Riders      G Riders                  Other Riders
Balancing Pool Adjustment Rider                      - 0.103¢/kWh                                                              2555000        ($2,631.65)
Municipal Assessment Rider                                               1.89%                                                 32335.85         $611.15
Municipal Franchise (Local Access) Fee                                                                             3.35%       32335.85       $1,083.25
Total Riders                                          ($2,631.65)       $611.15                                  $1,083.25                 ($937.25)

Final Charges                                         $22,089.20       $8,226.15     $224,840.00   $16,863.00    $1,083.25                $273,101.60
Percentage                                                8%              3%             82%           6%           0%                              100%




                                                                     January 1, 2007
Base Charges                                         Transmission     Distribution     Energy        Retail                                     Charges
Energy Charge (¢/kWh)
      all kWh delivered                               0.446¢/kWh                      9.000¢/kWh    0.66¢/kWh                  2555000      $258,195.53
Capacity Charges ($)
      all kW of Capacity                               $2.96/kW        $0.532/kW                                                5000         $17,459.17
Contract Kilometre Charge ($/km)                                      $291.33/km                                                 12           $3,496.01
Monthly Charge                                                                                                     0.00%          1
Total Base Charges                                    $26,180.23       $6,157.46     $229,950.00   $16,863.00                               $279,150.70

Riders                                                 T Riders         D Riders      G Riders                  Other Riders
Distribution Adjustment Rider                                           -2.34%                                                 6157.46         ($144.08)
Transmission Adjustment Rider                           7.46%                                                                  26180.23       $1,953.05
Balancing Pool Adjustment Rider                      - 0.307¢/kWh                                                              2555000        ($7,848.96)
Municipal Assessment Rider                                               2.46%                                                 32337.70         $795.51
Municipal Franchise (Local Access) Fee                                                                             4.16%       32337.70        $1,345.25
Total Riders                                          ($5,895.91)       $651.42                                  $1,345.25                    ($3,899.24)

Final Charges                                         $20,284.32       $6,808.89     $229,950.00   $16,863.00    $1,345.25                  $275,251.45
Percentage                                                7%              2%             84%           6%           0%                              100%




                                                                     January 1, 2008
Base Charges                                         Transmission     Distribution     Energy        Retail                                     Charges
Energy Charge (¢/kWh)
      all kWh delivered                               0.4575¢/kWh                     9.000¢/kWh    0.66¢/kWh                  2555000      $258,502.13
Capacity Charges ($)
      all kW of Capacity                             $0.09990/kW      $0.01868/kW                                               5000         $18,034.04
Contract Kilometre Charge ($/km)                                      $10.2263/km                                                12           $3,732.60
Monthly Charge                                                                                                     0.00%          1
Total Base Charges                                    $26,882.25       $6,573.52     $229,950.00   $16,863.00                               $280,268.77

Riders                                                 T Riders         D Riders      G Riders                  Other Riders
Transmission Adjustment Rider                           14.73%                                                                 26882.25       $3,959.76
Balancing Pool Adjustment Rider                      - 0.5095¢/kWh                                                             2555000       ($13,017.73)
Municipal Assessment Rider                                               2.46%                                                 33455.77         $823.01
Municipal Franchise (Local Access) Fee                                                                             4.16%       33455.77        $1,391.76
Total Riders                                          ($9,057.97)       $823.01                                  $1,391.76                    ($6,843.20)

Final Charges                                         $17,824.28       $7,396.53     $229,950.00   $16,863.00    $1,391.76                  $273,425.57
Percentage                                                7%              3%             84%           6%           1%                              100%


Consumption                              2,555,000
Load Factor                              70%
Demand                                   5000
Distance                                  12
Months                                     1
Large General Service Rate 63 - High Scenario

                                                                      January 1, 2006
Base Charges                                          Transmission       Distribution     Energy        Retail                                  Charges
Energy Charge (¢/kWh)
      all kWh delivered                                0.447¢/kWh                        8.800¢/kWh    0.66¢/kWh                  5840000    $578,568.80
Capacity Charges ($)
      all kW of Capacity                                $2.66/kW         $0.683/kW                                                 10000      $33,430.00
Contract Kilometre Charge ($/km)                                         $350.00/km                                                 12         $4,200.00
Monthly Charge                                                                                                        0.00%          1
Total Base Charges                                     $52,704.80        $11,030.00     $513,920.00   $38,544.00                             $616,198.80

Riders                                                  T Riders          D Riders       G Riders                  Other Riders
Balancing Pool Adjustment Rider                       - 0.103¢/kWh                                                                5840000     ($6,015.20)
Municipal Assessment Rider                                                  1.89%                                                 63734.80     $1,204.59
Municipal Franchise (Local Access) Fee                                                                                3.35%       63734.80     $2,135.12
Total Riders                                           ($6,015.20)        $1,204.59                                 $2,135.12                 ($2,675.50)

Final Charges                                          $46,689.60        $12,234.59     $513,920.00   $38,544.00    $2,135.12                $613,523.30
Percentage                                                 8%                2%             84%           6%           0%                           100%




                                                                      January 1, 2007
Base Charges                                          Transmission       Distribution     Energy        Retail                                  Charges
Energy Charge (¢/kWh)
      all kWh delivered                                0.446¢/kWh                        9.000¢/kWh    0.66¢/kWh                  5840000    $590,161.20
Capacity Charges ($)
      all kW of Capacity                                $2.96/kW         $0.532/kW                                                 10000      $34,918.33
Contract Kilometre Charge ($/km)                                         $291.33/km                                                 12         $3,496.01
Monthly Charge                                                                                                        0.00%          1
Total Base Charges                                     $55,612.62         $8,818.92     $525,600.00   $38,544.00                             $628,575.54

Riders                                                  T Riders          D Riders       G Riders                  Other Riders
Distribution Adjustment Rider                                              -2.34%                                                 8818.92       ($206.36)
Transmission Adjustment Rider                             7.46%                                                                   55612.62     $4,148.70
Balancing Pool Adjustment Rider                       - 0.307¢/kWh                                                                5840000    ($17,940.48)
Municipal Assessment Rider                                                  2.46%                                                 64431.54     $1,585.02
Municipal Franchise (Local Access) Fee                                                                                4.16%       64431.54     $2,680.35
Total Riders                                           ($13,791.78)       $1,378.65                                 $2,680.35                 ($9,732.77)

Final Charges                                          $41,820.84        $10,197.58     $525,600.00   $38,544.00    $2,680.35                $618,842.77
Percentage                                                 7%                2%             85%           6%           0%                           100%




                                                                        January 1, 2008
Base Charges                                          Transmission       Distribution     Energy        Retail                                  Charges
Energy Charge (¢/kWh)
      all kWh delivered                                0.4575¢/kWh                       9.000¢/kWh    0.66¢/kWh                  5840000    $590,862.00
Capacity Charges ($)
      all kW of Capacity                              $0.09990/kW       $0.01868/kW                                                10000      $36,068.08
Contract Kilometre Charge ($/km)                                         $10.2263/km                                                12         $3,732.60
Monthly Charge                                                                                                        0.00%          1
Total Base Charges                                     $57,104.25         $9,414.43     $525,600.00   $38,544.00                             $630,662.68

Riders                                                  T Riders          D Riders       G Riders                  Other Riders
Transmission Adjustment Rider                            14.73%                                                                   57104.25     $8,411.46
Balancing Pool Adjustment Rider                       - 0.5095¢/kWh                                                               5840000    ($29,754.80)
Municipal Assessment Rider                                                  2.46%                                                 66518.68     $1,636.36
Municipal Franchise (Local Access) Fee                                                                                4.16%       66518.68     $2,767.18
Total Riders                                           ($21,343.34)       $1,636.36                                 $2,767.18                ($16,939.81)

Final Charges                                          $35,760.91        $11,050.79     $525,600.00   $38,544.00    $2,767.18                $613,722.88
Percentage                                                 6%                2%             86%           6%           0%                           100%


Consumption                               5,840,000
Load Factor                               80%
Demand                                   10000
Distance                                   12
Months                                      1
                                                                                FORTISALBERTA INC.
                                                                  INTERIM 2008 DISTRIBUTION TARIFF
                                                              RATES, OPTIONS, AND RIDERS SCHEDULES
                                                                                      December 4, 2007
Rates
Residential
Rate 11     Residential Service...................................................................................................... 2

Farm
Rate 21          FortisAlberta Farm Service......................................................................................... 3
Rate 23          FortisAlberta Grain Drying Service............................................................................ 4
Rate 24          REA Farm Service ...................................................................................................... 5
Rate 25          REA Large Farm Service............................................................................................ 6
Rate 26          FortisAlberta Irrigation Service .................................................................................. 7
Rate 29          REA Irrigation Service ............................................................................................... 8

Lighting
Rate 31          Street Lighting Service (Investment Option).............................................................. 9
Rate 33          Street Lighting Service (No Investment Option) ...................................................... 10
Rate 38          Yard Lighting Service............................................................................................... 11

Commercial
Rate 41    Small General Service............................................................................................... 12
Rate 44    Oil & Gas (Capacity) Service (Closed) .................................................................... 13
Rate 45    Oil & Gas (Energy) Service...................................................................................... 14

General Service
Rate 61    General Service......................................................................................................... 15
Rate 63    Large General Service............................................................................................... 16
Rate 65    Transmission Connected Service.............................................................................. 17
Rate 66    Opportunity Transmission ........................................................................................ 18

Options
Option A         Primary Service Option............................................................................................. 19
Option C         Idle Service Option ................................................................................................... 20
Option D         Flat Rate Option........................................................................................................ 21
Option E         Deemed Demand Option (Closed)............................................................................ 22
Option I         Interval Metering Option .......................................................................................... 23
Option J         Bill Reduction Option (Closed) ................................................................................ 24
Option M         Distribution Connected Generation Credit/Charge................................................... 25
Option Y         Yardlight Option ....................................................................................................... 26

Riders
Rider A-1 Municipal Assessment Rider ....................................................................................... 27
Municipal Franchise Fee Riders ................................................................................................... 30
2008 Balancing Pool Allocation Rider ......................................................................................... 33
2008 Transmission Adjustment Rider .......................................................................................... 34




FortisAlberta’s Retailer Terms and Conditions of Distribution Access Service provide for other charges, including
an arrears charge of 1.5% per month.
                                                                                                FortisAlberta Inc.
                                                                      Interim 2008 Distribution Tariff Application
                                                                                                 Rate Schedules

                                                                                                            Page 2

RATE 11          RESIDENTIAL SERVICE                                                Effective: January 1, 2008

Availability     Rate 11 is available to individually metered single family dwelling units that are
                 used for domestic purposes only.

Rate 11                                         Transmission            Distribution               Total
                                                 Component              Component           Distribution Tariff
                  All kWh delivered             1.3292¢/kWh             1.1865¢/kWh            2.5157¢/kWh
                  For all Units                      —                   $0.451/day             $0.451/day

                 The Rate Minimum is $0.451/day.

Application      In addition to single family dwellings, Rate 11 is also available to:
                 1. an individually metered single dwelling unit with a maximum of 1,000 watts
                     used in connection with small business;
                 2. an individually metered single motel rental unit, provided that the owner has
                     contracted with FortisAlberta for service to each unit;
                 3. an individually metered private dwelling in a commercial travel trailer or
                     mobile home park, provided that FortisAlberta charges the owner of the park
                     if the occupancy is temporary;
                 4. existing multi-unit residential buildings which are currently served through a
                     single meter and billed on a residential rate;
                 5. senior citizen apartment complexes served through a single meter; or
                 6. travel trailer or mobile home parks served through a single meter where the
                     owner of the park sub-meters each of the occupants of the park and charges
                     the occupants of the park at rates no higher than FortisAlberta’s Residential
                     Service Rate 11.

                 In cases 4, 5 and 6 (multi-residential), FortisAlberta charges for all units,
                 occupied or not.

                 Except for cases 4 and 5, all multi-unit residential buildings (including apartment
                 and condominium buildings) must have individual dwelling units separately
                 metered and billed on Residential Service Rate 11, with common use areas such
                 as hallway, lobby, and laundry room lighting metered and billed on Small General
                 Service Rate 41.




FortisAlberta’s Retailer Terms and Conditions of Distribution Access Service provide for other charges, including
an arrears charge of 1.5% per month.
                                                                                                FortisAlberta Inc.
                                                                      Interim 2008 Distribution Tariff Application
                                                                                                 Rate Schedules

                                                                                                            Page 3

RATE 21          FORTISALBERTA FARM SERVICE                                         Effective: January 1, 2008

Availability     Rate 21 is available in rural areas to Points of Service connected directly to
                 FortisAlberta’s distribution system that deliver energy to farming operations
                 which include a residence.

Rate 21                                         Transmission             Distribution              Total
                                                 Component               Component          Distribution Tariff
                  For all kWh delivered          1.395¢/kWh                   —                1.395¢/kWh
                  For the first 5 kVA of
                                                       —              $0.2754/kVA/day         $0.2754/kVA/day
                  Capacity
                  All additional kVA of
                                                       —              $0.2289/kVA/day         $0.2289/kVA/day
                  Capacity

                 The kVA of Capacity is:
                 1. for breakered services 25 kVA or less, the greater of the breaker kVA rating
                    or 5 kVA; or
                 2. for non-breakered services greater than 10 kVA, the greatest of:
                    a) the highest Metered Demand in the billing period;
                    b) 85% of the highest Metered Demand in the past 12 months including and
                        ending with the billing period;
                    c) the Rate Minimum of 10 kVA.




FortisAlberta’s Retailer Terms and Conditions of Distribution Access Service provide for other charges, including
an arrears charge of 1.5% per month.
                                                                                                FortisAlberta Inc.
                                                                      Interim 2008 Distribution Tariff Application
                                                                                                 Rate Schedules

                                                                                                            Page 4

RATE 23          FORTISALBERTA GRAIN DRYING SERVICE                                 Effective: January 1, 2008

Availability     Rate 23 is available to FortisAlberta Farm Points of Service that have, in addition
                 to the regular farm service, varying load levels throughout the year due to the use
                 of grain drying equipment for part of the year.

Rate 23                                         Transmission            Distribution                Total
                                                 Component              Component            Distribution Tariff
                  For all kWh delivered          1.395¢/kWh             0.9972¢/kWh             2.3922¢/kWh
                  For the first 5 kVA of
                                                       —              $0.2754/kVA/day         $0.2754/kVA/day
                  Capacity
                  All additional kVA of
                                                       —              $0.1441/kVA/day         $0.1441/kVA/day
                  Capacity

                 The kVA of Capacity is:
                 1. for breakered services 25 kVA or less, the greater of the breaker kVA rating
                    or 5 kVA; or
                 2. for non-breakered services greater than 10 kVA, the greatest of:
                    a) the highest Metered Demand in the billing period;
                    b) 85% of the highest Metered Demand in the past 12 months including and
                        ending with the billing period;
                    c) the Rate Minimum of 10 kVA.

Application      Rate 23 is only available to Farm Points of Service that qualify for basic service at
                 Rate 21 and operate more than 5 hp of grain drying equipment in addition to the
                 basic service.




FortisAlberta’s Retailer Terms and Conditions of Distribution Access Service provide for other charges, including
an arrears charge of 1.5% per month.
                                                                                                FortisAlberta Inc.
                                                                      Interim 2008 Distribution Tariff Application
                                                                                                 Rate Schedules

                                                                                                            Page 5

RATE 24          REA FARM SERVICE                                                   Effective: January 1, 2008

Availability     REA Rate 24 is available to services of members of a Rural Electrification
                 Association (REA) and to farmers who own their entire electric service extension
                 (T-rurals).

Rate 24                                         Transmission             Distribution               Total
                                                 Component               Component           Distribution Tariff
                  For all kWh delivered          1.395¢/kWh                   —                 1.395¢/kWh
                  Basic Daily Charge                 —                   $0.0299/day            $0.0299/day

                 Plus:
                 1. Charges collected for and on behalf of REAs and farmers who own their
                    entire electric service extension (T-rurals).

                 The Rate Minimum is the Basic Daily Charge.




FortisAlberta’s Retailer Terms and Conditions of Distribution Access Service provide for other charges, including
an arrears charge of 1.5% per month.
                                                                                                FortisAlberta Inc.
                                                                      Interim 2008 Distribution Tariff Application
                                                                                                 Rate Schedules

                                                                                                            Page 6

RATE 25          REA LARGE FARM SERVICE                                             Effective: January 1, 2008

Availability     REA Rate 25 is available to services of members of a Rural Electrification
                 Association (REA) and farmers who own their entire electric service extension
                 (T-rurals), where the Operating Demand is greater than 50 kW and less than
                 2,000 kW.

Rate 25                                         Transmission             Distribution               Total
                                                 Component               Component           Distribution Tariff
                  For all kWh delivered         0.4654¢/kWh                   —                 0.4654¢/kWh
                  For all kW of Capacity       $0.0865/kW/day                 —               $0.0865/kW/day
                  Basic Daily Charge                 —                   $0.0299/day             $0.0299/day

                 The kW of Capacity is the greatest of:
                 1. the highest Metered Demand in the billing period;
                 2. 85% of the highest Metered Demand in the 12 month period including and
                    ending with the billing period;
                 3. the Contract Minimum Demand as specified by the Terms and Conditions of
                    Distribution Access Service; or
                 4. the Rate Minimum of 50 kW.

                 The Metered Demand is the greater of the registered demand in kilowatts or 90%
                 of the registered demand in kilovolt-amperes.

                 Plus:

                 1. Charges collected for and on behalf of REAs and farmers who own their
                    entire electric service extension (T-rurals).


Application      Billing on this rate is contingent upon provision of monthly demand and energy
                 meter readings. Failure to provide these readings will result in retroactive billing
                 on the REA Farm Service Rate.




FortisAlberta’s Retailer Terms and Conditions of Distribution Access Service provide for other charges, including
an arrears charge of 1.5% per month.
                                                                                                FortisAlberta Inc.
                                                                      Interim 2008 Distribution Tariff Application
                                                                                                 Rate Schedules

                                                                                                            Page 7

RATE 26          FORTISALBERTA IRRIGATION SERVICE                                   Effective: January 1, 2008

Availability     Rate 26 is available to Points of Service with individually metered motors driving
                 irrigation pumps that operate only in the Irrigation Season.

Rate 26                                         Transmission            Distribution                Total
                                                 Component               Component           Distribution Tariff
                  For all kWh delivered          1.838¢/kWh              0.394¢/kWh             2.232¢/kWh
                  For all kW of Capacity             —                 $0.0702/kW/day         $0.0702/kW/day
                  Idle Charges
                  For all kW of Capacity               —               $0.0603/kW/day          $0.0603/kW/day

                 The kW of Capacity is the sum of the motor nameplate horsepower ratings of all
                 installed motors (1 hp equals 0.746 kW). FortisAlberta may use, as the kW of
                 Capacity, the registered demand in kilowatts or 90% of the registered demand in
                 kilovolt-amperes as established by test or measured by metering equipment.

Irrigation       For the purposes of this rate, the Irrigation Season runs from April 1 to
Season           October 31.




FortisAlberta’s Retailer Terms and Conditions of Distribution Access Service provide for other charges, including
an arrears charge of 1.5% per month.
                                                                                                FortisAlberta Inc.
                                                                      Interim 2008 Distribution Tariff Application
                                                                                                 Rate Schedules

                                                                                                            Page 8

RATE 29          REA IRRIGATION SERVICE                                             Effective: January 1, 2008

Availability     Rate 29 is available to services of members of a Rural Electrification Association
                 (REA) and to farmers who own their entire electric service extension (T-rurals)
                 for individually metered motors driving irrigation pumps that operate only in the
                 Irrigation Season.

Rate 29                                         Transmission             Distribution               Total
                                                 Component               Component           Distribution Tariff
                  For all kWh delivered          1.838¢/kWh                   —                 1.838¢/kWh
                  Basic Daily Charge                 —                   $0.0299/day            $0.0299/day

                 Plus:
                 • Charges collected for and on behalf of REAs and farmers who own their
                    entire electric service extension (T-rurals).

                 The Rate Minimum is the Basic Daily Charge.

Irrigation       For the purposes of this rate, the Irrigation Season runs from April 1 to
Season           October 31.




FortisAlberta’s Retailer Terms and Conditions of Distribution Access Service provide for other charges, including
an arrears charge of 1.5% per month.
                                                                                                FortisAlberta Inc.
                                                                      Interim 2008 Distribution Tariff Application
                                                                                                 Rate Schedules

                                                                                                            Page 9

RATE 31          STREET LIGHTING SERVICE                                            Effective: January 1, 2008
                 (INVESTMENT OPTION)

Availability     Rate 31 is available for standard street lighting fixtures.

Rate 31                                         Transmission            Distribution           Total
                                                 Component              Component       Distribution Tariff
                  All connected Watts         0.0208¢/Watt/day       0.0196¢/Watt/day    0.0404¢/Watt/day
                                                                     $0.403/Fixture/day $0.403/Fixture/day x
                  Fixture Charge                       —               x Maintenance        Maintenance
                                                                         Multiplier          Multiplier

                 Wattage charges do not apply if the fixture is temporarily disconnected or if the
                 energy is supplied to the customer through a separately metered service.

                 The Rate Minimum is the Fixture Charge.

Maintenance All standard maintenance costs are included in Rate 31 with a standard
            Maintenance Multiplier of 1.




FortisAlberta’s Retailer Terms and Conditions of Distribution Access Service provide for other charges, including
an arrears charge of 1.5% per month.
                                                                                                FortisAlberta Inc.
                                                                      Interim 2008 Distribution Tariff Application
                                                                                                 Rate Schedules

                                                                                                          Page 10

RATE 33          STREET LIGHTING SERVICE                                            Effective: January 1, 2008
                 (NO INVESTMENT OPTION)

Availability     Rate 33 is available for standard street and highway lighting fixtures and includes
                 maintenance of the luminaries only. This rate is available for new installations
                 only.

Rate 33                                         Transmission            Distribution           Total
                                                 Component              Component       Distribution Tariff
                  All connected Watts         0.0208¢/Watt/day       0.0196¢/Watt/day    0.0404¢/Watt/day
                                                                     $0.112/Fixture/day $0.112/Fixture/day
                  Fixture Charge                       —               x Maintenance       x Maintenance
                                                                         Multiplier          Multiplier

                 Wattage charges do not apply if the fixture is temporarily disconnected or if the
                 energy is supplied to the customer through a separately metered service.

                 The Rate Minimum is the Fixture Charge.

Maintenance Rate 33 covers standard routine luminaire maintenance including replacement of
            failed lamps, damaged glassware and reflectors; repair or replacement of
            defective ballasts and controls; lamp cleaning; and scheduled system inspections
            with a standard Maintenance Multiplier of 1.

                 A separate bill is issued by FortisAlberta for all other maintenance and changes
                 beyond the secondary terminals of the power supply transformer including, but
                 not limited to, replacement of the system or components following loss by any
                 cause such as vehicle impact, vandalism or age.




FortisAlberta’s Retailer Terms and Conditions of Distribution Access Service provide for other charges, including
an arrears charge of 1.5% per month.
                                                                                                FortisAlberta Inc.
                                                                      Interim 2008 Distribution Tariff Application
                                                                                                 Rate Schedules

                                                                                                          Page 11

RATE 38          YARD LIGHTING SERVICE                                              Effective: January 1, 2008

Availability     Rate 38 is available for yard lighting. FortisAlberta is responsible for all
                 maintenance costs.

Rate 38                                         Transmission            Distribution           Total
                                                 Component              Component       Distribution Tariff
                  All connected Watts         0.0208¢/Watt/day       0.0196¢/Watt/day    0.0404¢/Watt/day
                  Fixture Charge                     —               $0.252/Fixture/day $0.252/Fixture/day

                 Wattage charges do not apply if the fixture is temporarily disconnected or if the
                 energy is supplied to the customer through a separately metered service.

                 The Rate Minimum is the Fixture Charge.

Maintenance All maintenance costs are included in Rate 38.

New           Only sodium lighting is available for new installations.
Installations




FortisAlberta’s Retailer Terms and Conditions of Distribution Access Service provide for other charges, including
an arrears charge of 1.5% per month.
                                                                                                FortisAlberta Inc.
                                                                      Interim 2008 Distribution Tariff Application
                                                                                                 Rate Schedules

                                                                                                          Page 12

RATE 41          SMALL GENERAL SERVICE                                              Effective: January 1, 2008

Availability     Rate 41 is available to Small General Service Points of Service with Operating
                 Demands less than 75 kW and do not qualify for other specific rates such as the
                 Oil and Gas Service rates.

Rate 41                                         Transmission             Distribution               Total
                                                 Component               Component           Distribution Tariff
                  For the first 6.575 kWh
                                                 0.4695¢/kWh            0.6332¢/kWh             1.1027¢/kWh
                  /kW of Capacity/day
                  All additional kWh             0.4695¢/kWh                  —                 0.4695¢/kWh
                  For the first 2 kW of
                                               $0.0573/kW/day          $0.2572/kW/day         $0.3145/kW/day
                  Capacity
                  All additional kW of
                                               $0.0573/kW/day         $0.13091/kW/day         $0.18821/kW/day
                  Capacity

                 The kW of Capacity is the greatest of:
                 1. the highest Metered Demand in the billing period;
                 2. 85% of the highest Metered Demand in the 12 month period including and
                    ending with the billing period, less 50 kW;
                 3. the Rate Minimum of 3 kW.

                 The Metered Demand is the greater of the registered demand in kilowatts or 90%
                 of the registered demand in kilovolt-amperes.




FortisAlberta’s Retailer Terms and Conditions of Distribution Access Service provide for other charges, including
an arrears charge of 1.5% per month.
                                                                                                FortisAlberta Inc.
                                                                      Interim 2008 Distribution Tariff Application
                                                                                                 Rate Schedules

                                                                                                          Page 13

RATE 44          OIL & GAS (CAPACITY) SERVICE                                       Effective: January 1, 2008
                 (CLOSED)

Availability     Rate 44 is available to oil and natural gas field services that are unmetered or have
                 demand meters only. These services include pumping and related operations such
                 as; rectifiers, cathodic protection and radio transmitters, and water pumping
                 services. Rate 44 is available to services with Operating Demands less than 75
                 kilowatts. Flat Rate Option D applies to unmetered services.

Rate 44                                         Transmission             Distribution               Total
                                                 Component               Component           Distribution Tariff
                  For the first 5 kW of
                                               $0.1193/kW/day         $0.39439/kW/day         $0.51369/kW/day
                  Capacity
                  All additional kW of
                                               $0.1193/kW/day         $0.26521/kW/day         $0.38451/kW/day
                  Capacity

                 The kW of Capacity is the greatest of:
                 1. for unmetered and energy metered services, the sum of all connected motors
                    and equipment (1 horsepower equals 0.746 kW);
                 2. for demand metered services, the highest Metered Demand in the 12-month
                    period including and ending with the current billing period. The Metered
                    Demand is the greater of the registered demand in kilowatts or 90% of the
                    registered demand in kilovolt-amperes;
                 3. the Rate Minimum of 3 kW.

                 The kW of Capacity must bill for a minimum of 12 consecutive months before
                 being reduced.




FortisAlberta’s Retailer Terms and Conditions of Distribution Access Service provide for other charges, including
an arrears charge of 1.5% per month.
                                                                                                FortisAlberta Inc.
                                                                      Interim 2008 Distribution Tariff Application
                                                                                                 Rate Schedules

                                                                                                          Page 14

RATE 45          OIL & GAS (ENERGY) SERVICE                                         Effective: January 1, 2008

Availability     Rate 45 is available to oil and natural gas field services including pumping and
                 related operations such as rectifiers, cathodic protection and radio transmitters and
                 to water pumping services. Rate 45 is available to services with Operating
                 Demands less than 75 kilowatts and have a demand and energy measurement
                 meter.

Rate 45                                         Transmission             Distribution               Total
                                                 Component               Component           Distribution Tariff
                  For all kWh delivered         0.4878¢/kWh                   —                 0.4878¢/kWh
                  For the first 5 kW of
                                               $0.0668/kW/day         $0.39439/kW/day         $0.46119/kW/day
                  Capacity
                  All additional kW of
                                               $0.0668/kW/day         $0.26521/kW/day         $0.33201/kW/day
                  Capacity

                 The kW of Capacity is the greatest of:
                 1. the highest Metered Demand in the billing period;
                 2. 85% of the highest Metered Demand in the 12 month period including and
                    ending with the current billing period;
                 3. the Rate Minimum of 3 kW.

                 The Metered Demand is the greater of the registered demand in kilowatts or 90%
                 of the registered demand in kilovolt-amperes.




FortisAlberta’s Retailer Terms and Conditions of Distribution Access Service provide for other charges, including
an arrears charge of 1.5% per month.
                                                                                                FortisAlberta Inc.
                                                                      Interim 2008 Distribution Tariff Application
                                                                                                 Rate Schedules

                                                                                                          Page 15

RATE 61          GENERAL SERVICE                                                    Effective: January 1, 2008

Availability     Rate 61 is available to Points of Service that do not qualify for other specific
                 rates, with Operating Demands of 2,000 kW or less. A contract with FortisAlberta
                 is required for service under this rate.

Rate 61                                         Transmission             Distribution               Total
                                                 Component               Component           Distribution Tariff
                  For all kWh delivered         0.4654¢/kWh                   —                 0.4654¢/kWh
                  For the first 50 kW of
                                               $0.0865/kW/day         $0.16656/kW/day         $0.25306/kW/day
                  Capacity
                  For the next 450 kW of
                                               $0.0865/kW/day         $0.07474/kW/day         $0.16124/kW/day
                  Capacity
                  All additional kW of
                                               $0.0865/kW/day         $0.05712/kW/day         $0.14362/kW/day
                  Capacity

                 The kW of Capacity is the greatest of:
                 1. the highest Metered Demand in the billing period;
                 2. 85% of the highest Metered Demand in the 12 month period including and
                    ending with the billing period;
                 3. the Contract Minimum Demand as specified by the Terms and Conditions of
                    Distribution Access Service; or
                 4. the Rate Minimum of 50 kW.

                 The Metered Demand is the greater of the registered demand in kilowatts or 90%
                 of the registered demand in kilovolt-amperes.




FortisAlberta’s Retailer Terms and Conditions of Distribution Access Service provide for other charges, including
an arrears charge of 1.5% per month.
                                                                                                FortisAlberta Inc.
                                                                      Interim 2008 Distribution Tariff Application
                                                                                                 Rate Schedules

                                                                                                          Page 16

RATE 63          LARGE GENERAL SERVICE                                              Effective: January 1, 2008

Availability     Rate 63 is available to Points of Service that do not qualify for other specific
                 rates, with Operating Demands greater than 2,000 kW. A contract with
                 FortisAlberta is required for service under this rate.

Rate 63                                         Transmission             Distribution               Total
                                                 Component               Component           Distribution Tariff
                  For all kWh delivered         0.4575¢/kWh                   —                 0.4575¢/kWh
                  For each kW of
                                               $0.0999/kW/day         $0.01868/kW/day         $0.11858/kW/day
                  Capacity
                  For each Contract
                                                       —              $10.2263/km/day         $10.2263/km/day
                  kilometre

                 The kW of Capacity is the greatest of:
                 1. the highest Metered Demand in the billing period;
                 2. 90% of the highest Metered Demand in the 12 month period including and
                    ending with the billing period;
                 3. 135% of the Contract Minimum Demand as specified in the Terms and
                    Conditions of Distribution Access Service; or
                 4. the Rate Minimum of 2000 kW.

                 The Metered Demand is the greater of the registered demand in kilowatts or 90%
                 of the registered demand in kilovolt-amperes.

                 The Contract kilometres are specified in an agreement.




FortisAlberta’s Retailer Terms and Conditions of Distribution Access Service provide for other charges, including
an arrears charge of 1.5% per month.
                                                                                                FortisAlberta Inc.
                                                                      Interim 2008 Distribution Tariff Application
                                                                                                 Rate Schedules

                                                                                                          Page 17

RATE 65          TRANSMISSION CONNECTED SERVICE                                     Effective: January 1, 2008

Availability     Rate 65 is available to Transmission Connected services, as defined by
                 FortisAlberta’s Terms and Conditions of Distribution Access Service.

Rate 65                    Transmission Component                            Distribution Component
                         The applicable rate(s) of the
                                                                                   $20.67 per day
                    Alberta Electric System Operator Tariff


Conditions       FortisAlberta will apply the Terms and Conditions of the Alberta Electric System
                 Operator (AESO) to Transmission Connected Services. Each Transmission
                 Connected Service is equivalent to the respective AESO Point of Delivery (POD)
                 and will be billed on this rate only when FortisAlberta has a distinct System
                 Access Service Agreement in existence with the AESO, specifically for the POD,
                 and is being charged the AESO tariff by the AESO for the POD.




FortisAlberta’s Retailer Terms and Conditions of Distribution Access Service provide for other charges, including
an arrears charge of 1.5% per month.
                                                                                                FortisAlberta Inc.
                                                                      Interim 2008 Distribution Tariff Application
                                                                                                 Rate Schedules

                                                                                                          Page 18

RATE 66          OPPORTUNITY TRANSMISSION                                           Effective: January 1, 2008

Availability     Rate 66 is available to Points of Service that:
                 1. are served under along term contract with FortisAlberta under Rate 61 or 63;
                 2. have interval metering at the Point of Service;
                 3. have agreement with FortisAlberta for the Firm Demand, above which Rate
                    66 applies ; and
                 4. have an Opportunity Transmission Agreement with FortisAlberta for the
                    period of usage under this rate.

                 Rate 66 is available if FortisAlberta determines, upon receipt of an Opportunity
                 Agreement, that the requested capacity is available.

Rate 66                                         Transmission             Distribution               Total
                                                 Component               Component           Distribution Tariff
                  For all kWh
                                                   8.2¢/kWh               1.6¢/kWh                9.8¢/kWh
                  consumption

                 A Service Charge of $75 per Opportunity Transmission Agreement will apply.
                 The Opportunity Transmission Agreement will indicate requested Opportunity
                 Demand and number of hours, for no more than one calendar month at a time.

                 The minimum charge for each 24 hour (calendar day) period in which
                 Opportunity Demand is used, will be the Total Distribution Tariff rate × contract
                 Opportunity Demand (kW) × 6 hrs.

                 If the Metered Demand exceeds the sum of the Firm Demand and the Maximum
                 Opportunity Demand specified in the agreement during any time within the period
                 covered by the agreement, then the Firm Demand level will be increased by the
                 excess (kW) amount. The increased Firm Demand will be the basis for billing the
                 Point of Service’s Rate 61 or 63 load for the current and subsequent billing
                 periods.

                 The Metered Demand is the greater of the registered demand in kilowatts or 90%
                 of the registered demand in kilovolt-amperes.




FortisAlberta’s Retailer Terms and Conditions of Distribution Access Service provide for other charges, including
an arrears charge of 1.5% per month.
                                                                                                FortisAlberta Inc.
                                                                      Interim 2008 Distribution Tariff Application
                                                                                               Option Schedules

                                                                                                          Page 19

OPTION A         PRIMARY SERVICE OPTION                                             Effective: January 1, 2008

Availability     The Primary Service Option is available for a minimum period of 12 consecutive
                 months to Points of Service:
                 1. supplied under a satisfactory contract on the General Service Rate 61or the
                    Large General Service Rate 63;
                 2. normally metered at a primary voltage with the customer providing the
                    transformation to the customer’s utilization voltage;
                 3. with an Operating Demand not less than 1,000 kW; and
                 4. where the total cost of the required customer-related supply facilities
                    (including any customer supplied transformation) is less than FortisAlberta’s
                    investment.

                 The Primary Service Credit is not available to Transmission Connected sites.

Option A         The Primary Service Credit is $0.00923 per kW of Capacity per day.




FortisAlberta’s Retailer Terms and Conditions of Distribution Access Service provide for other charges, including
an arrears charge of 1.5% per month.
                                                                                                FortisAlberta Inc.
                                                                      Interim 2008 Distribution Tariff Application
                                                                                               Option Schedules

                                                                                                          Page 20

OPTION C         IDLE SERVICE OPTION                                                Effective: January 1, 2008

Availability     The Idle Service Option is available to all Points of Service types listed below,
                 that select to cease energy consumption for a period of time, and request that
                 FortisAlberta leave the electric supply facilities in place. FortisAlberta may at its
                 option temporarily remove facilities during the idle service period.

Option C         Charges for Idle Charges are as follows:

                 1. for Farm Rate 21, Grain Drying Rate 23, Oil and Gas Rates 44 and 45, Small
                    General Service Rate 41, and General Service Rate 61, customers are charged
                    for the kW (kVA) of Capacity as defined in the applicable rate; and
                 2. for FortisAlberta Irrigation Rate 26 the Idle Service Charges as specified in
                    the rate will apply.

                 Sites on Idle Service Option C are not normally charged for the cost to disconnect
                 and reconnect the service.




