Rules and Regulations

Application for Service. Each prospective Customer desiring electric service may be required to sign HES’ standard form of application for service or contract before service is supplied by HES.
Security Deposit. A security deposit may be required to establish service with HES.

Residential Security Deposit
New Customers- A security deposit may be required. Deposits are three tiered ($0, $100, $400) based on an empiric credit score rating.

Previous Customers- A security deposit may be required. Deposits are three tiered ($0, $100, $400) and based on past payment history with HES.

HES may at its option return deposit to Customer after on year. Upon termination of service, deposit may be applied by HES against unpaid bills of Customer, and if any balance remains after such application is made, said balance shall be refunded to Customer.

Commercial/Industrial Security Deposit
A deposit or suitable guarantee (letter of credit or surety bond) equal to twice the average monthly bill may be required before service is established. HES may at its option return deposit to Customer after five years. Upon termination of service, deposit may be applied by HES against unpaid bills of Customer, and if any balance remains after such application is made, said balance shall be refunded to Customer.
Point of Delivery. The point of delivery is the point, as designated by HES, on Customer's premises where current is to be delivered to building or premises. All wiring and equipment beyond this point of delivery shall be provided and maintained by Customer at no expense to HES.
Customer's Wiring--Standards. All wiring of Customer must conform to HES’ requirements and accepted modern standards, as exemplified by the requirements of the National Electrical Safety Code and the National Electrical Code.
Inspection. HES shall have the right, but shall not be obligated, to inspect any installation before electricity is introduced or at any time. HES reserves the right to reject any wiring or appliances not in accordance with HES’ standards; but such inspection or failure to inspect or reject shall not render HES liable or responsible for any loss or damage resulting from defects in the installation, wiring, or appliances, or from violation of HES’ rules, or from accidents which may occur upon Customer's premises.
Underground Service Lines. Customers desiring underground service lines from Distributor's overhead system must bear the excess cost incident thereto. Specifications and terms for such construction will be furnished by Distributor on request.
Customer's Responsibility for Distributor's Property. All meters, service connections, and other equipment furnished by Distributor shall be, and remain, the property of Distributor. Customer shall provide a space for and exercise proper care to protect the property of Distributor on its premises, and, in the event of loss or damage to Distributor's property arising from neglect of Customer to care for same, the cost of the necessary repairs or replacements shall be paid by Customer. Special equipment required by the customer, but not furnished by HES, shall be, and remain, the property of HES.
Right of Access. Identified employees or any other person designated by HES shall have access to Customer's premises at all reasonable times for the purpose of reading meters, testing, repairing, removing, or exchanging any or all equipment belonging to HES.
Billing. Bills will be rendered monthly and shall be paid at the office of Distributor or at other locations designated by Distributor. Failure to receive bill will not release Customer from payment obligation. Should bills not be paid by due date specified on bill, Distributor may at any time thereafter, upon five (5) days' written notice to Customer, discontinue service. Bills paid after due date specified on bill may be subject to additional charges. Should the due date of bill fall on a Sunday or Holiday, the business day next following the due date will be held as a day of grace for delivery of payment. Remittances received by mail after the due date will not be subject to such additional charges if the incoming envelope bears United States Postal Service date stamp of the due date or any date prior thereto.
Discontinue of Service by Distributor. Distributor may refuse to connect or may discontinue service for the violation of any of its Rules and Regulations, or for violation of any of the provisions of the Schedule of Rates and Charges, or of the application of Customer or contract with Customer. Distributor may discontinue service to Customer for the theft of current or the appearance of current theft devices on the premises of Customer. Distributor may discontinue service due to fire, flood, other natural disaster damage, accidents, construction, or removal or demolition of the premise when in the Distributors opinion, continuance of electric service could jeopardize public safety or result in damage to distributor’s or a third party’s property. The discontinuance of service by Distributor for any causes as stated in this rule does not release Customer from his obligation to Distributor for the payment of minimum bills as specified in application of Customer or contract with Customer.
Connection, Reconnection, and Disconnection Charges. Distributor may establish and collect standard charges to cover the reasonable average cost, including administration, of connection or reconnection service, or disconnecting service as provided above. Higher charges may be established and collected when connections and reconnections are performed after normal office hours, or when special circumstances warrant.
Termination of Contract by Customer. Notice to discontinue service prior to expiration of contract term will not relieve Customer from any minimum or guaranteed payment under contract or rate.
Service Charges for Temporary Service. Customers requiring electric service on a temporary basis may be required by Distributor to pay all costs for connection and disconnection incidental to the supplying and removing of service. This rule applies to circuses, carnivals, fairs, temporary construction, and the like.
