June 7, 2002 VIA OVERNIGHT COURIER

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1 June 7, 2002 VIA OVERNIGHT COURIER Hon. Janet H. Deixler, Secretary State of New York Department of Public Service Three Empire State Plaza Albany, NY RE: Case 99-E-1470 Proceeding on Motion of the Commission as to the Reasonableness of the Rates, Terms and Conditions for the Provision of Electric Standby Service. Dear Secretary Deixler: The enclosed leaves, issued by New York State Electric & Gas Corporation ( NYSEG or the Company ) are transmitted for filing in compliance with the requirements of the New York State Public Service Commission ( PSC or Commission ). First Revised Leaf No. 14-B to PSC 115 Electricity Twelfth Revised Leaf No. 17-A to PSC 115 Electricity Fifteenth Revised Leaf No. 20-A to PSC 115 Electricity Thirty-fourth Revised Leaf No. 21 to PSC 115 Electricity Fifteenth Revised Leaf No. 23-A to PSC 115 Electricity Thirteenth Revised Leaf No. 24 to PSC 115 Electricity Twelfth Revised Leaf No. 31-A to PSC 115 Electricity Second Revised Leaf No. 35-A to PSC 115 Electricity Twenty-third Revised Leaf No. 36 to PSC 115 Electricity Fourteenth Revised Leaf No. 41 to PSC 115 Electricity Tenth Revised Leaf No. 45 to PSC 115 Electricity Fourth Revised Leaf No. 56 to PSC 115 Electricity Twelfth Revised Leaf No. 57 to PSC 115 Electricity Fifteenth Revised Leaf No. 58 to PSC 115 Electricity Twelfth Revised Leaf No. 59 to PSC 115 Electricity Thirteenth Revised Leaf No. 60 to PSC 115 Electricity Fourth Revised Leaf No. 61 to PSC 115 Electricity

2 Hon. Janet H. Deixler, Secretary Page 2 June 7, 2002 Effective September 6, First Revised Leaf No. 61-A to PSC 115 Electricity First Revised Leaf No. 61-B to PSC 115 Electricity First Revised Leaf No. 61-C to PSC 115 Electricity Eighth Revised Leaf No. 62 to PSC 115 Electricity Fourth Revised Leaf No. 63 to PSC 115 Electricity Second Revised Leaf No. 63-A to PSC 115 Electricity Fourteenth Revised Leaf No. 65 to PSC 115 Electricity Fifth Revised Leaf No. 73 to PSC 115 Electricity Third Revised Leaf No. 79 to PSC 115 Electricity In accordance with the Commission s Opinion No. 01-4, Opinion and Order Approving Guidelines for the Design of Standby Service Rates, issued on October 26, 2001 (the Order) and the Notice Extending Filing Deadline, issued on April 5, 2002, NYSEG hereby files its Standby Delivery Service tariff under Service Classification No. 11 of the Company s tariff, P.S.C. No. 115 Electricity. The purpose of the filing is to establish the terms and conditions of electric Standby Service that shall apply to (a) existing customers, and potential customers, where all or a portion of the customer s electricity is supplied from On-Site Generating ( OSG ) facilities that produce electricity primarily to serve that customer s native load, or (b) wholesale generators that operate mainly to produce and sell electricity in the wholesale market. Exhibit A is also enclosed to show comparisons of the existing and proposed rates by service classification. In compliance with the Order, there are three rate components of the delivery portion of this service: a Customer Charge, a Contract Demand Charge, and an As-Used Demand Charge. There are also provisions for Electric Power Supply. The delivery rates were developed using the revenues for the service classification that a customer would otherwise qualify for based on its service characteristics. For Service Classification No. 11, the otherwise applicable service classifications are Nos. 1, 2, 3, 6, 7, 8, 9 or 12. Electric supply revenues were removed from the total service classification revenue and the remaining delivery revenues were allocated to the delivery components based on the directions provided in the Order. The allocated delivery revenues were then divided by the appropriate billing determinants to derive the electric delivery rates for Standby Service. The Customer Charge will be based on the marginal cost for the otherwise applicable service classification utilized in Case No. 96-E-0891, NYSEGPlan Volume 4 Cost Analysis, direct testimony of Thorn C. Dickinson and accompanying exhibits, filed February 14, The Company chose to