FortisAlberta’s Retailer Terms and Conditions of Distribution Access Service provide for other charges, including
an arrears charge of 1.5% per month.
                                                                                                FortisAlberta Inc.
                                                                      Interim 2008 Distribution Tariff Application
                                                                                               Option Schedules

                                                                                                          Page 21

OPTION D         FLAT RATE OPTION                                                   Effective: January 1, 2008

Availability     The Flat Rate Option is available to un-metered services which qualify for the
                 Small General Service Rate 41 or Oil & Gas Service Rates 44 or 45 and which
                 have a small kW of Capacity with a minimal or accurately predictable average
                 monthly kilowatt hour consumption.

                 The Flat Rate Option is applied for a minimum period of twelve consecutive
                 months.

Option D         A Flat Rate bill is calculated on the Small General Service Rate or the Oil and
                 Gas Service Rate, using an estimated kW of Capacity and an estimated monthly
                 kilowatt hour consumption.




FortisAlberta’s Retailer Terms and Conditions of Distribution Access Service provide for other charges, including
an arrears charge of 1.5% per month.
                                                                                                FortisAlberta Inc.
                                                                      Interim 2008 Distribution Tariff Application
                                                                                               Option Schedules

                                                                                                          Page 22

OPTION E         DEEMED DEMAND OPTION (CLOSED)                                      Effective: January 1, 2008

Availability     The Deemed Demand Option is available for a minimum period of twelve
                 consecutive months to the following:
                 1. apartment house common use areas such as halls and basements, utility
                    rooms, car stalls, etc., where all the apartments are individually metered and
                    billed as residential services;
                 2. travel trailer parks with widely varying seasonal requirements and where
                    service is taken by the proprietor on a bulk basis through one metering point;
                 3. single family residences where there is more than 1,000 watts of non-
                    residential load installed for use in connection with a small private business,
                    consuming less than 3,000 kWh per month in total and served through the
                    same meter; and
                 4. churches, parish halls and non-profit community-operated halls and clubs,
                    with an anticipated demand of 50 kW or less.

                 Except as provided for above, the Deemed Demand Option E is not available to:
                 • private clubs, fraternal society clubs or any organization or society where
                    membership is restricted;
                 • sports grounds, parks, golf clubs, seasonal lighting (skating rinks), ice plants;
                 • scout or guide halls; or
                 • convents, seminaries, bible schools and colleges.

Option E         A deemed demand bill is calculated on the Small General Service Rate 41 with
                 the Metered Demand deemed equal to 1 kW for each 5.26 kWh per day or portion
                 thereof.




FortisAlberta’s Retailer Terms and Conditions of Distribution Access Service provide for other charges, including
an arrears charge of 1.5% per month.
                                                                                                FortisAlberta Inc.
                                                                      Interim 2008 Distribution Tariff Application
                                                                                               Option Schedules

                                                                                                          Page 23

OPTION I         INTERVAL METERING OPTION                                           Effective: January 1, 2008

Availability     The Interval Metering Option is available for Points of Service with a Contract
                 Minimum Demand of less than 333 kW (which coincides with an Operating
                 Demand of less than 500 kW), with Interval Meters, to enable 15-minute interval
                 data (does not apply to DG customers who own and poll the meters).

Option I         The Interval Metering Option is calculated at $5.26/day for all rate classes other
                 than Irrigation Rates 26 and 29, which are calculated at $8.98/day.




FortisAlberta’s Retailer Terms and Conditions of Distribution Access Service provide for other charges, including
an arrears charge of 1.5% per month.
                                                                                                FortisAlberta Inc.
                                                                      Interim 2008 Distribution Tariff Application
                                                                                               Option Schedules

                                                                                                          Page 24

OPTION J         BILL REDUCTION OPTION (CLOSED)                                     Effective: January 1, 2008

Availability     The Bill Reduction Credit is available to Points of Service for which there is a
                 contract demand below 2,000 kW.

                 The Bill Reduction Credit is not available to those services who have requested a
                 refund of contribution, on the same service, within the previous twelve months.

Option J         The Bill Reduction Credit reduces the charges to the extent that the customer
                 makes an optional additional customer contribution towards the investment cost
                 of the service (subject to the maximum FortisAlberta investment on that rate).

Refund           The Bill Reduction Credit will be credited monthly based on the additional
                 contribution and the current credit rate. The Bill Reduction Credit rate will be
                 adjusted every January and July based on market trends.

                 The additional customer contribution is refundable to the customer upon request.




FortisAlberta’s Retailer Terms and Conditions of Distribution Access Service provide for other charges, including
an arrears charge of 1.5% per month.
                                                                                                FortisAlberta Inc.
                                                                      Interim 2008 Distribution Tariff Application
                                                                                               Option Schedules

                                                                                                          Page 25

OPTION M DISTRIBUTION CONNECTED                                                     Effective: January 1, 2008
         GENERATION CREDIT/CHARGE

Availability     Option M is available to Distribution Connected Generating Customers that are
                 interconnected to the distribution system downstream of a FortisAlberta
                 transmission Point of Delivery (POD) and are exporting into the Alberta
                 Interconnected Electric System (AIES).

                 Distribution Connected Generating Customers who have contracts under the
                 provisions of the Small Power Research and Development (SPRD) Act are
                 exempt from Option M.

Option M         The Option M Credit or Charge will be the difference between Alberta Electric
                 System Operator (AESO) System Access Service charges to FortisAlberta at the
                 upstream POD with the generator in operation and the charges that would have
                 been incurred if the generator had not been in operation, calculated based on the
                 amount of electricity exported into the AIES at the Point of Interconnection.

                 System Access Service Charges include any charges applicable at the POD in
                 accordance with the AESO approved tariff including, but not limited to, DTS and
                 STS.

                 The Distribution Connected Generation Credits/Charges will be calculated and
                 paid monthly for each Distribution Connected Generating Customer. For such
                 Customers, with a maximum export capacity of 1 MW or greater in the month, the
                 credits and charges will be calculated on an actual basis. For Customers below 1
                 MW, the credits and charges will be calculated based on the average credit and
                 charge levels for those above 1 MW.




FortisAlberta’s Retailer Terms and Conditions of Distribution Access Service provide for other charges, including
an arrears charge of 1.5% per month.
                                                                                                FortisAlberta Inc.
                                                                      Interim 2008 Distribution Tariff Application
                                                                                               Option Schedules

                                                                                                          Page 26

OPTION Y         YARDLIGHT OPTION                                                   Effective: January 1, 2008

Availability     The Yardlight Option is available to Yard Lighting Services downstream of a
                 metered service

                 The Yardlight Option is not available to yard lights that are not supplied through a
                 separately metered service. These services remain a separate Point of Service and
                 must be enrolled separately under Rate 38.

Option Y         The Yardlight Option is calculated at the same rate as the Fixture Charge
                 component of Rate 38.




FortisAlberta’s Retailer Terms and Conditions of Distribution Access Service provide for other charges, including
an arrears charge of 1.5% per month.
                                                                                                 FortisAlberta Inc.
                                                                       Interim 2008 Distribution Tariff Application
                                                                                                  Rider Schedules

                                                                                                            Page 27



RIDER A-1 MUNICIPAL ASSESSMENT RIDER                                                     Effective: July 1, 2007


Availability      The percentages below apply to the base Distribution Tariff charges at each Point of Service,
                  according to the taxation authority in which the Point of Service is located.
                  Rates 21, 23, 24, 25, 26, 28, 29, 38, 65, and 81 are exempt from Rider A-1.

 Rider A-1        Number       Name                     Rider       Number         Name                     Rider
 RI               03-0002     Acme, Village of            4.24%      04-0414     Burnstick Lake, S.V.        0.60%
 DE               01-0003     Airdrie, City of            2.44%      01-0046     Calgary, City of           40.00%
 R
 A-1
                  03-0004     Alberta Beach, S.V. of      5.34%      02-0047     Calmar, Town of             7.86%
 M                25-0466     Alexander                   4.26%      06-0049     Camrose #22, County of      4.48%
 UN               25-0467     Alexis(Lacsteanne)96-97     4.61%      01-0048     Camrose, City of            3.20%
 ICI              03-0005     Alix, Village of            2.50%      02-0050     Canmore, Town of            2.36%
 PA               03-0007     Amisk, Village of           6.97%      06-0053     Cardston #6, M.D. of        3.00%
 L
                  04-0009     Argentia Beach, S.V. of     0.70%      02-0052     Cardston, Town of           0.03%
 AS
 SE               03-0010     Arrowwood, Village of       1.75%      03-0054     Carmangay, Village of       4.22%
 SS               06-0012     Athabasca 12, County of     1.85%      03-0055     Caroline, Village of        3.45%
 M                02-0011     Athabasca, Town of          3.78%      02-0056     Carstairs, Town of          4.10%
 EN               02-0387     Banff, Town of              2.64%      04-0057     Castle Island, S.V. of      1.82%
 T                03-0363     Barnwell, Village of        3.21%      03-0061     Champion, Village of        5.21%
 RI
 DE               03-0013     Barons, Village of          4.51%      03-0062     Chauvin, Village of         5.87%
 R                06-0015     Barrhead #11, County of     3.50%      02-0356     Chestermere Lake, Town      1.55%
                  02-0014     Barrhead, Town of           3.59%      03-0064     Chipman, Village of         7.29%
                  02-0016     Bashaw, Town of             4.40%      02-0065     Claresholm, Town of         4.59%
                  02-0017     Bassano, Town of            3.94%      06-0377     Clearwater #99, M.D. of     2.15%
                  03-0018     Bawlf, Village of           4.44%      03-0066     Clive, Village of           3.88%
                  02-0019     Beaumont, Town of           1.91%      03-0068     Clyde, Village of           5.28%
                  06-0020     Beaver #9, County of        3.54%      02-0069     Coaldale, Town of           3.43%
                  03-0022     Beiseker, Village of        3.48%      02-0360     Coalhurst, Town of          3.27%
                  02-0024     Bentley, Village of         3.58%      02-0070     Cochrane, Town of           2.35%
                  04-0026     Betula Beach, S.V. of       2.53%      03-0076     Coutts, Village of          5.25%
                  06-0382     Bighorn #8, M.D. of         1.35%      03-0077     Cowley, Village of          3.40%
                  25-0469     Big Stone Cree Nation       8.25%      03-0078     Cremona, Village of         4.12%
                  04-0384     Birch Cove, S.V. of         4.24%      02-0079     Crossfield, Town of         2.15%
                  04-0028     Birchcliff, S.V. of         2.44%      02-0361     Crowsnest Pass, Muni of     3.19%
                  03-0029     Bittern Lk, Village of      1.86%      04-0080     Crystal Springs, S.V. of    2.11%
                  02-0030     Black Diamond, Town of      2.92%      06-0376     Cypress County              0.57%
                  02-0031     Blackfalds, Town of         3.49%      03-0081     Czar, Village of            5.95%
                  02-0034     Bon Accord, Town of         7.41%      02-0082     Daysland, Town of           3.31%
                  04-0367     Bondiss, S.V. of            2.78%      02-0086     Devon, Town of              2.41%
                  02-0039     Bow Island, Town of         3.59%      02-0088     Didsbury, Town of           3.09%
                  02-0040     Bowden, Town of             4.31%      03-0093     Duchess, Village of         3.26%
                  03-0041     Boyle, Village of           3.41%      02-0095     Eckville, Town of           4.27%
                  06-0383     Brazeau #77, M.D. of        4.72%      03-0096     Edberg, Village of          7.34%
                  03-0042     Breton, Village of          3.21%      03-0097     Edgerton, Village of        4.48%
                  01-0043     Brooks, City of             2.87%      01-0098     Edmonton, City of           1.36%
                  02-0044     Bruderheim, Town of         3.85%
                  11-0406     Buffalo Lk Metis            6.45%

FortisAlberta’s Retailer Terms and Conditions of Distribution Tariff Services provide for other charges, including an
arrears charge of 1.5% per month.
                                                                                                 FortisAlberta Inc.
                                                                       Interim 2008 Distribution Tariff Application
                                                                                                  Rider Schedules

                                                                                                              Page 28



RIDER A-1 MUNICIPAL ASSESSMENT RIDER                                                          Effective: July 1, 2007



Rider A-1   Number Name                                  Rider       Number Name                              Rider
(continued)
                  02-0100     Edson, Town of               3.44%     02-0194     Lacombe, Town of              3.26%
                  25-0426     Enoch                        2.19%     06-0538     Lakeland County               2.24%
                  03-0109     Ferintosh, Village of        5.40%     04-0196     Lakeview, S.V. of             3.39%
                  06-0110     Flagstaff #29, County of     2.52%     06-0198     Lamont #30, County of         2.74%
                  06-0111     Foothills #31, M.D. of       1.47%     02-0197     Lamont, Town of               6.43%
                  03-0112     Foremost, Village of         2.77%     04-0378     Larkspur, S.V. of             2.18%
                  02-0115     Fort Macleod, Town of        4.66%     06-0201     Leduc County                  1.89%
                  06-0118     Forty Mile #8, County of     3.29%     01-0200     Leduc, City of                2.98%
                  01-0117     Ft Saskatchewan, City of     2.57%     02-0202     Legal, Village of             6.00%
                  04-0123     Ghost Lake, S.V. of          2.34%     06-0507     Lesser Slave #124, M.D. of    2.75%
                  02-0124     Gibbons, Town of             4.17%     06-0204     Lethbridge #26, County of     0.90%
                  03-0128     Glenwood, Village of         1.72%     01-0203     Lethbridge, City of           3.98%
                  04-0129     Golden Days, S.V. of         2.55%     03-0207     Lomond, Village of            3.44%
                  04-0134     Grandview, S.V. of           2.57%     03-0208     Longview, Village of          2.86%
                  02-0135     Granum, Town of              5.12%     03-0209     Lougheed, Village of          5.40%
                  06-0481     Greenview #16, M.D. of       0.54%     02-0211     Magrath, Town of              3.25%
                  04-0138     Gull Lake, S.V. of           3.48%     04-0210     Ma-Me-O Beach, S.V. of        2.92%
                  04-0358     Half Moon Bay, S.V. of       1.96%     02-0215     Mayerthorpe, Town of          4.48%
                  02-0143     Hardisty, Town of            3.27%     04-0359     Mewatha Beach, S.V. of        2.98%
                  03-0144     Hay Lakes, Village of        4.44%     02-0218     Milk River, Town of           5.99%
                  02-0148     High River, Town of          2.45%     02-0219     Millet, Town of               3.57%
                  03-0149     Hill Spring, Village of      2.37%     03-0220     Milo, Village of              4.94%
                  02-0151     Hinton, Town of              1.45%     06-0222     Minburn # 27, County of       3.24%
                  03-0152     Holden, Village of           6.17%     02-0224     Morinville, Town of           2.49%
                  03-0153     Hughendon, Village of        3.69%     06-0226     Mountain View #17, Cty        2.46%
                  03-0154     Hussar, Village of           3.41%     04-0230     Nakamun Park, S.V. of         2.46%
                  07-0168     Id No. 13                    1.07%     02-0232     Nanton, Town of               3.81%
                  07-0159     Id No. 4                     1.48%     03-0233     New Norway, Village of        4.13%
                  07-0164     Id No. 9                     0.45%     03-0234     New Sarepta, Village of       2.85%
                  02-0180     Innisfail, Town of           1.58%     06-0235     Newell #4, County of          1.35%
                  03-0182     Irma, Village of             2.35%     03-0236     Nobleford, Village of         2.91%
                  02-0183     Irricana, Town of            3.23%     04-0237     Norglenwold, S.V. of          1.37%
                  04-0185     Island Lake, S.V. of         2.52%     04-0385     Norris Beach, S.V. of         3.54%
                  04-0368     Island Lk South, S.V. of     2.24%     25-0442     O'Chiese                      3.13%
                  04-0186     Itaska Beach, S.V. of        2.96%     02-0238     Okotoks, Town of              2.41%
                  04-0379     Jarvis Bay, S.V. of          1.60%     02-0239     Olds, Town of                 2.61%
                  07-0373     Kananaskis #5, I.D. of     (0.32%)     02-0240     Onoway, Town of               4.87%
                  04-0187     Kapasiwin, S.V. of           4.24%     06-0512     Opportunity 17, M.D. of       5.90%
                  11-0411     Kikino Metis                 3.87%     04-0374     Parkland Beach, S.V. of       4.39%
                  02-0188     Killam, Town of              4.60%     06-0245     Parkland County               2.18%
                  06-0191     Kneehill # 48, M.D. of       2.86%     25-0444     Paul Band Admin I.B.          2.24%
                  02-0192     Lac La Biche, Town of        2.57%     02-0248     Penhold, Town of              5.18%
                  06-0193     Lac Ste Anne #28, Cty        4.26%     02-0249     Picture Butte, Town of        2.89%
                  06-0195     Lacombe County               1.61%     06-0251     Pincher Creek #9, M.D. of     1.51%


FortisAlberta’s Retailer Terms and Conditions of Distribution Tariff Services provide for other charges, including an
arrears charge of 1.5% per month.
                                                                                                 FortisAlberta Inc.
                                                                       Interim 2008 Distribution Tariff Application
                                                                                                  Rider Schedules

                                                                                                             Page 29



RIDER A-1 MUNICIPAL ASSESSMENT RIDER                                                          Effective: July 1, 2007



Rider A-1   Number Name                                  Rider       Number Name                             Rider
(continued)
                  02-0250     Pincher Creek, Town of       4.22%     04-0306     Sundance Beach, S.V. of      2.16%
                  04-0253     Point Alison, Village of     4.96%     02-0307     Sundre, Town of              3.06%
                  06-0255     Ponoka #3, County of         1.88%     04-0386     Sunrise Beach, S.V. of       6.19%
                  04-0256     Poplar Bay, S.V. of          2.17%     04-0357     Sunset Beach, S.V. of        3.37%
                  06-0258     Provost #52, M.D. of         1.39%     04-0308     Sunset Point, S.V. of        2.58%
                  02-0257     Provost, Town of             3.87%     02-0310     Sylvan Lake, Town of         3.57%
                  06-0501     Ranchland #66, M.D. of       8.99%     06-0312     Taber #14, M.D. of           1.61%
                  02-0261     Raymond, Town of             4.66%     02-0311     Taber, Town of               2.50%
                  06-0263     Red Deer #23, County of      1.83%     06-0314     Thorhild 7, County of        4.41%
                  01-0262     Red Deer, City of            1.86%     03-0313     Thorhild, Village of         6.57%
                  02-0265     Redwater, Town of            4.49%     03-0315     Thorsby, Village             4.85%
                  02-0266     Rimbey, Town of              2.52%     03-0317     Tilley, Village of           2.17%
                  02-0268     Rocky Mtn House, Town        2.50%     02-0318     Tofield, Town                5.18%
                  06-0269     Rocky View #44, M.D. of      1.13%     25-0448     Tsuu T'Ina(Treas.Branch)     9.55%
                  03-0270     Rockyford, Village of        3.57%     02-0321     Turner Valley, Town of       3.28%
                  03-0272     Rosemary, Village of         3.61%     04-0324     Val Quentin, S.V. of         1.41%
                  04-0273     Ross Haven, S.V. of          3.58%     02-0326     Vauxhall, Town of            2.92%
                  03-0276     Ryley, Village of            7.03%     06-0329     Vermilion River # 24, Cty    1.01%
                  04-0277     Sandy Beach, S.V. of         4.57%     02-0331     Viking, Town of              4.38%
                  03-0278     Sangudo, Village of          5.53%     06-0334     Vulcan #2, County of         2.60%
                  04-0279     Seba Beach, S.V. of          3.24%     02-0333     Vulcan, Town of              4.49%
                  02-0280     Sedgewick, Town of           3.99%     03-0364     Wabamun, Village of          5.29%
                  25-0419     Siksika (Blackfoot)          3.23%     06-0336     Wainwright #61, M.D. of      4.75%
                  04-0282     Silver Beach, S.V. of        0.67%     02-0335     Wainwright, Town of          3.33%
                  04-0283     Silver Sands, S.V. of        3.72%     04-0380     Waiparous, S.V. of           2.33%
                  04-0369     South Baptiste, S.V. of      2.79%     03-0338     Warburg, Village of          5.25%
                  04-0288     Southview, S.V. of           9.94%     06-0340     Warner #5, County of         4.27%
                  08-0142     Special Areas                1.93%     03-0339     Warner, Village of           5.61%
                  03-0099     Spring Lake,V.               2.18%     04-0370     West Baptiste, S.V. of       2.75%
                  01-0291     Spruce Grove, City of        2.56%     04-0344     West Cove, S.V. of           3.72%
                  01-0292     St. Albert, City of          3.80%     06-0346     Westlock #92, M.D. of        3.48%
                  03-0295     Standard, Village of         3.70%     02-0345     Westlock, Town of            4.61%
                  02-0297     Stavely, Town of             4.24%     06-0348     Wetaskiwin #10, County of    4.62%
                  06-0299     Stettler, County of          2.23%     01-0347     Wetaskiwin, City of          3.84%
                  03-0300     Stirling, Village of         3.75%     06-0349     Wheatland #16, County of     1.02%
                  25-0451     Stoney Band                  1.29%     04-0371     Whispering Hills, S.V. of    3.21%
                  02-0301     Stony Plain, Town of         2.88%     02-0350     Whitecourt, Town of          1.89%
                  09-0302     Strathcona County            1.79%     06-0353     Willow Creek #26, M.D. of    1.57%
                  02-0303     Strathmore, Town of          2.06%     09-0508     Wood Buffalo, Muni of        0.36%
                  03-0304     Strome, Village of           6.75%     06-0480     Woodlands #15, M.D. of       0.90%
                  06-0305     Sturgeon #90, M.D. of        1.97%     06-0482     Yellowhead #94, M.D. of      1.19%
                  04-0388     Sunbreaker Cove, S.V. of     2.32%     04-0354     Yellowstone, S.V. of         5.93%




FortisAlberta’s Retailer Terms and Conditions of Distribution Tariff Services provide for other charges, including an
arrears charge of 1.5% per month.
                                                                                                 FortisAlberta Inc.
                                                                       Interim 2008 Distribution Tariff Application
                                                                                                  Rider Schedules

                                                                                                            Page 30

MUNICIPAL FRANCHISE FEE RIDERS                                     Effective: the first of the month following
                                                                   Board approval for consumption from the
                                                                first of the month following Board approval
Municipal Franchise Fee Riders
Availability       Effective for all consumption, estimated or actual, on and after the first of the
                   month following Board approval, the following franchise fee riders apply to all
                   FortisAlberta distribution tariffs, except riders and rebates, in each municipality.

Price              A percentage surcharge per the table below will be added to the gross distribution
Adjustment         tariff, excluding any riders or charges that relate to pool price deferral account
                   amounts , calculated for each site within each municipality and will be billed to
                   the applicable retailer.

                   FortisAlberta will pay to each municipality each month, in accordance with the
                   franchise agreements between FortisAlberta and the municipalities, the franchise
                   fee revenue collected from the retailers.

                          Percentage                                                  Percentage
    Municipality                        Effective                 Municipality                         Effective
                          Surcharge                                                   Surcharge
Acme                           3%      2002/02/01              Bruderheim                  0%         2004/02/01
Airdrie                        0%      2005/07/01              Calmar                     14%         2007/01/01
Alix                          20%      2002/10/01              Camrose                  2.67%         2007/01/01
Amisk                          0%      2002/11/01              Canmore                     8%         2005/02/01
Athabasca                      3%      2002/08/01              Carmangay                   0%         2002/02/01
Barnwell                       0%      2002/03/01              Caroline                    3%         2003/02/01
Barons                         0%      2002/03/01              Carstairs                   5%         2006/01/01
Barrhead                       5%      2003/02/01              Champion                    3%         2002/04/01
Bashaw                         0%      2003/04/01              Chauvin                     5%         2002/11/01
Bassano                      6.6%      2004/01/01              Claresholm                  2%         2003/02/01
Beaumont                       0%      2002/06/02              Clive                       0%         2002/02/01
Beiseker                       0%      2002/04/01              Clyde                       3%         2003/02/01
Bentley                        0%      2002/09/01              Coaldale                    9%         2005/01/01
Bittern Lake                   5%      2003/05/01              Coalhurst                   7%         2004/01/01
Black Diamond                  0%      2007/01/01              Cochrane                   15%         2006/01/01
Blackfalds                     3%      2002/02/01              Coutts                      3%         2004/01/01
Bon Accord                     0%      2002/11/01              Cowley                      0%         2002/09/01
Bow Island                     4%      2007/01/01              Cremona                     6%         2007/01/01
Bowden                        10%      2007/01/01              Crossfield                  0%         2002/04/01
Boyle                          3%      2002/08/01              Czar                        5%         2003/07/01
Breton                        10%      2002/02/01              Daysland                    5%         2002/02/01
Brooks                     12.63%      2004/01/01              Didsbury                    0%         2007/01/01

FortisAlberta’s Retailer Terms and Conditions of Distribution Tariff Services provide for other charges, including an
arrears charge of 1.5% per month.
                                                                                                FortisAlberta Inc.
                                                                       Interim 2008 Distribution Tariff Application
                                                                                                  Rider Schedules

                                                                                                            Page 31

                       Percentage                                                     Percentage
   Municipality                         Effective                 Municipality                         Effective
                       Surcharge                                                      Surcharge
Drayton Valley              8%         2008/01/01              Nanton                      3%         2003/02/01
Duchess                     8%         2006/01/01              New Norway                  5%         2003/01/01
Eckville                   10%         2004/01/01              New Sarepta                 7%         2005/01/01
Edberg                      5%         2003/04/01              Nobleford                   0%         2004/11/01
Edgerton                    7%         2002/09/01              Okotoks                     7%         2003/08/01
Edson                       5%         2006/01/01              Olds                        3%         2007/01/01
Ferintosh                   5%         2002/11/01              Onoway                      5%         2003/01/01
Foremost                    3%         2002/02/01              Penhold                    19%         2006/01/01
Fort Saskatchewan           0%         2003/06/01              Picture Butte               7%         2006/01/01
Gibbons                     0%         2002/05/01              Pincher Creek               4%         2004/01/01
Glenwood                    0%         2002/04/01              Provost                     8%         2007/01/01
Hardisty                    4%         2006/01/01              Raymond                     6%         2004/01/01
High River                 20%         2005/10/01              Redwater                    0%         2003/05/01
Hill Spring                 0%         2002/05/01              Rimbey                      7%         2004/01/01
Hinton                    5.7%         2006/01/01              Rocky Mtn House             3%         2003/04/01
Holden                    3.5%         2002/05/01              Rosemary                    4%         2003/02/01
Hughenden                   0%         2002/12/01              Ryley                       0%         2004/01/01
Hussar                      3%         2003/05/01              Sangudo                     1%         2003/01/01
Innisfail                   6%         2006/01/01              Seba Beach                  0%         2003/07/01
Irma                        5%         2002/05/01              Sedgewick                   5%         2004/01/01
Irricana                 No fee       No Rider/Cap             South Baptiste              0%         2005/05/01
Killam                      5%         2002/09/01              Spruce Grove            14.25%         2006/01/01
Lacombe                   6.2%         2004/01/01              St. Albert                  0%         2002/05/01
Lac La Biche                5%         2007/01/01              Standard                    0%         2002/12/01
Lamont                      5%         2002/09/01              Stavely                     3%         2003/02/01
Leduc                      16%         2004/07/01              Stirling                    5%         2003/01/01
Legal                       0%         2002/12/01              Stony Plain                 3%         2005/03/01
Lomond                      0%         2002/05/01              Strathmore                  0%        No Rider/Cap
Longview                   16%         2002/02/01              Strome                      8%         2003/04/01
Lougheed                    0%         2004/11/01              Sundre                      0%         2002/03/01
Magrath                     6%         2004/12/01              Sunset Point                0%         2003/03/01
Mayerthorpe                 4%         2004/01/01              Sylvan Lake                10%         2004/01/01
Milk River                  5%         2002/04/01              Taber                      20%         2004/01/01
Millet                      5%         2002/02/01              Thorhild                    4%         2002/09/01
Milo                        0%         2002/03/01              Thorsby                     5%         2003/03/01
Mirror                      0%         2003/04/01              Tilley                      3%         2007/01/01
Morinville                 20%         2006/01/01              Tofield                     5%         2002/10/01
Nakamun Park                0%         2003/03/01              Turner Valley               5%         2004/01/01

FortisAlberta’s Retailer Terms and Conditions of Distribution Tariff Services provide for other charges, including an
arrears charge of 1.5% per month.
                                                                                                FortisAlberta Inc.
                                                                       Interim 2008 Distribution Tariff Application
                                                                                                  Rider Schedules

                                                                                                            Page 32

                       Percentage                                                     Percentage
   Municipality                         Effective                 Municipality                    Effective
                       Surcharge                                                      Surcharge
Vauxhall                    0%         2004/09/04              Westlock                    6%    2003/02/01
Viking                      0%         2003/05/01              Wetaskiwin                  3%    2002/02/01
Vulcan                      0%         2002/02/01              Whitecourt                2.5%    2004/01/01
Wabamun                     0%         2002/10/01
Wainwright                  3%         2002/04/01
Warburg                     6%         2007/01/01
Warner                      0%         2002/04/01




FortisAlberta’s Retailer Terms and Conditions of Distribution Tariff Services provide for other charges, including an
arrears charge of 1.5% per month.
                                                                                                FortisAlberta Inc.
                                                                       Interim 2008 Distribution Tariff Application
                                                                                                  Rider Schedules

                                                                                                            Page 33

2008 BALANCING POOL ALLOCATION RIDER                                                Effective: January 1, 2008


Availability:       To collect from or refund to FortisAlberta customers, an amount transferred to
                    the AESO and its customers from the Balancing Pool under Section 82 of the
                    Electric Utilities Act.

                    For all energy, wattage or kilowatts delivered from January 1, 2008 to
                    December 31, 2008, the rider applies to the Distribution Tariff by rate class:

                                                                                    2008 Balancing Pool
                     Rate Class Description             Rate Code                     Allocation Rider
                                                                                      Charge/(Credit)
                      Residential                        Rate 11                       (0.5230) ¢/kWh
                      FortisAlberta Farm                 Rate 21, 23                   (0.5324) ¢/kWh
                      REA Farm                           Rate 24                       (0.5324) ¢/kWh
                      REA Large Farm Service             Rate 25                       (0.5324) ¢/kWh
                      Irrigation                         Rate 26                       (0.5158) ¢/kWh
                      REA Irrigation                     Rate 29                       (0.5158) ¢/kWh
                      Exterior Lighting                  Rates 31, 33, 38            (0.0071) ¢/Watt/day
                      Small General                      Rate 41                       (0.5226) ¢/kWh
                      Oil & Gas (Capacity)               Rate 44                     (0.0590) $/kW/day
                      Oil & Gas (Energy)                 Rate 45                       (0.5424) ¢/kWh
                      General Service                    Rate 61                       (0.5180) ¢/kWh
                      Large General Service              Rate 63                       (0.5095) ¢/kWh

Rate 65             For points of service that are served under Rate 65, Balancing Pool Allocation
Transmission        amounts will be flowed through as calculated and invoiced by the AESO for
Connected           the appropriate POD.
Service




FortisAlberta’s Retailer Terms and Conditions of Distribution Tariff Services provide for other charges, including an
arrears charge of 1.5% per month.
                                                                                                FortisAlberta Inc.
                                                                       Interim 2008 Distribution Tariff Application
                                                                                                  Rider Schedules

                                                                                                            Page 34

2008 TRANSMISSION ADJUSTMENT RIDER                                                   Effective: January 1, 2008
                                                                                         to December 31, 2008

Availability      For all energy delivered, estimated or actual from January 1, 2008 to
                  December 31, 2008, the following rider applies as a percentage (%) of base
                  Distribution Tariff Transmission Component charges by rate class:

                                                                                      2008 Transmission
                      Rate Class Description                 Rate Code              Adjustment Rider (TAR)
                                                                                       Charge / (Credit)
                  Residential                         Rate 11                                   17.62 %
                  FortisAlberta Farm                  Rates 21, 23                              14.64 %
                  REA Farm                            Rates 24, 25                              14.64 %
                  FortisAlberta Irrigation            Rate 26                                   11.11 %
                  REA Irrigation                      Rate 29                                   11.11 %
                  Exterior Lighting                   Rates 31, 33, 38                          14.40 %
                  Small General Service               Rates 41                                  14.84 %
                  Oil & Gas Service                   Rates 44, 45                              17.17 %
                  General Service                     Rate 61                                   14.26 %
                  Large General Service               Rate 63                                   14.73 %



Rate 65      For Points of Service that are served under Rate 65, a charge of -$0.540 per
Transmission day will be applied for the months of January through December 2008.
Connected
Service


Note: The 2008 Transmission Adjustment Rider is related to amounts addressed in the
      FortisAlberta 2006 AESO Charges Deferral Application.




FortisAlberta’s Retailer Terms and Conditions of Distribution Tariff Services provide for other charges, including an
arrears charge of 1.5% per month.
                                                                       FORTISALBERTA INC.
                                                  INTERIM CUSTOMER TERMS AND CONDITIONS
                                                           OF DISTRIBUTION ACCESS SERVICE
Effective January 1, 2008
                                                                                                                            PAGE I


TABLE OF CONTENTS                                                                                                        Page No.


ARTICLE 1 – INTRODUCTION TO CUSTOMER TERMS AND CONDITIONS...............1

ARTICLE 2 – DEFINITIONS AND INTERPRETATION ......................................................2
2.1  Definitions......................................................................................................................2
2.2  Conflicts.......................................................................................................................10
2.3  Headings ......................................................................................................................10
2.4  Extended Meanings......................................................................................................10
2.5  Appendices...................................................................................................................10

ARTICLE 3 – GENERAL PROVISIONS ..............................................................................11
3.1  Board Approval............................................................................................................11
3.2  Customer Guides..........................................................................................................11
3.3  Fees and Other Charges ...............................................................................................11
3.4  Billing Customers ........................................................................................................12

ARTICLE 4 – ESTABLISHMENT OF SERVICE .................................................................12
4.1  Information Exchange..................................................................................................12
4.2  Application for Service Connection.............................................................................12
4.3  Rejection of Application ..............................................................................................13
4.4  Customer Contracts......................................................................................................14
4.5  Authorizations..............................................................................................................15
4.6  Temporary Service.......................................................................................................16

ARTICLE 5 – SERVICE REQUIREMENTS AND FACILITIES .........................................16
5.1  Scheduling for Service Connection .............................................................................16
5.2  Protection of FortisAlberta’s Facilities........................................................................16
5.3  Relocation of Facilities ................................................................................................18
5.4  Extensions ....................................................................................................................18

ARTICLE 6 - RIGHTS OF WAY AND ACCESS TO FACILITIES.....................................18
6.1  Easements ....................................................................................................................18
6.2  Right of Entry ..............................................................................................................18
6.3  Vegetation Management ..............................................................................................19

ARTICLE 7 - DISTRIBUTION AND TRANSMISSION EXTENSION...............................19
7.1  FortisAlberta Investment .............................................................................................19
7.2  Customer Contributions ...............................................................................................20
7.3  Changes to Service Peak Demand Requirements ........................................................24
7.4  Charges Related to Permanent Disconnection.............................................................27
                                                                       FORTISALBERTA INC.
                                                  INTERIM CUSTOMER TERMS AND CONDITIONS
                                                           OF DISTRIBUTION ACCESS SERVICE
Effective January 1, 2008
                                                                                                                            PAGE II


TABLE OF CONTENTS                                                                                                         Page No.

ARTICLE 8 – SERVICE CONNECTION ..............................................................................28
8.1  Customer Responsibility..............................................................................................28
8.2  Facilities Provided by FortisAlberta ............................................................................31
8.3  Unauthorized Use or Unsafe Conditions .....................................................................31
8.4  New Multi-Unit Residential Buildings ........................................................................31
8.5  Travel Trailers or Mobile Home Parks ........................................................................32
8.6  Frequency and Voltage Levels.....................................................................................32
8.7  Minimum Charges .......................................................................................................32

ARTICLE 9 - METERS...........................................................................................................32
9.1  Installation of Meters ...................................................................................................32
9.2  Location .......................................................................................................................33
9.3  Access to Meters ..........................................................................................................33
9.4  Changes to Metering Equipment .................................................................................33
9.5  Meter Reading..............................................................................................................34
9.6  Record ..........................................................................................................................34
9.7  Metering Signals ..........................................................................................................34
9.8  Customer Usage Information.......................................................................................34
9.9  Estimated Consumption and Demand..........................................................................35
9.10 Meter Testing ...............................................................................................................36
9.11 Adjustments for Faulty Metering or Energy Theft ......................................................36

ARTICLE 10 – SERVICE DISCONNECTION AND RECONNECTION............................37
10.1 Disconnection by Customer.........................................................................................37
10.2 Disconnection at Request of Retailer...........................................................................38
10.3 Disconnection by FortisAlberta ...................................................................................39
10.4 Reconnect Service........................................................................................................40
10.5 Removal of Facilities upon Disconnection of Service.................................................41

ARTICLE 11 – BILLING........................................................................................................41
11.1 General.........................................................................................................................41
11.2 Determination of Applicable Rates..............................................................................42
11.3 Minimum Charges .......................................................................................................42
11.4 Consumption Period.....................................................................................................42
11.5 Billing Period ...............................................................................................................43
11.6 Late Payment Charges .................................................................................................43
11.7 Collections ...................................................................................................................43
11.8 Adjustments of Bills in the Event of a Billing Error ...................................................43
                                                                        FORTISALBERTA INC.
                                                   INTERIM CUSTOMER TERMS AND CONDITIONS
                                                            OF DISTRIBUTION ACCESS SERVICE
Effective January 1, 2008
                                                                                                                            PAGE III


TABLE OF CONTENTS                                                                                                          Page No.