Interruption of Service. Distributor will use reasonable diligence in supplying current, but shall not be liable for breach of contract in the event of, or for loss, injury or damage to persons or property resulting from, interruptions in service, excessive or inadequate voltage, single-phasing, otherwise unsatisfactory service, whether or not caused by negligence.
Shortage of Electricity. In the event of an emergency or other condition causing a shortage in the amount of electricity for Distributor to meet the demand on its system, Distributor may, by an allocation method deemed equitable by Distributor, fix the amount of electricity to be made available for use by Customer and/or may otherwise restrict the time during which Customer may make of electricity and the uses which Customer may make of electricity. If such actions become necessary, Customer may request a variance because of unusual circumstances including matters adversely affecting the public health, safety and welfare. If Customer fails to comply with such allocation or restriction, Distributor may take such remedial actions as it deems appropriate under the circumstances including temporarily disconnecting electric service and charging additional amounts because of the excess use of electricity. The provisions of the Section entitled Interruption of Service of these Rules and Regulations are applicable to any such allocation or restriction.
Voltage Fluctuations Caused by Customer. Electric service must not be used in such a manner as to cause unusual fluctuations or disturbances to Distributor's system. Distributor may require Customer, at his own expense, to install suitable apparatus which will reasonably limit such fluctuations.
Additional Load. The service connection, transformers, meters, and equipment supplied by Distributor for each Customer have definite capacity. No addition to the equipment or load connected thereto will be allowed except by consent of Distributor. Customer shall be responsible for any damage to any of HES’ lines or equipment caused by the additional or changed installation.
Standby and Resale Service. All purchased electric service (other than emergency or standby) used on the premises of Customer shall be supplied exclusively by Distributor, and Customer shall not, directly or indirectly, sell, sublet, assign, or otherwise dispose of the electric service or any part thereof.
Notice of Trouble. Customer shall notify Distributor immediately should the service be unsatisfactory for any reason, or should there be any defects, trouble, or accidents affecting the supply of electricity. Such notices, if verbal, should be confirmed in writing.
Non-Standard Service. Customer shall pay the cost of any special installation necessary to meet his/her peculiar requirements for service at other than standard voltages, or for the supply of closer voltage regulation than required by standard practice.
Meter Tests. Distributor will, at its own expense, make periodical tests and inspections of its meters in order to maintain a high standard of accuracy. Distributor will make additional tests or inspections of its meters at the request of Customer. If tests made at Customer's request show that the meter is accurate within two percent (2%), slow or fast, no adjustment will be made in Customer's bill, and Distributor's standard testing charge will paid by Customer. In case the test shows meter to be in excess of two percent (2%), fast or slow, and adjustment shall be made in Customer's bill over a period of not over thirty (30) days prior to date of such test, and cost of making test shall be borne by Distributor.
Relocation of Existing Facilities. Distributor shall, at the request of Customer, relocate or change existing Distributor-owned equipment. Customer shall reimburse Distributor for such changes at actual cost including appropriate overhead.
Billing Adjusted to Standard Periods. The demand charges and the blocks in the energy charges set forth in the rate schedules are based on billing periods of approximately one month. In the case of the first billing of new accounts (temporary service, cotton gins, and other seasonal customers excepted) and final billings of all accounts (temporary service excepted) where the period covered by the billing involves fractions of a month, the demand charges and the blocks of the energy charges will be adjusted to a basis proportionate with the period of time during which service is extended.
Power Contracts. Standard Power Contracts shall be required in addition to an application for service for all Customers whose monthly billing demand exceeds 50 kW. The Power Contract shall be executed at the time of application for service or at such time as Customer’s load growth reaches 50 kW.
Special Program Assistance. HES, in fulfillment of the purposes and provisions of the Tennessee Valley Authority Act and as part of its electric service, may make available special program assistance to eligible electric Customers for energy improvements. Some programs may make funds available in the form of a low interest loan to the Customer for the energy improvements. These loans will require the Customer to sign a repayment agreement and HES will bill the customer on a monthly basis.
Scope. This Schedule of Rules and Regulations is a part of all contracts for receiving electric service from Distributor, and applies to all service received from Distributor, whether the service is based upon contract, agreement, signed application, or otherwise. A copy of this schedule, together with a copy of Distributor's Schedule of Rates and Charges, shall be kept open to inspection at the offices of Distributor.
Revisions. These Rules and Regulations may be revised, amended, supplemented, or otherwise changed from time to time, without notice. Such changes when effective shall have the same force as the present Rules and Regulations.
Conflict. In case of conflict between any provision of any rate schedule and the Schedule of Rules and Regulations, the rate schedule shall apply.

Revised: January 1, 2011