3 Hon. Janet H. Deixler, Secretary Page 3 June 7, 2002 use components of this marginal cost study as the basis for this filing because NYSEG s embedded cost of service study prepared for the Unbundling Track in Case 00-M-0504 and Electric Rate Plan implementation Cases 01-E-0359 and 01-M-0404 was under development while the Company was developing its filing in compliance with Opinion No The embedded cost of service study is expected to be addressed at hearings scheduled for June 27 and 28, The delivery revenue requirement, less the revenues to be collected through the Customer Charge in each service classification, was first allocated to the shared portion of the Company s delivery system. Specifically, the FERC OATT (Open Access Transmission Tariff) revenue requirement for each service classification, was used to calculate an As-Used Demand Charge, which was categorized as a daily, monthly or hourly charge, depending on the otherwise applicable service classification and associated metering. The balance of the revenue requirement was deemed local, as addressed in the Order. The local revenue requirement was divided by the contract demand units, per kilowatt, as appropriate for each service classification. The Contract Demand Charge for a non-demand metered customer is based on the service class average (per customer) contribution to the NYSEG system peak. Contract demand for a demand metered customer will initially be set at the maximum anticipated demand of the customer, including any load that is not electrically isolated as defined in this Service Classification. The contract demand is determined as the customer's maximum load supplied by all sources, including the OSG facilities and NYSEG delivered Electric Power Supply, over the previous 12 months. For a demand metered customer, the contract demand will automatically be increased to the highest average kilowatts used in any fifteen-minute interval during the month. The As-Used Demand for a customer with mandatory interval metering, with a contract demand of 50 kw or more, will be the maximum metered demand during on-peak hours for each such daily occurrence, and each such demand will be subject to the As-Used Demand Charge, per kilowatt, per day. The As-Used Demand for customers without mandatory interval metering but with demand metering, will be the monthly metered kilowatts, subject to the As-Used Demand Charge, per kilowatt. A customer with a contract demand of less than 50 kw desiring to be billed on the basis of the interval meter rate, which is mandatory for customers with connected loads of 50 kw or more, must install an interval meter at the customer s expense. The As-Used Demand for customers without demand metering, with less than 50 kw of connected load, will be the monthly metered kilowatt-hours, subject to the As-Used Demand Charge, per kilowatt-hour. If Electric Power Supply service is requested, the energy charge will be based on the absolute value of the Retail Access Credit ( RAC ) as established for the Company s retail access program, Customer Advantage.

4 Hon. Janet H. Deixler, Secretary Page 4 June 7, 2002 The Company s unbundled delivery rates will become effective on January 1, 2003 in accordance with the Commission s Order Adopting Provisions of the Joint Proposal with Modifications, Cases 01-E-0359 and 01-M-0404, issued February 27, 2002 (the Electric Rate Plan ). After the Company receives PSC approval of the January 1, 2003 delivery rates, the Company will re-file the applicable Standby Service tariff leaves and accompanying exhibits to reflect the January 1, 2003 delivery rates. NYSEG will implement a rate design using the delivery revenue requirement per service classification developed under its Electric Rate Plan. NYSEG s tariffs, PSC Nos. 90 and Electricity, contain the requirements and associated fees for interconnection. The instant filing specifies other interconnection requirements for Standby Service. Customers whose load is served under NYSEG s Service Classification Nos. 13 or 14 contracts with OSG will be required to take Standby Service after their contracts expire, unless such contracts provide otherwise during their term. NYSEG requests that the requirement of 66(12)(b) of the Public Service Law and 16 NYCRR as to newspaper publication be waived, due to the very limited numbers of customers affected by this filing. Further, a public notice that is technical in nature, such as this, may confuse the general public. Instead, NYSEG intends to notify, by letter, each customer currently taking, or now required to take service under this Standby Service Classification. Prospective customers already notify NYSEG prior to any interconnection with the Company. During this initial notification NYSEG would inform such customers of NYSEG s Standby Service requirements. The Company will continue to track the incremental costs of implementing Standby Service pursuant to the Order. NYSEG will defer these costs as Category 2 Uncontrollable Costs, for future recovery, in accordance with NYSEG s currently effective Electric Rate Plan. Any communication regarding this filing should be directed to Henry Host-Steen at (607) , or to me at (607) Very truly yours, Enclosures cc: Service List Case 99-E-1470 (by mail and electronically) Christine M. Stratakos Manager, Rates & Tariffs

