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Kentucky Utilities Company

TERMS AND CONDITIONS Brownfield Development

a) Service under EDR for Brownfield Development is available to customers locating at sites that have been submitted to, approved by, and added to the Brownfield Inventory maintained by the Kentucky Energy and Environment Cabinet (or by any successor entity created and authorized by the Commonwealth of Kentucky).

b) EDR for Brownfield Development is available only to minimum monthly billing loads of 500 kVA or greater where the customer takes service from existing Company facilities.

Economic Development

c) Service under EDR for Economic Development is available to:

1) new customers contracting for a minimum monthly billing load of 1,000 kVA; and

DATE OF ISSUE: July 10, 2015 DATE EFFECTIVE: July 1, 2015

ISSUED BY: /s/ Edwin R. Staton, Vice President State Regulation and Rates

Lexington, Kentucky

Issued by Authority of an Order of the Public Service Commission in Case No.

2014-00371 dated June 30, 2015

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KENTUCKY

PUBLIC SERVICE COMMISSION JEFF R. DEROUEN EXECUTIVE DIRECTOR

TARIFF BRANCH

EFFECTIVE

7/1/2015

PURSUANT TO 807 KAR 5:011 SECTION 9 (1)

P.S.C. No. 17, Original Sheet No. 71.1 Standard Rate Rider EDR

Economic Development Rider TERMS AND CONDITIONS

Economic Development (continued)

2) existing customers contracting for a minimum monthly billing load of 1,000 kVA above their Existing Base Load, to be determined as follows:

i. Company and the existing customer will determine Customer’s Existing Base Load by averaging Customer’s previous three years’ monthly billing loads, subject to any mutually agreed upon adjustments thereto.

ii. Company and the existing customer must agree upon the Existing Base Load, which shall be an explicit term of the special contract submitted to the Commission for approval before the customer can take service under EDR.

Once the Existing Base Load’s value is thus established, it will not be subject to variation or eligible for service under EDR.

iii. This provision is not intended to reduce or diminish in any way EDR service already being provided to all or a portion of a customer’s Existing Base Load.

Such EDR service would continue under the terms of the contract already existing between the Company and the customer concerning the affected portion of the customer’s Existing Base Load.

d) A customer desiring service under EDR for Economic Development must submit an application for service that includes:

1) a description of the new load to be served;

2) the number of new employees, if any, Customer anticipates employing associated with the new load;

3) the capital investment Customer anticipates making associated with the EDR load;

4) a certification that Customer has been qualified by the Commonwealth of Kentucky for benefits under the Kentucky Business Investment Program (KBI), or the Kentucky Industrial Revitalization Act (KIRA), or the Kentucky Jobs Retention Act (KJRA), or other comparable programs approved by the Commonwealth of Kentucky.

e) Should Company determine a refundable contribution for the capital investment in Customer-specific facilities required by Company to serve the EDR load would ordinarily be required as set out under Company’s Line Extension Plan, I. Special Cases, that amount shall be determined over a fifteen (15) year period and payable at the end of the fifteen (15) year period.

General

f) Company may offer EDR to qualifying new load only when Company has generating capacity available and the new load will not accelerate Company’s plans for additional generating capacity over the life of the EDR contract.

g) Customer may request an EDR effective initial billing date that is no later than twelve (12) months after the date on which Company initiates service to Customer.

DATE OF ISSUE: July 10, 2015 DATE EFFECTIVE: July 1, 2015

ISSUED BY: /s/ Edwin R. Staton, Vice President State Regulation and Rates

Lexington, Kentucky

Issued by Authority of an Order of the Public Service Commission in Case No.

2014-00371 dated June 30, 2015

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PURSUANT TO 807 KAR 5:011 SECTION 9 (1)

P.S.C. No. 17, Original Sheet No. 71.2 Standard Rate Rider EDR

Economic Development Rider

General (continued)

h) Neither the demand charge reduction nor any unjustified capital investment in facilities will be borne by Company’s other customers during the term of the EDR contract.

i) Company may offer differing terms, as appropriate, under special contract to which this rider is a part depending on the circumstances associated with providing service to a particular customer and subject to approval by the Public Service Commission of Kentucky.

j) In any billing month where Customer’s metered load is less than the load required to be eligible for either Brownfield Development or Economic Development, no credit under EDR will be calculated or applied to Customer’s billing.

TERM OF CONTRACT

Service will be furnished under the applicable standard rate schedule and this rider, filed as a special contract with the Commission for a fixed term of not less than ten (10) years and for such time thereafter under the terms stated in the standard rate schedule. A greater term of contract or termination notice may be required because of conditions associated with a Customer’s requirements for service. Service will be continued under conditions provided for under the rate schedule to which this Rider is attached after the original term of contract.

DATE OF ISSUE: July 10, 2015 DATE EFFECTIVE: July 1, 2015

ISSUED BY: /s/ Edwin R. Staton, Vice President State Regulation and Rates

Lexington, Kentucky

Issued by Authority of an Order of the Public Service Commission in Case No.

2014-00371 dated June 30, 2015

T

KENTUCKY

PUBLIC SERVICE COMMISSION JEFF R. DEROUEN EXECUTIVE DIRECTOR

TARIFF BRANCH

EFFECTIVE

7/1/2015

PURSUANT TO 807 KAR 5:011 SECTION 9 (1)

P.S.C. No. 17, Original Sheet No. 85 Adjustment Clause FAC

Fuel Adjustment Clause

APPLICABLE

In all territory served.

AVAILABILITY OF SERVICE

This schedule is mandatory to all electric rate schedules.

(1) The charge per kWh delivered under the rate schedules to which this fuel clause is applicable shall be increased or decreased during each month in accordance with the following formula:

Adjustment Factor = F(m) - F(b) S(m) S(b)

where "F" is the expense of fossil fuel and "S" is the kWh sales in the base (b) and current (m) periods as defined in 807 KAR 5:056, all as set out below.