ARTICLE 12 - SPECIFIC PROVISIONS RELATING TO
              DISTRIBUTION CONNECTED GENERATORS .......................................44
12.1 General.........................................................................................................................44
12.2 Interconnection ............................................................................................................45
12.3 Continuity, Interruption or Disconnection of Service..................................................46
12.4 Approvals.....................................................................................................................46
12.5 Metering.......................................................................................................................47
12.6 DG Customer Charges/Credits ....................................................................................48
12.7 Protective Devices and Liability..................................................................................49
12.8 Service Calls ................................................................................................................50
12.9 Exchange of Information .............................................................................................50

ARTICLE 13 – SPECIFIC PROVISIONS RELATING TO
               TRANSMISSION CONNECTED SERVICES .............................................51
13.1 General.........................................................................................................................51
13.2 System Access Service ................................................................................................51
13.3 Metering.......................................................................................................................52
13.4 Billing ..........................................................................................................................52
13.5 Transmission Load Customer Contributions ...............................................................52
13.6 Changes to System Access Service..............................................................................52
13.7 Transmission Related Exit Costs .................................................................................53
13.8 Section 101(2) Release ................................................................................................53

ARTICLE 14 – LIABILITY AND INDEMNITY...................................................................53
14.1 FortisAlberta Liability .................................................................................................53
14.2 Release .........................................................................................................................54
14.3 FortisAlberta Not Liable to Customer .........................................................................54
14.4 Responsible Party Liability..........................................................................................55
14.5 Force Majeure ..............................................................................................................56

ARTICLE 15 – ARBITRATION.............................................................................................57
15.1 Resolution by FortisAlberta and Responsible Party ....................................................57
15.2 Resolution by Arbitration ............................................................................................57
15.3 Arbitrators ....................................................................................................................57
15.4 Refusal to Appoint an Arbitrator .................................................................................58
15.5 Failure to Appoint a Third Arbitrator ..........................................................................58
15.6 Technical Competence.................................................................................................58
15.7 Compensation of Arbitrators........................................................................................58
15.8 Application of the Arbitration Act (Alberta) ...............................................................58
15.9 Decisions Binding........................................................................................................59
                                                                        FORTISALBERTA INC.
                                                   INTERIM CUSTOMER TERMS AND CONDITIONS
                                                            OF DISTRIBUTION ACCESS SERVICE
Effective January 1, 2008
                                                                                                                           PAGE IV


TABLE OF CONTENTS                                                                                                          Page No.

15.10 Continuity of Distribution Access Service ..................................................................59

ARTICLE 16 – ADDITIONAL PROVISIONS RELATING TO DISTRIBUTION ACCESS
              SERVICE .......................................................................................................59
16.1 Ownership of Facilities ................................................................................................59
16.2 Distribution Access Service Obtained from Retailer...................................................59
16.3 Proper Use of Services.................................................................................................59
16.4 Independent System Operator or Transmission Facility Owner Requirements...........60
16.5 Compliance with Applicable Legal Authorities ..........................................................60
16.6 Service Interruption .....................................................................................................60
16.7 No Assignment.............................................................................................................61
16.8 No Waiver....................................................................................................................61
16.9 Law ..............................................................................................................................61
16.10 New Facilities and Distribution Access Service Additions .........................................62
16.11 Requirement to Enter into New Contracts ...................................................................62
16.12 Notice...........................................................................................................................62

APPENDIX “A” – FEE SCHEDULE .....................................................................................64

APPENDIX “B” – CUSTOMER CONTRIBUTIONS SCHEDULES ...................................68
                                                                                  FortisAlberta Inc.
                                                          Interim Customer Terms and Conditions
                                                                    of Distribution Access Service


                                                                                            Page 1

                                                                     Effective January 1, 2008

Capitalized terms used in these Customer Terms and Conditions of Distribution Access
Service (the “Customer Terms and Conditions”), as may be amended from time to time, that
are not otherwise defined in the context in which they are used, have the meaning ascribed
thereto under section 2.1 “Definitions”.

   ARTICLE 1 – INTRODUCTION TO CUSTOMER TERMS AND CONDITIONS

In accordance with the provisions of the Electric Utilities Act (the "Act") and the Regulations
made thereunder (the "Regulations"), FortisAlberta Inc. ("FortisAlberta") in its role as a wire
owner will carry out the functions necessary to furnish electric distribution Facilities to
Customers in the areas serviced by FortisAlberta to enable each Customer to purchase
electricity for that person's own use from a Retailer.

These Customer Terms and Conditions are intended to govern the relationship between
FortisAlberta and Customers that require a Service Connection to FortisAlberta’s Electric
Distribution System or other services. These Customer Terms and Conditions will also
govern the relationship between FortisAlberta and a Retailer or any other person whom the
Customer has assigned to act on its behalf in its dealings with FortisAlberta, regarding the
provision of wire service on its Electric Distribution System.

These Customer Terms and Conditions serve as a companion to the Retailer Terms and
Conditions which are intended to enable Retailers to acquire access to FortisAlberta's
Electric Distribution System for the purposes of allowing them to sell electricity directly to
Customers. A Customer may also act as a self-retailer by carrying out Retailer functions to
obtain Electricity Services solely for the Customer’s own use.

The Retailer Terms and Conditions and these Customer Terms and Conditions are intended
together to form the Terms and Conditions of Distribution Access Service of FortisAlberta
(the “Terms and Conditions”). All Responsible Parties by virtue of their relationship with
FortisAlberta are deemed to have accepted the Terms and Conditions.

The service provided by FortisAlberta hereunder is regulated by the Alberta Energy and
Utilities Board (the “Board”), and parties having any inquiries or complaints regarding the
Terms and Conditions may direct such inquiries or complaints directly to FortisAlberta or to
the Board. The Terms and Conditions have been approved by the Board.

No agreement can provide for the waiver or alteration of any part of the Terms and
Conditions unless such agreement is first filed with and approved by the Board. Whenever
the Board approves an amendment to the Terms and Conditions, such amendment, including
its effective date, will be posted on FortisAlberta’s website at: http://www.fortisalberta.com.
                                                                                  FortisAlberta Inc.
                                                          Interim Customer Terms and Conditions
                                                                    of Distribution Access Service


                                                                                            Page 2

                                                                     Effective January 1, 2008

                ARTICLE 2 – DEFINITIONS AND INTERPRETATION

2.1    Definitions

The following words and phrases, whenever used in these Customer Terms and Conditions,
an Electric Service Agreement or an application, contract or agreement for service, shall have
the meanings set forth below, or the meaning set forth in the Retailer Terms and Conditions
if not defined herein, unless the context otherwise requires:

“Act” means the Electric Utilities Act R.S.A. 2003, c. E-5.1, as amended from time to time;

“AIES” means Alberta’s “Interconnected Electric System” as that term is defined in the Act;

“Board” means the Alberta Energy and Utilities Board established pursuant to the Alberta
Energy and Utilities Board Act, R.S.A. 2000, c. A-17, as amended from time to time;

“Business Day” means a day which is not a Saturday, Sunday or statutory holiday as defined
in the Interpretation Act, R.S.A. 2000, c. I-8, as re-enacted, amended or replaced from time
to time; and “day” means any calendar day;

“Buy-Down Charge” has the meaning given such term in, and is determined in accordance
with, Section 7.3.2;

 “Civil Work” includes the completion, installation, repair or replacement of conduits,
ductwork, trenching, ground disturbance, transformer and switching cubicle and pedestal
bases, guard rails, manholes, vaults, landscaping and intermediate poles for low voltage
service wire (1000 volt or less) on the Customer’s property;

“Commitment Agreement” means the written agreement that may be required by
FortisAlberta between the Customer or applicant and FortisAlberta, whereby such Customer
both authorizes the design and construction of new or expanded Facilities and agrees to pay
all Cancellation Costs;

“Connected Load” means the sum of the capacities or ratings of the energy consuming
apparatus connected to the supplying system;

“Contract kilometres” means the length of distribution line, measured in metres, from the
Point of Service to the Point of Delivery, as determined by FortisAlberta for Points of
Service on Rate 63 (Large General Service);
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“Contract Minimum Demand” means the minimum demand specified in the Electric
Service Agreement (which shall be no less than the Minimum Demand) or, if no agreement is
in existence, means the Minimum Demand;

“Contract Term” means the period of time during which the Customer continues to take
service under the Terms and Conditions until service is no longer required;

“Customer” means a person purchasing Distribution Access Service for that person’s own
use, a Transmission Load Customer and a DG Customer;

“Customer Contribution” has the meaning given such term in, and is determined in
accordance with, Section 7.2, and includes but is not limited to a Customer Distribution
Contribution, a Customer Transmission Contribution, and other contributions as set out in
Section 7.2;

“Customer Distribution Contribution” has the meaning given such term in, and is
determined in accordance with, Section 7.2.1;

“Customer Extension Costs” has the meaning given such term in, and is determined in
accordance with, Section 7.2.1;

“Customer Shared Costs” has the meaning given such term in, and is determined in
accordance with, Section 7.2.1;

“Customer Terms and Conditions” means the Customer Terms and Conditions for
Distribution Access Service of FortisAlberta;

“Customer Transmission Contribution” has the meaning given such term in, and is
determined in accordance with, Section 7.2.2;

“Customer Usage Information” means information regarding the historical electricity
consumption of a Customer;

“DG Customer” or “Distribution Connected Generating Customer” means a person that
has on-site generating facilities that are interconnected and operating in parallel with
FortisAlberta’s Electric Distribution System;

“Distribution Access Service” has the meaning given such term in, and is determined in
accordance with, the Act. FortisAlberta’s prior Terms and Conditions of Distribution Tariff
Services previously referred to Distribution Access Service as Distribution Tariff Service,
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and all references in prior agreements, documents and other instruments to Distribution
Tariff Service shall mean Distribution Access Service as defined herein;

“Distribution Customer Exit Charge” has the meaning given such term in, and is
determined in accordance with, Section 7.4;

“Distribution Load Customer” means a Customer interconnected to FortisAlberta’s
Electric Distribution System for the purpose of purchasing electricity for that person’s own
use;

“Distribution Tariff” means a distribution tariff prepared by FortisAlberta and approved by
the Board in accordance the Act, which consists of the Rate, Option and Rider Schedules and
the Terms and Conditions, as amended from time to time;

“Electric Distribution System” has the meaning given such term in, and is determined in
accordance with, the Act;

“Electric Service Agreement” means an agreement between FortisAlberta and a
Distribution Load Customer or Transmission Load Customer for the provision of
Distribution Access Service, including System Access Service;

“Electricity Services” has the meaning given such term in, and is determined in accordance
with, the Act;

“Energy” means electric energy, which means the capability of electricity to do work,
measured in kilowatt hours (“kWh”);

“Expected Peak Demand” means the expected maximum capacity requirement at a Point of
Service which is used to determine the potential FortisAlberta Investment Level, the
Minimum Demand and the Maximum Supply;

“Facilities” means physical plant (including, without limitation, distribution lines,
transformers, meters, equipment and machinery) on FortisAlberta’s side of the Point of
Service, excluding a Transmission Facility;

“Force Majeure” means circumstances not reasonably within the control of FortisAlberta,
including, but not limited to, acts of God, strikes, lockouts or other industrial disturbances,
acts of the public enemy, wars, blockades, insurrections, riots, epidemics, landslides,
lightning, earthquakes, fires, storms, floods, high water, washouts, inclement weather, orders
or acts of civil or military authorities, civil disturbances, explosions, breakdown or accident
to equipment, mechanical breakdowns, interruptions of supply of goods or services, the
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intervention of federal, provincial, state or local government or from any of their agencies or
boards (excluding decisions or orders made by the Board in the normal course of exercising
its authority over FortisAlberta), the order or direction of any court, and any other cause,
whether of the kind herein enumerated or otherwise, except for lack of funds which shall not
be considered an event of Force Majeure;

“FortisAlberta Investment” has the meaning given such term in, and is determined in
accordance with, Section 7.1;

“Idle Charges” means charges associated with the recovery of FortisAlberta’s ongoing cost
of owning, operating and maintaining Facilities in respect of a particular Point of Service in
situations where the Point of Service is not receiving Energy via the Facilities on a
continuing basis, but the Customer chooses to retain the Facilities in place for future use.
The charges that are applicable are set out in the Rate, Option and Rider Schedules;

“Independent System Operator” is the corporation established as the independent system
operator in the Act to carry out the duties of the independent system operator under the Act,
and carrying on business as the Alberta Electric System Operator or AESO;

“Interconnection Agreement” means an agreement entered into between FortisAlberta and
a DG Customer that sets out the provisions and obligations of the parties with respect to the
interconnection, including the Operating Procedures. Interconnection Agreements are
required when any generator interconnects to the Electric Distribution System;

“Interconnection Charges” has the meaning given such term in, and is determined in
accordance with, Section 12.6.1;

“Interconnection Facilities” for DG Customers means all incremental Facilities required to
interconnect the circuits of the DG Customer’s generating facilities to FortisAlberta’s
Facilities, and all modifications to FortisAlberta Facilities required for interconnection which
may include, without limitation, poles, lines, substations, service leads, and protective and
metering equipment;

“Interconnection Facilities Costs” are the capital costs as estimated by FortisAlberta of the
DG Customer’s Interconnection Facilities;

“Investment Level” means the total dollar investment that FortisAlberta is permitted to
make toward the construction of new or upgraded Facilities which total investment available
is determined by the Investment Term and Expected Peak Demand and, where applicable,
Metres of Customer Extension. Such Investment Level shall also be in accordance with the
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Customer Contribution Schedules contained in Appendix “B” attached hereto, and such total
distribution investment available shall not exceed the cost as estimated by FortisAlberta of
constructing the Facilities;

“Investment Term” means the length of time as determined by FortisAlberta which
corresponds with the Service Life upon which FortisAlberta’s Investment Level is based;

“kVA” means kilovolt-ampere or kilovolt-amperes;

“kW” means kilowatt or kilowatts;

“kWh” means kilowatt hour or kilowatt hours;

“Load” means Energy consumed by Customers or capacity requirements in kW or kVA;

“Load Settlement” has the meaning given such term in, and is determined in accordance
with, the Act;

“Maximum Supply” means the maximum amount of electric capacity (measured in kW or
kVA, whichever is greater) that FortisAlberta is obligated to supply to the Customer for a
Point of Service. The Maximum Supply is the lowest of the faceplate value of the
transformer, the Maximum Supply as defined in the Electric Service Agreement, or the
Expected Peak Demand in kW expressed in kVA (e.g. 1,000 kW Expected Peak Demand /
0.9 = 1,111 kVA Maximum Supply);

“Metered Demand” means the registered demand in kW or 90% of the registered demand in
kVA;

“Metres of Customer Extension” means the length of extension of Facilities, as determined
to be appropriate by FortisAlberta, installed as part of a Service Connection, which is used to
determine part of FortisAlberta’s Investment Level with respect to Points of Service
qualifying for Rate 63 (Large General Service);

“Minimum Charge” means the result of multiplying the rates by the greater of the Rate
Minimum as contained in the Rate, Option and Rider Schedules or the Contract Minimum
Demand;

“Minimum Demand” means the greater of the Contract Minimum Demand or two-thirds of
the Expected Peak Demand;
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“Operating Demand” means the value calculated as the average of the highest seven of the
last 12 months of Metered Demands and is used for determining the appropriate rate for a
Point of Service;

“Operating Procedures” means a schedule in the Interconnection Agreement which
describes the procedures for the operation of both the DG Customer’s facilities and
FortisAlberta’s Facilities relating to the interconnection, which may be revised from time to
time by FortisAlberta upon written notice to the DG Customer;

“Peak Demand” means the maximum Metered Demand in the last 12 months;

“Permanent Disconnection” means the cessation of Electricity Services resulting from
removal of Facilities. Permanent Disconnection is also referred to as “salvage”;

“Point of Delivery” or “POD” means the point at which Energy is transferred from a
Transmission Facility to FortisAlberta’s Electric Distribution System or Transmission
Connected Services;

“Point of Interconnection” means the point at which electricity is exchanged between the
circuits of the DG Customer’s generating facility and the circuits of FortisAlberta’s
Facilities;

“Point of Service” means the point at which FortisAlberta’s service conductors are
connected to the conductors or apparatus of a Customer;

“Power Factor” means the ratio of usage power measured in kW to total power measured in
kVA;

“Power Pool” means the scheme operated by the Independent System Operator under the
Act for exchange of electric energy and financial settlement for the exchange of electric
energy;

“Prepaid Line Share” has the meaning given such term in, and is determined in accordance
with, Table 3 of Appendix “B”;

“Rate, Option and Rider Schedules” means that portion of FortisAlberta’s Distribution
Tariff which sets out charges;

“Regulations” means the regulations made pursuant to the Act;
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“Responsible Parties” means all Retailers, Transmission Load Customers, Distribution
Load Customers and DG Customers, or agents of the foregoing;

“Retail Service Agreement” means an agreement between FortisAlberta and a Retailer for
the provision of Distribution Access Service;

“Retailer” means a person, selected by the Customer, or otherwise to whom the Customer is
defaulted in accordance with the Act and Regulations, who carries out the duties of a retailer
prescribed in the Act, including also self-retailers who procure Electricity Services for their
own use as a Customer;

“Retailer of Record” means the Retailer who is listed in FortisAlberta’s records through the
procedures outlined in the Terms and Conditions, and thereby recognized by FortisAlberta
and the Settlement System Code, as a particular Customer’s Retailer for a Point of Service at
a particular time;

“Retailer Terms and Conditions” means the Retailer Terms and Conditions for
Distribution Access Services of FortisAlberta;

“RRR Regulation” means the Roles, Relationships and Responsibilities Regulation A.R.
169/2003, as amended from time to time;

“Service Connection” means all the Facilities required for providing services up to a Point
of Service;

“Settlement System Code” means the specifications, standards, methods, calculations and
conventions established under the AESO rules for Load Settlement, as amended from time to
time;

“Standard Service” means the least cost Facilities alternative which meets the obligations of
good electric practice and factors in safety and clearance concerns (typically overhead
service is provided);

“Subdivision Developer” means the registered owner or corporation or their duly appointed
representative developing the land on which the electrical system is being installed;

“System Access Service” has the meaning given such term in, and is determined in
accordance with, the Act;
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“System Access Service Agreement” means an agreement entered into between the
Independent System Operator and FortisAlberta, which establishes the specific terms
pursuant to which FortisAlberta obtains System Access Service;

“Temporary Disconnection” means the cessation of Electricity Services on a temporary
basis and does not involve removal of Facilities;

“Temporary Service” has the meaning given such term in, and is determined in accordance
with, Section 4.7;

“Terms and Conditions” means these Customer Terms and Conditions and the Retailer
Terms and Conditions;

“Transmission Connected Service” means a Point of Service:

(a)    that is served at a transmission voltage level and is not interconnected to the
       FortisAlberta Electric Distribution System; and

(b)    for which FortisAlberta has a distinct System Access Service Agreement in existence
       with the Independent System Operator, specifically for the respective Point of
       Delivery;

“Transmission Costs” has the meaning given such term in, and is determined in accordance
with, Section 7.2.2;

“Transmission Facility” has the meaning given such term in, and is determined in
accordance with, the Act;

“Transmission Facility Owner” has the meaning given such term in, and is determined in
accordance with, the Act;

“Transmission Load Customer” means a Customer at a Transmission Connected Service
who has not received a Section 101(2) release as noted in the Act; and

“Underground Electrical Distribution System Services Agreement” means the agreement
between FortisAlberta and the Subdivision Developer by which the underground Facilities
are to be installed on the lands to provide Service Connections to each proposed lot and the
common area within the lands. FortisAlberta’s prior Terms and Conditions of Distribution
Tariff Services previously referred to Underground Electrical Distribution System Services
Agreement as Underground Residential Development Agreement, and all references in prior
agreements, documents and other instruments to Underground Residential Development
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Agreement shall mean Underground Electrical Distribution System Services Agreement as
defined herein;

2.2    Conflicts

If there is any conflict between a provision expressly set out in an order of the Board and the
Terms and Conditions, the order of the Board shall govern.

If there is any conflict between a provision in the Terms and Conditions, as may be amended
from time to time, and a provision in an Electric Service Agreement, a Retail Service
Agreement or any other existing or future agreement between FortisAlberta and a
Responsible Party relating to a Point of Service or other interconnection to FortisAlberta’s
Electric Distribution System or Distribution Access Service, the provision in the Terms and
Conditions shall govern.

2.3    Headings

The division of the Terms and Conditions into sections, subsections and other subdivisions
and the insertion of headings are for convenience of reference only and shall not affect the
construction or interpretation of the Terms and Conditions.

2.4    Extended Meanings

In the Terms and Conditions, words importing the singular number only shall include the
plural and vice versa, words importing the masculine gender shall include the feminine and
neutral genders and vice versa, and words importing a person shall include an individual,
firm, partnership, association, trust, unincorporated organization and corporation.

2.5    Appendices

The following appendices are attached to and form part of these Customer Terms and
Conditions:

Appendix “A” - Fee Schedule

Appendix “B” – Customer Contributions Schedules
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                        ARTICLE 3 – GENERAL PROVISIONS

3.1    Board Approval

The Terms and Conditions have been approved by the Board. FortisAlberta may amend the
Terms and Conditions by filing a notice of amendment with the Board. Included in the
notice to the Board shall be notification of which Customer groups are affected by the
amendment and an explanation of how affected Customers will be notified of the
amendments. Within 60 days after such notice is filed, the Board will either acknowledge the
notice of the amendment to the Terms and Conditions or direct a further process to deal with
the requested change as the Board deems appropriate. If the Board acknowledges notice of
the amendment, the amendment will take effect upon the date of such acknowledgement.

3.2    Customer Guides

FortisAlberta has developed the Service and Metering Guide, the Guide to Customer
Contributions and FortisAlberta Investment, and the Residential and Farm Customer Guide
to Distribution Access Service (“Guides”) to assist Customers in understanding the normal
requirements of FortisAlberta in relation to interconnections to FortisAlberta’s Electric
Distribution System including requirements intended to ensure the safety of its employees
and the safety and reliability of its Electric Distribution System. FortisAlberta will amend
the Guides from time to time to reflect changes to the electric utility industry, changes in
FortisAlberta’s requirements or the changing needs of FortisAlberta’s Customers. While
FortisAlberta will endeavour to follow practices in the Guides, these practices will not
appropriately cover every situation that may arise and it may be necessary to deviate from the
Guides. The Guides shall be non-binding on Customers and on FortisAlberta, and are
produced and maintained for information purposes only. If there is any conflict between a
Guide and a provision in the Terms and Conditions, an Electric Service Agreement, a Retail
Service Agreement or any other existing or future agreement between FortisAlberta and a
Responsible Party, the provision in the Terms and Conditions, Electric Service Agreement,
Retail Service Agreement or other agreement shall govern. A copy of the Guides can be
accessed on FortisAlberta’s website at: http://www.fortisalberta.com.

3.3    Fees and Other Charges

FortisAlberta will provide all Standard Service hereunder pursuant to the Distribution Tariff.
All additional, supplementary or extra non-discretionary services provided by FortisAlberta
to a Customer will be charged a separate rate or fee such as those included, without
limitation, in the Fee Schedule included herein as Appendix “A”.
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3.4    Billing Customers

FortisAlberta may bill the Customers directly for Customer Contributions, meter tests and
other services covered in the Terms and Conditions. A late payment charge of 1.5% per
month (19.56% per annum) is applied if the Customer’s payment has not been received by
FortisAlberta before 1 month from the date the bill was issued. The Customer is charged a
dishonoured cheque charge for each cheque returned for insufficient funds as set forth in the
Fee Schedule included herein as Appendix “A”.


                    ARTICLE 4 – ESTABLISHMENT OF SERVICE

For the purposes of this Article 4, “Customer”, “Distribution Load Customer” and
“Transmission Load Customer” shall include a person making application for services.

4.1    Information Exchange

To enable FortisAlberta to provide a requested service, a Distribution Load Customer shall
supply information regarding the location of the premises to be served, the Distribution Load
Customer’s service requirements (e.g. Expected Peak Demand), preferred supply conditions
and the manner in which the Point of Service will be utilized, credit information, reference
information and any other information that may be required by FortisAlberta.

Upon request, FortisAlberta shall provide to the Distribution Load Customer information on
the method and manner of making Service Connections. Such information may include a
copy of FortisAlberta’s Service and Metering Guide, a description of the Service Connection
available, location of where Facilities will enter a Distribution Load Customer’s property,
Point of Service and metering equipment, and Distribution Load Customer and FortisAlberta
responsibilities for installation of Facilities.

4.2    Application for Service Connection

FortisAlberta reserves the right to verify the identity of the Distribution Load Customer and
the accuracy of the information provided and to require the Distribution Load Customer to
sign an application in writing on forms provided by FortisAlberta.

A Distribution Load Customer, a Retailer or any other person acting on behalf of the
Distribution Load Customer, may apply for a Service Connection on behalf of a Distribution
Load Customer. The Distribution Load Customer must provide FortisAlberta, in a form
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acceptable to FortisAlberta, verifiable authorization from the Distribution Load Customer to
make the application.

A Distribution Load Customer may be required to sign a Commitment Agreement before any
of the project design work or construction of the Facilities will proceed. FortisAlberta
reserves the right to require a Distribution Load Customer to provide security acceptable to
FortisAlberta to cover Cancellation Costs as provided in the Commitment Agreement or as
set out elsewhere.

Upon completion of the construction of the Facilities, a Distribution Load Customer is
required to enrol with a Retailer to obtain Electricity Services, including Distribution Access
Service, within 30 days. FortisAlberta reserves the right to require its default retailer to enrol
the Distribution Load Customer in the event that the Point of Service is not enrolled within
the 30 day period set out above.

4.3    Rejection of Application

FortisAlberta may reject any Distribution Load Customer’s request for a Service Connection
when:

(a)    the type of Service Connection applied for is not available or normally provided by
       FortisAlberta in the location requested;

(b)    the Distribution Load Customer does not have currently in force all permits or other
       authorizations that may be required for the installation of the Service Connection as
       set out in Section 4.6;

(c)    FortisAlberta determines that a previous account held by the Distribution Load
       Customer is in arrears with FortisAlberta;

(d)    where applicable, the Distribution Load Customer fails to provide a letter of credit
       from a suitable financial institution in a form acceptable to FortisAlberta;

(e)    FortisAlberta determines that the form of the Electric Service Agreement is not
       appropriate for the Service Connection due to its unique nature and the Distribution
       Load Customer refuses to enter into an alternate form of agreement acceptable to
       FortisAlberta;

(f)    any representation made by the Distribution Load Customer to FortisAlberta for the
       purpose of obtaining a Service Connection is, in FortisAlberta’s opinion, fraudulent,
       untruthful or misleading;
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(g)   the Distribution Load Customer has not, when requested by FortisAlberta to do so,
      provided a signed written application for a Service Connection, Electric Service
      Agreement or Commitment Agreement; or

(h)   the proposed Loads, in FortisAlberta’s opinion, have unusual characteristics that
      might adversely affect the quality of service supplied to other Customers, public
      safety, or the safety of FortisAlberta’s personnel or FortisAlberta’s Facilities or
      equipment.

4.4   Customer Contracts

      4.4.1   Electric Service Agreement for Distribution Load Customer

      A Distribution Load Customer connected or connecting to the FortisAlberta Electric
      Distribution System is required to make contract arrangements with FortisAlberta, on
      the following basis:

      (a)     A Distribution Load Customer with an Expected Peak Demand less than 75
              kW is not generally required to sign a contract with FortisAlberta. However, if
              the actual Operating Demand significantly differs from the Expected Peak
              Demand, FortisAlberta reserves the right to require an Electric Service
              Agreement.

      (b)     A Distribution Load Customer with an Expected Peak Demand equal to or
              greater than 75 kW is required to sign an Electric Service Agreement with an
              Investment Term based on the number of years used to calculate the original
              investment or any subsequent investment.

      Subject to the Terms and Conditions, the Contract Term and all other contractual
      obligations under an Electric Service Agreement continue in effect until such time as
      the Electric Service Agreement is either renegotiated or terminated by the party in
      accordance with Sections 7.3.2 or 7.4.

      4.4.2   Electric Service Agreement for Transmission Load Customers

      A Transmission Load Customer is required to make contractual arrangements with
      FortisAlberta for the flow-through of the obligations of FortisAlberta under a System
      Access Service Agreement for their particular Transmission Connected Service.
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       4.4.3   Transfer of Contractual Obligations

       All services, whether or not they require FortisAlberta assignment consent, that are
       transferred to a person taking over the operation of an existing Point of Service shall
       be subject to the terms of the Electric Service Agreement(s) of the previous
       Customer(s), along with the billing and demand history. Any change in service
       requirements as a result of such transfer shall be made in accordance with the Terms
       and Conditions. The existing contractual arrangements will remain in place until any
       new agreements have been approved and accepted by both parties. It is the sole
       responsibility of the party who is taking over the operation of an existing Point of
       Service to undertake thorough due diligence with respect to any existing Electric
       Service Agreements associated with the Point of Service.

       4.4.4   Subdivision Developers

       Except where FortisAlberta will install Facilities to serve a subdivision, Subdivision
       Developers are required to sign an Underground Electrical Distribution System
       Services Agreement.

       4.4.5   Commitment Agreements

       FortisAlberta may require a Distribution Load Customer to sign a Commitment
       Agreement, to be in effect until an Electric Service Agreement is executed or the
       request for a Service Connection has been cancelled.

4.5    Authorizations

The Customer shall be responsible for obtaining all permits, certificates, licences,
inspections, reports, and other authorizations necessary for the installation and operation of
the Service Connection and shall submit copies of them to FortisAlberta. FortisAlberta shall
not be required to commence or continue installation or operation of a Service Connection
unless and until the Customer has complied with the requirements of all governmental
authorities, all permits, certificates, licences, inspections, reports and other authorizations,
and all right-of-way agreements, and all FortisAlberta’s requirements applicable to the
installation and operation of the Service Connection. FortisAlberta reserves the right, but is
not obligated, to verify that all necessary approvals have been obtained by Customers.
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4.6    Temporary Service

Where FortisAlberta reasonably believes that a requested service will be temporary, the
Customer must pay the Cost of Temporary Services and the Customer Transmission
Contribution in accordance with Section 7.2.2. Unless otherwise approved by FortisAlberta
in writing, Temporary Service shall be defined as installations intended for removal within a
period not to exceed 24 months. A Minimum Demand based on two-thirds of the Expected
Peak Demand will be applied to the Temporary Service for billing purposes.

If service continues beyond the 24 month period set out above, it will be considered a
permanent service and the provisions herein applicable to a permanent Service Connection
will apply. Regardless of whether alterations are required to existing Facilities, a new
Electric Service Agreement must be executed based on the new Expected Peak Demand if
equal to or greater than 75 kW.


            ARTICLE 5 – SERVICE REQUIREMENTS AND FACILITIES

5.1    Scheduling for Service Connection

After the applicant has complied with FortisAlberta’s application requirements and has been
accepted for service by FortisAlberta and complied with the requirements of Article 4 and all
other local construction, safety standards or regulations, FortisAlberta shall schedule that
applicant for Service Connection.

5.2    Protection of FortisAlberta’s Facilities

       5.2.1   Interference with FortisAlberta Facilities

       The Customer shall not install or allow to be installed on property owned or
       controlled by the Customer any temporary or permanent structures that could
       interfere with the proper and safe operation of FortisAlberta’s Facilities or result in
       non-compliance with applicable statutes, regulations, standards or codes.

       5.2.2   Protection of Installed Facilities

       The Customer shall furnish and maintain, at no cost to FortisAlberta, the necessary
       space, housing, fencing, barriers, and foundations for the protection of the Facilities
       to be installed upon the Customer’s premises. If the Customer refuses, FortisAlberta
       may, at its option, furnish and maintain and charge the Customer for furnishing and
       maintaining the necessary protection. Such space, housing, fencing, barriers and
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foundations shall be in conformity with applicable laws and regulations and subject to
FortisAlberta’s specifications and approval. On a best efforts basis, FortisAlberta
will take into consideration, but shall not be obligated to abide by, requests by
Customers related to the protection of Facilities.

5.2.3   Power Factor

A Customer shall design, install and operate their facilities in such a manner as to
maintain a Power Factor of not less than 90%. FortisAlberta may require any
Customer not satisfying this Power Factor requirement to furnish, install, and
maintain, or FortisAlberta may install at the Customer’s cost, such remedial or
corrective equipment as FortisAlberta may deem necessary under the circumstances.

5.2.4   Compliance with Requirements and Use of Service Connection

The Customer will ensure that their facilities comply with the applicable requirements
of the Canadian Electrical Code and with all technical guidelines issued from time to
time by FortisAlberta. The Customer shall not use their Service Connection or
Distribution Access Service in a manner so as to cause undue interference with any
other Customer’s use of a Service Connection or Distribution Access Service such as
abnormal voltage levels, frequency levels and harmonic levels. At FortisAlberta’s
request, the Customer shall take whatever action is required to correct the interference
or disturbance at the Customer’s expense. In particular, the Customer will conduct
their operations so that the Customer does not:

(a)     contribute to a level of voltage flicker in excess of 5%; or

(b)     exceed harmonic interference levels set out in FortisAlberta’s current
        “Harmonic Specification for Harmonic Producing Customers Connected to
        FortisAlberta’s Electric Distribution System”.

5.2.5   Operation of Generator Facilities

Notwithstanding the provisions in Article 12 the Customer shall not, without the
written consent of FortisAlberta, use their own generator facilities in parallel
operation with FortisAlberta’s Electric Distribution System.
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5.3    Relocation of Facilities

The Customer shall pay all costs of relocating FortisAlberta’s Facilities at the Customer’s
request, for the Customer’s convenience, or if necessary to remedy any violation of law or
regulation caused by the Customer. If requested by FortisAlberta, the Customer shall pay the
estimated cost of the relocation in advance.

5.4    Extensions

A Customer shall not extend or permit the extension of electric facilities connected to
FortisAlberta’s Electric Distribution System beyond property owned, occupied or controlled
by that Customer for any Point of Service.


          ARTICLE 6 - RIGHTS OF WAY AND ACCESS TO FACILITIES

6.1    Easements

By accepting Distribution Access Service, the Customer is deemed to have granted to
FortisAlberta, without any cost to FortisAlberta, such easements or rights-of-way over, upon
or under the property owned, controlled or leased by the Customer as FortisAlberta
reasonably requires at any time for unimpeded ingress and egress for the purposes of the
construction, installation, maintenance, repair, operation and removal of the Facilities
required for a Service Connection to the Customer, for vegetation management, emergency
response and the performance of all other obligations required to be performed by
FortisAlberta hereunder. On a best efforts basis, FortisAlberta will take into consideration,
but shall not be obligated to abide by, requests by Customers related to such easements and
rights-of-way.

6.2    Right of Entry

FortisAlberta’s employees, agents and other representatives shall have the right to enter any
property belonging to or occupied by the Customer at all reasonable times for the purpose of
inspecting, installing, maintaining, replacing, testing, monitoring, reading, removing or
disconnecting FortisAlberta’s Facilities, including meters, meter reading devices, wires or
other electrical equipment and appliances, for the measurement or conveyance of electricity
supplied or ascertaining the quantity or making other measurements of electricity consumed
or supplied, or for any other purpose incidental to the provision of a Service Connection.
The Customer shall not prevent or hinder FortisAlberta’s entry. FortisAlberta, where
practicable, will endeavour to provide reasonable notice to the Customer when it requires
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unscheduled entry to the Customer’s property. FortisAlberta may charge a “No Access” fee
as set forth in the Fee Schedule included herein as Appendix “A” any time FortisAlberta’s
entry is considered by FortisAlberta’s employees, agents or other representatives as unsafe or
is otherwise prevented, hindered or refused.

6.3    Vegetation Management

The Customer shall be responsible for managing vegetation on the property owned or
controlled by the Customer to maintain proper clearances and reduce the risk of contact with
Customer’s facilities as well as FortisAlberta’s low voltage overhead wires, including but not
limited to treating, trimming or cutting trees and brush that may interfere with the operation
of Customer’s facilities or FortisAlberta’s Facilities.

FortisAlberta shall be responsible for managing vegetation on the property owned or
controlled by the Customer to maintain proper clearances and reduce the risk of contact with
all other FortisAlberta’s Facilities, including but not limited to treating, trimming or cutting
trees and brush that may interfere with the operation of FortisAlberta’s Facilities on the
Customer’s property.

If the Customer has concerns with identifying any facilities, they should contact
FortisAlberta at 310-WIRE for assistance.

FortisAlberta may at the Customer’s expense, perform the work that is the responsibility of
Customer as set out herein, where FortisAlberta determines that such work is reasonably
required to maintain the integrity of FortisAlberta’s Electric Distribution System.
FortisAlberta shall make reasonable efforts to notify the Customer before such work is
performed.