5 FIRST REVISED LEAF NO. 14-B NEW YORK STATE ELECTRIC & GAS CORPORATION SUPERSEDING ORIGINAL LEAF NO. 14-B 2. Submetering: (Cont'd) Residential (Cont'd) GENERAL INFORMATION 1. As a substitute for direct metering the submeterer shall certify to the Corporation that 70% of the shareholders voted in favor of the submetering proposal. 2. As a substitute master metering the submeterer shall certify to the Corporation that more than 50% of the shareholders voted in favor of the submetering proposal. F. In residential cooperatives and condominiums, where one or more tenants are nonshareholders, the shareholder approved submetering may be permitted as a substitute for direct metering or master metering once the sub-meterer certifies to the Corporation that all non-shareholder tenants have approved a plan which includes, as set forth in sub-paragraph C.3, a rate cap of the Corporation's rate for directly metered residential service (and any excess revenue above the cap are used for purposes of energy conservation) and includes, as set forth in sub-paragraph C.4, grievance procedures. Where one or more non-shareholder tenants refuse to approve the plan, submetering to such tenants shall be permitted only upon approval by the Commission of an application meeting the conditions set forth in sub-paragraphs C.1 through C.7. Issued under authority of Orders of the Public Service Commission dated October 26, 2001, and April 5, 2002, in Case 99-E-1470.

6 ORIGINAL LEAF NO. TWELFTH REVISED LEAF NO. 17-A NEW YORK STATE ELECTRIC & GAS CORPORATION SUPERSEDING ELEVENTH REVISED LEAF NO. 17-A MINIMUM CHARGE: SERVICE CLASSIFICATION NO. 1 (Continued) The minimum charge for service under this Service Classification is the monthly Customer Charge as listed above. SURCHARGE TO COLLECT SYSTEM BENEFITS CHARGE ( SBC ): A surcharge of $.0016 per kwh will be added to each Energy Charge on the customers bills in this Service Classification to collect the System Benefits Charge (as explained in this Schedule, General Information Section 4). This charge will be effective with usage beginning January 1, ON-SITE GENERATION If a customer has On-Site Generation ( OSG ), such customer must take service under S.C. 11 of this Schedule, unless the OSG is a Residential Solar Electric unit, as defined in this Schedule, or unless the OSG is electrically isolated, or unless the OSG qualified as an emergency generator, as defined in S.C. 11. IINCREASE IN RATES AND CHARGES: The rates and charges under this Service Classification, including minimum charges, will be increased by a surcharge pursuant to Section 6 of this Schedule to reflect the tax rates applicable within the municipality where the customer takes service. TERMS OF PAYMENT: TERM: All bills are rendered at the above Unit Prices and that amount is due on bills paid on or before the past due date indicated on the bill. A late payment charge at the rate of one and one-half percent (1 ½%) per month will be billed on all amounts not paid by that date. (Further details in Section 4 of P.S.C. No Electricity or superseding issues thereof.) One month and thereafter until terminated by 48 hours written notice. IIssued under authority of Orders of the Public Service Commission dated October 26, 2001, and April 5, 2002, in Case 99-E-1470.

