Residential Service - Electric Heat

Available to approved individual residential consumers located in Navajo Country alongexisting lines of the Authority, when facilities of adequate capacity and suitable voltageare adjacent to the premises to be served.

Applicable to electric service required for permanently installed space heating and otherresidential purposes in individual private homes or apartments where service is provided andmeasured at one point of delivery through one meter.

Character of Service
Single phase, 60 hertz, at one standard voltage, 120/240 or 120/208 as may be selected,subject to availability at the premises. Approval of the Authority must be obtained priorto the installation of any motor having a rated capacity of five (5) horsepower.

Net Monthly Rate
The monthly billing shall be the sum of the service charge and the energy charge set forth below:

                                              Service Charge ............................ $13.35

                                              Energy Charge
                                              All kWh ............................... $0.0656 per kWh

Monthly Minimum Charge
The monthly minimum charge shall not be less than the monthly service charge.

Special Conditions
A. The installation of electric space heating according to plans and specifications forconstruction of the residence, which have been approved in advance by the Authority is a prerequisite to the availability of this rate schedule. The Authority does notassume any responsibility for installation or operations of the customer's spaceheating equipment, nor does the Authority assume any responsibility with respect to thecustomer's premises, such as the insulation of the area to be heated.

B. The use of electrical energy as fuel for not less than 90% of the space heatingrequirements of a residence is necessary to qualify for this rate.

C. The entire cost of the entrance to service installations under this schedule (exceptthe meter) shall be paid for by the customer.

D. This rate is not available on a seasonal basis, and the Authority reserves the right toinspect the premises and make such investigations as may be desirable in its solediscretion to determine whether or not the requirements of this rate schedule are beingmet.

E. All heaters larger than 1650 watts shall be designated to operate at 208 volts or 240volts, whichever is available.

Adjustment for Purchase Power Cost Changes
The above rates are subject to increase or decrease by the amounts by which the Cost ofPurchased Power exceeds or is less than $0.03574 per kWh sold. The Cost of Purchased Powerincludes all costs of purchased capacity and energy, and the costs paid to others for thetransmitting of such power and energy.

Terms and Conditions
Subject to the Authority's rules and regulations for electric service.