         ARTICLE 7 - DISTRIBUTION AND TRANSMISSION EXTENSION

7.1    FortisAlberta Investment

The FortisAlberta Investment, where the expected service life is 15 years or more, is
determined according to Table 1, Appendix “B” attached hereto.

The Expected Peak Demand will be used for establishing the FortisAlberta Investment and
the Contract Minimum Demand, and will initially be considered the Operating Demand for
determining the applicable rate. This will be subject to review when sufficient operating
history is available in order to determine the Operating Demand.
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The Investment Term is established by FortisAlberta and shall be based on the lesser of:

       (i)     the viable technical life of the Facilities provided by FortisAlberta;

       (ii)    the economic life of the Customer’s operation; and

       (iii)   the minimum service life, as determined in accordance with Table 2,
               Appendix “B” attached hereto, which provides an Investment Level that is
               sufficient to cover the full costs to provide service.

The Investment Term may be modified from time to time based on any subsequent
investment due to a service expansion.

In the event that the maximum FortisAlberta Investment available exceeds the Customer
Extension Costs and Customer Shared Costs, the excess amount is not available to the same
or another Customer to apply at any other Point of Service.

For the purposes of this Article 7, “cost” shall mean an estimated cost as calculated by
FortisAlberta.

7.2    Customer Contributions

Customer Contributions other than Customer Transmission Contributions are payable before
design, ordering and construction may begin unless other arrangements are made with, and to
the satisfaction of, FortisAlberta. Customer Transmission Contributions are payable in
accordance with the Independent System Operator tariff.

For further details please refer to the Guide to Customer Contributions and FortisAlberta
Investment, and the Residential and Farm Customer Guide to Distribution Access Service.

       7.2.1   Customer Distribution Contribution

       A Customer requesting a Service Connection may be required to make a contribution,
       calculated as follows:

       Customer Distribution Contribution       = Customer +/– Customer - FortisAlberta
                                                  Extension    Shared       Investment
                                                  Costs        Costs

       Customer Extension Costs include the cost of local Facilities required to extend
       Standard Service for the sole use of the individual Customer.
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Customer Shared Costs are determined as follows:

(a)     For rural residential subdivisions, Customer Shared Costs are calculated based
        on the costs of the Facilities divided by the number of lots served.

(b)     For irrigation and rural Points of Service with Expected Peak Demand less
        than 100 kW not covered in (a), Customer Shared Costs are calculated as
        Prepaid Line Share, based on the formulae shown in Table 3, Appendix “B”.
        Prepaid Line Share amounts are not refundable.

(c)     For Points of Service with Expected Peak Demand greater than or equal to
        100 kW, the Customer Shared Costs include:

        i.     a portion of the cost of the new or existing shared Facilities. The
               Customer portion is determined based on the Customer’s Load relative
               to the total Load supplied by the shared Facilities; and

        ii.    the cost of system upgrades attributed to the Customer’s Load.

In a new residential subdivision, since some Points of Service may not be occupied
and connected immediately, the Subdivision Developer is initially responsible for the
full Customer Extension Costs and Customer Shared Costs for each Point of Service.
The FortisAlberta Investment, less any costs, including but not limited to metering,
incurred by FortisAlberta to complete the connection, is paid to the Developer, or in
the case of street lights, the Municipality, as each Point of Service is connected, as
described in Section 7.2.3.

7.2.2   Other Contributions

Cost of Optional Facilities

If the Customer requests Facilities beyond or different from those Facilities
reasonably or normally required for the provision of Standard Service, as covered in
the Customer Extension Costs, the Customer will pay the cost of those optional
Facilities, plus prepaid operation and maintenance as indicated in Table 4 of
Appendix “B” attached hereto. Such payment is only refundable, in whole or in part
as determined by FortisAlberta, if the optional Facilities are deemed by FortisAlberta
to be standard (eg. a Load increase) within 10 years of the original payment date.
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Cost of Temporary Services

For Facilities which are in place for less than 2 years, the Customer will pay the cost
of constructing and dismantling the Facilities, less the value of material which can be
salvaged. In addition, a Customer Transmission Contribution may apply.

Customer Transmission Contribution

FortisAlberta may incur Transmission Costs as a result of entering into contracts with
the Independent System Operator for provision of System Access Service in support
of a Customer’s electricity supply requirements. Transmission Costs include but are
not limited to contributions and application fees made by FortisAlberta to the
Independent System Operator in respect of a Point of Delivery providing System
Access Service to a Customer. Transmission Costs are allocated to Customers as
follows:

(a)    for a Customer other than a Temporary Service Customer, with an Expected
       Peak Demand of 2000 kW or less, no Customer Transmission Contribution
       will be initially levied;

(b)    for a Customer not initially assessed a Customer Transmission Contribution
       because the Expected Peak Demand was 2000 kW or less, but whose
       Operating Demand exceeds 2000 kW within 10 years of the original
       determination, FortisAlberta reserves the right to levy a Customer
       Transmission Contribution equal to the Transmission Cost, offset by any
       refund received from the Independent System Operator; and

(c)    for a Customer other than a Temporary Service Customer with an Expected
       Peak Demand greater than 2000 kW, a Customer Transmission Contribution
       may be required as follows:

       i.      where a single Customer is served from a new Point of Delivery, the
               Customer Transmission Contribution equals the Transmission Cost;

       ii.     where a number of new Customers are served from a new Point of
               Delivery, each Customer is allocated a portion of the Transmission
               Cost, based on the proportion of their Expected Peak Demand to the
               total expected demand at the Point of Delivery. This allocated cost
               becomes the Customer Transmission Contribution; and
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        iii.   where an expansion of an existing Point of Delivery is required to
               provide System Access Service to a Customer or several Customers
               with increased electricity requirements, any resulting Transmission
               Cost is allocated to each such Customer based on the proportion of
               their increase in Expected Peak Demand relative to the total increase
               in expected demand at the Point of Delivery. This allocated amount
               becomes the Customer Transmission Contribution.

(d)     For a Temporary Service Customer, regardless of Expected Peak Demand, the
        Customer Transmission Contribution is equal to the Transmission Cost plus
        an amount equivalent to the present value of any additional ongoing System
        Access Service attributable to the Customer.

Any obligations undertaken by FortisAlberta in connection with the Independent
System Operator’s Construction Commitment Agreements become the obligations of
the Customer to FortisAlberta.

Any refunds of contributions received by FortisAlberta from the Independent System
Operator may be passed on to Customers as described in Section 7.2.3.

7.2.3   Refunds of Customer Contributions

Customer Distribution Contributions may be refundable for a period of 10 years.
Refunds are applicable in the following situations:

(a)     Customers not subject to Prepaid Line Share (see Table 3 of Appendix “B”
        attached hereto) may receive a refund based on the proportion of the costs of
        the shared extension that are used by the new loads relative to the total Load
        supplied by the shared extension. Refunds, in whole or in part, are made
        without interest to the current Customer at the Point of Service.

(b)     Customers at an existing Point of Service where a Customer Distribution
        Contribution was paid may receive a refund when an Electric Service
        Agreement with an increased Contract Minimum Demand is executed, as
        described in Section 7.3.2.

(c)     In a residential subdivision, where the developer initially paid the total cost of
        the Facilities within the subdivision, applicable refunds are reviewed annually
        and made in accordance with the amounts set out in Table 1 of the Customer
        Contributions Schedules in Appendix “B”, for each residence that is
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               connected and taking service within 10 years following the date of payment,
               to the current developer (or in the case of street lights, to the Municipality if
               so directed by an agreement between the developer and the Municipality,
               provided also that such agreement is communicated to FortisAlberta prior to
               any payment by FortisAlberta), without interest.

       Under no circumstances shall the refund payable by FortisAlberta exceed the
       Customer’s Distribution Contribution.

       Customer Transmission Contributions may be refunded, without interest, to a
       Customer in whole or in part, if FortisAlberta receives a refund of Transmission Costs
       from the Independent System Operator, which can be attributed to the Customer.

7.3    Changes to Service Peak Demand Requirements

The Customer’s Peak Demand shall not exceed the Maximum Supply.

A Customer shall give FortisAlberta reasonable written notice prior to any change in
requirements at a Point of Service, including any change in Expected Peak Demand, to
enable FortisAlberta to determine whether or not it can accommodate such change without
alterations to its Facilities. Regardless of whether alterations are required to existing
Facilities, a new Electric Service Agreement may be required by FortisAlberta based on the
new Expected Peak Demand if equal to or greater than 75 kW. A Retailer or any other person
who is acting on behalf of the Customer, who provides FortisAlberta with verifiable
authorization from the Customer, may give such notice to FortisAlberta on the Customer’s
behalf. However, FortisAlberta reserves the right to require such notice directly from the
Customer.

The Customer shall not change their Load requirements at a Point of Service without
FortisAlberta’s written permission. The Customer shall be responsible for all damage caused
as a result of the Customer changing requirements at a Point of Service without
FortisAlberta’s written permission.

       7.3.1   Changes to Distribution Facilities

       If a Customer requests a change to their service requirements and FortisAlberta
       therefore determines it must modify certain Facilities to accommodate the change at a
       Point of Service, a Customer Distribution Contribution may apply and such
       contribution will be determined in accordance with Section 7.2.1 modified to the
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extent that Customer Extension Costs and Customer Shared Costs will be the sum of
the following:

(a)     the original capital cost of FortisAlberta’s Facilities being removed, less any
        Customer Contribution and less accumulated depreciation;

(b)     for contract terminations or service expansions only, the cost of removing
        FortisAlberta’s Facilities, less the salvage value (this does not apply to
        contract buy-downs where the existing Facilities remain or are downsized to
        reflect the reduced Load requirements);

(c)     the cost of installing FortisAlberta’s new Facilities; and

(d)     changes to Customer Shared Costs.

Where Facilities, other than optional Facilities, are oversized relative to the
Customer’s Maximum Supply, FortisAlberta may, at its expense, replace Facilities to
more closely match the greater of the Customer’s Operating Demand or the
Customer’s Maximum Supply.

FortisAlberta will, at the request of the Customer, change the interval meter to a
demand meter in accordance with Section 9.4.

7.3.2   Impact of Changes on a Customer’s Electric Service Agreement

Notwithstanding any other provisions in the Terms and Conditions, a new Electric
Service Agreement with revised Minimum Demand and Maximum Supply values
may be required before the Customer may change their Expected Peak Demand.

        Increases

        If a Customer’s Expected Peak Demand increases, the Customer shall be
        required to enter into a new Electric Service Agreement as provided by
        FortisAlberta. The Contract Minimum Demand will be revised to two-thirds
        of the new Expected Peak Demand. A refund, without interest, of a prior
        Customer Distribution Contribution may apply. The refund amount available
        to the Customer is determined by multiplying the increase in kW of Expected
        Peak Demand, by the corresponding maximum Investment Level for the
        service life of the new demand, provided in Table 2 of Appendix “B” attached
        hereto. The refund will not exceed the amount of the prior Customer
        Distribution Contribution.
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For Points of Service with Operating Demands greater than 2,000 kW, the
potential investment available to the Customer is based on only the per kW
component of the maximum Investment Level. Generally, there is no further
available investment related to the Metres of Customer Extension component.

Decreases

If a Customer’s Expected Peak Demand decreases, the Customer may enter
into a new Electric Service Agreement as provided by FortisAlberta upon
request, and the Contract Minimum Demand will be revised to two-thirds of
the new Expected Peak Demand.

In order to decrease the Contract Minimum Demand, the Customer may be
required to pay an additional contribution, or “Buy-Down Charge”. The Buy-
Down Charge is determined by multiplying the decrease in kW of Expected
Peak Demand by the corresponding maximum Investment Level for the
remaining service life, provided in Table 2 of Appendix “B” attached hereto,
less any amount by which the maximum FortisAlberta Investment available
exceeded the original costs to provide service (investment surplus).

For Points of Service with Operating Demands greater than 2,000 kW, the
Buy-Down Charge is based on only the per kW component of the maximum
Investment Level (see Table 2, Appendix “B”). There is no Buy-Down
Charge related to the Metres of Customer Extension.

A Customer is required to give notice to FortisAlberta to reduce the Contract
Minimum Demand. For every 30 kW reduction in Minimum Demand, 1
month of notice is required. A Customer may give no more than 1 notice to
reduce per year per Point of Service. Note that notice, in this instance, shall
take the form of signed acceptance by the Customer of FortisAlberta’s Review
of Minimum (ROM) Proposal Letter, which FortisAlberta shall use best
efforts to provide the Customer in a timely basis. The notice period shall
commence upon receipt by FortisAlberta of the accepted ROM Proposal
Letter from the Customer. If FortisAlberta determines in good faith that it has
caused a delay of greater than 1 month in its issuance of the ROM Proposal
Letter to the Customer, and has thereby delayed the commencement of the
notice period, the notice period may be adjusted as deemed appropriate by
FortisAlberta, acting reasonably and in good faith, and such adjustment will
be reflected in the notice period contained in the ROM Proposal Letter.
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               If less notice than is required is provided, the Customer is charged a “Payment
               In Lieu Of Notice” (“PILON”), calculated as the difference between the
               Minimum Charge based on the original Contract Minimum Demand and the
               Minimum Charge on the reduced Contract Minimum Demand, multiplied by
               the number of months falling short of the required notice. With respect to the
               distribution component of FortisAlberta’s Distribution Tariff charges, the
               number of months used to calculate the Customer’s Payment In Lieu of Notice
               shall be limited to 24. With respect to the transmission component of
               FortisAlberta’s Distribution Tariff charges, the number of months used to
               calculate the Customer’s Payment In Lieu of Notice shall be limited to 60.

               The Customer will not be required to pay the Buy-Down Charge if their
               Investment Term expires during the notice period required to reduce their
               Contract Minimum Demand, regardless of whether the Customer gives notice
               or opts to pay the PILON.

               If the Customer pays the applicable PILON instead of providing the required
               notice, demand ratchet history is reduced correspondingly for billing purposes
               by the amount of the reduction in Operating Demand corresponding to the
               reduction in Contract Minimum Demand.

               The Customer shall pay any applicable Buy-Down Charges or PILON charges
               at the time that a buy-down proposal is accepted by the Customer.

       7.3.3   Changes to System Access Costs

       If FortisAlberta must modify its arrangements with the Independent System Operator
       to accommodate a change in a Customer’s service requirements, for Points of Service
       with Operating Demands greater than 2000 kW, the Customer pays for all costs
       attributable to such modification, including, but not limited to, additional
       contributions required from FortisAlberta by the Independent System Operator. The
       attributable costs are determined as described in the Section 7.2.2 under the heading
       “Customer Transmission Contribution”.

7.4    Charges Related to Permanent Disconnection

When a Distribution Load Customer wishes to permanently disconnect their Point of Service,
in addition to the requirements under Article 10, a Customer may be assessed a Distribution
Customer Exit Charge.
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The Distribution Customer Exit Charge is:

(a)    the Buy-Down Charge, calculated as prescribed under Section 7.3.2, using a new
       demand of zero, if the termination of service occurs before the end of the Investment
       Term;

(b)    plus, for Customers on Rate 63, the Metres of Customer Extension multiplied by the
       corresponding maximum Investment Level for the remaining service life, provided in
       Table 2 of Appendix “B” attached hereto, if the termination of service occurs before
       the end of the Investment Term;

(c)    less, the value of any Facilities that may be salvaged, reduced by the cost of
       undertaking the salvage;

(d)    plus, a Payment In Lieu of Notice, calculated as prescribed under Section 7.3.2, using
       a new Contract Minimum Demand of zero;

(e)    plus, where applicable, any outstanding amounts attributable to the Customer with
       respect to, but not limited to, any deferral accounts and Board approved riders, any
       charges required from FortisAlberta by the Independent System Operator, and
       charges arising from services supplied by the distribution company prior to the
       termination of service.

A Customer shall pay any applicable Buy-Down Charges or PILON charges at the time that a
contract termination proposal is accepted by the Customer.


                       ARTICLE 8 – SERVICE CONNECTION

8.1    Customer Responsibility

       8.1.1   Facilities Provided by the Customer

       The Customer shall provide, and is responsible for, all wiring and electrical
       equipment on the Customer’s side of the Point of Service, including a suitable service
       entrance and meter socket or enclosure and all Civil Work in relation to the Service
       Connection. For underground installations, the Customer provides and is responsible
       for the underground conduit and underground service leads. All such materials used
       in the construction of facilities provided by the Customer must be Canadian Standards
       Association approved. Customer responsibility in connection with the installation of
       meters is set out in Section 9.1.2.
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The Customer shall be responsible for any destruction of or damage to Facilities
where the destruction or damage is caused by a negligent act or omission or wilful
misconduct of the Customer, their directors, officers, agents, employees and
representatives or anyone permitted by the Customer to be on the premises.

The Customer shall comply with all applicable requirements of FortisAlberta in
relation to their Service Connection and interconnection with FortisAlberta’s Electric
Distribution System. For a new service, or for the rewiring of an existing service, the
Customer will need to obtain an electrical permit from an accredited agency. The
Customer’s wiring must conform to the applicable Canadian and Alberta standards.
For safety reasons, FortisAlberta has the right, but not the obligation, to inspect the
Customer’s wiring. Inspection by FortisAlberta does not relieve the Customer from
any responsibility with respect to the Customer’s wiring or electrical equipment.

8.1.2   Protective Devices

The Customer shall be responsible for determining whether the Customer needs any
devices to protect the Customer’s facilities from damage that may result from the use
of a Service Connection or Distribution Access Service including, without limitation,
single phasing protection on three-phase Service Connections. The Customer shall
provide, install and maintain all such devices.

8.1.3   Service Calls

FortisAlberta will require a Customer to pay the actual costs of a Customer requested
service call if the source of the problem is the Customer’s facilities (in accordance
with Appendix “A”).

8.1.4   Standards for Connection

The Customer’s installation shall conform to the requirements of FortisAlberta’s
Service and Metering Guide and such further requirements as FortisAlberta may
establish from time to time. Copies of such guidelines are available on request and
from FortisAlberta’s website at: http://www.fortisalberta.com.

8.1.5   Compliance with Governmental Directives

The Customer acknowledges and agrees that FortisAlberta may need to act in
response to governmental or civil authority directives or regulatory orders, which may
affect the Customer’s service including emergency orders or directions made pursuant
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to the Alberta Disaster Services Act R.S.A. 2000, c. D-13, as amended from time to
time. The Customer agrees to cooperate with FortisAlberta in order to comply with all
such directives or orders.

8.1.6   Interference with FortisAlberta’s Facilities

No one other than an employee or authorized agent of FortisAlberta shall be
permitted to remove, operate, or maintain meters, electric equipment and other
FortisAlberta Facilities. The Customer shall not interfere with or alter the meter, seals
or other Facilities or permit the same to be done by any person other than the
authorized agents or employees of FortisAlberta. The Customer shall be responsible
for all damage to, restoration of, or loss of, such property unless occasioned by
circumstances, as determined by FortisAlberta, to have been beyond the Customer’s
control, such as “Acts of God” and other similar circumstances. Such Facilities shall
be installed at points most convenient for FortisAlberta’s access and service and in
conformance with applicable laws and regulations in force from time to time.

8.1.7   Effluent

The Customer agrees that if any part of the Customer’s process or operations
produces or emits effluent that may cause contamination to or otherwise affect the
operation of FortisAlberta’s Electric Distribution System (including without
limitation, FortisAlberta’s Facilities installed or interconnected to serve the Customer
facilities) (the “Contamination”), the Customer shall immediately disclose this
information to FortisAlberta personnel as soon as the potential for or actual
Contamination, as the case may be, is known. Notwithstanding any other provision of
the Terms and Conditions, the Customer shall indemnify FortisAlberta from any
damage, injury, loss, costs and claims (“Costs”) suffered or incurred by FortisAlberta,
its agents or employees which are in any way incurred as a result of or connected with
any effluent produced or emitted by the Customer’s process or operations. Such Costs
shall include, without limitation, all reasonable expenses incurred in cleaning up
Contamination, upgrading FortisAlberta’s Electric Distribution System to prevent any
future occurrence of any similar contamination and/or to mitigate excessive costs of
ongoing maintenance or, where Electric Distribution System upgrade is not feasible,
the costs of continued maintenance of the Electric Distribution System resulting from
Contamination. “Effluent” means any solid, liquid or gas, or combination of any of
them, including, without limitation, salt, dust, smoke, particulate matter, debris,
hazardous waste, chemicals, vapour, runoff, wastewater or sewage.
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8.2    Facilities Provided by FortisAlberta

FortisAlberta installs, owns and maintains all Facilities required to supply electricity up to
the Point of Service unless an agreement between FortisAlberta and a Customer specifically
provides otherwise. Payment made by a Customer for costs incurred by FortisAlberta in
installing Facilities does not entitle the Customer to ownership of any such Facilities, unless
an agreement between FortisAlberta and a Customer specifically provides otherwise.

FortisAlberta arranges with the Independent System Operator for any Transmission Facility
required for Customer requirements. FortisAlberta is obligated only to provide Facilities that
can deliver up to the Maximum Supply capacity.

FortisAlberta is able to provide single and three phase electric service at several standard
voltages and will assist the Customer in selecting the type of electric service best suited to the
Customer’s needs.

8.3    Unauthorized Use or Unsafe Conditions

Where FortisAlberta determines that there has been unauthorized use of the Service
Connection or Distribution Access Service including, but not limited to, meter tampering,
unauthorized connection or reconnection, theft, fraud, intentional or unintentional use of
Energy whereby FortisAlberta is denied full compensation for services provided,
FortisAlberta may: (i) discontinue the Distribution Access Service; (ii) make such changes in
its meters, appliances, or other Facilities, or take such other corrective action, as may be
appropriate to ensure only the authorized use of the Facilities and to ensure the safety of the
general public; and (iii) bill the Customer, their Retailer or any other Person acting as agent
for the Customer for FortisAlberta's estimate of such unauthorized use, including
compensation for services provided and repairs of damage and reconstruction of Facilities.
Nothing in this Section shall limit any other rights or remedies that FortisAlberta may have in
connection with such unauthorized use.

8.4    New Multi-Unit Residential Buildings

All units in new multi-unit residential buildings (including apartment and condominium
buildings) will be metered and billed on an individual basis. All multi-unit residential
buildings, including apartment and condominium buildings, must have individual dwelling
units separately metered and billed on Residential Rate 11. Common areas of these buildings
such as hallway, lobby and laundry lighting are to be metered and billed on a Small General
Service Rate 41.
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8.5    Travel Trailers or Mobile Home Parks

Travel trailers or mobile home parks may be served through a single meter, if the owner of
the park sub-meters each of the occupants of the park and charges the occupants of the park
at rates no higher than Residential Rate 11.

8.6    Frequency and Voltage Levels

FortisAlberta will make every reasonable effort to supply Energy at 60-Hertz alternating
current. The voltage levels and variations will comply with the standards of the Canadian
Standards Association and as specified in the Metering and Service Guide. Some voltage
levels set out in the Metering and Service Guide may not be available at all locations served
by FortisAlberta.

8.7    Minimum Charges

The Minimum Charge calculated in accordance with the Rate, Option and Rider Schedules
will be applicable.

                                 ARTICLE 9 - METERS

9.1    Installation of Meters

       9.1.1   Provision and Ownership

       FortisAlberta shall provide, install, and seal one or more Measurement Canada
       approved meters for the purpose of measuring the Customer’s Load by way of a
       Service Connection.

       Time of use or interval meters and associated communication equipment shall be
       installed for a Customer who has a Contract Minimum Demand of 333 kW or greater
       (which coincides with an Operating Demand of 500 kW or greater).

       Interval meters are available to three-phase Points of Service with a Contract
       Minimum Demand of less than 333 kW (which coincides with an Operating Demand
       of less than 500 kW) for a metering charge set out in the Rate, Option and Rider
       Schedules, plus the cost of installation. The interval metering equipment must be
       requested in writing by the Customer and meet FortisAlberta’s requirements.

       Each meter shall remain the sole property of FortisAlberta.
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       9.1.2   Responsibility of Customer

       Each Customer shall provide and install a Canadian Standards Association approved
       meter receptacle or other Canadian Standards Association approved facilities suitable
       for the installation of FortisAlberta’s meter or metering equipment. All such facilities
       must be Canadian Standards Association approved and adhere to Canadian and
       Alberta electrical standards or requirements. Customer responsibility in connection
       with the installation of other facilities is set out in Section 8.1.1.

9.2    Location

Meter locations shall be approved by FortisAlberta based on type of service and convenience
of access to the meter. Where a meter is installed on a Customer-owned pole, the pole shall
be provided and maintained by the Customer as required by the Canadian and Alberta
standards or requirements and any applicable legislation.            On a best efforts basis,
FortisAlberta will take into consideration, but shall not be obligated to abide by, requests by
Customers related to the location of meters.

9.3    Access to Meters

FortisAlberta may, at any reasonable time, read, inspect, remove and test a meter installed on
property owned or controlled by the Customer.

FortisAlberta may require a Customer to remove safety hazards any time FortisAlberta’s
access or entry is considered by FortisAlberta’s employees, agents or other representatives as
unsafe. FortisAlberta may charge a “No Access” fee as set forth in the Fee Schedule
included herein as Appendix “A” any time FortisAlberta’s access or entry is considered by
FortisAlberta’s employees, agents or other representatives as unsafe or is otherwise
prevented, hindered or refused. In addition, FortisAlberta may move or relocate a meter, and
charge the Customer for the costs of moving or relocating the meter, if access or entry is
considered by FortisAlberta as unsafe or is otherwise prevented, hindered or refused. Prior to
moving or relocating a meter, FortisAlberta will first notify the Customer and provide the
Customer with a reasonable opportunity to remedy the restricted or unsafe access or entry.

9.4    Changes to Metering Equipment

Where FortisAlberta has installed an interval meter, FortisAlberta will, at the request of the
Customer, change the interval meter to a demand meter provided that the Customer’s
Contract Minimum Demand is below 333 kW (which coincides with an Operating Demand
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of less than 500 kW) or the request is made in connection with a physical re-configuration of
the Customer’s Service Connection. The Customer shall bear the cost of changing the
metering equipment.

9.5    Meter Reading

FortisAlberta shall endeavour to make an actual meter reading for each Point of Service for
which it provides Distribution Access Service for Customers of the Retailer in accordance
with FortisAlberta’s meter reading schedule. At the request of the Retailer of a Customer,
FortisAlberta shall endeavour to make an actual meter reading, off-cycle, and FortisAlberta
will charge the Retailer for the additional meter reading expense as set forth in the Fee
Schedule included herein as Appendix “A”.

At the request of the Retailer, or with the Retailer's consent, FortisAlberta may provide other
metering services, above standard metering service, and may charge separate fees for such
service.

9.6    Record

An accurate record of meter readings will be kept by FortisAlberta and will be the basis for
billing by FortisAlberta to the Retailer in accordance with the Distribution Tariff.

9.7    Metering Signals

Metering signals in the form of energy pulses, reactive energy pulses or analogue values of
watts and vars can be provided to a Retailer or a Customer upon request, and FortisAlberta
will charge whichever of the Retailer or the Customer made the request as outlined in the Fee
Schedule included herein as Appendix “A”. If the Customer directly requests such
information, in no circumstances shall the Retailer be liable for such charges.

9.8    Customer Usage Information

Upon request, FortisAlberta shall provide standard Customer Usage Information to an agent
or consultant, acting on behalf of a Customer. Prior to requesting FortisAlberta to release
Customer Usage Information, the agent or consultant shall be responsible for obtaining and
providing to FortisAlberta the written authorization from the Customer referred to above in a
form satisfactory to FortisAlberta.
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Upon request, FortisAlberta shall provide standard Customer Usage Information to the
Retailer of Record for the period during which the Retailer of Record was the retailer for the
particular Customer.

Customer Usage Information shall be provided for the 12 month period preceding the date of
the request or for such shorter period for which FortisAlberta has collected that information.

FortisAlberta may charge for any additional information requested, including, any special
reports and graphs as outlined in the Fee Schedule included herein as Appendix “A”. The
Retailer shall be responsible for having all necessary and appropriate contractual or other
arrangements with their Customers consistent with applicable statutes and regulations and the
Terms and Conditions.

9.9    Estimated Consumption and Demand

The Customer’s Load will be estimated by FortisAlberta based on the best available sources
of information and evidence in the following circumstances:

(a)    where the Customer’s Point of Service is not metered;

(b)    where a meter is inaccessible due to conditions on the Customer’s premises;

(c)    where the meter is not scheduled to be read;

(d)    where it is determined that the Customer’s Load was different from that recorded or
       billed due to incorrect billing procedures;

(e)    where a meter reading schedule or a meter change creates a transition period in
       FortisAlberta’s billing cycle; or

(f)    if the seal of a meter is broken or if the meter does not register correctly, regardless of
       the cause.

A small service which would otherwise be metered with a thermal demand meter may be
billed on an estimated demand if, in FortisAlberta’s opinion, the demand can be estimated
with reasonable accuracy.

The energy demand of certain equipment which is used for short periods of time, such as arc
welders, does not fully register on the thermal demand meters. Points of Service which
include this type of equipment may be billed on an estimated demand.
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FortisAlberta may disregard a new Peak Demand at a Point of Service for the purposes of
billing the Distribution Tariff in the event such Peak Demand is the result of a Customer’s
behaviour in response to acts or omissions of FortisAlberta.

If requested by the Retailer, FortisAlberta will provide the Retailer with a description of the
methodology used to calculate the Load estimate for the Customers of the Retailer.

9.10   Meter Testing

Measurement Canada regulates meter testing. At the request of a Retailer or Distribution
Load Customer, FortisAlberta shall arrange for on-site meter verification and if necessary,
shall arrange for a meter to be tested by an official designated for that purpose by
Measurement Canada or accredited agency as may, from time to time, be designated for this
purpose. FortisAlberta will charge a fee for meter testing pursuant to the Fee Schedule
included herein as Appendix “A”. If the meter is inaccurate, FortisAlberta will refund the fee
and make appropriate adjustments to the applicable Customer or Retailer’s bills. If the meter
is found to be accurate, FortisAlberta will keep the fee to cover the cost of testing the meter.

9.11   Adjustments for Faulty Metering or Energy Theft

FortisAlberta may make consumption and demand adjustments for faulty metering:

(a)    if the seal of a meter is broken or if the meter does not register correctly regardless of
       the cause;

(b)    when a Point of Service has been incorrectly metered, or when a meter is found to be
       inaccurate in accordance with the Electricity and Gas Inspection Act, R.S. 1985, c. E-
       4 as amended from time to time; in these cases FortisAlberta will make adjustments
       for a period not exceeding 3 months, unless it can be shown that the error was due to
       some specific reported cause, the date of which can be fixed, in which case the actual
       date shall be used; or

(c)    where a Point of Service is unmetered and any seal attached to motors or other
       equipment is broken or any unauthorized change in the Facilities has been made.

Notwithstanding Section 11.8, in any of the above noted cases FortisAlberta may make
adjustments for the lesser of the period of the error or 1 year unless otherwise required to do
so by any applicable governmental authority, legislation or regulation.

Where FortisAlberta determines that there has been unauthorized use of Electricity Services
at a Point of Service including, but not limited to, meter tampering, unauthorized connection
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or reconnection, theft or fraud whereby FortisAlberta is denied full compensation for
Distribution Access Service provided, FortisAlberta may make changes in its meters,
appliances or Facilities or take other appropriate corrective action, including where necessary
the disconnection of the Point of Service and will bill the Retailer of Record for the Point of
Service for FortisAlberta’s estimate of such unauthorized use. Nothing in this Section shall
limit any other rights or remedies that FortisAlberta may have in connection with such
unauthorized use.


        ARTICLE 10 – SERVICE DISCONNECTION AND RECONNECTION

10.1   Disconnection by Customer

In accordance with the Settlement System Code, any requests to disconnect a Point of
Service from a Customer shall be made by the Customer’s Retailer unless the Customer
notifies FortisAlberta that the disconnect is short-term and required for reasons, including but
not limited to, equipment testing and inspection. FortisAlberta reserves the right to complete
the request for disconnection and subsequent reconnection. If FortisAlberta determines the
disconnection request falls under the provisions of idle service, FortisAlberta will administer
the request as per this Article.

       10.1.1 Temporary Disconnection For Safety and Maintenance

       FortisAlberta will accept a request directly from a Customer or a Customer’s Retailer
       for a Temporary Disconnection of less than 5 days (or such other time as may be
       agreed to by FortisAlberta) for safety or maintenance (equipment testing and
       inspection) purposes. Normal charges for Distribution Access Service continue to
       apply during this period.

       10.1.2 Idle Charges as a Result of Temporary Disconnection

       Other than as set out above, FortisAlberta will only disconnect on a temporary basis if
       the Customer’s Retailer requests a Temporary Disconnection and provided that the
       Customer, or the Customer’s Retailer, agrees to pay the Idle Charges as provided in
       the Rate, Option and Rider Schedules. If the Point of Service remains disconnected
       for greater than 12 months, it may be considered a Permanent Disconnection and
       administered as per Section 10.1.4.
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       10.1.3 Right to Remove Meter

       The Customer shall permit FortisAlberta to remove the meter on property owned or
       controlled by the Customer for any temporary disconnection. FortisAlberta reserves
       the right to assess a charge to the Customer, or the Customer’s Retailer, for a
       supplementary meter read, as set forth in the Fee Schedule included herein as
       Appendix “A” under Off-Cycle Meter Reading, as a direct result of the Customer
       preventing or not allowing FortisAlberta to remove the meter.

       10.1.4 Permanent Disconnection

       If the Customer, or the Customer’s Retailer, requests a Permanent Disconnection of
       the Point of Service, the Customer billing for that service will be finalized. The
       Facilities provided by FortisAlberta may be removed unless the Customer, or the
       Customer’s Retailer, agrees to pay the Idle Charges as set forth in Section 10.1.2.

       If within 3 years of Permanent Disconnection the Customer requests the Service
       Connection be restored, the Customer may be required to pay all the costs associated
       with the original disconnection, removal of the Facilities and restoration of service.

       A Customer may be charged a Distribution Customer Exit Charge related to a
       Permanent Disconnection as set out in Section 7.4 hereof.

10.2   Disconnection at Request of Retailer

In accordance with the Act, the Retailer shall have the right to request that FortisAlberta
disconnect service to a particular Point of Service, including for non-payment, and
FortisAlberta shall comply with that request, unless such action is inconsistent with the
Terms and Conditions, including FortisAlberta's approved policies contained in Appendix
“B” to the Retailer Terms and Conditions.

Normal charges, including Idle Charges, may continue to be applied by FortisAlberta during
the period of any Temporary Disconnection. If the Point of Service remains disconnected for
greater than 12 months, it may be considered by FortisAlberta to be a Permanent
Disconnection and administered as per Section 10.1.4.
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10.3   Disconnection by FortisAlberta

       10.3.1 Disconnection Without Notice

       If FortisAlberta believes there is any actual or threatened danger to life or property, or
       in any other circumstances, the nature of which, in FortisAlberta’s judgment require
       such action, FortisAlberta has the right to withhold connection or to disconnect a
       Customer’s Point of Service without prior notice to the Customer or Retailer. More
       specifically, and without limitation of the foregoing, FortisAlberta may exercise this
       right in the event that:

       (a)    in the opinion of FortisAlberta, the Customer has permitted the Customer’s
              facilities to become hazardous, the Customer’s facilities fail to comply with
              applicable statutes, standards and codes and/or FortisAlberta requirements, or
              if the use of the Point of Service may cause damage to any other Point of
              Service or Facilities;

       (b)    to the knowledge of FortisAlberta, or in its judgement, the Customer’s
              facilities are unsafe or defective or will become unsafe or defective
              imminently. In this event, the Service Connection may not be restored until
              the Customer facilities are approved by the appropriate authority.
              FortisAlberta shall provide written notice to the Customer within a reasonable
              time of the reason for the disconnection under this subsection and the actions
              required for reconnection;

       (c)    on account of theft by the Customer of any FortisAlberta Facilities;

       (d)    if any tampering with any service conductors, seals or any other Facilities of
              FortisAlberta or any meters, whether or not provided by FortisAlberta is
              discovered;

       (e)    if the Customer changes their requirements for a Point of Service or
              Distribution Access Service without the permission of FortisAlberta; or

       (f)    as required by law.

       If the disconnection is a result of a safety violation, FortisAlberta will reconnect the
       service in accordance with Section 10.4.
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       10.3.2 Disconnection With Notice

       FortisAlberta may withhold connection or may disconnect a Customer’s Point of
       Service (without prejudice to any of FortisAlberta’s other remedies) after providing
       48 hours advance notice to the Customer, as applicable, in the following
       circumstances:

       (a)     if the Customer neglects or refuses to pay when due any amounts required to
               be paid under the Terms and Conditions (which amount is not the subject of a
               good faith dispute), with the exception that FortisAlberta will not disconnect a
               residential or farm service Customer:

               i.     at any time during the period from October 15 to April 15, or

               ii.    at any other time when the temperature is forecast to be below 0
                      degrees Celsius in the 24-hour period immediately following the
                      proposed disconnection;

       (b)     subject to Section 10.3.2(a), if the Customer is in violation of any of the
               Terms and Conditions or any of the terms of an Electric Services Agreement
               with FortisAlberta;

       (c)     any other circumstances, similar to those described above, that FortisAlberta
               determines require the withholding or disconnecting of service upon 48 hours
               notice.