(2) Fuel costs (F) shall be the most recent actual monthly cost of:

(a) Fossil fuel consumed in the utility's own plants, plus the cost of fuel which would have been used in plants suffering forced generation or transmission outages, but less the cost of fuel related to substitute generation; plus

(b) The actual identifiable fossil and nuclear fuel costs associated with energy purchased for reasons other than identified in paragraph (c) below, but excluding the cost of fuel related to purchases to substitute for the forced outages; plus

(c) The net energy cost of energy purchases, exclusive of capacity or demand charges (irrespective of the designation assigned to such transaction) when such energy is purchased on an economic dispatch basis. Included therein may be such costs as the charges for economy energy purchases and the charges as a result of scheduled outages, all such kinds of energy being purchased by the buyer to substitute for its own higher cost energy; and less

(d) The cost of fossil fuel recovered through inter-system sales including the fuel costs related to economy energy sales and other energy sold on an economic dispatch basis.

(e) All fuel costs shall be based on weighted average inventory costing.

DATE OF ISSUE: July 10, 2015

DATE EFFECTIVE: January 1, 2013 ISSUED BY: /s/ Edwin R. Staton, Vice President

State Regulation and Rates Lexington, Kentucky

Issued by Authority of an Order of the Public Service Commission in Case No.

2012-00221 dated December 20, 2012

KENTUCKY

PUBLIC SERVICE COMMISSION JEFF R. DEROUEN EXECUTIVE DIRECTOR

TARIFF BRANCH

EFFECTIVE

7/1/2015

PURSUANT TO 807 KAR 5:011 SECTION 9 (1)

P.S.C. No. 17, Original Sheet No. 85.1 Adjustment Clause FAC

Fuel Adjustment Clause

(3) Forced outages are all non-scheduled losses of generation or transmission which require substitute power for a continuous period in excess of six (6) hours. Where forced outages are not as a result of faulty equipment, faulty manufacture, faulty design, faulty installations, faulty operation, or faulty maintenance, but are Acts of God, riot, insurrection or acts of the public enemy, then the utility may, upon proper showing, with the approval of the Commission, include the fuel cost of substitute energy in the adjustment. Until such approval is obtained, in making the calculations of fuel cost (F) in subsection (2)(a) and (b) above, the forced outage costs to be subtracted shall be no less than the fuel cost related to the lost generation.

(4) Sales (S) shall be all kWh sold, excluding inter-system sales. Where, for any reason, billed system sales cannot be coordinated with fuel costs for the billing period, sales may be equated to the sum of (i) generation, (ii) purchases, (iii) interchange in, less (iv) energy associated with pumped storage operations, less (v) inter-system sales referred to in subsection (2)(d) above, less (vi) total system losses. Utility used energy shall not be excluded in the determination of sales (S).

(5) The cost of fossil fuel shall include no items other than the invoice price of fuel less any cash or other discounts. The invoice price of fuel includes the cost of the fuel itself and necessary charges for transportation of the fuel from the point of acquisition to the unloading point, as listed in Account 151 of FERC Uniform System of Accounts for Public Utilities and Licensees.

(6) Base (b) period shall be May 2011, and the base fuel factor is $0.02892 per kWh.

(7) Current (m) period shall be the second month preceding the month in which the Fuel Clause Adjustment Factor is billed.

(8) Pursuant to the Public Service Commission's Orders in Case No. 2012-00552 dated May 17, 2013, and May 29, 2013, the Fuel Adjustment Clause will become effective with bills rendered on and after the first billing cycle for July 2013, which begins June 26, 2013.

DATE OF ISSUE: July 10, 2015

DATE EFFECTIVE: With Bills Rendered On and After

June 26, 2013 ISSUED BY: /s/ Edwin R. Staton, Vice President

State Regulation and Rates Lexington, Kentucky

Issued by Authority of Orders of the Public Service Commission in Case No. 2012-00552 dated May 17, 2013 and May 29, 2013

KENTUCKY

PUBLIC SERVICE COMMISSION JEFF R. DEROUEN EXECUTIVE DIRECTOR

TARIFF BRANCH

EFFECTIVE

7/1/2015

PURSUANT TO 807 KAR 5:011 SECTION 9 (1)

P.S.C. No. 17, Original Sheet No. 86 Adjustment Clause DSM

Demand-Side Management Cost Recovery Mechanism APPLICABLE

In all territory served.

AVAILABILITY OF SERVICE

This schedule is mandatory to Residential Service Rate RS, Residential Time-of-Day Energy Rate RTOD-Energy, Residential Time-of-Day Demand Rate RTOD-Demand, Volunteer Fire Department Service Rate VFD, General Service Rate GS, All Electric School Rate AES, Power Service Rate PS, Time-of-Day Secondary Service Rate TODS, Time-of-Day Primary Service Rate TODP, and Retail Transmission Service Rate RTS. Industrial customers who elect not to participate in a demand-side management program hereunder shall not be assessed a charge pursuant to this mechanism. For purposes of rate application hereunder, non-residential customers will be considered “industrial” if they are primarily engaged in a process or processes that create or change raw or unfinished materials into another form or product, and/or in accordance with the North American Industry Classification System, Sections 21, 22, 31, 32, and 33. All other non-residential customers will be defined as “commercial.”

RATE

The monthly amount computed under each of the rate schedules to which this Demand-Side Management Cost Recovery Mechanism is applicable shall be increased or decreased by the DSM Cost Recovery Component (DSMRC) at a rate per kilowatt hour of monthly consumption in accordance with the following formula:

DSMRC = DCR + DRLS + DSMI + DBA + DCCR