7 FIFTEENTH REVISED LEAF NO. 20-A NEW YORK STATE ELECTRIC & GAS CORPORATION SUPERSEDING FOURTEENTH REVISED LEAF NO. 20-A MINIMUM CHARGE: SERVICE CLASSIFICATION NO. 2 (Cont d) The minimum charge for service under this Service Classification is the Customer Charge as listed above, or as otherwise stated in the applicable special provisions. SURCHARGE TO COLLECT SYSTEM BENEFITS CHARGE ( SBC ): A surcharge of $.0016 per kwh will be added to each Energy Charge on the customers bills in this Service Classification to collect the System Benefits Charge (as explained in this Schedule, General Information Section 4). This charge will be effective with usage beginning January 1, COMPETITIVE METERING OPTION: Qualified Customers who select the Competitive Metering Option must comply with the requirements specified in PSC 90 - Electricity and specified in General Information Section 14 of this Schedule, and will receive a Competitive Metering Credit as set forth in Section 2 of Addendum-MET of PSC 90, or superseding issues thereof. METER OWNED BY CUSTOMER, INSTALLED AND MAINTAINED BY THE CORPORATION Customers electing to own their own meters, as described in Section 3.A.2 of PSC 90 - Electricity, will receive a Meter Ownership Credit as described in Section 3.A.2.a.i of that Schedule. This provision is separate and distinct from Competitive Metering. Customers participating in Competitive Metering will not receive a Meter Ownership Credit in addition to the existing Competitive Metering Credit provided to such customers. ON-SITE GENERATION If a customer has On-Site Generation ( OSG ), such customer must take service under S.C. 11 of this Schedule, unless the OSG is electrically isolated, or unless the OSG qualifies as an emergency generator, as defined in S.C. 11. INCREASE IN RATES AND CHARGES: The rates and charges under this Service Classification, including minimum charges, will be increased by a surcharge pursuant to section 6 of PSC No. 115 to reflect the tax rates applicable within the municipality where the customer takes service. Issued under authority of Orders of the Public Service Commission dated October 26, 2001, and April 5, 2002, in Case 99-E Issued By: Sherwood J. Rafferty, Sr. Vice President and Chief Financial Officer, Ithaca NY

8 THIRTY-FOURTH REVISED LEAF NO. 21 NEW YORK STATE ELECTRIC & GAS CORPORATION SUPERSEDING THIRTY-THIRD REVISED LEAF NO. 21 DETERMINATION OF DEMAND: SERVICE CLASSIFICATION NO. 2 (Cont'd) The billing demand will be the metered demand, which is the highest average kilowatts used in a thirtyminute interval during the month. (For customers whose meters are read bi-monthly, the billing demand will be 95% of the metered demand.) DETERMINATION OF REACTIVE KILOVOLT-AMPERE HOURS: Whenever the customer's metered demand is 200 KW or more for two consecutive billing periods, the reactive kilovolt-ampere hours shall thereafter be metered. The billing reactive kilovolt-ampere hours will be the reactive kilovolt-ampere hours in excess of one-third of the metered kilowatt hours. TERMS OF PAYMENT: All bills are rendered at the above "unit prices" and that amount is due on bills paid on or before the "past due" date indicated on the bill. A late payment charge at the rate of one and one-half percent (1 ½%) per month will be billed on all amounts not paid by that date. (Further details in Section 4 of P.S.C. No Electricity or superseding issues thereof.) TERM: Single Phase Service: One month and thereafter until terminated by 48 hours' written notice. Three Phase (or Two Phase) Service: One year and thereafter until terminated by 48 hours' written notice. Issued under authority of Orders of the Public Service Commission dated October 26, 2001, and April 5, 2002, in Case 99-E-1470.

9 FIFTEENTH REVISED LEAF NO. 23-A NEW YORK STATE ELECTRIC & GAS CORPORATION SUPERSEDING FOURTEENTH REVISED LEAF NO. 23-A MINIMUM CHARGE: SERVICE CLASSIFICATION NO. 3 (Cont'd) The minimum charge for service under this Service Classification is the Customer Charge as listed above, or as otherwise stated in the applicable special provisions. SURCHARGE TO COLLECT SYSTEM BENEFITS CHARGE ( SBC ): A surcharge of $.0016 per kwh will be added to each Energy Charge on the customers bills in this Service Classification to collect the System Benefits Charge (as explained in this Schedule, General Information Section 4). This charge will be effective with usage beginning January 1, COMPETITIVE METERING OPTION: Qualified Customers who select the Competitive Metering Option must comply with the requirements specified in PSC 90 - Electricity and specified in General Information Section 14 of this Schedule, and will receive a Competitive Metering Credit as set forth in Section 2 of Addendum-MET of PSC 90, or superseding issues thereof. METER OWNED BY CUSTOMER, INSTALLED AND MAINTAINED BY THE CORPORATION Customers electing to own their own meters, as described in Section 3.A.2 of PSC 90 - Electricity, will receive a Meter Ownership Credit as described in Section 3.A.2.a.i of that Schedule. This provision is separate and distinct from Competitive Metering. Customers participating in Competitive Metering will not receive a Meter Ownership Credit in addition to the existing Competitive Metering Credit provided to such customers. ON-SITE GENERATION If a customer has On-Site Generation ( OSG ), such customer must take service under S.C. 11 of this Schedule, unless the OSG is electrically isolated, or unless the OSG qualifies as an emergency generator, as defined in S.C. 11. INCREASE IN RATES AND CHARGES: The rates and charges under this Service Classification, including minimum charges, will be increased by a surcharge pursuant to Section 6 of PSC No. 115 to reflect the tax rates applicable within the municipality where the customer takes service. Issued under authority of Orders of the Public Service Commission dated October 26, 2001, and April 5, 2002, in Case 99-E Issued By: Sherwood J. Rafferty, Sr. Vice President and Chief Financial Officer, Ithaca NY