       FortisAlberta also reserves the right to install a device to limit or reduce the amount
       of Energy provided to the Customer.

10.4   Reconnect Service

This Section applies when FortisAlberta is asked to reconnect or restore service to a Point of
Service whose service was previously restricted by a current-limiting device or disconnected.

Before reconnecting or restoring service, the Customer, or the Customer’s Retailer, shall pay
any amount owing to FortisAlberta including written off accounts, and

(a)    if service is reconnected by the Customer within 12 months of disconnection, the
       Customer, or the Customer’s Retailer, shall pay a service charge to cover
       FortisAlberta’s minimum monthly and reconnection charges, as determined in the Fee
       Schedule included herein as Appendix “A”; or
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(b)    if service is reconnected by the Customer after 12 months of disconnection, the
       Customer, or the Customer’s Retailer, shall pay a reconnection charge as determined
       in the Fee Schedule included herein as Appendix “A”.

If the disconnection is a result of a safety violation, or as a result of a Customer’s action,
inaction or facilities that are causing any problems, damage, interference or disturbance,
FortisAlberta will reconnect the service when such issues are resolved and when the
Customer has provided, or paid FortisAlberta’s costs of providing, such services, devices or
equipment as may be necessary to resolve such issues.

10.5   Removal of Facilities upon Disconnection of Service

Upon Permanent Disconnection, FortisAlberta shall be entitled to remove any of its Facilities
located upon the property of the Customer and to enter upon the Customer’s property for that
purpose.


                                 ARTICLE 11 – BILLING

11.1   General

The bill may be issued to the Customer by a Retailer on behalf of FortisAlberta or directly by
FortisAlberta. FortisAlberta may invoice the Customer directly for Customer Contributions,
meter tests or other services covered in the Terms and Conditions. Each Point of Service is
billed as a separate service.

FortisAlberta shall collect all franchise fees and sales, excise, or other taxes imposed by
governmental authorities with respect to any services, including Distribution Access Service
and services for Transmission Load Customers and DG Customers.

The Customer shall pay all amounts required to be paid under the Terms and Conditions
upon receipt of an invoice for such amounts. Invoices shall be deemed rendered and other
notices duly given when delivered to the Customer at the address for service. Failure to
receive such invoice from FortisAlberta will not entitle the Customer to any delay in the
settlement of each account, or to any extension of the date after which a late payment charge,
as defined in Section 11.6, becomes applicable.

Services transferred to a person by the Customer, including an affiliate, at the same Point of
Service shall be subject to the previous Customer’s Electric Service Agreement terms and
billing history. For greater clarity, refer to Section 4.5.3.
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In accordance with Section 16.2, it is the Customer’s responsibility to make arrangements
with a Retailer to obtain Electricity Services, including enrolment for Distribution Access
Service.

11.2   Determination of Applicable Rates

FortisAlberta bills the Retailer of Record based on the charges set out in its Rate, Option and
Rider Schedules. Each Point of Service is billed as a separate service. The determination of
these charges will be made in accordance with FortisAlberta’s Terms and Conditions and its
Rate, Option and Rider Schedules.

The availability of rates, options and riders are specified in the Rate, Option and Rider
Schedules. If the operational characteristics of the Point of Service change, a different rate
may be applicable and certain provisions in Article 7 may apply. This could result in the
Customer being required to pay an additional Customer Contribution or receiving a refund.
A Customer requested change of service under this Section will not be made more than once
in any 12 month period.

11.3   Minimum Charges

The Minimum Charge calculated in accordance with the Rate, Option and Rider Schedules
will be applicable.

11.4   Consumption Period

The basis of all charges to the Retailer for Distribution Access Service provided to a
Customer is the consumption period, defined as the time between two consecutive meter
readings, or estimates, or a combination thereof, for the Customer’s Point of Service, unless
otherwise indicated in the Rate, Option and Rider Schedules. Charges will generally be billed
on a monthly basis.

The charges for Distribution Access Service, including any applicable charges under an
Electric Service Agreement, shall commence on the earlier of the first billing date after the
date upon which the Customer commences taking service, or 30 days after the date that
service is made available to the Customer. FortisAlberta reserves the right to enrol the
Customer with its default retailer in the event that the Point of Service is not enrolled after 30
days that the service is made available.

FortisAlberta may elect to change a Customer’s meter reading schedule.
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11.5   Billing Period

The billing period for a Point of Service means the timeframe between scheduled meter
reading or usage estimate production dates as established by FortisAlberta, and generally
ranges between 27 and 35 days. FortisAlberta will establish the billing period for a Point of
Service in accordance with the Tariff Billing Code.

11.6   Late Payment Charges

A late payment charge of 1.5% per month (19.56% per annum) is applied if FortisAlberta has
not received the Customer’s payment before 1 month from the date the bill was issued.
FortisAlberta applies a short grace period before it applies the late payment charge if it can
be demonstrated that the bill was paid on time at the Customer's financial institution.
FortisAlberta reserves the right to assess a service charge to the Customer, or the Customer’s
Retailer, in respect of any cheque returned by the Customer’s bank for any reason as defined
in Appendix “A”.

11.7   Collections

Any invoice rendered for which valid payment has not been received by the due date shall be
considered past due. On the first day following the payment due date, late payment charges
as set out in the Section 11.6 will be applicable to all overdue billed amounts, including
arrears and previously unpaid late payment charges. Failure to make payments on time will
also be subject to normal credit action, which may include, but is not limited to: reminder
letters; notification by telephone; use of collection agencies; withholding of additional
service and legal action.

11.8   Adjustments of Bills in the Event of a Billing Error

For those Customers for whom the Regulated Default Supply Regulation A.R. 168/2003 is
applicable, where FortisAlberta overcharges or undercharges on a bill as a result of a billing
error including, but not limited to, incorrect meter reads or any calculation, rate application
or clerical errors, FortisAlberta shall render an adjusted bill for the amount of the
undercharge, without interest, and shall issue a refund or credit to the Retailer for the amount
of the overcharge, without interest, in accordance with Section 9 of the Regulated Default
Supply Regulation A.R. 168/2003.
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For those Customers for whom the Regulated Default Supply Regulation A.R. 168/2003 is
not applicable, where FortisAlberta overcharges or undercharges on a bill as a result of a
billing error including, but not limited to, incorrect meter reads or any calculation, rate
application or clerical errors, FortisAlberta shall render an adjusted bill for the amount of the
undercharge, without interest, and shall issue a refund or credit to the Retailer for the amount
of the overcharge, without interest, in accordance with the following procedures:

(a)    If a Retailer is found to have been overcharged due to billing error, FortisAlberta will
       calculate the amount of the overcharge (for refund to the Retailer on the Retailer’s
       next bill following the discovery of the billing error) up to a maximum of 12 months
       immediately preceding the month in which the billing error was discovered.

(b)    If a Retailer is found to have been undercharged due to billing error, FortisAlberta
       will bill the Retailer for those billing periods during which a billing error occurred up
       to a maximum of 12 months immediately preceding the month in which the billing
       error was discovered.

Whenever FortisAlberta adjusts any bills to the Retailer in the event of billing error, and
issues an adjusted bill or a refund or credit to the Retailer in respect thereof, the Retailer shall
be responsible for adjusting bills and issuing refunds or credits as appropriate to the affected
Customers.

If the period of billing error cannot be determined with reasonable accuracy because of a
metering error, the undercharge or overcharge will be calculated in accordance with Section
9.11.


                ARTICLE 12 - SPECIFIC PROVISIONS RELATING TO
                   DISTRIBUTION CONNECTED GENERATORS

12.1   General

This Article sets out specific terms and conditions related to DG Customers that are in
addition to any applicable terms and conditions set out in other Articles of the Terms and
Conditions.

DG Customers have generating facilities that are interconnected to the Electric Distribution
System and may or may not be exporting Energy to the AIES. DG Customers may also have
on-site Load requirements or generator stand-by/supplemental Load requirements to which
the applicable terms and conditions of the Terms and Conditions will apply.
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All DG Customers are required to enter into an Interconnection Agreement with
FortisAlberta (an “Interconnection Agreement”) to establish detailed terms, conditions and
provisions with respect to safe and effective operation of the specific interconnection.

12.2   Interconnection

A DG Customer or any other person acting on the behalf of the DG Customer must apply in
writing for interconnection to the Electric Distribution System. The application must include
all relevant information concerning site location, facility requirements and requested export
levels. Any requested changes to these requirements must be provided in writing to
FortisAlberta.

The interconnection of a generator to the Electric Distribution System shall not create a
safety hazard to Customers, the public or operating personnel, nor compromise the reliability,
power quality or effective operation of the interconnected distribution or transmission system
or any part thereof and shall comply with all applicable legislation, policies, standards, rules
or codes of federal, provincial or local regulatory entities, Independent System Operator or
wire owners, as they may change from time to time.

Prior to interconnecting generating facilities with the Electrical Distribution System, the DG
Customer shall:

(a)    satisfy all participant and application requirements of the Independent System
       Operator (if the generator is producing electricity beyond the on-site requirements
       thereby exporting into the AIES and exchanging Energy through the Power Pool);

(b)    comply with all applicable requirements of Alberta Distributed Generation
       Interconnection Guide, as amended from time to time and found at
       www.energy.gov.ab.ca;

(c)    obtain mutual acceptance of the Operating Procedures by the DG Customer and
       FortisAlberta;

(d)    obtain and provide copies of required permits, licenses and authorizations to
       FortisAlberta, including the Board’s approval and order to connect and acceptance
       from the local inspection and code enforcement authorities;

(e)    satisfy all requirements of FortisAlberta in relation to the generating facility metering
       (see below); and
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(f)    execute an Interconnection Agreement, which includes Operating Procedures, with
       FortisAlberta.

12.3   Continuity, Interruption or Disconnection of Service

In addition to the provisions of Section 16.6, the Interconnection Facilities will include an
acceptable visible disconnect switch as a means of isolating the DG Customer generating
facilities from FortisAlberta Facilities. FortisAlberta may disconnect the DG Customer
generating facilities from FortisAlberta Facilities without prior notice where in
FortisAlberta’s opinion:

(a)    the DG Customer has violated the terms of the Interconnection Agreement with
       FortisAlberta;

(b)    the DG Customer has permitted their facilities to deteriorate or become hazardous;

(c)    the DG Customer facilities fails to comply with applicable laws or standards and
       requirements of FortisAlberta, including those as set out in Alberta Distributed
       Generation Interconnection Guide, as amended from time to time and found at
       www.energy.gov.ab.ca;

(d)    the use of the service may cause damage to FortisAlberta’s Facilities or interfere with
       or disturb service to any other Customer.

FortisAlberta will reconnect the service when the violation or safety problem is resolved and
when the DG Customer has provided, or paid FortisAlberta’s costs of providing such devices
or equipment as may be necessary to resolve such violations or safety problems and to
prevent such damage, interference or disturbance.

12.4   Approvals

The DG Customer must obtain written approval from FortisAlberta before any modification
is made to the generating facilities.

The DG Customer will be responsible for becoming, and maintaining their status as, a Power
Pool participant and complying with any Independent System Operator requirements for any
Energy delivered to the Power Pool.

The DG Customer will be responsible for securing all required technical, commercial, or
operational arrangements with the Independent System Operator and the Power Pool.
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The DG Customer will be responsible for operating in compliance with accepted industry
operating and maintenance standards as established, from time to time, by the Independent
System Operator and FortisAlberta, and as specified in the Interconnection Agreement,
including the Operating Procedures, between the DG Customer and FortisAlberta.
FortisAlberta shall have the right, but not the obligation, to inspect the DG Customer’s
facilities for compliance.

The DG Customer shall obtain and provide to FortisAlberta copies of all required permits,
licenses and authorizations prior to commencement of service or any change or service
requirements at any Point of Interconnection, which includes:

(a)    Board approval and the Board order to connect;

(b)    acceptance from the local inspection and code enforcement authorities; and

(c)    an agreement with FortisAlberta which will specify technical and operating
       requirements if it wishes to operate in parallel operation with, or as supplementary,
       auxiliary or stand-by service to any other source of Energy.

12.5   Metering

The DG Customer shall be responsible for all metering, polling and provision of metering
data with respect to the DG Customer’s generating facilities.

The DG Customer is responsible for the installation, maintenance and operation of metering
facilities to measure active energy and reactive energy, both generated and consumed by the
DG Customer, in compliance with the standards set by FortisAlberta and the applicable
provincial and federal regulators.

The DG Customer shall read the meter and provide the required metering data to
FortisAlberta and the Independent System Operator in a format and frequency that is
acceptable to these parties. FortisAlberta may use the metering data for internal settlement
use.

Telemetry is required for all generating units where FortisAlberta or the Independent System
Operator has determined that telemetry is required to meet their needs, typically for units
larger than 5,000 kW.
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12.6   DG Customer Charges/Credits

The following charges and credits apply to a DG Customer:

       12.6.1 Interconnection Charges

       The DG Customer will be required to pay all incremental interconnection costs
       (“Interconnection Charges”) as determined by FortisAlberta, to allow the DG
       Customer to make use of the distribution system, including:

       (a)    Interconnection Facilities costs, as determined by FortisAlberta;

       (b)    Prepaid operation & maintenance charges as set out in Section 12.6.2;

       (c)    Transmission Costs for any transmission related costs associated with the
              interconnection, as determined and assessed by the Independent System
              Operator or a Transmission Facility Owner and flowed through to
              FortisAlberta; and

       (d)    Application fees associated with performing engineering estimates, planning,
              operating or protection studies or any additional or routine studies, modeling
              and testing required by the Independent System Operator.

       If a DG Customer also has on-site Load or generator stand-by / supplemental
       requirements the Terms and Conditions governing such services will apply.

       The DG Customer must pay the Interconnection Charges before any work on the
       interconnection proceeds. Payment made by DG Customers for Interconnection
       Facilities Costs does not entitle DG Customers to ownership of any such Facilities.

       The DG Customer may be required to pay further Interconnection Facilities Costs or
       Transmission Costs at a later date, for modifications or upgrades to the distribution or
       transmission system that would not have otherwise been required if the generator
       were not interconnected to the distribution system, including the replacement or
       repair costs of assets at the end of their useful life.

       In the event that the DG Customer cancels a generator interconnection project, the
       DG Customer will pay all additional costs related to the cancellation of the project
       incurred by FortisAlberta.
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       After a generating facility is interconnected, payment of Interconnection Facilities
       Costs is non-refundable. If an interconnection for a DG Customer is no longer
       required, the DG Customer is credited with the value of any Interconnection Facilities
       that may be salvaged, less the costs of undertaking the salvage.

       12.6.2 Prepaid Operation and Maintenance Charge

       Operation and Maintenance (“O&M”) amounts will be determined in accordance with
       Table 4 of Appendix “B” attached hereto and based on the generator’s original
       service life. The DG Customer will pay O&M on a prepaid basis. O&M charges will
       apply to charges related to future Facilities costs for modifications or upgrades,
       including replacement or repair. At the expiration of the original service life, a
       further prepaid O&M amount may be charged if the DG Customer wishes to remain
       interconnected to FortisAlberta’s Electric Distribution System.

       12.6.3 System Access Service Credits/Charges

       DG Customers that export to the AIES receive Option M credits or charges, in
       accordance with the Rate, Option and Rider Schedules, where incremental
       transmission System Access Service costs to FortisAlberta are avoided or incurred.

       12.6.4 Distribution Loss Reduction Credits/Charges

       Distribution line losses, loss reduction credits and incremental loss charges are not
       applicable.

12.7   Protective Devices and Liability

For the purposes of this Section, “islanding” refers to the operation of a generating unit
wherein it provides the sole source of production on an Electric Distribution System.

The DG Customer shall be responsible for determining whether it needs any devices to
protect their equipment from damage that may result from the interconnection to
FortisAlberta Facilities. The DG Customer shall provide and install any such devices. The
DG Customer will provide FortisAlberta with the required documentation and settings for
such devices. Where FortisAlberta has determined that there are adverse impacts on other
consumers or operating processes, FortisAlberta can order modifications to these protective
systems. The DG Customer must obtain written approval from FortisAlberta for any
modifications to these protective systems.
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The DG Customer must ensure the generators do not island during interruptions of service to
FortisAlberta’s distribution system and operate in a manner acceptable to FortisAlberta.

The DG Customer shall be responsible for any damages as a result of, but not limited to:

(a)    islanded operation of the DG Customer’s facility;

(b)    if direct or transfer tripping is not installed on FortisAlberta or Transmission Facilities
       or, if installed, it fails to operate correctly, the failure of the DG Customer’s facility to
       detect and clear an electrical fault that occurs on FortisAlberta or Transmission
       Facilities;

(c)    if live-line close blocking is not installed on the FortisAlberta or Transmission
       Facilities or, if installed, it fails to operate correctly, the failure of the DG Customer’s
       facility to shut down after disconnection from the FortisAlberta or Transmission
       Facilities and before the automatic reclosing of the FortisAlberta or Transmission
       switching devices; and

(d)    asynchronous reclosing on the DG Customer’s facility.

12.8   Service Calls

FortisAlberta may require a DG Customer to pay the actual costs of a requested service call if
the source of the problem is the DG Customer’s own facilities or if the generator company
fails to respond to a request to disconnect from the distribution system.

12.9   Exchange of Information

The DG Customer will be responsible for providing technical information to FortisAlberta as
required. FortisAlberta will treat this information as confidential and will not release such
information to any other parties without the written consent of the DG Customer. Information
related to distribution system use or modeling of such use, may be restricted in order to
respect Customer confidentiality.

FortisAlberta will be responsible for providing technical information to the DG Customer as
required except that nothing herein requires FortisAlberta to release proprietary or
confidential information of FortisAlberta or any other person. The DG Customer will treat
this information as confidential and will not release such information to any other parties
without the written consent of FortisAlberta. Information related to distribution system use or
modeling of such use may be restricted in order to respect confidentiality of Responsible
Parties.
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               ARTICLE 13 – SPECIFIC PROVISIONS RELATING TO
                   TRANSMISSION CONNECTED SERVICES

13.1   General

This Section sets out specific terms and conditions related to Transmission Load Customers
that are in addition to any terms and conditions that are applicable as described in other
sections of the Terms and Conditions.

Transmission Load Customers taking service from FortisAlberta will be subject to the
provisions of the Independent System Operator approved tariff as it applies to FortisAlberta
at the Point of Delivery (“POD”) to which the Transmission Load Customer’s service is
connected. This includes an application of all tariff amounts such as, but not limited to,
contributions, riders, application fees, miscellaneous charges, study costs or Independent
System Operator deferral account dispositions that are paid to or refunded by the
Independent System Operator, in accordance with the Independent System Operator’s
approved tariff.

13.2   System Access Service

FortisAlberta arranges for provision of System Access Service from the Independent System
Operator for all Customers. The arrangements for System Access Service and the associated
Transmission Facility for Transmission Load Customers will be aligned with the
Transmission Load Customer’s service requirements recognizing that the rates, terms and
conditions of the Independent System Operator tariff will be applied directly to the
Transmission Load Customer.

FortisAlberta is not obligated to commit to the Transmission Facility Owner or the
Independent System Operator for commencement of the construction of new facilities
required for System Access Service for a Transmission Load Customer until adequate credit
arrangements, guarantees and Commitment Agreements, acceptable to FortisAlberta, are
made with the Transmission Load Customer and the Transmission Facility Owner or the
Independent System Operator, as appropriate.

The Transmission Load Customer is required to sign an Electric Service Agreement with
FortisAlberta and an interconnection agreement with the Transmission Facility Owner prior
to the System Access Service Agreement being executed.
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13.3   Metering

The meter of the Transmission Connected Service is the meter at the respective Point of
Delivery. Consequently, metering equipment shall be installed in accordance with any
Independent System Operator metering requirements. Any contribution associated with
installation, changes or upgrades to metering to satisfy these requirements will be the
responsibility of the Transmission Load Customer.

13.4   Billing

A Transmission Load Customer will be billed as Rate 65 in accordance with the Rate, Option
and Rider Schedules. In the event that there is a dispute regarding any billing, the
Transmission Load Customer shall pay the disputed amount to the Retailer and work to
resolve the dispute.

13.5   Transmission Load Customer Contributions

If a customer contribution is required by the Transmission Facility Owner or Independent
System Operator for a Transmission Facility to provide System Access Service to a
Transmission Load Customer, a charge for such contribution will apply directly to the
Transmission Load Customer. Payment must be made in accordance with the Independent
System Operator tariff to the Transmission Facility Owner or the Independent System
Operator, as appropriate.

13.6   Changes to System Access Service

For any POD which is the Point of Service for a Transmission Load Customer, FortisAlberta
will make a request to the Independent System Operator for an increase or reduction in
transmission contract levels or a change to the terms of System Access Service only upon
written request from the Transmission Load Customer.

Changes to a Transmission Load Customer’s contract levels or terms of System Access
Service will be effective only upon agreement between FortisAlberta and the Independent
System Operator.

The Transmission Load Customer will pay any costs and receive any refunds from the
Independent System Operator that occur as a result of any such changes.
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13.7   Transmission Related Exit Costs

If a service for a Transmission Load Customer is terminated or disconnected, in addition to
any other applicable requirements under the Terms and Conditions, the Transmission Load
Customer shall pay all transmission related exit costs, which include:

(a)    any costs charged by the Independent System Operator to FortisAlberta, as a direct
       consequence of the Transmission Load Customer’s termination or disconnection of
       service;

(b)    the present value of any ongoing System Access Service costs for the particular POD
       that are attributable to the Transmission Load Customer and that will not be
       recovered by FortisAlberta from the Transmission Load Customer as a direct
       consequence of the Transmission Load Customer’s termination or disconnection of
       service,

(c)    any other un-recovered transmission related amounts as stipulated in the contract
       between FortisAlberta and the Transmission Load Customer; and

(d)    any outstanding amounts attributable to the Transmission Load Customer with respect
       to, but not limited to, any deferral accounts, rate riders or Board decisions.

13.8   Section 101(2) Release

In accordance with Section 101(2) of the Act, a Transmission Load Customer may, with the
prior approval of FortisAlberta, enter into an agreement to contract for System Access
Service directly with the Independent System Operator. Should FortisAlberta agree to such
release, FortisAlberta reserves the right to bill the released Customer directly for all Board
approved riders and charges arising from services supplied by FortisAlberta prior to the
release.


                     ARTICLE 14 – LIABILITY AND INDEMNITY

14.1   FortisAlberta Liability

Notwithstanding any other provision of the Terms and Conditions or any provision of an
agreement between FortisAlberta and a Responsible Party relating to the provision of
Distribution Access Service (a “FortisAlberta Agreement”), FortisAlberta, its directors,
officers, agents, employees and representatives (“FortisAlberta Parties”), shall not be liable
to a Responsible Party, their directors, officers, agents, employees and representatives, or any
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other person in law, equity, tort or contract (the “Applicable Parties”) for any loss, injury,
damage, expense, charge, cost or liability of any nature whatsoever suffered or incurred by
Applicable Parties, or any of them, whether of a direct, indirect, special or consequential
nature or whether incurred or suffered directly or as a result of a third party contract,
howsoever or whensoever caused, and whether in any way caused by or resulting from the
acts or omissions of FortisAlberta Parties, or any of them, except for direct property damages
incurred by an Applicable Party as a direct result of a breach of the Terms and Conditions or
applicable FortisAlberta Agreement or other act or omission by a FortisAlberta Party, which
breach or other act or omission is caused by the negligence or wilful act or omission of such
FortisAlberta Party. Any liability under this Section will be limited to an amount in
proportion to the degree to which the FortisAlberta Party acting negligent or wilfully is
determined to be at fault. For the purpose of the foregoing and without otherwise restricting
the generality thereof, “direct property damage” shall not include loss of revenue, loss of
profits, loss of earnings, loss of production, loss of contract, cost of purchased or replacement
capacity and Energy, cost of capital, and loss of use of any facilities or property, or any other
similar damage or loss whatsoever.

14.2   Release

Subject to Section 14.1, none of the FortisAlberta Parties (as defined above) will be liable to
Applicable Parties (as defined above) for any damages, costs, charges, expenses, injuries,
losses, or liabilities suffered or incurred by Applicable Parties or any of them, howsoever and
whensoever caused, and each Applicable Party hereby forever releases each of the
FortisAlberta Parties from any liability or obligation in respect thereof.

14.3   FortisAlberta Not Liable to Customer

For greater certainty and without limitation to the foregoing in Sections 14.1 and 14.2,
FortisAlberta Parties (as defined above) shall not be liable to a Customer party for any
damages of any kind (except to the extent FortisAlberta is liable for such damages in
accordance with Section 14.1):

(a)    caused by or arising from any FortisAlberta Party’s conduct in compliance with or in
       breach of, or as permitted by, the Terms and Conditions, an Electric Service
       Agreement between FortisAlberta and a Customer, a Retail Service Agreement
       between FortisAlberta and a Retailer or any legal or regulatory requirements related
       to service provided to a Responsible Party;

(b)    caused to the Customer and arising from any failure of a Retailer to comply with the
       Terms and Conditions, a Retail Service Agreement, any agreement with FortisAlberta
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       relating to Distribution Access Service or for any damages caused by or arising from
       equipment installed or actions taken by a Retailer;

(c)    caused by or arising from a Retailer’s failure to perform any commitment to the
       Customer, including but not limited to the Retailer’s obligation, including their
       obligation under Part 8 of the Act, to provide Electricity Services including
       Distribution Access Service to the Customer; or

(d)    caused by or resulting from any acts, omissions or representations made by a Retailer
       in connection with soliciting Customers for Distribution Access Service or
       performing any of the Retailer’s functions in providing Electricity Services including
       Distribution Access Service.

14.4   Responsible Party Liability

In addition to any other liability provisions set out in the Terms and Conditions or any
provision in a FortisAlberta Agreement, an Applicable Party (as defined above) shall be
liable to the FortisAlberta Parties and indemnify and save harmless the FortisAlberta Parties
for any damages, costs, charges, expenses, fees (including legal fees and disbursements on an
indemnity basis), judgments, fines, penalties, injuries, losses, or any liabilities in law, equity,
tort or contract suffered or incurred by FortisAlberta Parties (as defined above), whether of a
direct or indirect nature or whether incurred or suffered directly or as a result of a third party
contract, caused by or arising from any acts or omissions of an Applicable Party that result in
a breach (“Breach”) of the Terms and Conditions or the applicable FortisAlberta Agreement,
or any negligent or wilful acts or omissions of an Applicable Party outside of a Breach. Any
liability under this Section will be limited to an amount in proportion to the degree to which
the Applicable Party is at fault. Any liability and indemnity provisions hereunder are in
addition to, but do not limit, the liability protection provisions of the Act and Regulations.

The Responsible Party shall be liable for any loss, damage, expense, charge, cost or other
liability of any kind, whether to FortisAlberta, its agents or employees, FortisAlberta
property or otherwise, arising directly or indirectly by reason of: (i) the routine presence in or
use of Energy over the wires, cables, devices or other Facilities owned or controlled by the
Responsible Party; (ii) the Responsible Party’s improper or negligent use of Energy or
electric wires, cables, devices or other Facilities; or (iii) the negligent acts or omissions or
wilful acts or omissions of the Responsible Party or any person permitted on such
Responsible Party’s property.
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14.5   Force Majeure

       14.5.1   Force Majeure Relief

       If an event or circumstance of Force Majeure occurs that affects FortisAlberta’s
       ability to provide a Service Connection or other interconnection to its Electric
       Distribution System or Distribution Access Service, FortisAlberta’s obligations and
       responsibilities hereunder and under any agreement relating to Service Connections
       or other interconnections to its Electric Distribution System or the provision of
       Distribution Access Service, so far as they are affected by the Force Majeure or the
       consequences thereof, shall be suspended without liability to the Responsible Party
       until such Force Majeure or the consequences thereof are remedied and for such
       period thereafter as may reasonably be required to restore the Distribution Access
       Service. The Minimum Charge, if applicable, will continue to be payable during the
       period in which FortisAlberta claims relief by reason of Force Majeure.

       14.5.2   Notice

       FortisAlberta shall promptly give the relevant party notice of the Force Majeure
       including full particulars thereof and shall promptly give the relevant party notice
       when the Force Majeure ceases to prevent performance of FortisAlberta’s obligations.

       14.5.3   Obligation to Remedy

       FortisAlberta shall promptly remedy the cause and effect of the Force Majeure insofar
       as it is reasonably able to do so.

       14.5.4   Strikes and Lockouts

       Notwithstanding any other provision of the Terms and Conditions, the settlement of
       any strike, lockout or other industrial disturbance affecting FortisAlberta shall be
       wholly in the discretion of FortisAlberta and FortisAlberta may settle such strike,
       lockout or industrial disturbance at such time and on such terms and conditions as it
       may deem appropriate. No failure or delay in settling of such strike, lockout or
       industrial disturbance shall constitute a cause or event within the control
       FortisAlberta or deprive FortisAlberta of the benefits of this Section 14.5.
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                              ARTICLE 15 – ARBITRATION

15.1   Resolution by FortisAlberta and Responsible Party

If any dispute between FortisAlberta and a Responsible Party shall arise at any time in
connection with the Terms and Conditions which is not otherwise resolved, both
FortisAlberta and the Responsible Party, acting reasonably and in good faith, shall use all
reasonable efforts to resolve the dispute as soon as possible in an amicable manner.

15.2   Resolution by Arbitration

If any dispute has not been resolved within 30 days after written notice from FortisAlberta or
the Responsible Party to the other of their desire to have the dispute resolved, then upon
written notice by either party the dispute may be resolved through other proceedings,
including arbitration on the terms set out herein or on such terms as otherwise agreed to by
the parties.

Notwithstanding anything herein, any disputed matters between FortisAlberta and a
Responsible Party relating to an order or direction made or approved by the Board or falling
within the exclusive jurisdiction of the Board, shall be referred to the Board for resolution.

15.3   Arbitrators

Where FortisAlberta and a Responsible Party have agreed to arbitrate a dispute or difference
in connection with the Terms and Conditions, the dispute or difference shall be referred to a
single arbitrator, agreed upon by both parties. In the event that the parties cannot agree to a
single arbitrator within 10 days of agreeing to proceed by way of arbitration, the dispute or
difference shall be referred to a Board of Arbitrators consisting of 1 arbitrator to be appointed
by each of FortisAlberta and the Responsible Party who shall, by instrument in writing,
appoint a third arbitrator within 20 days of written notice for arbitration, after they are
themselves appointed, unless FortisAlberta and the Responsible Party concur in the
appointment of a single arbitrator. The arbitrator or arbitrators shall render a decision within
90 days of the latest appointment.

If an arbitration decision is not made within the time herein provided, then until it is so made
and unless the other party has taken any of the actions referred to in this paragraph, a party,
upon 30 days notice to the other party and to the arbitrators, may: (i) cancel the appointment
of the arbitrator previously made and initiate new arbitration proceedings by a new notice to
the other party pursuant to this Section; or (ii) cancel such arbitration proceedings and
proceed in the courts as though Article 15 did not exist.
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15.4   Refusal to Appoint an Arbitrator

If either FortisAlberta or the Responsible Party shall neglect or refuse to appoint an arbitrator
within 10 days after the other party (provided such other party has appointed their arbitrator)
has served FortisAlberta or the Responsible Party, as the case may be, with written notice to
make the appointment, the party who has appointed their arbitrator shall be entitled to apply,
upon notice to the other party, to a Justice of the Court of Queen’s Bench of Alberta to
appoint an arbitrator for the party in default.

15.5   Failure to Appoint a Third Arbitrator

If the arbitrators appointed by FortisAlberta and the Responsible Party have not, within 20
days after their appointment or the appointment of the arbitrator last appointed, as the case
may be, appointed a third arbitrator, either FortisAlberta or the Responsible Party shall be
entitled to apply, upon notice to the other party, to a Justice of the Court of Queen’s Bench of
Alberta to appoint such an arbitrator.

15.6   Technical Competence

Any arbitrator appointed under the provisions of this Article whether by concurrence of
FortisAlberta and the Responsible Party, by either party, by the arbitrators, or by a Justice of
the Court of Queen’s Bench of Alberta shall, in the opinion of the persons making such
appointment, be possessed of such technical or other qualifications as may be reasonably
necessary to enable the arbitrator to properly adjudicate upon the dispute or difference.

15.7   Compensation of Arbitrators

Each party shall be responsible for the costs of the arbitrator appointed by it hereunder. The
costs of a single arbitrator or the third arbitrator, as the case may be, shall be determined by
the arbitrator(s).

15.8   Application of the Arbitration Act (Alberta)

The arbitration shall be conducted in accordance with the Arbitration Act, R.S.A. 2000, c. A-
43 (the “Arbitration Act”), as amended from time to time. In the event of a conflict between
the Terms and Conditions and the Arbitration Act, the Terms and Conditions shall prevail.
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15.9   Decisions Binding

A decision of the single arbitrator, or the majority of the three arbitrators named or
appointed, shall be final and binding upon each of the parties to the dispute or difference, and
not subject to appeal.

15.10 Continuity of Distribution Access Service

All performance required under the Terms and Conditions by FortisAlberta and the
Responsible Party and payment shall continue during the dispute resolution proceedings
contemplated by this Article.


   ARTICLE 16 – ADDITIONAL PROVISIONS RELATING TO DISTRIBUTION
                          ACCESS SERVICE

16.1   Ownership of Facilities

FortisAlberta remains the owner of all Facilities necessary to provide Distribution Access
Service to Customers unless an agreement between FortisAlberta and the Responsible Party
specifically provides otherwise.

Payment made by Customers for costs incurred by FortisAlberta in installing Facilities does
not entitle Customers to ownership of any such Facilities, unless an agreement between
FortisAlberta and the Customer specifically provides otherwise.

16.2   Distribution Access Service Obtained from Retailer

FortisAlberta will not initiate or continue Distribution Access Service at a Point of Service
unless the Customer is enrolled to obtain Distribution Access Service. It is the Customer’s
responsibility to make arrangements with a Retailer to obtain Electricity Services, including
enrolment for Distribution Access Service.

16.3   Proper Use of Services

A Customer assumes full responsibility for the proper use of the Service Connection and
Distribution Access Service provided by FortisAlberta and for the condition, suitability and
safety of any and all wires, cables, devices or appurtenances energized by Energy on the
Customer’s premises or on premises owned or controlled by the Customer that are not the
Customer property.
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16.4   Independent System Operator or Transmission Facility Owner Requirements

Each Customer acknowledges and agrees that FortisAlberta is bound by all operating
instructions, policies and procedures of the Independent System Operator and Transmission
Facility Owners which are needed to maintain the integrity of Alberta’s interconnected
electric system. Each Responsible Party acknowledges and agrees that they will cooperate
with FortisAlberta so that FortisAlberta will be in compliance with all such operating
instructions, policies and procedures which include, but are not limited to, those operating
instructions, policies and procedures pertaining to minimum and maximum generation
emergencies, and supply voltage reduction or full interruption of Customer Load by either
manual or automatic means.

16.5   Compliance with Applicable Legal Authorities

FortisAlberta and the Responsible Parties are subject to, and shall comply with, all existing
or future applicable federal, provincial and local laws, all existing or future orders or other
actions of the Independent System Operator or of governmental authorities having applicable
jurisdiction. FortisAlberta will not violate, directly or indirectly, or become a party to a
violation of any applicable requirement of the Independent System Operator or any
applicable federal, provincial or local statute, regulation, bylaw, rule or order in order to
provide a Service Connection or Distribution Access Service to the Responsible Parties.
FortisAlberta’s obligation to provide a Service Connection and Distribution Access Service
is subject to the condition that all requisite governmental and regulatory approvals for the
provision of such services will have been obtained and will be maintained in force during
such period of service.

16.6   Service Interruption

FortisAlberta operates its electric system so as to maintain a voltage within the limits set out
in Canadian Standards Association Standard C235. While FortisAlberta takes reasonable
efforts to guard against interruptions, it does not guarantee uninterrupted service.

Without liability of any kind to FortisAlberta, it shall have the right to disconnect or
otherwise curtail, interrupt or reduce Distribution Access Service to Responsible Parties
whenever FortisAlberta reasonably determines, or when FortisAlberta is directed by the
Independent System Operator, that such a disconnection, curtailment, interruption or
reduction is: (i) necessary to facilitate construction, installation, maintenance, repair,
replacement or inspection of any of FortisAlberta’s Facilities; (ii) to maintain the safety and
reliability of FortisAlberta’s Electric Distribution System; or (iii) due to any other reason,
including dangerous or hazardous circumstances, emergencies, forced outages, potential
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                                                                     Effective January 1, 2008

overloading of FortisAlberta’s Electric Distribution System, system security reasons or as a
result of Force Majeure.

