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monthly adjusted demand Less the agreed to load reduction. The PDL in months without a control period will not be less than the <br />greatest PDL of all months with a control period during the preceding eleven months. <br />Any customer with generating equipment which is operated in parallel with Company must comply with all <br />requirements associated with Parallel Operations specified in the General Rules and Regulations of Company. <br />The PDL may be revised within or after the trial period subject to approval by Company. If the revision of the PDL <br />occurs within the trial period, the customer pays the demand charge differential for the corresponding months of the contract in the <br />trial period multiplied by the number of kilowatts (kW) the customer increases the PDL. Charges for the failure to control to their <br />PDL are forgiven. (The customer will be credited any paid penalties against the recalculated amount.) If the revision of the PDL <br />occurs after the trial period, the same calculation is made for the most recent months up to but not to exceed 18. In this case, <br />however, the customer is responsible for the greater of the following: (a) the amount determined by multiplying the demand <br />charge differential by the PDL increase, as described above, or (b) the total amount of any penalties paid/owed for failure to <br />control load to the previous PDL. <br />11. TRIAL PERIOD AND CANCELLATION CHARGE: Company agrees that the first twelve months of this agreement will be <br />a trial period. Customer must notify Company in writing to terminate this agreement during the trial period. If customer <br />terminates this agreement during the trial period, Customer's Peak - Controlled Tiered Service or Peak - Controlled Tiered Time of <br />Day Service bills will be recalculated using the corresponding firm rate (General Service or General Time of Day Service). <br />Customer will be charged the difference between the recalculated amount and the amount charged under the corresponding Peak - <br />Controlled rate. Also, customer will receive a refund for any additional charges which were assessed during the trial period due to <br />customer failure to control load. A trial period for Peak - Controlled Tiered Service or Peak - Controlled Tiered Time of Day <br />Service will not be available to any customer account that has previously received either service, or the closed Peak - Controlled or <br />Energy - Controlled Services. <br />Customer will pay a cancellation charge after the twelve month trial period, if Customer terminates this agreement or this <br />agreement is terminated as a result of any default of Customer. The cancellation charge will be the difference between the billing <br />amounts described above, for the most recent 18 months for Tier 2 or 36 months for Tier 1 of Peak - Controlled Tiered Service or <br />Peak - Controlled Tiered Time of Day Service. Customer will not receive a refund for any additional charges which were assessed <br />during this 18 or 36 month period due to customer failure to control load. <br />Additionally, if at any time this agreement is terminated in any above described manner, Customer will be charged all <br />installation and removal costs for special equipment and facilities provided by Company for Peak - Controlled Tiered Service or <br />Peak - Controlled Tiered Time of Day Service. <br />12. CONTROL SYSTEM: Customer agrees to control loads to the limits contained in this agreement and upon notice from the <br />Company to reduce load to levels predetermined by this agreement. <br />13. FAILURE TO CONTROL: If in any month customer fails to control load to predetermined demand level when requested by <br />Company, the additional charge specified in the Rules for Application of Peak - Controlled Tiered Services and Peak - Controlled <br />Services (closed) shall be applied to the amount by which customer's maximum adjusted demand during any control period <br />exceeds predetermined demand. If customer incurs three failures to control load to predetermined demand level when requested <br />by Company, the Company reserves the right to renegotiate the predetermined demand level or remove customer from Peak - <br />Controlled Tiered or Peak - Controlled Tiered Time of Day Service. In a case where customer is removed from Peak - Controlled <br />Tiered or Peak - Controlled Tiered Time of Day Service, customer will be subject to a cancellation charge specified in customer's <br />Electric Service Agreement. <br />14. GENERATING CUSTOMER CHARGE: Customer choosing the Optional Predetermined Demand Level agrees to pay <br />Company $ 0.00 per month for additional metering and billing expenses related to the use of customer - operated generating <br />equipment to reduce adjusted demand during control periods, as described in the Rules for Application of Peak - Controlled Tiered <br />Services and Peak - Controlled Services (Closed). <br />NORTHERN STATES POWER COMPANY LITTLE CANADA CITY OF <br />By By <br />Title Title <br />Marketing Manager <br />Service Policy <br />Page 28 <br />