10 THIRTEENTH REVISED LEAF NO. 24 NEW YORK STATE ELECTRIC & GAS CORPORATION SUPERSEDING TWELFTH REVISED LEAF NO. 24 SERVICE CLASSIFICATION NO. 3 (Cont'd) DETERMINATION OF DEMAND: The billing demand will be the metered demand, which is the highest average kilowatts used in a fifteenminute interval during the month. For subtransmission customers also served by the Corporation under Special Provision F of Service Classification No. 10, the measured demand of the output provided by the customer's generating facility will be added to the measured demand as determined by the Corporation's meter for service under this Classification. DETERMINATION OF REACTIVE KILOVOLT-AMPERE HOURS: Whenever the customer's metered demand is 200 kw or more for two consecutive billing periods, the reactive kilovolt-ampere hours shall thereafter be metered. The billing reactive kilovolt-ampere hours shall be the reactive kilovolt-ampere hours in excess of one-third of the metered kilowatt hours. TERMS OF PAYMENT: All bills are rendered at the above "unit prices" and that amount is due on bills paid on or before the "past due" date indicated on the bill. A late payment charge at the rate of one and one-half percent (1 1/2%) per month will be billed on all amounts not paid by that date. (Further details in Section 4 of P.S.C. No Electricity or superseding issues thereof.) TERM: One year and thereafter until terminated by 30 days' written notice. However, the Corporation may, with the permission of the Public Service Commission, require the customer to agree to take service at rates from time to time effective for a longer term dependent upon the amount of investment required or other unusual conditions incident to the service. Issued under authority of Orders of the Public Service Commission dated October 26, 2001, and April 5, 2002, in Case 99-E-1470

11 TWELFTH REVISED LEAF NO. 31-A NEW YORK STATE ELECTRIC & GAS CORPORATION SUPERSEDING ELEVENTH REVISED LEAF NO. 31-A MINIMUM CHARGE: SERVICE CLASSIFICATION NO. 6 (Cont'd) The minimum charge for service under this Service Classification is the monthly Customer Charge as listed above. SURCHARGE TO COLLECT SYSTEM BENEFITS CHARGE ( SBC ): A surcharge of $.0016 per kwh will be added to each Energy Charge on the customers bills in this Service Classification to collect the System Benefits Charge (as explained in this Schedule, General Information Section 4). This charge will be effective with usage beginning January 1, ON-SITE GENERATION If a customer has On-Site Generation ( OSG ), such customer must take service under S.C. 11 of this Schedule, unless the OSG is electrically isolated, or unless the OSG qualifies as an emergency generator, as defined in S.C. 11. INCREASE IN RATES AND CHARGES: The rates and charges under this Service Classification, including minimum charges, will be increased by a surcharge pursuant to Section 6 of PSC No. 115 to reflect the tax rates applicable within the municipality where the customer takes service. Issued under authority of Orders of the Public Service Commission dated October 26, 2001, and April 5, 2002, in Case 99-E-1470.