16.7   No Assignment

A Responsible Party shall not assign any of their rights or obligations under the Terms and
Conditions, an Electric Service Agreement, a Retail Service Agreement or any other
agreement with FortisAlberta relating to a Point of Service or Distribution Access Service
without obtaining any necessary regulatory approvals and FortisAlberta’s approval where
required in such agreement. No assignment shall relieve the Responsible Party of any of their
obligations under the Terms and Conditions or any other agreement with FortisAlberta
relating to a Point of Service or Distribution Access Service until such obligations have been
assumed by the assignee and FortisAlberta has agreed to the novation. Any assignment in
violation of this Section shall be void.

16.8   No Waiver

The failure of FortisAlberta or a Responsible Party to insist in any one or more instances
upon strict performance of any provisions of the Terms and Conditions, an Electric Service
Agreement, a Retail Service Agreement or any other agreement between the Responsible
Party and FortisAlberta relating to a Point of Service or Distribution Access Service, or to
take advantage of any of its rights hereunder or thereunder, shall not be construed as a waiver
of any such provision or the relinquishment of any such right or any other right hereunder or
thereunder, which shall remain in full force and effect. No term or condition of the Terms
and Conditions or any other agreement between the Responsible Party and FortisAlberta
relating to a Point of Service or Distribution Access Service shall be deemed to have been
waived and no breach excused unless such waiver or consent to excuse is in writing and
signed by the party claimed to have waived or consented to excuse.

16.9   Law

The Terms and Conditions and any other agreement between a Responsible Party and
FortisAlberta relating to a Point of Service or Distribution Access Service shall be governed
by the laws of the Province of Alberta and the federal laws of Canada applicable in the
Province of Alberta, without regard to principles of conflicts of law. Any action or
proceeding arising in connection with the Terms and Conditions and any other agreement
between a Responsible Party and FortisAlberta relating to a Point of Service or Distribution
Access Service shall be brought in the courts of the Province of Alberta.
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                                                                     of Distribution Access Service


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                                                                      Effective January 1, 2008

16.10 New Facilities and Distribution Access Service Additions

FortisAlberta reserves the right to communicate directly with the Customer in respect of any
requests made by the Customer, the Retailer or any other party acting as agent for the
Customer, for the construction of new Facilities or for additional services as provided for in
the Billing Regulation, A.R. 159/2003, as amended from time to time. FortisAlberta reserves
the right to charge the Customer directly for any amounts required to be provided by the
Customer under the Terms and Conditions.

16.11 Requirement to Enter into New Contracts

In accordance with the provisions of the Act and the Regulations made thereunder, after
December 31, 2000, FortisAlberta came to act solely as a wire services provider providing
Service Connections and Distribution Access Service and was no longer responsible for
providing electricity directly to Customers. As a result of these changes, many of the
provisions contained in existing agreements FortisAlberta has with Responsible Parties
relating to the provision of a Service Connection or Distribution Access Service are no longer
relevant. As such, FortisAlberta reserves the right to cause applicable Parties to enter into
new agreements that reflect the changes necessary to conform to the new role assigned to
FortisAlberta.

16.12 Notice

Unless otherwise stated herein, all notices, demands or requests required or permitted under
the Terms and Conditions or any agreement with a Responsible Party with FortisAlberta for a
Service Connection or Distribution Access Service shall be in writing and shall be personally
delivered or sent by courier-service or facsimile transmission (with the original transmitted
by any of the other aforementioned delivery methods) addressed as follows:

If to the Customer, to the site connection address or the address set out in the Electric Service
Agreement between the Customer and FortisAlberta.

If to a DG Customer, to the address set out in their agreement with FortisAlberta.
                                                                             FortisAlberta Inc.
                                                     Interim Customer Terms and Conditions
                                                               of Distribution Access Service


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                                                                Effective January 1, 2008

If to FortisAlberta, to:

        FortisAlberta Inc.
        320 - 17th Ave. S.W.
        Calgary, Alberta
        T2S 2V1

        Fax: (403) 514-4001

Notice received after the close of a Business Day shall be deemed received on the next
Business Day.
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                                                           Interim Customer Terms and Conditions
                                                                     of Distribution Access Service


                                                                                            Page 64

                                                                      Effective January 1, 2008


                           APPENDIX “A” – FEE SCHEDULE

The fees and charges indicated by this schedule are non-refundable and are charged to the
Retailer for flow-through to the Customer, unless otherwise specified.

1. Reconnection                                                     $90.00 reconnection fee
                                                                   plus an additional $60.00
   This fee is applicable when the Retailer has initiated a        fee if reconnected after a
   reconnect request to be completed during 8:00 AM – 4:00           Customer requested
   PM Monday – Friday, including:                                  disconnect and if no Idle
                                                                     Charges are assessed.
   •   Electrical non-compliance
   •   Non-payment
   •   Customer initiated alterations to the electrical system
   •   Reconnect from a Customer requested Disconnect

2. Off-Cycle Meter Reading                                                     $35.00
   This fee is applicable when an off-cycle meter reading is
   requested.

3. Interval Meter Installation                                  Incremental cost on a per
                                                                site basis (including time
   For Interval Meter installation at Points of Service with a and materials but excluding
   Contract Minimum Demand of less than 333 kW (which            additional cost of meter
   coincides with an Operating Demand of less than 500 kW)                 itself)
   (does not apply to DG Customers who own and poll the
   meters). This will be charged directly to the Customer.

4. Meter Testing                                                  $50.00 for residential/farm
                                                                      $100.00 all others
   This fee is applicable when a request to test a meter is
   received. The fee is collected and refunded if the meter is
   found to be faulty. This may be charged directly to the
   Customer.
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                                                                   of Distribution Access Service


                                                                                          Page 65

                                                                     Effective January 1, 2008


5. Meter Signal                                                    Cost to be determined on
                                                                    an individual site basis
   This fee is applicable for the time and material associated
   with the meter signal requests. Costs can vary a great deal $25.00/hr for regular meter
   by service and must be determined on a site-by-site basis. $50.00/hr for interval meter
   This will be charged directly to the Customer.                   1 hour minimum
6. No Access                                                                 $90.00
   This fee is applicable to the Customer when access to a site
   is considered by FortisAlberta’s employees, agents or other
   representatives as unsafe or is otherwise prevented,
   hindered or refused.

7. Customer Usage Information Request Less Than or                   Fee set to zero on an
   Equal to 12 Months                                                   interim basis
   This fee is applicable when a request for specific Customer (per 2005 Distribution Tariff
   Usage Information is made for less than or equal to 12     Negotiated Settlement Agreement
   months of Load history. This will be charged directly to    approved in Decision 2005-053)
   the requesting party.

8. Customer Usage Information Request Greater Than 12 $25.00/hr for regular meter
   Months                                                      $50.00/hr for interval meter
   This fee is applicable when a request for specific Customer      1 hour minimum
   Usage Information is made for greater than 12 months of
   Load history. This will be charged directly to the
   requesting party.

9. Settlement History or Confirmation of Settlement Data $25.00/hr for regular meter
   This fee applies when a Retailer requests that an              $50.00/hr for interval meter
   investigation be performed of suspect Load Settlement               1 hour minimum
   data. In the event that the data is, in the opinion of
   FortisAlberta, substantively incorrect, the fee will be
   waived. This will be charged directly to the requesting
   party.
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                                                          Interim Customer Terms and Conditions
                                                                    of Distribution Access Service


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                                                                     Effective January 1, 2008

10. Rush Connection                                                           $90.00
   This fee is for Retailer requests to connect the Customer
   immediately. This is not available for the purposes of
   getting priority service.

11. After Hours Reconnection                                                 $250.00
   This will be charged to the Retailer when the Customer’s
   service is connected outside regular business hours,
   weekdays 8:00 – 4:00. FortisAlberta will, time permitting,
   do reconnects between 4:00 and 10:00 pm at overtime
   rates.

12. Service Trips                                                             $45.00
   (a) This fee is applicable to the Customer when multiple
       trips to a Customer’s service are required for any of the
       following:
       • Electrical non-compliance at service location, at
           new service or reconnection of existing service
       • Unsafe conditions
       • Customer deficiency
   (b) A Customer or other Responsible Party will be required Cost to be determined on
       to pay the actual costs of a Customer (or Responsible     an individual basis
       Customer, as the case may be) requested service call if
       the source of the problem is determined to be that
       party’s facilities.

13. Site ID Search                                                            $15.00
   This fee is applicable when a site ID has been requested
   which already exists in the wire service provider site ID
   catalogue.
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                                                                     of Distribution Access Service


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                                                                      Effective January 1, 2008

14. Cancellation                                                               $45.00
   This fee is applicable when a request is cancelled or
   deferred after the field staff have been mobilized. This
   may be charged directly to the Customer.

15. Returned Cheques                                                           $20.00
    This fee is applicable for each cheque returned to
    FortisAlberta for any reason. This will be charged directly
    to the defaulting party.

16. Excess Wattage                                                   $1.00 per kW per day
    Festive lighting service is available to municipalities who
    require decorative lighting for the Christmas season or
    other festive occasions during the months of December
    through February. A municipality may install festive
    lighting with a total wattage of up to 15% of their total
    street lighting wattage for a six week period at no charge.
    Any wattage in excess of 15% is charged the Excess
    Wattage charge. This will be charged directly to the
    municipality.
                                                                                   FortisAlberta Inc.
                                                           Interim Customer Terms and Conditions
                                                                     of Distribution Access Service


                                                                                               Page 68

                                                                        Effective January 1, 2008

              APPENDIX “B” – CUSTOMER CONTRIBUTIONS SCHEDULES

                                        Table 1
                 2008 Maximum Investment Levels for Distribution Facilities
                         When the service life is 15 years or more


                 Type of Service                        Maximum Investment Level

 Residential                                    $1,090 per service

                                                $1,090 per service, less FortisAlberta’s costs of
 Residential Development                        metering and final connection.

 FortisAlberta Farm                             $5,000, plus
                                                $716 per kVA of Peak Demand

 Irrigation                                     $5,000, plus
                                                $795 per kW of Peak Demand

 Yard Lighting                                  $750 per fixture

 Street Lighting (Investment Option)            $1,270 per fixture

 Small General Service                          $5,000, plus
                                                $795 per kW of Peak Demand

 Oil and Gas Service                            $5,000, plus
                                                $795 per kW of Peak Demand

                                                $1500 per meter for existing unmetered service
                                                conversion to metered service.

                                                $5,000, plus
 General Service (less than or equal to 2 MW)   $795 per kW for the first 150 kW, plus
                                                $100 for additional kW, of Peak Demand

 Large General Service (over 2 MW)              $50 per kW of Peak Demand, plus
 (Distribution Connected)                       $57 per metre of Customer extension (up to 7,000
                                                m)


Notes: Maximum investment levels are reduced if the expected service life is less than 15
       years, as specified in Table 2.
                                                                                                 FortisAlberta Inc.
                                                                         Interim Customer Terms and Conditions
                                                                                   of Distribution Access Service


                                                                                                          Page 69

                                                                                    Effective January 1, 2008

                  APPENDIX “B” – CUSTOMER CONTRIBUTIONS SCHEDULES
                                           Table 2
                    2008 Maximum Investment Levels for Distribution Facilities
                           When the Service Life is less than 15 years.


                 All                                         Small
             Customers,                                    General
               except                                     Service, Oil
               Large                                      & Gas, and
              General     FortisAlberta   FortisAlberta    General          General
              Service         Farm         Irrigation       Service         Service        Large General Service
                                                                             Base
                             Base            Base             Base        Investment,
                          Investment,     Investment,     Investment,       plus for
                            plus for        plus for      plus for the       each                        For each
Investment                each kVA of     each kW of        first 150      Additional     For each        Metre of
   Term         Base         Peak            Peak         kW of Peak      kW of Peak     kW of Peak      Customer
  (Years)    Investment     Demand          Demand          Demand          Demand        Demand         Extension
     1           $0            $0              $0               $0             $0            $0             $0
     2         $1,261        $180            $200             $200            $25           $13             $14
     3         $1,789        $256            $284             $284            $36           $18             $20
     4         $2,259        $323            $359             $359            $45           $23             $26
     5         $2,677        $383            $426             $426            $54           $27             $31
     6         $3,049        $436            $485             $485            $61           $30             $35
     7         $3,379        $484            $537             $537            $68           $34             $39
     8         $3,674        $526            $584             $584            $73           $37             $42
     9         $3,936        $563            $626             $626            $79           $39             $45
    10         $4,169        $597            $663             $663            $83           $42             $48
    11         $4,376        $626            $696             $696            $88           $44             $50
    12         $4,560        $653            $725             $725            $91           $46             $52
    13         $4,724        $676            $751             $751            $94           $47             $54
    14         $4,870        $697            $774             $774            $97           $49             $56
    15         $5,000        $716            $795             $795           $100           $50             $57

       Points of Service with a life of less than 2 years are considered Temporary Service and the
       maximum investment is zero.
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                                                           Interim Customer Terms and Conditions
                                                                     of Distribution Access Service


                                                                                               Page 70

                                                                        Effective January 1, 2009

              APPENDIX “B” – CUSTOMER CONTRIBUTIONS SCHEDULES

                                        Table 1
                 2009 Maximum Investment Levels for Distribution Facilities
                         When the service life is 15 years or more


                 Type of Service                        Maximum Investment Level

 Residential                                    $1,200 per service

                                                $1,200 per service, less FortisAlberta’s costs of
 Residential Development                        metering and final connection.

 FortisAlberta Farm                             $5,275, plus
                                                $755 per kVA of Peak Demand

 Irrigation                                     $5,275, plus
                                                $839 per kW of Peak Demand

 Yard Lighting                                  $750 per fixture

 Street Lighting (Investment Option)            $1,400 per fixture

 Small General Service                          $5,275, plus
                                                $839 per kW of Peak Demand

 Oil and Gas Service                            $5,275, plus
                                                $839 per kW of Peak Demand

                                                $1500 per meter for existing unmetered service
                                                conversion to metered service.

                                                $5,275, plus
 General Service (less than or equal to 2 MW)   $839 per kW for the first 150 kW, plus
                                                $106 for additional kW, of Peak Demand

 Large General Service (over 2 MW)              $53 per kW of Peak Demand, plus
 (Distribution Connected)                       $60 per metre of Customer extension (up to 7,000
                                                m)


Notes: Maximum investment levels are reduced if the expected service life is less than 15
       years, as specified in Table 2.
                                                                                                  FortisAlberta Inc.
                                                                          Interim Customer Terms and Conditions
                                                                                    of Distribution Access Service


                                                                                                           Page 71

                                                                                     Effective January 1, 2009

                   APPENDIX “B” – CUSTOMER CONTRIBUTIONS SCHEDULES
                                            Table 2
                     2009 Maximum Investment Levels for Distribution Facilities
                            When the Service Life is less than 15 years.


                 All                                          Small
             Customers,                                     General
               except                                      Service, Oil
               Large                                       & Gas, and
              General      FortisAlberta   FortisAlberta    General          General
              Service          Farm         Irrigation       Service         Service        Large General Service
                                                                              Base
                               Base            Base            Base        Investment,
                           Investment,     Investment,     Investment,       plus for
                              plus for        plus for     plus for the       each                         For each
Investment                 each kVA of     each kW of        first 150      Additional     For each        Metre of
   Term         Base           Peak            Peak        kW of Peak      kW of Peak     kW of Peak      Customer
  (Years)    Investment:     Demand:         Demand:        Demand:         Demand:        Demand:        Extension:
     1           $0              $0              $0              $0             $0            $0              $0
     2         $1,330          $190            $211            $211            $27           $13             $15
     3         $1,887          $270            $300            $300            $38           $19             $22
     4         $2,383          $341            $379            $379            $48           $24             $27
     5         $2,824          $404            $449            $449            $56           $28             $32
     6         $3,216          $460            $511            $511            $64           $32             $37
     7         $3,565          $510            $567            $567            $71           $36             $41
     8         $3,876          $555            $616            $616            $78           $39             $44
     9         $4,152          $594            $660            $660            $83           $42             $47
    10         $4,398          $629            $699            $699            $88           $44             $50
    11         $4,616          $661            $734            $734            $92           $46             $53
    12         $4,811          $688            $765            $765            $96           $48             $55
    13         $4,984          $713            $792            $792           $100           $50             $57
    14         $5,138          $735            $817            $817           $103           $51             $59
    15         $5,275          $755            $839            $839           $106           $53             $60

       Points of Service with a life of less than 2 years are considered Temporary Service and the
       maximum investment is zero.
                                                                              FortisAlberta Inc.
                                                      Interim Customer Terms and Conditions
                                                                of Distribution Access Service


                                                                                       Page 72

                                                                  Effective January 1, 2008


         APPENDIX “B” – CUSTOMER CONTRIBUTIONS SCHEDULES
                                     Table 3
            Base Costs and Factors for Prepaid Line Share Calculation.

      Prepaid Line Share = ($ Base Cost – $ Customer Extension Costs) × Factor

                                        Base Cost       Base Cost
          Rate Category                                                          Factor
                                       Single Phase    Three Phase

Rural Residential                         $3,600            N/A                       40%

Rural General Service and Oil &
                                          $6,200         $11,500                      20%
Gas (under 100 kW)

FortisAlberta Farm and REA
                                          $6,200         $11,500                      20%
Farm Service (under 100 kVA)

Rural Irrigation Services, all sizes      $9,500         $19,500                      20%
                                                                          FortisAlberta Inc.
                                                  Interim Customer Terms and Conditions
                                                            of Distribution Access Service


                                                                                   Page 73

                                                             Effective January 1, 2008

       APPENDIX “B” – CUSTOMER CONTRIBUTIONS SCHEDULES
                               Table 4
                  Operation and Maintenance Charges

              Optional Facilities for Distribution Load Customers

Prepaid O&M Charge                                 20% of Optional Facilities Cost



   Interconnection Facilities for Distribution Connected Generation Customers

                                              % of Interconnection Facilities Cost

Prepaid O&M Charge                                                 20%
                                                                        FORTISALBERTA INC.
                                                    INTERIM RETAILER TERMS AND CONDITIONS
                                                            OF DISTRIBUTION ACCESS SERVICE
Effective January 1, 2008
                                                                                                                             PAGE I


TABLE OF CONTENTS                                                                                                         Page No.


ARTICLE 1 – INTRODUCTION TO RETAILER TERMS AND CONDITIONS .................1

ARTICLE 2 – DEFINITIONS AND INTERPRETATION ......................................................2
2.1  Definitions......................................................................................................................2
2.2  Conflicts.........................................................................................................................8
2.3  Headings ........................................................................................................................8
2.4  Extended Meanings........................................................................................................9
2.5  Appendices.....................................................................................................................9

ARTICLE 3 – GENERAL PROVISIONS ................................................................................9
3.1  Board Approval..............................................................................................................9
3.2  Retailer Guidebook ........................................................................................................9
3.3  Retailer Arrangements with Customers .......................................................................10
3.4  Responsibility of the Retailer for Electric Purchases ..................................................10
3.5  Retailer Authorization..................................................................................................10
3.6  Retailer Identification Number ....................................................................................10
3.7  Single Retailer for Point of Service .............................................................................10
3.8  Fees and Other Charges ...............................................................................................11

ARTICLE 4 – CUSTOMER INQUIRIES AND INFORMATION ........................................11
4.1  Provision of Customer Information to Retailer ...........................................................11
4.2  Provision of Information between FortisAlberta and Retailer.....................................12
4.3  Customer Inquiries.......................................................................................................12

ARTICLE 5 –PROVISION OF SERVICE..............................................................................13
5.1  Retailer Qualification for Distribution Access Service ...............................................13
5.2  Application for Enrolment of Customers of the Retailer.............................................14

ARTICLE 6 – PRUDENTIAL REQUIREMENTS.................................................................15
6.1  General.........................................................................................................................15
6.2  Additional Security ......................................................................................................16

ARTICLE 7 – DISCONTINUANCE OF DISTRIBUTION ACCESS SERVICE .................18
7.1  Discontinuance by FortisAlberta .................................................................................18
7.2  Discontinuance by Retailer ..........................................................................................18

ARTICLE 8 – SERVICE DISCONNECTION AND RECONNECTION..............................19
8.1  Disconnection of Services by a Retailer ......................................................................19
8.2  Disconnection at the Request of the Customer ............................................................20
8.3  Disconnection by FortisAlberta ...................................................................................21
                                                                        FORTISALBERTA INC.
                                                    INTERIM RETAILER TERMS AND CONDITIONS
                                                            OF DISTRIBUTION ACCESS SERVICE
Effective January 1, 2008
                                                                                                                            PAGE II


TABLE OF CONTENTS                                                                                                         Page No.

8.4       Reconnect Service........................................................................................................21
8.5       Removal of Facilities upon Disconnection of Service.................................................22

ARTICLE 9 – BILLING..........................................................................................................22
9.1  Wholesale Billing.........................................................................................................22
9.2  Determination of Applicable Rates..............................................................................23
9.3  Minimum Charges .......................................................................................................23
9.4  Consumption Period.....................................................................................................23
9.5  Billing Period ...............................................................................................................23
9.6  Billing Information ......................................................................................................24
9.7  Payment of Account.....................................................................................................24
9.8  Dispute of Amounts Owing .........................................................................................25
9.9  Late Payment ...............................................................................................................25
9.10 Collections ...................................................................................................................25
9.11 Adjustment of Bills in Event of a Billing Error...........................................................26
9.12 Collection of Other Charges ........................................................................................26

ARTICLE 10 - METERING....................................................................................................27
10.1 Meter Reading..............................................................................................................27
10.2 Record ..........................................................................................................................27
10.3 Metering Signals ..........................................................................................................27
10.4 Estimated Consumption and Demand..........................................................................27
10.5 Meter Testing ...............................................................................................................28
10.6 Adjustments for Faulty Metering or Energy Theft ......................................................28

ARTICLE 11 - LOAD SETTLEMENT ..................................................................................29
11.1 Load Settlement Information .......................................................................................29
11.2 No Liability for Estimating Errors...............................................................................30

ARTICLE 12 – LIABILITY AND INDEMNITY...................................................................30
12.1 FortisAlberta Liability .................................................................................................30
12.2 Release .........................................................................................................................31
12.3 FortisAlberta Not Liable to Customer .........................................................................31
12.4 Responsible Party Liability..........................................................................................32
12.5 Force Majeure ..............................................................................................................34
12.6 Events of Default .........................................................................................................35

ARTICLE 13 – ARBITRATION.............................................................................................36
13.1 Resolution by FortisAlberta and Responsible Party ....................................................36
13.2 Resolution by Arbitration ............................................................................................36
                                                                         FORTISALBERTA INC.
                                                     INTERIM RETAILER TERMS AND CONDITIONS
                                                             OF DISTRIBUTION ACCESS SERVICE
Effective January 1, 2008
                                                                                                                              PAGE III


TABLE OF CONTENTS                                                                                                            Page No.

13.3      Arbitrators ....................................................................................................................36
13.4      Refusal to Appoint an Arbitrator .................................................................................37
13.5      Failure to Appoint a Third Arbitrator ..........................................................................37
13.6      Technical Competence.................................................................................................37
13.7      Compensation of Arbitrators........................................................................................37
13.8      Application of the Arbitration Act (Alberta) ...............................................................37
13.9      Decisions Binding........................................................................................................38
13.10     Continuity of Distribution Access Service ..................................................................38

ARTICLE 14 – ADDITIONAL PROVISIONS RELATING TO
               DISTRIBUTION ACCESS SERVICES ........................................................38
14.1 Ownership of Facilities ................................................................................................38
14.2 Proper Use of Services.................................................................................................38
14.3 New Facilities and Distribution Access Service Additions .........................................38
14.4 Service Interruption .....................................................................................................39
14.5 Independent System Operator or Transmission Facility Owner Requirements...........39
14.6 Compliance with Applicable Legal Authorities ..........................................................39
14.7 No Assignment.............................................................................................................40
14.8 No Waiver....................................................................................................................40
14.9 Law ..............................................................................................................................40
14.10 Requirement to Enter into New Contracts ...................................................................41
14.11 Notice...........................................................................................................................41

APPENDIX A – FEE SCHEDULE.........................................................................................42

APPENDIX B – DISCONNECT OF A POINT OF SERVICE ..............................................46
                                                                                   FortisAlberta Inc.
                                                             Interim Retailer Terms and Conditions
                                                                     of Distribution Access Service


                                                                                             Page 1

                                                                      Effective January 1, 2008

Capitalized terms used in these Retailer Terms and Conditions of Distribution Access Service
(the “Retailer Terms and Conditions”), as may be amended from time to time, that are not
otherwise defined in the context in which they are used, have the meaning ascribed thereto
under Section 2.1 “Definitions”.


   ARTICLE 1 – INTRODUCTION TO RETAILER TERMS AND CONDITIONS

In accordance with the provisions of the Electric Utilities Act (the "Act") and the Regulations
made thereunder (the "Regulations"), FortisAlberta Inc. ("FortisAlberta") in its role as a wire
owner will carry out the functions necessary to furnish electric distribution Facilities to
Customers in the areas serviced by FortisAlberta to enable each Customer to purchase
electricity for that person's own use from a Retailer. In its role as a wire services provider,
FortisAlberta will also enable a Retailer to acquire access to its Electric Distribution System
for the purposes of allowing the Retailer to sell electricity directly to Customers. A
Customer may also act as a self-retailer by carrying out retailer functions to obtain electricity
services solely for the Customer’s own use.

These Retailer Terms and Conditions are intended to govern the relationship between
FortisAlberta and Retailers, or any party who will be acting as an Agent on behalf of a
Retailer for transactions, including, but not limited to, retail billing and Load Settlement.
These Retailer Terms and Conditions will also govern the relationship between FortisAlberta
and a Customer of a Retailer or any another party acting as an agent of the Customer in their
dealings with FortisAlberta.

These Retailer Terms and Conditions serve as a companion to the Customer Terms and
Conditions which are intended to govern the relationship between FortisAlberta and a
Customer, or any other person whom the Customer has assigned to act on its behalf in its
dealings with FortisAlberta, regarding the provision of wire service on its Electric
Distribution System.

These Retailer Terms and Conditions and the Customer Terms and Conditions are intended
together to form the Terms and Conditions of Distribution Access Service of FortisAlberta
(the “Terms and Conditions”). All Responsible Parties by virtue of their relationship with
FortisAlberta are deemed to have accepted the Terms and Conditions.

These Retailer Terms and Conditions outline the rules that Retailers and agents must follow
to engage in retailer transactions with FortisAlberta.

The service provided by FortisAlberta hereunder is regulated by the Alberta Energy and
Utilities Board (the "Board”), and parties having any inquiries or complaints regarding the
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Terms and Conditions may direct such inquiries or complaints directly to FortisAlberta or to
the Board. The Terms and Conditions have been approved by the Board.

No agreement can provide for the waiver or alteration of any part of the Terms and
Conditions unless such agreement is first filed with and approved by the Board. Whenever
the Board approves an amendment to the Terms and Conditions, such amendment, including
its effective date, will be posted on FortisAlberta’s website at: http://www.fortisalberta.com.


                ARTICLE 2 – DEFINITIONS AND INTERPRETATION

2.1    Definitions

The following words and phrases, whenever used in the Retailer Terms and Conditions, a
Retail Service Agreement or an application, contract or agreement for service, shall have the
meanings set forth below, or the meaning set forth in the Customer Terms and Conditions if
not defined herein, unless the context otherwise requires:

“Act” means the Electric Utilities Act R.S.A. 2003, c. E-5.1, as amended from time to time;

“Board” means the Alberta Energy and Utilities Board established pursuant to the Alberta
Energy and Utilities Board Act, R.S.A. 2000, c. A-17, as amended from time to time;

“Business Day” means a day which is not a Saturday, Sunday or statutory holiday as defined
in the Interpretation Act, R.S.A. 2000, c. I-8, as re-enacted, amended or replaced from time
to time; and “day” means any calendar day;

“Contract kilometres” means the length of distribution line, measured in metres, from the
Point of Service to the Point of Delivery, as determined by FortisAlberta for Points of
Service on Rate 63 (Large General Service);

“Contract Minimum Demand” means the minimum demand specified in the Electric
Service Agreement (which shall be no less than the Minimum Demand) or, if no agreement is
in existence, means the Minimum Demand;

“Customer” means a person purchasing Distribution Access Service for that person’s own
use, a Transmission Load Customer and a DG Customer;

“Customer Contribution” has the meaning given such term in, and is determined in
accordance with, Section 7.2 of the Customer Terms and Conditions, and includes but is not
limited to a Customer Distribution Contribution, a Customer Transmission Contribution, and
other contributions;
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“Customer Information” means Customer name, Customer telephone number, Customer
mailing address, site contact name and site contact telephone number and other information
as described in the Settlement System Code;

“Customer Terms and Conditions” means the Customer Terms and Conditions for
Distribution Access Service of FortisAlberta;

“Customer Usage Information” means information regarding the historical electricity
consumption of a Customer;

“De-Energization” or “De-Energize” have the meaning given such terms in, and are
determined in accordance with, the Settlement System Code, and are sometimes referred to
as a “DER” transaction;

“Default Supplier” has the meaning given such term in, and is determined in accordance
with, the RRR Regulation;

“DG Customer” or “Distribution Connected Generating Customer” means a person that
has on-site generating facilities that are interconnected and operating in parallel with
FortisAlberta’s Electric Distribution System;

“Distribution Access Service” has the meaning given such term in, and is determined in
accordance with, the Act. FortisAlberta’s prior Terms and Conditions of Distribution Tariff
Services previously referred to Distribution Access Service as Distribution Tariff Service,
and all references in prior agreements, documents and other instruments to Distribution
Tariff Service shall mean Distribution Access Service as defined herein;

“Distribution Customer Exit Charge” has the meaning given such term in, and is
determined in accordance with, Section 7.4 in the Customer Terms and Conditions;

“Distribution Load Customer” means a Customer interconnected to FortisAlberta’s
Electric Distribution System for the purpose of purchasing electricity for that person’s own
use;

“Distribution Tariff” means a distribution tariff prepared by FortisAlberta and approved by
the Board in accordance with the Act, which consists of the Rate, Option and Rider
Schedules and the Terms and Conditions, as amended from time to time;

“Electric Distribution System” has the meaning given such term in, and is determined in
accordance with, the Act;
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“Electric Service Agreement” means an agreement between FortisAlberta and a
Distribution Load Customer or Transmission Load Customer for the provision of
Distribution Access Service, including System Access Service;

“Electricity Services” has the meaning given such term in, and is determined in accordance
with, the Act;

“Energy” means electric energy, which means the capability of electricity to do work,
measured in kilowatt hours (“kWh”);

“Expected Peak Demand” means the expected maximum capacity requirement at a Point of
Service which is used to determine the potential FortisAlberta Investment Level, the
Minimum Demand and the Maximum Supply;

“Facilities” means physical plant (including, without limitation, distribution lines,
transformers, meters, equipment and machinery) on FortisAlberta’s side of the Point of
Service, excluding a Transmission Facility;

“Force Majeure” means circumstances not reasonably within the control of FortisAlberta,
including, but not limited to, acts of God, strikes, lockouts or other industrial disturbances,
acts of the public enemy, wars, blockades, insurrections, riots, epidemics, landslides,
lightning, earthquakes, fires, storms, floods, high water, washouts, inclement weather, orders
or acts of civil or military authorities, civil disturbances, explosions, breakdown or accident
to equipment, mechanical breakdowns, interruptions of supply of goods or services, the
intervention of federal, provincial, state or local government or from any of their agencies or
boards (excluding decisions or orders made by the Board in the normal course of exercising
its authority over FortisAlberta), the order or direction of any court, and any other cause,
whether of the kind herein enumerated or otherwise, except for lack of funds which shall not
be considered an event of Force Majeure;

“Idle Charges” means charges associated with the recovery of FortisAlberta’s ongoing cost
of owning, operating and maintaining Facilities in respect of a particular Point of Service in
situations where the Point of Service is not receiving Energy via the Facilities on a
continuing basis, but the Customer chooses to retain the Facilities in place for future use.
The charges that are applicable are set out in the Rate, Option and Rider Schedules;

“Independent System Operator” is the corporation established as the independent system
operator in the Act to carry out the duties of the independent system operator under the Act,
and carrying on business as the Alberta Electric System Operator or AESO;
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“Investment Level” means the total dollar investment that FortisAlberta is permitted to
make toward the construction of new or upgraded Facilities which total investment available
is determined by the Investment Term and Expected Peak Demand and, where applicable,
Metres of Customer Extension. Such Investment Level shall also be in accordance with the
Customer Contribution Schedules contained in Appendix “B” attached hereto, and such total
distribution investment available shall not exceed the cost as estimated by FortisAlberta of
constructing the Facilities;

“kVA” means kilovolt-ampere or kilovolt-amperes;

“kW” means kilowatt or kilowatts;

“kWh” means kilowatt hour or kilowatt hours;

“Load” means Energy consumed by Customers or capacity requirements in kW or kVA;

“Load Settlement” has the meaning given such term in, and is determined in accordance
with,the Act;

“Load Settlement Services” means those services carried out by FortisAlberta as an owner
of an Electric Distribution System, in accordance with the Settlement System Code;

“Maximum Supply” means the maximum amount of electric capacity (measured in kW or
kVA, whichever is greater) that FortisAlberta is obligated to supply to the Customer for a
Point of Service. The Maximum Supply is the lowest of the faceplate value of the
transformer, the Maximum Supply as defined in the Electric Service Agreement, or the
Expected Peak Demand in kW expressed in kVA (e.g. 1,000 kW Expected Peak Demand /
0.9 = 1,111 kVA Maximum Supply);

“Metered Demand” means the registered demand in kW or 90% of the registered demand in
kVA;

“Metres of Customer Extension” means the length of extension of Facilities, as determined
to be appropriate by FortisAlberta, installed as part of a Service Connection, which is used to
determine part of FortisAlberta’s Investment Level with respect to Points of Service
qualifying for Rate 63 (Large General Service);

“Minimum Charge” means the result of multiplying the rates to the greater of the Rate
Minimum as contained in the Rate, Option and Rider Schedules or the Contract Minimum
Demand;
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“Minimum Demand” means the greater of the Contract Minimum Demand or two-thirds of
the Expected Peak Demand;

“Miscellaneous Service” means a non-standard service provided by FortisAlberta from time
to time at the request of a Customer or Retailer;

“Operating Demand” means the value calculated as the average of the highest seven of the
last 12 months of Metered Demands and is used for determining the appropriate rate for a
Point of Service;

“Peak Demand” means the maximum Metered Demand in the last 12 months;

“Permanent Disconnection” means the cessation of Electricity Services resulting from
removal of Facilities. Permanent Disconnection is also referred to as salvage;

“Point of Delivery” or “POD” means the point at which Energy is transferred from a
Transmission Facility to FortisAlberta’s Electric Distribution System or Transmission
Connected Services;

“Point of Service” means the point at which FortisAlberta’s service conductors are
connected to the conductors or apparatus of a Customer;

“Power Pool” means the scheme operated by the Independent System Operator under the
Act for exchange of electric energy and financial settlement for the exchange of electric
energy;

“Rate, Option and Rider Schedules” means that portion of FortisAlberta’s Distribution
Tariff which sets out charges;

“Regulated Rate Tariff” means a regulated rate tariff for the provision of Electricity
Services to eligible customers pursuant to the Act;

“Regulations” means the regulations made pursuant to the Act;

“Responsible Parties” means all Retailers, Transmission Load Customers, Distribution
Load Customers and DG Customers, or agents of the foregoing;

“Retail Service Agreement” means an agreement between FortisAlberta and a Retailer for
the provision of Distribution Access Service;

“Retailer” means a person, selected by the Customer, or otherwise to whom the Customer is
defaulted in accordance with the Act and Regulations, who carries out the duties of a retailer
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prescribed in the Act, including also self-retailers who procure Electricity Services for their
own use as a Customer;

“Retailer Guidebook” has the meaning given such term in, and is determined in accordance
with, Section 3.2 herein;

“Retailer Identification” or “Retailer ID” means the 9-digit number that uniquely
represents each Retailer operating within Alberta, as approved by and provided to
FortisAlberta by the Alberta Electric System Operator;

“Retailer of Record” means the Retailer who is listed in FortisAlberta’s records through the
procedures outlined in the Terms and Conditions, and thereby recognized by FortisAlberta
and the Settlement System Code, as a particular Customer’s Retailer for a Point of Service at
a particular time;

“Retailer Terms and Conditions” means these Retailer Terms and Conditions for
Distribution Access Service;

“RRR Regulation” means the Roles, Relationships and Responsibilities Regulation A.R.
169/2003, as amended from time to time;

“Service Connection” means all the Facilities required for providing services up to a Point
of Service;

“Settlement System Code” means the specifications, standards, methods, calculations and
conventions established under the AESO rules for Load Settlement, as amended from time to
time;

“Standard Service” means the least cost Facilities alternative which meets the obligations of
good electric practice and factors in safety and clearance concerns (typically overhead
service is provided);

“System Access Service” has the meaning given such term in, and is determined in
accordance with, the Act;

“System Access Service Agreement” means an agreement entered into between the
Independent System Operator and FortisAlberta, which establishes the specific terms
pursuant to which FortisAlberta obtains System Access Service;

“Tariff Billing Code” means the Alberta Tariff Billing Code established by the Board under
the provisions of the Act, as amended from time to time;
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“Temporary Disconnection” means the cessation of Electricity Services on a temporary
basis and does not involve removal of Facilities. Temporary Disconnection is also referred
to as a De-Energize or DER transaction;

“Terms and Conditions” means these Retailer Terms and Conditions and the Customer
Terms and Conditions;

“Transmission Connected Service” means a Point of Service:

(a)    that is served at a transmission voltage level and is not interconnected to the
       FortisAlberta Electric Distribution System; and

(b)    for which FortisAlberta has a distinct System Access Service Agreement in existence
       with the Independent System Operator, specifically for the respective Point of
       Delivery;

“Transmission Facility” has the meaning given such term in, and is determined in
accordance with, the Act;

“Transmission Facility Owner” has the meaning given such term in, and is determined in
accordance with, the Act; and

“Transmission Load Customer” means a Customer at a Transmission Connected Service
who has not received a Section 101(2) release as noted in the Act.

2.2    Conflicts

If there is any conflict between a provision expressly set out in an order of the Board and the
Terms and Conditions, the order of the Board shall govern.

If there is any conflict between a provision in the Terms and Conditions, as may be amended
from time to time, and a provision in an Electric Service Agreement, a Retail Service
Agreement or any other existing or future agreement between FortisAlberta and a
Responsible Party relating to a Point of Service or other interconnection to FortisAlberta’s
Electric Distribution System or Distribution Access Service, the provision in the Terms and
Conditions shall govern.

2.3    Headings

The division of the Terms and Conditions into sections, subsections and other subdivisions
and the insertion of headings are for convenience of reference only and shall not affect the
construction or interpretation of the Terms and Conditions.
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2.4    Extended Meanings

In the Terms and Conditions, words importing the singular number only shall include the
plural and vice versa, words importing the masculine gender shall include the feminine and
neutral genders and vice versa, and words importing a person shall include an individual,
firm, partnership, association, trust, unincorporated organization and corporation.

2.5    Appendices

The following appendices are attached to and form part of these Retailer Terms and
Conditions:

Appendix “A” - Fee Schedule

Appendix “B” - Disconnect of a Point of Service


                        ARTICLE 3 – GENERAL PROVISIONS

3.1    Board Approval

The Terms and Conditions have been approved by the Board. FortisAlberta may amend the
Terms and Conditions by filing a notice of amendment with the Board. Included in the
notice to the Board shall be notification of which Retailers are affected by the amendment
and an explanation of how affected Retailers will be notified of the amendments. Within 60
days after such notice is filed, the Board will either acknowledge the notice of amendment to
the Terms and Conditions or direct a further process to deal with the requested change as the
Board deems appropriate. If the Board acknowledges notice of amendment, the amendment
will take effect upon the date of such acknowledgement.

3.2    Retailer Guidebook

FortisAlberta has developed the Retailer Guidebook to help Retailers understand the normal
practices of FortisAlberta. FortisAlberta will amend the Retailer Guidebook, from time to
time, to reflect changes to the electric utility industry, changes in FortisAlberta’s
requirements or the changing needs of Retailers or Customers. While FortisAlberta will
endeavour to follow practices in the Retailer Guidebook, these practices will not
appropriately cover every situation that may arise and it may be necessary to deviate from the
Retailer Guidebook. If there is any conflict between the Retailer Guidebook and a provision
in the Terms and Conditions, an Electric Service Agreement, a Retail Service Agreement or
any other existing or future agreement between FortisAlberta and a Responsible Party, the
provision in the Terms and Conditions, Electric Service Agreement, Retail Service
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Agreement or other agreement shall govern. A copy of the Retailer Guidebook can be
accessed on FortisAlberta’s website at http://www.fortisalberta.com.

3.3    Retailer Arrangements with Customers

Unless otherwise stated herein, the Retailer shall be solely responsible for having appropriate
contractual or other arrangements with a Customer necessary to provide service to the
Customer. FortisAlberta shall not be responsible for monitoring, reviewing or enforcing such
contracts or arrangements and shall not be liable for any loss, damages, cost, injury, expense
or other liability, whether direct, indirect, consequential or special in nature, howsoever
caused, as a result of the Retailer's failure to obtain or maintain proper contractual or other
arrangements with a Customer or to perform its obligations to a Customer.

3.4    Responsibility of the Retailer for Electric Purchases

The Retailer will be solely responsible for the purchase of electricity from the Power Pool
and for arranging the delivery of such electricity to the appropriate Points of Service for
Customers, subject to the Terms and Conditions.

3.5    Retailer Authorization

A Retailer shall be responsible for obtaining proper authorization from each Customer
authorizing the enrolment of the Customer by the Retailer for receipt of Distribution Access
Service.

3.6    Retailer Identification Number

Any information exchange or communications between the Retailer and FortisAlberta under
the Terms and Conditions shall employ a Retailer ID. In circumstances where the Retailer
has multiple Retailer IDs, the review, setting, and maintaining of prudential requirements
shall be addressed based on the circumstances of each case.

3.7    Single Retailer for Point of Service

FortisAlberta shall not be required to recognize and deal with more than one Retailer in
respect of a Point of Service at any given time. Nothing in the Terms and Conditions shall
prohibit a Customer from entering into arrangements with multiple Retailers for a Point of
Service, provided that a single Retailer is designated to be the Customer's Retailer for the
purposes of the Terms and Conditions.
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3.8    Fees and Other Charges

FortisAlberta will provide all Standard Service hereunder pursuant to the Distribution Tariff.
All additional, supplementary or extra non-discretionary services provided by FortisAlberta
to a Retailer or its Customers will be charged a separate rate or fee, such as those included,
without limitation, in the Rate, Option and Rider Schedules. Billing and payment for these
services shall be in accordance with the provisions of the Terms and Conditions.

            ARTICLE 4 – CUSTOMER INQUIRIES AND INFORMATION

4.1    Provision of Customer Information to Retailer

FortisAlberta shall provide standard Customer Usage Information to a Retailer that has a
Retail Service Agreement in place with FortisAlberta, upon request, but only after receiving
written consent to such disclosure from the Customer for:

(a)    the 12 month period preceding the date of the request, or

(b)    for any shorter period for which FortisAlberta has collected that information.

Prior to requesting FortisAlberta to release Customer Usage Information, a Retailer shall be
responsible for obtaining and providing to FortisAlberta the written authorization from the
Customer referred to above, in a form satisfactory to FortisAlberta.

A Retailer may request Customer Usage Information prior to an application for enrolment by
obtaining and submitting to FortisAlberta the authorization from the Customer in a form
satisfactory to FortisAlberta.

The Retailer shall submit written requests for Customer Usage Information based on site ID.
If the number of Points of Service on a request exceeds 20, the list must be provided
electronically in a form satisfactory to FortisAlberta.

FortisAlberta will normally process requests within 15 Business Days of receiving
notification from the Retailer. If FortisAlberta determines that it cannot process the request
within 15 Business Days, FortisAlberta shall notify the Retailer of the approximate delivery
date.

Requests for Customer Usage Information will be provided by FortisAlberta at no additional
cost for requests made once per year per account. FortisAlberta reserves the right to assess a
charge for additional Customer Usage Information requests as set forth in the Fee Schedule
included herein as Appendix “A”.
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Any request for Customer Usage Information from a Retailer that has been the Retailer of
record for 12 months or greater will be assessed a charge as set forth in the Fee Schedule
included herein as Appendix “A”.

4.2    Provision of Information between FortisAlberta and Retailer

The Retailer must notify FortisAlberta as promptly as reasonably practical of any changes to
Customer Information, as FortisAlberta relies on this information to perform its obligations
to Customers. Such information shall be provided in a form described in the Settlement
System Code.

FortisAlberta and a Retailer shall supply to each other all other data, materials or other
information specified to be supplied in the Terms and Conditions, or that may otherwise be
reasonably required by the Retailer or FortisAlberta in accordance with the Terms and
Conditions. Changes set out in the Fee Schedule included herein as Appendix “A” will apply
to certain requests made to FortisAlberta.

FortisAlberta shall not be liable for any loss, damages, cost, injury, expense or other liability,
whether direct, indirect, consequential or special in nature, howsoever caused, as a result of
the Retailer’s failure to provide up-to-date and accurate Customer Information to
FortisAlberta. FortisAlberta reserves the right to assess a charge to recover the costs incurred
by FortisAlberta for additional work undertaken by FortisAlberta as a result of inaccurate
Customer Information provided by the Retailer.

4.3    Customer Inquiries

For Customers requesting information on Distribution Access Service, FortisAlberta will
make available the following information:

(a)    notification and informational materials to consumers about competition and
       consumer choices;

(b)    direct Customers, on request, to a source where they may obtain the current list of
       licensed Retailers maintained in accordance with the Fair Trading Act, RSA 2000, c.
       F-2 ("Fair Trading Act"). FortisAlberta is under no obligation to assure the accuracy
       of this list.

Retailers shall make every effort to ensure Customers contacting the Retailer regarding
distribution emergency conditions, outages, safety or environment situations related to
FortisAlberta's Electric Distribution System are referred immediately to FortisAlberta.
FortisAlberta reserves the right, without providing notice to the Retailer, to test or audit the
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response time of the Retailer. FortisAlberta will communicate any unacceptable patterns to
the Retailer to be corrected.

                        ARTICLE 5 –PROVISION OF SERVICE

5.1    Retailer Qualification for Distribution Access Service

The Retailer must fulfill and maintain the following requirements to the satisfaction of
FortisAlberta before FortisAlberta will provide or continue to provide Distribution Access
Service to that Retailer:

(a)    submit to FortisAlberta a fully completed and executed Retail Service Agreement, a
       Retailer Credit Application form, and any other documents or forms that may be
       required by FortisAlberta from time to time;

(b)    if the Retailer sells Energy to Customers with annual consumption of less than
       250,000 kWh, furnish to FortisAlberta a certified copy of the license issued to the
       Retailer and warrant in writing to FortisAlberta that it is licensed pursuant to and will
       comply with the provisions of the Fair Trading Act and any regulations or policies
       made thereunder, as amended from time to time;

(c)    adhere to the credit, deposit and security requirements of FortisAlberta as described
       in Article 6;

(d)    warrant in writing to FortisAlberta that it will comply with the Settlement System
       Code;

(e)    meet the compliance testing protocol of FortisAlberta in respect of information
       exchange as set forth in the Retailer Guidebook, as amended from time to time;

(f)    warrant in writing to FortisAlberta that it has been qualified by the Independent
       System Operator as pool participant under the Independent System Operator rules
       respecting the operation of the Power Pool and the Independent System Operator has
       approved the Retailer for consumption within the FortisAlberta service area; and

(g)    meet any other requirements that FortisAlberta, acting reasonably, may impose in
       order to provide Distribution Access Service hereunder to the Retailer. If
       FortisAlberta determines that a Retailer must satisfy additional requirements in order
       to qualify for Distribution Access Service, the following process will apply:

       i.     where FortisAlberta is confronted with a situation which would likely
              materially alter the risk to FortisAlberta, or in order to comply with applicable
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               legislation, FortisAlberta may implement the additional requirement and then
               apply to the Board for approval of same; or

       ii.     where FortisAlberta is not confronted with the circumstances outlined in (i),
               above, FortisAlberta shall apply to the Board for approval of the proposed
               additional requirement prior to implementing same.

Upon satisfaction of the above requirements, FortisAlberta will provide Distribution Access
Service to the Retailer, subject to the Terms and Conditions. Subject to complying with all
the applicable laws, and the directions or requirements of any of the entities mentioned
above, FortisAlberta reserves the right, upon giving the Retailer 10 Business Days notice,
acting reasonably, to discontinue Distribution Access Service to the Retailer if at any time
the Retailer no longer fulfils the above requirements.

The Retailer shall exercise due diligence and use reasonable efforts in meeting its obligations
hereunder, and perform same in a timely manner.

The Retailer shall make every effort to ensure that its Customers are aware of the provisions
of the Terms and Conditions that may affect the Customer(s).

5.2    Application for Enrolment of Customers of the Retailer

In order to initiate the provision of Distribution Access Service by FortisAlberta, the Retailer
shall complete and provide to FortisAlberta an application for Distribution Access Service in
compliance with the Settlement System Code. The Retailer shall provide updated Customer
Information with each application for Point of Service enrolment where applicable.

FortisAlberta will, subject to the Terms and Conditions, accept an application by a Retailer
for provision of Distribution Access Service to a Customer hereunder and upon acceptance,
will recognize the Retailer as the Retailer of Record for the particular Point of Service.
FortisAlberta reserves the right, but is not obligated, to verify the identity of the Customer
and the accuracy of the Customer Information. FortisAlberta may deny the application if any
information required in the application, including the Customer Information and Retailer
Identification, provided by the Retailer is false, incomplete or inaccurate in any respect.

Enrolments will be processed by FortisAlberta on a first-come, first-served basis. Each
enrolment will be time and date-stamped when received by FortisAlberta. If more than one
enrolment is received for a Point of Service while an earlier enrolment is pending, only the
first valid enrolment received by FortisAlberta shall be processed that day. Enrolment of a
Point of Service is irrevocable and the Retailer bears full responsibility for the accuracy of
enrolment transactions submitted to FortisAlberta.
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FortisAlberta will, in compliance with the Settlement System Code, transfer an existing Point
of Service receiving Distribution Access Service to the Retailer or notify the Retailer of the
status of the enrolment. If an enrolment is accepted, FortisAlberta will notify the Retailer in
accordance with the timing requirements set out in the Settlement System Code. If an
enrolment is rejected, FortisAlberta will provide the Retailer with the reason(s) for the
rejection.

If a Retailer finds that it has enrolled an incorrect Point of Service, that Retailer shall notify
FortisAlberta in accordance with the Settlement System Code. Upon receiving notice from
the Retailer, FortisAlberta will notify the previous Retailer to enrol the Point of Service. A
Retailer that erroneously enrols a Point of Service will bear responsibility for the associated
Distribution Tariff costs and any other financial implications associated with the error.

FortisAlberta reserves the right to refuse Distribution Access Service, at any Point of Service,
to any Customer of the Retailer who has failed to meet their obligations under the Terms and
Conditions or an Electric Service Agreement with FortisAlberta, including where the
Customer has not made payment when due to FortisAlberta. The Retailer will not be liable to
FortisAlberta for any outstanding indebtedness of the Customer to FortisAlberta which
accrued prior to the enrolment of the Customer to the Retailer. However, the Retailer will be
liable for all outstanding indebtedness which accrued while the Retailer remained the Retailer
of Record for the Customer.


                     ARTICLE 6 – PRUDENTIAL REQUIREMENTS

6.1    General

Retailers must satisfy the security requirements in Sections 8 through 12 of the Distribution
Tariff Regulation A.R. 162/2003 to ensure that the Retailer is and remains of sufficient
financial standing to meet its ongoing financial obligations. FortisAlberta reserves the right
to re-evaluate the security requirements of a Retailer on a regular basis, and to require
additional security where appropriate.

(a)    All Retailers must submit and maintain security in an amount equal to a credit limit
       calculated as the value projected by the Retailer of the Retailer’s payments under
       FortisAlberta’s Distribution Tariff over a 60 day period. This period shall remain
       consistent with applicable regulations, as amended from time to time.

(b)    The security must be submitted and maintained in a form acceptable to FortisAlberta,
       consisting of any one of, or a combination of:
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       i.     a cash deposit or bond in the name of FortisAlberta at a Canadian chartered
              bank, trust company, credit union, or other financial institution acceptable to
              FortisAlberta;

       ii.    an irrevocable letter of credit;

       iii.   an irrevocable bank guarantee; or

       iv.    an irrevocable guarantee, with supporting resolutions, from a person or
              persons (other than the Retailer) with a credit rating of at least BBB– from the
              Dominion Bond Rating Service (or any successor corporation) or equivalent
              rating from a major reputable bond rating service satisfactory to FortisAlberta.

(c)    The security required in (a) will be reduced if the Retailer provides its current credit
       rating (or its lowest credit rating if more than one has been obtained) of at least BBB–
       from the Dominion Bond Rating Service (or any successor corporation) or equivalent
       rating from a major reputable bond rating service satisfactory to FortisAlberta, in the
       following amounts:

                  Rating (or Lowest Rating)             Security Reduction
                        Less than BBB–                                 $0
                        BBB– to BBB+                        $10,000,000
                           A– to A+                         $15,000,000
                          AA– to AA+                        $20,000,000
                        AAA– or higher                      $25,000,000

(d)    A guarantee or guarantees provided under (b) shall be provided in accordance with
       Subsection 8(4) of the Distribution Tariff Regulation A.R. 162/2003.

All costs associated with obtaining security and meeting prudential requirements are the
responsibility of the Retailer. A Retailer must complete the credit application process and
meet credit requirements before a Point of Service is enrolled with FortisAlberta for the
Retailer.

6.2    Additional Security

When the Retailer’s actual outstanding charges under FortisAlberta’s Distribution Tariff
materially exceed the value projected by the Retailer under Section 6.1, upon 5 Business
Days notice by FortisAlberta, the Retailer shall either:
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(a)    pay FortisAlberta in advance the amount by which the actual outstanding charges
       now exceed the projected value, or

(b)    provide additional security to FortisAlberta in accordance with Section 6.1 to a total
       equal to the actual outstanding charges.

A Retailer whose credit rating has been downgraded shall report to FortisAlberta the
downgrading of its Credit Rating within 2 Business Days of the downgrading and must
provide any additional security required as a result of the downgrading within 5 Business
Days of the downgrading as required under Section 9 of the Distribution Tariff Regulation.

A Retailer must provide and maintain the required amount of security until all obligations of
the Retailer under FortisAlberta’s Distribution Tariff are satisfied. FortisAlberta reserves the
right to re-evaluate the security requirements of a Retailer on a regular basis, and to require
additional security where appropriate.

If a Retailer defaults in paying any amounts owing under FortisAlberta’s Distribution Tariff,
FortisAlberta will provide the Retailer notice as required by Section 12 of the Distribution
Tariff Regulation and will be entitled to realize on the security of the Retailer to recover the
Retailer's arrears including any accrued interest if they are not paid within 3 Business Days
after the date of the notice, provided that FortisAlberta shall be entitled to realize on the
security without notice if, in the opinion of FortisAlberta, the giving of such notice would
impair FortisAlberta’s ability to make a claim against the Retailer’s security. FortisAlberta
may require additional security to replace the security drawn down because of the default by
the Retailer. The Retailer must provide the additional security within 5 Business Days of
FortisAlberta’s request to do so.

If the Retailer fails to provide any additional security that it is required to provide,
FortisAlberta reserves the right to suspend the provision of Distribution Access Service until
the Retailer provides FortisAlberta with the required security.

If FortisAlberta, acting reasonably, determines that it is not secured in accordance with this
section for the financial obligation of the Retailer, FortisAlberta may, upon 5 Business Days
notice, cease to provide Distribution Access Service hereunder to that Retailer until the
Retailer provides FortisAlberta with adequate security.
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      ARTICLE 7 – DISCONTINUANCE OF DISTRIBUTION ACCESS SERVICE

7.1    Discontinuance by FortisAlberta

FortisAlberta may discontinue or restrict Distribution Access Service to a Retailer if any of
the following occur:

(a)    the Retailer's license has been revoked by Alberta Government Services, or

(b)    the Retailer has failed to meet its obligations under the Terms and Conditions or the
       Retail Service Agreement with FortisAlberta, or

(c)    the Retailer has failed to meet its credit requirements pursuant to Article 6.

Notification of discontinuance will be made electronically by FortisAlberta to the Retailer.
FortisAlberta will provide the Retailer 10 Business Days notice before FortisAlberta
discontinues Distribution Access Service to the Retailer. Upon discontinuance of
Distribution Access Service pursuant to this Section, the provision of the affected service(s)
will be assumed by the Default Supplier for non-eligible Customers, and the person for
whom FortisAlberta has made arrangements to provide the Regulated Rate Tariff for eligible
customers.

7.2    Discontinuance by Retailer

To discontinue Distribution Access Service a Retailer shall complete and provide to
FortisAlberta a notice of de-select in the form and manner set out in the Retailer Guidebook
and in compliance with the Settlement System Code.

To de-select the Retailer of Record for a particular Point of Service, a Retailer shall, at least 5
Business Days after the day of receipt of notification (or such other time as may be required
under the Settlement System Code) before the de-selection is to take effect, complete and
provide to FortisAlberta a notice of de-selection pursuant to the Settlement System Code.
FortisAlberta may reject the notice of de-selection if FortisAlberta determines that any
information required in the notice, including Customer Information, provided by the Retailer
is false, incomplete or inaccurate in any respect. FortisAlberta reserves the right, but is not
obligated, to verify the identity of the Customer and the accuracy of the Customer
Information. Upon receipt of a notice of de-selection from a Retailer, FortisAlberta will
either:
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(a)    process the de-selection within 5 Business Days after the day of receipt of notification
       (or such other time as may be required under the Settlement System Code); or

(b)    notify the Retailer within 2 Business Days (or such other time as may be required
       under the Settlement System Code) that the notice of de-selection has been rejected
       and the reasons for such rejection. Upon receipt of a rectified notice of de-selection,
       FortisAlberta will, within 5 Business Days after the day of receipt of notification (or
       such other time as may be required under the Settlement System Code), process the
       de-selection.

De-selected Points of Service for which FortisAlberta has received no enrolment application
will be assigned to the Default Supplier in accordance with the RRR Regulation.

The Retailer is responsible to ensure that its Customers are provided notice of the de-select,
and the consequences thereof, and FortisAlberta will not be held liable for any Customer
disputes with the Retailer.

The Retailer shall remain responsible for Electricity Services to the Point of Service until a
replacement Retailer is appointed and in place for the Point of Service.

        ARTICLE 8 – SERVICE DISCONNECTION AND RECONNECTION

This Article, as amended from time to time, specifies the processes for the transactions
between FortisAlberta and a Retailer in relation to the disconnection of Electricity Services
to a Point of Service. For greater certainty, “disconnection” is synonymous with the term
“De-Energize” as that term is used in the Settlement System Code.

8.1    Disconnection of Services by a Retailer

In accordance with the Act, the Retailer shall have the right to request that FortisAlberta
disconnect service to a particular Point of Service, and FortisAlberta shall comply with that
request, unless such action is inconsistent with the Terms and Conditions, including
FortisAlberta's approved policies contained in Appendix “B” to the Retailer Terms and
Conditions.

Normal charges, including Idle Charges, may continue to be applied by FortisAlberta during
the period of any Temporary Disconnection.

If the Point of Service remains disconnected for greater than 12 months, it may be considered
by FortisAlberta to be a Permanent Disconnection and administered as per Section 8.2.4
herein.
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FortisAlberta will notify the Retailer if a disconnect request was not successfully completed
and include the reason why it was not successfully completed. If the Retailer still requires a
disconnect, the Retailer must re-issue a disconnect request the following Business Day.

8.2    Disconnection at the Request of the Customer

Any requests to disconnect service from a Customer shall be made in accordance with the
Customer Terms and Conditions. FortisAlberta may directly charge a Customer a
Distribution Customer Exit Charge related to a Permanent Disconnection. Until such time as
all obligations of Customer to FortisAlberta are met, FortisAlberta reserves the right to reject
a request for a disconnection.

       8.2.1   Temporary Disconnection For Safety and Maintenance

       FortisAlberta will accept a request directly from a Customer or a Customer’s Retailer
       for a Temporary Disconnection of less than 5 days (or such other time as may be
       agreed to by FortisAlberta) for safety or maintenance (equipment testing and
       inspection) purposes. In these limited circumstances, no Settlement System Code
       transactions (i.e., a de-energize or DER transaction) shall be submitted by the
       Retailer. The Retailer is referred to the Retailer Guidebook of FortisAlberta for
       process details. Normal charges for Distribution Access Service continue to apply
       during this period.

       8.2.2   Idle Charges as a Result of Temporary Disconnection

       Other than as set out above, FortisAlberta will only disconnect on a temporary basis if
       the Customer’s Retailer requests a Temporary Disconnection and provided that the
       Customer, or the Customer’s Retailer, agrees to pay the Idle Charges as provided in
       the Rate, Option and Rider Schedules. If the Point of Service remains disconnected
       for greater than 12 months, it may be considered a Permanent Disconnection and
       administered as per Section 8.2.4 herein.

       8.2.3   Right to Remove Meter

       The Customer shall permit FortisAlberta to remove the meter on property owned or
       controlled by the Customer for any Temporary Disconnection. FortisAlberta reserves
       the right to assess a charge to the Customer, or the Customer’s Retailer, for a
       supplementary meter read, as set forth in the Fee Schedule included herein as
       Appendix “A” under Off-Cycle Meter Reading, as a direct result of the Customer
       preventing or not allowing FortisAlberta to remove the meter.
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       8.2.4   Permanent Disconnection

       If the Customer, or the Customer’s Retailer, requests a Permanent Disconnection of
       the Point of Service, the Customer billing for that service will be finalized. The
       Facilities provided by FortisAlberta will be removed unless the Customer, or the
       Customer’s Retailer, agrees to pay the Idle Charges as set forth in Section 8.2.2.

       If within 3 years of Permanent Disconnection the Customer requests the Service
       Connection be restored, the Customer may be required to pay all the costs associated
       with the original disconnection, removal of the Facilities and restoration of service.
       These costs will be charged directly to the Customer.

8.3     Disconnection by FortisAlberta

FortisAlberta reserves the right to disconnect electric service to a Customer in a number of
circumstances as set out in Article 10 of the Customer Terms and Conditions, including but
not limited to non-payment of the FortisAlberta bills or any past due charges by the
Customer; evidence of safety violations or fraud by the Customer; or the Customer failing to
meet its obligations under the Terms and Conditions or any of the terms of the Customer's
Electric Service Agreement.

8.4     Reconnect Service

This Section applies when FortisAlberta is asked to reconnect or restore service to a Point of
Service whose service was previously restricted by a current-limiting device or disconnected.

Before reconnecting or restoring service, the Customer, or the Customer’s Retailer, shall pay
any amount owing to FortisAlberta including written off accounts, and

(a)    if service is reconnected by the Customer within 12 months of disconnection, the
       Customer, or the Customer’s Retailer, shall pay a service charge to cover
       FortisAlberta’s minimum monthly and reconnection charges, as determined in the Fee
       Schedule included herein as Appendix “A”; or

(b)    if service is reconnected by the Customer after 12 months of disconnection, the
       Customer, or the Customer’s Retailer, shall pay a reconnection charge as determined
       in the Fee Schedule included herein as Appendix “A”.

If the disconnection is a result of a safety violation, or as a result of a Customer’s action,
inaction or facilities that are causing any problems, damage, interference or disturbance,
FortisAlberta will reconnect the service when such issues are resolved and when the
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Customer has provided, or paid FortisAlberta’s costs of providing, such services, devices or
equipment as may be necessary to resolve such issues.

8.5     Removal of Facilities upon Disconnection of Service

Upon Permanent Disconnection, FortisAlberta shall be entitled to remove any of its Facilities
located upon the property of the Customer and to enter upon the Customer’s property for that
purpose.


                                 ARTICLE 9 – BILLING

9.1    Wholesale Billing

FortisAlberta will bill the Retailer of Record the amounts payable for Distribution Access
Service in accordance with the Terms and Conditions, the Billing Regulation, A.R. 159/2003
and the Tariff Billing Code, as each may be amended from time to time, and as follows:

(a)    FortisAlberta will provide billing information in the prescribed format to the Retailer
       of Record for each billing cycle.

(b)    FortisAlberta will invoice the Retailer for Distribution Access Service provided by
       FortisAlberta for the period generally corresponding to the billing information from
       the prior calendar month.

(c)    FortisAlberta will not assume any billing or collection obligations or responsibilities
       related to billing or collecting from Customers, for or on behalf of the Retailer. The
       Retailer shall process Customer payments and handle collection responsibilities.
       FortisAlberta may, in addition to any other remedies available to it, restrict enrolment
       or terminate Distribution Access Service to the Retailer, if such Retailer does not pay
       all outstanding bills in accordance with the Terms and Conditions.

(d)    FortisAlberta reserves the right to bill the Customer directly for any amounts required
       to be provided by the Customer under the Terms and Conditions.

(e)    Retailers or any party acting as an agent on behalf of Retailers are required to provide
       Customers with notification of a FortisAlberta distribution rate change in the billing
       envelope, or through the electronic billing and payment process, that accompanies the
       first charge to the Customer at the new rate.
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9.2    Determination of Applicable Rates

FortisAlberta bills the Retailer of Record based on the charges set out in its Rate, Option and
Rider Schedules. Each Point of Service is billed as a separate service. The determination of
these charges will be made in accordance with FortisAlberta’s Terms and Conditions and its
Rate, Option and Rider Schedules.

The availability of rates, options and riders are specified in the Rate, Option and Rider
Schedules. If the operational characteristics of the Point of Service change, a different rate
may be applicable and certain provisions in Article 7 in the Customer Terms and Conditions
may apply. This could result in the Customer being required to pay an additional Customer
Contribution or receiving a refund. A Customer requested change of service under this
Section will not be made more than once in any 12-month period.

9.3    Minimum Charges

The Minimum Charge calculated in accordance with the Rate, Option and Rider Schedules
will be applicable.

9.4    Consumption Period

The basis of all charges to the Retailer for Distribution Access Service provided to a
Customer is the consumption period, defined as the time between two consecutive meter
readings, or estimates, or a combination thereof, for the Customer’s Point of Service, unless
otherwise indicated in the Rate, Option and Rider Schedules. Charges will generally be billed
on a monthly basis.

The charges for Distribution Access Service, including any applicable charges under an
Electric Service Agreement, shall commence on the earlier of the first billing date after the
date upon which the Customer commences taking service, or 30 days after the date that
service is made available to the Customer. FortisAlberta reserves the right to enrol the
Customer with its default retailer in the event that the Point of Service is not enrolled after 30
days that the service is made available.

FortisAlberta may elect to change a Customer’s meter reading schedule.

9.5    Billing Period

The billing period for a Point of Service means the timeframe between scheduled meter
reading or usage estimate production dates as established by FortisAlberta, and generally
ranges between 27 and 35 days. FortisAlberta will establish the billing period for a Point of
Service in accordance with the Tariff Billing Code.
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The amount charged to the Retailer and invoiced periodically (generally monthly) reflects the
aggregate of charges for Distribution Access Service provided to Customers of the Retailer,
with consumption periods that end within the invoicing period.

9.6    Billing Information

An invoice to the Retailer for the amounts payable by the Retailer for Distribution Access
Service will set out the billing information in accordance with the Tariff Billing Code and in
accordance with the following:

(a)    the total amount due from the Retailer for Distribution Access Service provided by
       FortisAlberta to Customers of the Retailer;

(b)    details of the amount due from the Retailer for Distribution Access Service provided
       by FortisAlberta as applicable to each of the Retailer’s Customers; and

(c)    any other information required to be provided by FortisAlberta to the Retailer on an
       invoice pursuant to the Act and Regulations.

An invoice to the Retailer for Miscellaneous Service will set out the following information
with:

(a)    the total amount due from the Retailer for Miscellaneous Service provided by
       FortisAlberta to the Retailer;

(b)    any other information required to be provided by FortisAlberta to the Retailer on an
       invoice pursuant to the Act and Regulations.

9.7    Payment of Account

The Retailer shall pay to FortisAlberta the amount invoiced within 10 calendar days after the
invoice is issued. In the event that the tenth day after the bill is issued is not a Business Day,
the Retailer shall pay to FortisAlberta the amount invoiced by the close of the first Business
Day following the tenth day after the invoice is issued.

FortisAlberta will establish an electronic billing and payment procedure for the payment of
services hereunder. Notwithstanding such procedure, FortisAlberta will accept payment by
electronic fund transfer or cheque if agreed to by FortisAlberta. An invoice will be deemed to
have been paid when a valid payment has been received by FortisAlberta for the full amount.
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9.8    Dispute of Amounts Owing

Should the Retailer dispute any amount owing, the Retailer shall nonetheless pay such
disputed amount and subject the dispute for resolution in accordance with the Terms and
Conditions. Following resolution of any such dispute, FortisAlberta will return any amount
found owing to the Retailer forthwith. The right or ability of either party to dispute an
invoice provided hereunder shall only apply to invoices rendered during a period of 1 year
prior to the date that the disputing party first gives written notice of such dispute to the non-
disputing party, or such longer period as may be applicable under the Regulated Default
Supply Regulation A.R. 168/2003.

The Retailer shall pay all amounts owed to FortisAlberta for any of the Distribution Access
Service provided by FortisAlberta whether or not the Customer has paid the Retailer. Failure
to receive an invoice in a timely way does not release a Retailer from the obligation to pay
the amount owing on the invoice.

9.9    Late Payment

FortisAlberta shall add a late payment charge of 1.5% per month (19.56% per annum) on any
overdue amounts for which payment has not been received by FortisAlberta from a Retailer
either:

(a)    within 10 days after the date of issue of the invoice; or

(b)    in the event that the tenth day after the date of issue of the invoice is not a Business
       Day, by the close of the first Business Day following the tenth day after the date of
       issue of the invoice.

FortisAlberta reserves the right to assess a service charge to the Retailer in respect of any
cheque returned by the Retailer’s bank for any reason as defined in the Fee Schedule
included herein as Appendix “A”.

9.10   Collections

Any invoice rendered for which valid payment has not been received by the due date shall be
considered past due. On the first day following the payment due date, late payment charges
as set out in the Section 9.9 will be applicable to all overdue billed amounts, including arrears
and previously unpaid late payment charges. Failure to make payments on time will also be
subject to normal credit action, which may include, but is not limited to: reminder letters;
notification by telephone; use of collection agencies; withholding of additional service and
legal action.
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9.11   Adjustment of Bills in Event of a Billing Error

For those Customers for whom the Regulated Default Supply Regulation A.R. 168/2003 is
applicable, where FortisAlberta overcharges or undercharges on a bill as a result of a billing
error including, but not limited to, incorrect meter reads or any calculation, rate application
or clerical errors, FortisAlberta shall render an adjusted bill for the amount of the
undercharge, without interest, and shall issue a refund or credit to the Retailer for the amount
of the overcharge, without interest, in accordance with Section 9 of the Regulated Default
Supply Regulation A.R. 168/2003.

For those Customers for whom the Regulated Default Supply Regulation A.R. 168/2003 is
not applicable, where FortisAlberta overcharges or undercharges on a bill as a result of a
billing error including, but not limited to, incorrect meter reads or any calculation, rate
application or clerical errors, FortisAlberta shall render an adjusted bill for the amount of the
undercharge, without interest, and shall issue a refund or credit to the Retailer for the amount
of the overcharge, without interest, in accordance with the following procedures:

(a)    If a Retailer is found to have been overcharged due to billing error, FortisAlberta will
       calculate the amount of the overcharge (for refund to the Retailer on the Retailer’s
       next bill following the discovery of the billing error) up to a maximum of 12 months
       immediately preceding the month in which the billing error was discovered.

(b)    If a Retailer is found to have been undercharged due to billing error, FortisAlberta
       will bill the Retailer for those billing periods during which a billing error occurred up
       to a maximum of 12 months immediately preceding the month in which the billing
       error was discovered.

Whenever FortisAlberta adjusts any bills to the Retailer in the event of billing error, and
issues an adjusted bill or a refund or credit to the Retailer in respect thereof, the Retailer shall
be responsible for adjusting bills and issuing refunds or credits as appropriate to the affected
Customers.

If the period of billing error cannot be determined with reasonable accuracy because of a
metering error, the undercharge or overcharge will be calculated in accordance with Section
10.6.

9.12   Collection of Other Charges

FortisAlberta shall collect from the Retailer all franchise fees and sales, excise or other taxes
imposed by governmental authorities that are applicable to Distribution Access Service,
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including Distribution Access Service and Miscellaneous Service, provided by FortisAlberta
to Customers of the Retailer.


                                ARTICLE 10 - METERING

10.1   Meter Reading

FortisAlberta shall endeavour to make an actual meter reading for each Point of Service for
which it provides Distribution Access Service for Customers of the Retailer in accordance
with FortisAlberta’s meter reading schedule. At the request of the Retailer of a Customer,
FortisAlberta shall endeavour to make an actual meter reading, off-cycle, and FortisAlberta
will charge the Retailer for additional meter reading expense as set forth in the Fee Schedule
included herein as Appendix “A”.

At the request of the Retailer, or with the Retailer's consent, FortisAlberta may provide other
metering services, above standard metering service, and may charge separate fees for such
service.

10.2   Record

An accurate record of meter readings will be kept by FortisAlberta and will be the basis for
billing by FortisAlberta to the Retailer in accordance with the Distribution Tariff.

10.3   Metering Signals

Metering signals in the form of energy pulses, reactive energy pulses or analogue values of
watts and vars can be provided to a Retailer or a Customer upon request, and FortisAlberta
will charge whichever of the Retailer or the Customer made the request as outlined in the Fee
Schedule included herein as Appendix “A”. If the Customer directly requests such
information, in no circumstances shall the Retailer be liable for such charges.