12 SECOND REVISED LEAF NO. 35-A NEW YORK STATE ELECTRIC & GAS CORPORATION SUPERSEDING FIRST LEAF NO. 35-A MINIMUM CHARGE: SERVICE CLASSIFICATION NO. 7 (Cont'd) The minimum charge for service under this Service Classification is the monthly Customer Charge as listed above or unless otherwise stated in the applicable special provisions. ON-SITE GENERATION If a customer has On-Site Generation ( OSG ), such customer must take service under S.C. 11 of this Schedule, unless the OSG is electrically isolated, or unless the OSG qualifies as an emergency generator, as defined in S.C. 11. Issued under authority of Orders of the Public Service Commission dated October 26, 2001, and April 5, 2002, in Case 99-E-1470.

13 TWENTY-THIRD REVISED LEAF NO. 36 NEW YORK STATE ELECTRIC & GAS CORPORATION SUPERSEDING TWENTY-SECOND REVISED LEAF NO. 36 SERVICE CLASSIFICATION NO. 7 (Cont'd) SURCHARGE TO COLLECT SYSTEM BENEFITS CHARGE ( SBC ): A surcharge of $.0016 per kwh will be added to each Energy Charge on the customers bills in this Service Classification to collect the System Benefits Charge (as explained in this Schedule, General Information Section 4). This charge will be effective with usage beginning January 1, COMPETITIVE METERING OPTION: Qualified Customers who select the Competitive Metering Option must comply with the requirements specified in PSC 90 - Electricity and specified in General Information Section 14 of this Schedule, and will receive a Competitive Metering Credit as set forth in Section 2 of Addendum-MET of PSC 90, or superseding issues thereof. METER OWNED BY CUSTOMER, INSTALLED AND MAINTAINED BY THE CORPORATION Customers electing to own their own meters, as described in Section 3.A.2 of PSC 90 - Electricity, will receive a Meter Ownership Credit as described in Section 3.A.2.a.i of that Schedule. This provision is separate and distinct from Competitive Metering. Customers participating in Competitive Metering will not receive a Meter Ownership Credit in addition to the existing Competitive Metering Credit provided to such customers. INCREASES IN RATES AND CHARGES: The rates and charges under this Service Classification, including the minimum charge, will be increased by a surcharge pursuant to Section 6 of P.S.C. No. 115 to reflect the tax rates applicable within the municipality where the customer takes service. DETERMINATION OF DEMAND: The Determination of Demand will be derived from the on-peak hours only. The metered demand will be the highest average kilowatts used in a fifteen-minute interval during the month. (For customers whose meters are read bi-monthly, the billing demand will be 95% of the metered demand.) For subtransmission and transmission customers also served by the Corporation under Special Provision F of Service Classification No. 10, the measured demand of the output provided by the customer's generating facility will be added to the measured demand as determined by the Corporation's meter for service under this Classification. Issued under authority of Orders of the Public Service Commission dated October 26, 2001, and April 5, 2002, in Case 99-E Issued By: Sherwood J. Rafferty, Sr. Vice President and Chief Financial Officer, Ithaca NY

14 FOURTEENTH REVISED LEAF NO. 41 NEW YORK STATE ELECTRIC & GAS CORPORATION SUPERSEDING THIRTEENTH REVISED LEAF NO. 41 SERVICE CLASSIFICATION NO. 8 (Cont'd) SURCHARGE TO COLLECT SYSTEM BENEFITS CHARGE ( SBC ): A surcharge of $.0016 per kwh will be added to each Energy Charge on the customers bills in this Service Classification to collect the System Benefits Charge (as explained in this Schedule, General Information Section 4). This charge will be effective with usage beginning January 1, ON-SITE GENERATION If a customer has On-Site Generation ( OSG ), such customer must take service under S.C. 11 of this Schedule, unless the OSG is a Residential Solar Electric unit, as defined in this Schedule, or unless the OSG is electrically isolated, or unless the OSG qualified as an emergency generator, as defined in S.C. 11. INCREASE IN RATES AND CHARGES: The rates and charges under this Service Classification, including minimum charges, will be increased by a surcharge pursuant to Section 6 of P.S.C. No. 115 to reflect the tax rates applicable within the municipality where the customer takes service. TERMS OF PAYMENT: All bills are rendered at the above "unit prices" and that amount is due on bills paid on or before the past due date indicated on the bill. A late payment charge at the rate of one and one-half percent (1 1/2%) per month will be billed on all amounts not paid by that date. (Further details in Section 4 of P.S.C. No Electricity or superseding issues thereof.) TERM: One month and thereafter, or for customers initiating service on or after June 1, 1988, one year and thereafter, until terminated by 48 hours' written notice. Service under this Service Classification, once terminated by the customer, will be unavailable to said customer at the same premises for one year from the date of such cancellation. IIssued under authority of Orders of the Public Service Commission dated October 26, 2001, and April 5, 2002, in Case 99-E-1470.