10.4   Estimated Consumption and Demand

The Customer’s Load will be estimated by FortisAlberta based on the best available sources
of information and evidence in the following circumstances:

(a)    where the Customer’s Point of Service is not metered;

(b)    where a meter is inaccessible due to conditions on the Customer’s premises;

(c)    where the meter is not scheduled to be read;
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(d)    where it is determined that the amount of Energy used was different from that
       recorded or billed due to incorrect billing procedures;

(e)    where a meter reading schedule or a meter change creates a transition period in
       FortisAlberta’s billing cycle; or

(f)    if the seal of a meter is broken or if the meter does not register correctly, regardless of
       the cause.

A small service which would otherwise be metered with a thermal demand meter may be
billed on an estimated demand if, in FortisAlberta’s opinion, the demand can be estimated
with reasonable accuracy.

The energy demand of certain equipment which is used for short periods of time, such as arc
welders, does not fully register on thermal demand meters. Points of Service which include
this type of equipment may be billed on an estimated demand.

FortisAlberta may disregard a new Peak Demand at a Point of Service for the purposes of
billing the Distribution Tariff in the event such Peak Demand is the result of a Customer’s
behaviour in response to acts or omissions of FortisAlberta.

If requested by the Retailer, FortisAlberta will provide the Retailer with a description of the
methodology used to calculate the Load estimate for the Customers of the Retailer.

10.5   Meter Testing

Measurement Canada regulates meter testing. At the request of a Retailer or Distribution
Load Customer, FortisAlberta shall arrange for on-site meter verification and if necessary,
shall arrange for a meter to be tested by an official designated for that purpose by
Measurement Canada or accredited agency as may, from time to time, be designated for this
purpose. FortisAlberta will charge a fee for meter testing pursuant to the Fee Schedule
included herein as Appendix “A”. If the meter is inaccurate, FortisAlberta will refund the fee
and make appropriate adjustments to the applicable Customer or Retailer’s bills. If the meter
is found to be accurate, FortisAlberta will keep the fee to cover the cost of testing the meter.

10.6   Adjustments for Faulty Metering or Energy Theft

FortisAlberta may make consumption and demand adjustments for faulty metering:

(a)    if the seal of a meter is broken or if the meter does not register correctly regardless of
       the cause;
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(b)    when a Point of Service has been incorrectly metered, or when a meter is found to be
       inaccurate in accordance with the Electricity and Gas Inspection Act, R.S. 1985, c. E-
       4 as amended from time to time; in these cases FortisAlberta will make adjustments
       for a period not exceeding 3 months, unless it can be shown that the error was due to
       some specific reported cause, the date of which can be fixed, in which case the actual
       date shall be used; or

(c)    where a Point of Service is unmetered and any seal attached to motors or other
       equipment is broken or any unauthorized change in the Facilities has been made.

Notwithstanding Section 9.11, in any of the above noted cases FortisAlberta may make
adjustments for the lesser of the period of the error or 1 year unless otherwise required to do
so by any applicable governmental authority, legislation or regulation.

Where FortisAlberta determines that there has been unauthorized use of Electricity Services
at a Point of Service including, but not limited to, meter tampering, unauthorized connection
or reconnection, theft or fraud whereby FortisAlberta is denied full compensation for
Distribution Access Service provided, FortisAlberta may make changes in its meters,
appliances or Facilities or take other appropriate corrective action, including where necessary
the disconnection of the Point of Service and will bill the Retailer of Record for the Point of
Service for FortisAlberta’s estimate of such unauthorized use. Nothing in this Section shall
limit any other rights or remedies that FortisAlberta may have in connection with such
unauthorized use.

                          ARTICLE 11 - LOAD SETTLEMENT

11.1   Load Settlement Information

In accordance with the Settlement System Code, FortisAlberta shall provide the Load
Settlement Services. FortisAlberta shall determine and report to the Retailer and the
Independent System Operator the Load per hour for the aggregate of all Customers of the
Retailer, as metered or estimated by FortisAlberta for Power Pool financial settlement
purposes.

Only for Customers of the Retailer, a Retailer may request profiling and additional settlement
information above the basic service provisions for Load Settlement specified in the
Settlement System Code or information previously provided by FortisAlberta providing the
Retailer provides a written request to FortisAlberta outlining the purpose for the additional
settlement information.
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Upon satisfaction of the above requirements, FortisAlberta will advise the Retailer in a
written proposal of the type of work, time of delivery and charges as set out in Appendix
“A”.

11.2   No Liability for Estimating Errors

The process of Retailer Load estimation involves statistical samples and estimating errors.
FortisAlberta shall not be responsible for any sampling or estimating errors and shall not be
liable to any Retailer for any costs that are associated with such errors. FortisAlberta shall
not be liable to any person for any damages, cost, expense, injury, loss or other liability of
any kind whatsoever, or however caused, resulting directly or indirectly from its good faith
performance of its responsibilities under this Article. No express or implied warranties of
any kind shall apply to information or services provided by FortisAlberta to any person as
part of such good faith performance, including without limitation implied warranties of
fitness for a particular purpose.


                     ARTICLE 12 – LIABILITY AND INDEMNITY

12.1   FortisAlberta Liability

Notwithstanding any other provision of the Terms and Conditions or any provision of an
agreement between FortisAlberta and a Responsible Party relating to the provision of
Distribution Access Service (a “FortisAlberta Agreement”), FortisAlberta, its directors,
officers, agents, employees and representatives (“FortisAlberta Parties”), shall not be liable
to a Responsible Party, their directors, officers, agents, employees and representatives, or any
other person in law, equity, tort or contract (the “Applicable Parties”) for any loss, injury,
damage, expense, charge, cost or liability of any nature whatsoever suffered or incurred by
Applicable Parties, or any of them, whether of a direct, indirect, special or consequential
nature or whether incurred or suffered directly or as a result of a third party contract,
howsoever or whensoever caused, and whether in any way caused by or resulting from the
acts or omissions of FortisAlberta Parties, or any of them, except for direct property damages
incurred by an Applicable Party as a direct result of a breach of the Terms and Conditions or
applicable FortisAlberta Agreement or other act or omission by a FortisAlberta Party, which
breach or other act or omission is caused by the negligence or wilful act or omission of such
FortisAlberta Party. Any liability under this Section will be limited to an amount in
proportion to the degree to which the FortisAlberta Party acting negligently or wilfully is
determined to be at fault. For the purpose of the foregoing and without otherwise restricting
the generality thereof, “direct property damage” shall not include loss of revenue, loss of
profits, loss of earnings, loss of production, loss of contract, cost of purchased or replacement
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capacity and Energy, cost of capital, and loss of use of any facilities or property, or any other
similar damage or loss whatsoever.

12.2   Release

Subject to Section 12.1 above, none of the FortisAlberta Parties (as defined above) will be
liable to Applicable Parties (as defined above) for any damages, costs, charges, expenses,
injuries, losses, or liabilities suffered or incurred by Applicable Parties or any of them,
howsoever and whensoever caused, and each Applicable Party hereby forever releases each
of the FortisAlberta Parties from any liability or obligation in respect thereof.

12.3   FortisAlberta Not Liable to Customer

For greater certainty and without limitation to the foregoing in Sections 12.1 and 12.2 above,
FortisAlberta Parties (as defined above) shall not be liable to a Customer party for any
damages of any kind (except to the extent FortisAlberta is liable for such damages in
accordance with Section 12.1):

(a)    caused by or arising from any FortisAlberta Party’s conduct in compliance with or in
       breach of, or as permitted by, the Terms and Conditions, a Retail Service Agreement
       between FortisAlberta and a Retailer, an Electric Service Agreement between
       FortisAlberta and a Customer, or any legal or regulatory requirements related to
       service provided to Responsible Party;

(b)    caused to the Customer and arising from any failure of a Retailer to comply with the
       Terms and Conditions, a Retail Service Agreement, any agreement with FortisAlberta
       relating to Distribution Access Service or for any damages caused by or arising from
       equipment installed or actions taken by a Retailer;

(c)    caused by or arising from a Retailer’s failure to perform any commitment to the
       Customer, including but not limited to the Retailer’s obligation, including their
       obligation under Part 8 of the Act, to provide Electricity Services including
       Distribution Access Service to the Customer; or

(d)    caused by or resulting from any acts, omissions or representations made by a Retailer
       in connection with soliciting Customers for Distribution Access Service or
       performing any of the Retailer’s functions in providing Electricity Services including
       Distribution Access Service.
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12.4   Responsible Party Liability

       12.4.1 General

       In addition to any other liability provisions set out in the Terms and Conditions or any
       provision in a FortisAlberta Agreement, an Applicable Party (as defined above) shall
       be liable to the FortisAlberta Parties and indemnify and save harmless the
       FortisAlberta Parties for any damages, costs, charges, expenses, fees (including legal
       fees and disbursements on an indemnity basis), judgments, fines, penalties, injuries,
       losses, or any liabilities in law, equity, tort or contract suffered or incurred by
       FortisAlberta Parties (as defined above), whether of a direct or indirect nature or
       whether incurred or suffered directly or as a result of a third party contract, caused by
       or arising from any acts or omissions of an Applicable Party that result in a breach
       (“Breach”) of the Terms and Conditions or the applicable FortisAlberta Agreement,
       or any negligent or wilful acts or omissions of an Applicable Party outside of a
       Breach. Any liability under this Section will be limited to an amount in proportion to
       the degree to which the Applicable Party is at fault. Any liability and indemnity
       provisions hereunder are in addition to, but do not limit, the liability protection
       provisions of the Act and Regulations.

       The Responsible Party shall be liable for any loss, damage, expense, charge, cost or
       other liability of any kind, whether to FortisAlberta, its agents or employees,
       FortisAlberta property or otherwise, arising directly or indirectly by reason of: (i) the
       routine presence in or use of Energy over the wires, cables, devices or other Facilities
       owned or controlled by the Responsible Party; (ii) the Responsible Party’s improper
       or negligent use of Energy or electric wires, cables, devices or other Facilities; or (iii)
       the negligent acts or omissions or wilful acts or omissions of the Responsible Party
       or any person permitted on such Responsible Party’s property.

       12.4.2 Indemnification by Retailer to FortisAlberta for Third Party Claims

       (a)    A Retailer (the “Indemnitor”) shall indemnify and hold harmless FortisAlberta
              Parties (as defined above) (“Indemnitee(s)”) from and against any damages,
              injuries, losses and other liabilities claimed against the Indemnitee or any of
              them, and all related costs and expenses (including reasonable legal fees)
              suffered or incurred by any of them in relation to any claims, causes of action,
              actions, suits or proceedings by a third party (“Claim”) which arise from
              damage to property or injury to or death of persons resulting from the
              Indemnitor’s failure to perform its obligations under the Terms and
              Conditions or the applicable FortisAlberta Agreement (as defined above),
              which failure is caused by the negligence or wilful act or omission of harm of
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      the Indemnitor acting within the scope of its authority or employment. The
      indemnity under this Section will be limited to an amount in proportion to the
      degree to which the Indemnitor is at fault.

(b)   In the event that an Indemnitee is entitled to and desires to assert its right to
      indemnification from an Indemnitor under this Section, such Indemnitee will
      give the Indemnitor prompt notice of the Claim, which shall describe the
      Claim in reasonable detail and shall indicate the estimated amount, if
      practicable, of the indemnifiable loss that has been or may be sustained by the
      Indemnitee. The failure to promptly notify the Indemnitor hereunder shall not
      relieve the Indemnitor of its obligations hereunder, except to the extent that
      the Indemnitor is actually and materially prejudiced by the failure to so notify
      promptly.

(c)   Subject to Section 12.4.2(b) hereof, if the Indemnitor delivers to the
      Indemnitee a written acknowledgement of its unconditional and irrevocable
      obligation to indemnify the Indemnitee under Section 12.4.2(a) in respect of:

      i.     all of the damages, injuries, losses, liabilities, costs and expenses that
             may be claimed against, or suffered or incurred by, the Indemnitee in
             respect of the Claim within 10 days following the Indemnitor’s receipt
             of the Indemnitee’s notice of such Claim and if the existence of such
             obligation to indemnify is made known by the Indemnitor to the third-
             party claimant (and, if applicable, to the court or other tribunal
             determining the Claim), the Indemnitee shall make available to the
             Indemnitor all information in its possession or to which it has access,
             other than information that has been designated as confidential by the
             provider of such information, which is or may be relevant to the
             particular Claim and the Indemnitor shall be entitled, at its option, to
             take carriage of the defence of the Claim by its own counsel and, if it
             elects to do so, the Indemnitee shall cooperate with the Indemnitor to
             the fullest reasonable extent in the defence, settlement or compromise
             of the Claim; or

      ii.    some, but less than all, of the damages, injuries, losses, liabilities,
             costs and expenses that may be claimed against, or suffered or incurred
             by, the Indemnitee in respect of the Claim within 10 days following
             the Indemnitor’s receipt of the Indemnitee’s notice of such Claim and
             if the Indemnitee is of the opinion that the Indemnitor’s interests are
             not in conflict with its own, the Indemnitee shall make available to the
             Indemnitor all information in its possession or to which it has access,
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                       other than information that has been designated as confidential by the
                       provider of such information, which is or may be relevant to that
                       portion of the Claim in respect of which the Indemnitor has an
                       obligation to indemnify the Indemnitee and consult with the
                       Indemnitor in respect thereof.

              The Indemnitee shall not make any admission of the liability regarding, or
              settle or compromise, that portion of the Claim in respect of which the
              Indemnitor has acknowledged its obligation to indemnify the Indemnitee
              without the written consent of the Indemnitor, which consent shall not be
              unreasonably withheld.

              The provisions of this Section 12.4.2 shall not apply in respect of any Claim to
              which the Indemnitor is, or may reasonably be expected to be, a party and
              where the Indemnitee is asserting legal defences in relation to the Claim that
              conflict with legal defences being asserted by the Indemnitor.

12.5   Force Majeure

       12.5.1 Force Majeure Relief

       If an event or circumstance of Force Majeure occurs that affects FortisAlberta’s
       ability to provide a Service Connection or other interconnection to its Electric
       Distribution System or Distribution Access Service, FortisAlberta’s obligations and
       responsibilities hereunder and under any agreement relating to Service Connections
       or other interconnections to its Electric Distribution System or the provision of
       Distribution Access Service, so far as they are affected by the Force Majeure or the
       consequences thereof, shall be suspended without liability to the Responsible Party
       until such Force Majeure or the consequences thereof are remedied and for such
       period thereafter as may reasonably be required to restore the Distribution Access
       Service. The Minimum Charge, if applicable, will continue to be payable during the
       period in which FortisAlberta claims relief by reason of Force Majeure.

       12.5.2 Notice

       FortisAlberta shall promptly give the relevant party notice of the Force Majeure
       including full particulars thereof and shall promptly give the relevant party notice
       when the Force Majeure ceases to prevent performance of FortisAlberta’s obligations.
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       12.5.3 Obligation to Remedy

       FortisAlberta shall promptly remedy the cause and effect of the Force Majeure insofar
       as it is reasonably able to do so.

       12.5.4 Strikes and Lockouts

       Notwithstanding any other provision of the Terms and Conditions, the settlement of
       any strike, lockout or other industrial disturbance affecting FortisAlberta shall be
       wholly in the discretion of FortisAlberta and FortisAlberta may settle such strike,
       lockout or industrial disturbance at such time and on such terms and conditions as it
       may deem appropriate. No failure or delay in settling of such strike, lockout or
       industrial disturbance shall constitute a cause or event within the control
       FortisAlberta or deprive FortisAlberta of the benefits of this Section 12.5.

12.6   Events of Default

An event of default under these Retailer Terms and Conditions and the Retail Service
Agreement will occur if either FortisAlberta or the Retailer (“Defaulting Party”):

(a)    is the subject of a bankruptcy, insolvency or similar proceeding;

(b)    makes an assignment for the benefit of its creditors;

(c)    applies for, seeks, consents to, or acquiesces in the appointment of a receiver,
       custodian, trustee, liquidator or similar official to manage all or a substantial portion
       of its assets;

(d)    fails to pay the other party (“Non-Defaulting Party”) when payment is due, or to
       satisfy any other material obligation under the Terms and Conditions or the Retail
       Service Agreement including, without limiting the generality of the foregoing,
       fulfilling the creditworthiness requirements as set forth in Article 6, in accordance
       with the Terms and Conditions, and fails to remedy the failure or satisfy the
       obligation, as the case may be, within 10 Business Days after receipt of written notice
       thereof from the Non-Defaulting Party.

In an event of default, the Non-Defaulting Party shall, subject to the Terms and Conditions
and any applicable regulatory requirements, be entitled to pursue any and all available legal
and equitable remedies and terminate the Retail Service Agreement without any liability or
responsibility whatsoever, except for obligations arising prior to the date of termination. The
non-defaulting party shall provide written notice to the defaulting party of its intention to
terminate Distribution Access Service hereunder.
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                              ARTICLE 13 – ARBITRATION

13.1   Resolution by FortisAlberta and Responsible Party

Except as set out in Section 13.11, if any dispute between FortisAlberta and a Responsible
Party shall arise at any time in connection with the Terms and Conditions which is not
otherwise resolved, both FortisAlberta and the Responsible Party, acting reasonably and in
good faith, shall use all reasonable efforts to resolve the dispute as soon as possible in an
amicable manner.

13.2   Resolution by Arbitration

If any dispute has not been resolved within 30 days after written notice from FortisAlberta or
the Responsible Party to the other of their desire to have the dispute resolved, then upon
written notice by either party the dispute may be resolved through other proceedings,
including arbitration, on the terms set out herein or on such termsas othersise agreed to by the
parties.

Notwithstanding anything herein, any disputed matters between FortisAlberta and a
Responsible Party relating to an order or direction made or approved by the Board or falling
within the exclusive jurisdiction of the Board, shall be referred to the Board for resolution.



13.3   Arbitrators

Where FortisAlberta and a Responsible Party have agreed to arbitrate a dispute or difference
in connection with the Terms and Conditions, the dispute or difference shall be referred to a
single arbitrator, agreed upon by both parties. In the event that the parties cannot agree to a
single arbitrator within 10 days of agreeing to proceed by way of arbitration, the dispute or
difference shall be referred to a Board of Arbitrators consisting of 1 arbitrator to be appointed
by each of FortisAlberta and the Responsible Party who shall, by instrument in writing,
appoint a third arbitrator within 20 days of written notice for arbitration, after they are
themselves appointed, unless FortisAlberta and the Responsible Party concur in the
appointment of a single arbitrator. The arbitrator or arbitrators shall render a decision within
90 days of the latest appointment.

If an arbitration decision is not made within the time herein provided, then until it is so made
and unless the other party has taken any of the actions referred to in this paragraph, a party,
upon 30 days notice to the other party and to the arbitrators, may: (i) cancel the appointment
of the arbitrator previously made and initiate new arbitration proceedings by a new notice to
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the other party pursuant to this Section; or (ii) cancel such arbitration proceedings and
proceed in the courts as though Article 13 did not exist.

13.4   Refusal to Appoint an Arbitrator

If either FortisAlberta or the Responsible Party shall neglect or refuse to appoint an arbitrator
within 10 days after the other party (provided such other party has appointed their arbitrator)
has served FortisAlberta or the Responsible Party, as the case may be, with written notice to
make the appointment, the party who has appointed their arbitrator shall be entitled to apply,
upon notice to the other party, to a Justice of the Court of Queen’s Bench of Alberta to
appoint an arbitrator for the party in default.

13.5   Failure to Appoint a Third Arbitrator

If the arbitrators appointed by FortisAlberta and the Responsible Party have not, within 20
days after their appointment or the appointment of the arbitrator last appointed, as the case
may be, appointed a third arbitrator, either FortisAlberta or the Responsible Party shall be
entitled to apply, upon notice to the other party, to a Justice of the Court of Queen’s Bench of
Alberta to appoint such an arbitrator.

13.6   Technical Competence

Any arbitrator appointed under the provisions of this Article whether by concurrence of
FortisAlberta and the Responsible Party, by either party, by the arbitrators, or by a Justice of
the Court of Queen’s Bench of Alberta shall, in the opinion of the persons making such
appointment, be possessed of such technical or other qualifications as may be reasonably
necessary to enable the arbitrator to properly adjudicate upon the dispute or difference.

13.7   Compensation of Arbitrators

Each party shall be responsible for the costs of the arbitrator appointed by it hereunder. The
costs of a single arbitrator or the third arbitrator, as the case may be, shall be determined by
the arbitrator(s).

13.8   Application of the Arbitration Act (Alberta)

The arbitration shall be conducted in accordance with the Arbitration Act, R.S.A. 2000, c. A-
43, (the “Arbitration Act”) as amended from time to time. In the event of a conflict between
the Terms and Conditions and the Arbitration Act, the Terms and Conditions shall prevail.
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13.9   Decisions Binding

A decision of the single arbitrator, or the majority of the three arbitrators named or
appointed, shall be final and binding upon each of the parties to the dispute or difference, and
not subject to appeal.

13.10 Continuity of Distribution Access Service

All performance required under the Terms and Condition by FortisAlberta and the
Responsible Party and payment shall continue during the dispute resolution proceedings
contemplated by this Article.


             ARTICLE 14 – ADDITIONAL PROVISIONS RELATING TO
                      DISTRIBUTION ACCESS SERVICES

14.1   Ownership of Facilities

FortisAlberta remains the owner of all Facilities necessary to provide Distribution Access
Service to Customers unless an agreement between FortisAlberta and the Responsible Party
specifically provides otherwise.

Payment made by Customers for costs incurred by FortisAlberta in installing Facilities does
not entitle Customers to ownership of any such Facilities, unless an agreement between
FortisAlberta and the Customer specifically provides otherwise.

14.2   Proper Use of Services

A Customer assumes full responsibility for the proper use of the Service Connection and
Distribution Access Service provided by FortisAlberta and for the condition, suitability and
safety of any and all wires, cables, devices or appurtenances energized by Energy on the
Customer’s premises or on premises owned or controlled by the Customer that are not the
Customer’s property.

14.3   New Facilities and Distribution Access Service Additions

FortisAlberta reserves the right to communicate directly with the Customer in respect of any
requests made by the Customer, the Retailer or any other party acting as agent for the
Customer, for the construction of new Facilities or for additional services as provided for in
the Billing Regulation, A.R. 159/2003, as may be amended from time to time. FortisAlberta
reserves the right to charge the Customer directly for any amounts required to be provided by
the Customer under the Terms and Conditions.
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14.4   Service Interruption

FortisAlberta operates its electric system so as to maintain a voltage within the limits set out
in Canadian Standards Association Standard C235. While FortisAlberta takes reasonable
efforts to guard against interruptions, it does not guarantee uninterrupted service.

Without liability of any kind to FortisAlberta, it shall have the right to disconnect or
otherwise curtail, interrupt or reduce Distribution Access Service to Responsible Parties
whenever FortisAlberta reasonably determines, or when FortisAlberta is directed by the
Independent System Operator, that such a disconnection, curtailment, interruption or
reduction is: (i) necessary to facilitate construction, installation, maintenance, repair,
replacement or inspection of any of FortisAlberta’s Facilities; (ii) to maintain the safety and
reliability of FortisAlberta’s Electric Distribution System; or (iii) due to any other reason,
including dangerous or hazardous circumstances, emergencies, forced outages, potential
overloading of FortisAlberta’s Electric Distribution System, system security reasons or as a
result of Force Majeure.

14.5   Independent System Operator or Transmission Facility Owner Requirements

The Responsible Parties acknowledge and agree that FortisAlberta is bound by all operating
instructions, policies and procedures of the Independent System Operator and Transmission
Facility Owners which are needed to maintain the integrity of Alberta’s interconnected
electric system. Each Responsible Party acknowledges and agrees that they will cooperate
with FortisAlberta so that FortisAlberta will be in compliance with all such operating
instructions, policies and procedures which include, but are not limited to, those operating
instructions, policies and procedures pertaining to minimum and maximum generation
emergencies, and supply voltage reduction or full interruption of Customer Load by either
manual or automatic means.

14.6   Compliance with Applicable Legal Authorities

FortisAlberta and the Responsible Parties are subject to, and shall comply with, all existing
or future applicable federal, provincial and local laws, all existing or future orders or other
actions of the Independent System Operator or of governmental authorities having applicable
jurisdiction. FortisAlberta will not violate, directly or indirectly, or become a party to a
violation of any applicable requirement of the Independent System Operator or any
applicable federal, provincial or local statute, regulation, bylaw, rule or order in order to
provide a Service Connection or Distribution Access Service to the Responsible Parties.
FortisAlberta’s obligation to provide a Service Connection and Distribution Access Service
is subject to the condition that all requisite governmental and regulatory approvals for the
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provision of such services will have been obtained and will be maintained in force during
such period of service.

14.7   No Assignment

A Responsible Party shall not assign any of their rights or obligations under the Terms and
Conditions, an Electric Service Agreement, a Retail Service Agreement or any other
agreement with FortisAlberta relating to a Point of Service or Distribution Access Service
without obtaining any necessary regulatory approvals and FortisAlberta’s approval where
required in such agreement. No assignment shall relieve the Responsible Party of any of their
obligations under the Terms and Conditions or any other agreement with FortisAlberta
relating to a Point of Service or Distribution Access Service until such obligations have been
assumed by the assignee and FortisAlberta has agreed to the novation. Any assignment in
violation of this Section shall be void.

14.8   No Waiver

The failure of FortisAlberta or a Responsible Party to insist in any one or more instances
upon strict performance of any provisions of the Terms and Conditions, an Electric Service
Agreement, a Retail Service Agreement or any other agreement between the Responsible
Party and FortisAlberta relating to a Point of Service or Distribution Access Service, or to
take advantage of any of its rights hereunder or thereunder, shall not be construed as a waiver
of any such provision or the relinquishment of any such right or any other right hereunder or
thereunder, which shall remain in full force and effect. No term or condition of the Terms
and Conditions or any other agreement between the Responsible Party and FortisAlberta
relating to a Point of Service or Distribution Access Service shall be deemed to have been
waived and no breach excused unless such waiver or consent to excuse is in writing and
signed by the party claimed to have waived or consented to excuse.

14.9   Law

The Terms and Conditions and any other agreement between a Responsible Party and
FortisAlberta relating to a Point of Service or Distribution Access Service shall be governed
by the laws of the Province of Alberta and the federal laws of Canada applicable in the
Province of Alberta, without regard to principles of conflicts of law. Any action or
proceeding arising in connection with the Terms and Conditions and any other agreement
between a Responsible Party and FortisAlberta relating to a Point of Service or Distribution
Access Service shall be brought in the courts of the Province of Alberta.
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14.10 Requirement to Enter into New Contracts

In accordance with the provisions of the Act and the Regulations made thereunder, after
December 31, 2000, FortisAlberta came to act solely as a wire services provider providing
Service Connections and Distribution Access Service and was no longer responsible for
providing electricity directly to Customers. As a result of these changes, many of the
provisions contained in existing agreements FortisAlberta has with Responsible Parties
relating to the provision of a Service Connection or Distribution Access Service are no longer
relevant. As such, FortisAlberta reserves the right to cause applicable Parties to enter into
new agreements that reflect the changes necessary to conform to the new role assigned to
FortisAlberta.

14.11 Notice

Unless otherwise stated herein, all notices, demands or requests required or permitted under
the Terms and Conditions or any agreement with a Responsible Party with FortisAlberta for a
Service Connection or Distribution Access Service shall be in writing and shall be personally
delivered or sent by courier-service or facsimile transmission (with the original transmitted
by any of the other aforementioned delivery methods) addressed as follows:

If to the Retailer, to the address set out in the Retail Service Agreement between the Retailer
and FortisAlberta.

If to FortisAlberta, to:

        FortisAlberta Inc.
        320 - 17th Ave. S.W.
        Calgary, Alberta
        T2S 2V1

        Fax: (403) 514-4001

Notice received after the close of a Business Day shall be deemed received on the next
Business Day.
                                                                                  FortisAlberta Inc.
                                                            Interim Retailer Terms and Conditions
                                                                    of Distribution Access Service


                                                                                           Page 42

                                                                     Effective January 1, 2008

                            APPENDIX A – FEE SCHEDULE

The fees and charges indicated by this schedule are non-refundable and are charged to the
Retailer for flow-through to the Customer, unless otherwise specified.

1. Reconnection                                                    $90.00 reconnection fee
   This fee is applicable when the Retailer has initiated a       plus an additional $60.00
   reconnect request to be completed during 8:00 AM – 4:00        fee if reconnected after a
   PM Monday – Friday, including:                                   Customer requested
                                                                  disconnect and if no Idle
   • Electrical non-compliance
                                                                    Charges are assessed.
   • Non-payment
   • Customer initiated alterations to the electrical system
   • Reconnect from a Customer requested Disconnect
2. Off-Cycle Meter Reading                                                    $35.00
   This fee is applicable when an off-cycle meter reading is
   requested.

3. Interval Meter Installation                                 Incremental cost on a per
   For Interval Meter installation at Points of Service with a site basis (including time
   Contract Minimum Demand of less than 333 kW (which and materials but excluding
   coincides with an Operating Demand of less than 500 kW) additional cost of meter
   (does not apply to DG Customers who own and poll the                   itself)
   meters). This will be charged directly to the Customer.
4. Meter Testing                                                 $50.00 for residential/farm
   This fee is applicable when a request to test a meter is          $100.00 all others
   received. The fee is collected and refunded if the meter is
   found to be faulty. This may be charged directly to the
   Customer.
5. Meter Signal                                                 Cost to be determined on
   This fee is applicable for the time and material associated   an individual site basis
   with the meter signal requests. Costs can vary a great deal $25.00/hr for regular meter
   by service and must be determined on a site-by-site basis. $50.00/hr for interval meter
   This will be charged directly to the Customer.                   1 hour minimum
                                                                                  FortisAlberta Inc.
                                                            Interim Retailer Terms and Conditions
                                                                    of Distribution Access Service


                                                                                           Page 43

                                                                     Effective January 1, 2008

6. No Access                                                                  $90.00
   This fee is applicable to the Customer when access to a site
   is considered by FortisAlberta’s employees, agents or other
   representatives as unsafe or is otherwise prevented,
   hindered or refused.
7. Customer Usage Information Request Less Than or                   Fee set to zero on an
   Equal to 12 Months                                                   interim basis
   This fee is applicable when a request for specific Customer
                                                                 (per 2005 Distribution Tariff
   Usage Information is made for less than or equal to 12      Negotiated Settlement Agreement
   months of Load history. This will be charged directly to    approved in Decision 2005-053)
   the requesting party.
8. Customer Usage Information Request Greater Than 12 $25.00/hr for regular meter
   Months
   This fee is applicable when a request for specific Customer $50.00/hr for interval meter
   Usage Information is made for greater than 12 months of          1 hour minimum
   Load history. This will be charged directly to the
   requesting party.
9. Settlement History or Confirmation of Settlement Data $25.00/hr for regular meter
   This fee applies when a Retailer requests that an
   investigation be performed of suspect Load Settlement   $50.00/hr for interval meter
   data. In the event that the data is, in the opinion of       1 hour minimum
   FortisAlberta, substantively incorrect, the fee will be
   waived. This will be charged directly to the requesting
   party.
10. Rush Connection                                                           $90.00
    This fee is for Retailer requests to connect the Customer
    immediately. This is not available for the purposes of
    getting priority service.
11. After Hours Reconnection                                                 $250.00
   This will be charged to the Retailer when the Customer’s
   service is connected outside regular business hours,
   weekdays 8:00 – 4:00. FortisAlberta will, time permitting,
   do reconnects between 4:00 and 10:00 pm at overtime
   rates.
                                                                                     FortisAlberta Inc.
                                                               Interim Retailer Terms and Conditions
                                                                       of Distribution Access Service


                                                                                              Page 44

                                                                        Effective January 1, 2008

12. Service Trips                                                                $45.00
   (a) This fee is applicable to the Customer when multiple
       trips to a Customer’s service are required for any of the
       following:
       •   Electrical non-compliance at service location, at
           new service or reconnection of existing service
       • Unsafe conditions
       • Customer deficiency
   (b) A Customer or other Responsible Party will be required Cost to be determined on
       to pay the actual costs of a Customer (or Responsible    an individual basis
       Customer, as the case may be) requested service call if
       the source of the problem is determined to be that
       party’s facilities.
13. Site ID Search                                                               $15.00
   This fee is applicable when a site ID has been requested
   which already exists in the wire service provider site ID
   catalogue.
14. Cancellation                                                                 $45.00
   This fee is applicable when a request is cancelled or
   deferred after the field staff have been mobilized. This
   may be charged directly to the Customer.
15. Returned Cheques                                                             $20.00
   This fee is applicable for each cheque returned to
   FortisAlberta for any reason. This will be charged directly
   to the defaulting party.
                                                                                  FortisAlberta Inc.
                                                            Interim Retailer Terms and Conditions
                                                                    of Distribution Access Service


                                                                                           Page 45

                                                                     Effective January 1, 2008

16. Excess Wattage                                                  $1.00 per kW per day
   Festive lighting service is available to municipalities who
   require decorative lighting for the Christmas season or
   other festive occasions during the months of December
   through February. A municipality may install festive
   lighting with a total wattage of up to 15% of their total
   street lighting wattage for a six week period at no charge.
   Any wattage in excess of 15% is charged the Excess
   Wattage charge. This will be charged directly to the
   municipality.
                                                                                  FortisAlberta Inc.
                                                            Interim Retailer Terms and Conditions
                                                                    of Distribution Access Service


                                                                                           Page 46

                                                                     Effective January 1, 2008


              APPENDIX B – DISCONNECT OF A POINT OF SERVICE

In accordance with the Act, a Retailer shall have the right to request that FortisAlberta
disconnect service to a particular Customer, and FortisAlberta shall comply with that request.
FortisAlberta's policy (as approved in the Terms and Conditions) with respect to
disconnecting Customers is set out below.

1.     Where a Retailer requests FortisAlberta to disconnect a Customer, the Retailer shall
       provide to FortisAlberta updated Customer Information. FortisAlberta reserves the
       right, but is not obligated, to verify the identity of the Customer of the Retailer, and
       the accuracy of the Customer Information that has been provided by the Retailer.
       FortisAlberta will not assume any billing or collection obligations or responsibilities
       for or on behalf of the Retailer.

2.     A Retailer may request that FortisAlberta disconnect a Point of Service by providing
       a notice of de-energization pursuant to the requirements of the Retailer Guidebook
       and the Settlement System Code. Such notice of de-energization shall clearly specify
       the Retailer’s reasons for seeking to disconnect a Point of Service. Upon receipt of
       such notice, FortisAlberta will either:
       a.      process the de-energization within 5 Business Days after the day of receipt of
               notification (or such other time as may be required under the Settlement
               System Code); or
       b.      notify the Retailer within 2 Business Days (or such other time as may be
               required under the Settlement System Code) that the notice of de-energization
               has been rejected and the reasons for such rejection. Upon receipt of the
               rectified notice of de-energization, FortisAlberta will, within 5 Business Days
               after the day of receipt of notification (or such other time as may be required
               under the Settlement System Code), process the de-energization.

3.     Unless otherwise directed by the Retailer, FortisAlberta:
       a.      will schedule a disconnect between 8:00 A.M. to 4:00 P.M.;
       b.      will not disconnect on Friday, Saturday, Sunday, a legal holiday, or a day
               before a legal holiday; and
       c.      in certain remote areas where travel is difficult, will schedule the disconnects
               in that area to occur once every 10 Business Days.

4.     The Retailer is responsible to ensure that its Customer is provided notice of a
       disconnection and for the consequences of the disconnection. FortisAlberta will have
                                                                                 FortisAlberta Inc.
                                                           Interim Retailer Terms and Conditions
                                                                   of Distribution Access Service


                                                                                          Page 47

                                                                    Effective January 1, 2008

      no liability for any disputes between the Customer and the Retailer in relation to a
      disconnection.

5.    FortisAlberta may reject the disconnection request if FortisAlberta, acting reasonably,
      determines that any information required in the application, including the Customer
      Information provided by the Retailer, is false, incomplete or inaccurate in any respect.

6.    FortisAlberta will not process a disconnection if FortisAlberta believes disconnection
      would cause any actual or threatened danger to life or property.

7.    FortisAlberta will not disconnect a residential or farm service Customer:
      a.     at any time during the period from October 15 to April 15, or
      b.     at any other time when the temperature is forecast to be below 0 degrees
             Celsius in the 24-hour period immediately following the proposed
             disconnection,
      although FortisAlberta reserves the right to install a device to limit or reduce the
      amount of Energy provided to the Customer.

8.    The Retailer shall remain responsible for Electricity Services to the Customer until
      the earlier of:
      a.     a replacement Retailer is appointed and in place for the Customer; or
      b.     the Customer’s Point of Service is Permanently Disconnected.


9.    If a Retailer requests a Temporary Disconnection due to vacancy, FortisAlberta will
      dispatch the appropriate resources to execute the disconnection. Should it become
      apparent that the Point of Service is occupied and the Customer is not on-site when
      FortisAlberta arrives to disconnect, FortisAlberta reserves the right to reject or
      suspend the disconnect request and not to disconnect immediately, but rather leave a
      warning notice in order to give the Customer the opportunity to make appropriate
      arrangements for electricity service.

10.   At the request of the Retailer or the Customer, FortisAlberta will leave all of its
      Facilities in place after the Point of Service has been de-energized if the Retailer or
      Customer, as applicable, agrees to pay Idle Charges.

				
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