15 TENTH REVISED LEAF NO. 45 NEW YORK STATE ELECTRIC & GAS CORPORATION SUPERSEDING NINTH REVISED LEAF NO. 45 SERVICE CLASSIFICATION NO. 9 (Cont'd) SURCHARGE TO COLLECT SYSTEM BENEFITS CHARGE ( SBC ): A surcharge of $.0016 per kwh will be added to each Energy Charge on the customers bills in this Service Classification to collect the System Benefits Charge (as explained in this Schedule, General Information Section 4). This charge will be effective with usage beginning January 1, ON-SITE GENERATION If a customer has On-Site Generation ( OSG ), such customer must take service under S.C. 11 of this Schedule, unless the OSG is electrically isolated, or unless the OSG qualifies as an emergency generator, as defined in S.C. 11. INCREASE IN RATES AND CHARGES: The rates and charges under this Service Classification, including minimum charges, will be increased by a surcharge pursuant to Section 6 of P.S.C. No. 115 to reflect the tax rates applicable within the municipality where the customer takes service. TERMS OF PAYMENT: All bills are rendered at the above "unit prices" and that amount is due on bills paid on or before the "past due" date indicated on the bill. A late payment charge at the rate of one and one-half percent (1 ½%) per month will be billed on all amounts not paid by that date. (Further details in Section 4 of P.S.C. No Electricity or superseding issues thereof.) TERM: One month and thereafter until terminated by 48 hours' written notice. SPECIAL PROVISIONS: (a) Space Heating Service: (Service under this provision will no longer be available to new customers after November 1, 1977.) Any customer using general service under this Service Classification and also using electricity as the sole source of space heating in a premises or segregated portion of a premises may, upon written application to the Corporation, have the energy used for such space heating, as well as air conditioning and water heating for such electrically heated space, separately metered. The rate for such separately metered service will be $ per kilowatt-hour with a separate minimum charge. The minimum charge is the monthly Customer Charge as listed above. Issued under authority of Orders of the Public Service Commission dated October 26, 2001, and April 5, 2002, in Case 99-E-1470.

16 FOURTH REVISED LEAF NO. 56 NEW YORK STATE ELECTRIC & GAS CORPORATION SUPERSEDING THIRD REVISED LEAF NO. 56 APPLICABLE TO THE USE OF SERVICE FOR: SERVICE CLASSIFICATION NO. 11 Standby Service Rate 1. Delivery of Standby Service for any customer where all or a portion of a customer's electricity is supplied from On-Site Generating facilities ( OSG ) that produce electricity primarily to serve that customer s native load (whether owned by the customer or a third party); or a wholesale electric generator who operates mainly to produce and sell electricity in the wholesale market. Such customer's OSG may be connected with the Company s service for parallel operation; or electrically isolated (as defined in paragraph 3., below) from the Company s delivery service; or isolated by means of a transfer switch. A written application using the forms included in NYSEG s Bulletin 86-01, entitled Requirements for Independent Power Producers of Electricity ( Bulletin ) is required. 2. The Company's meters registering electricity delivered by the Company to the customer will, at the sole discretion of the Company, be modified or installed in such a configuration as to prevent reverse registration. Prior to connection and operation, a customer must sign an agreement and have approval from the Company relating to the installation of all protective devices required under the Company's policy for such service. Prior to interconnection, the customer will pay for all costs of interconnection and protective devices not recovered through the monthly customer charge contained in this Service Classification. Appropriate switching and/or metering is required prior to the provision of NYSEG s Standby Service. 3. With the exceptions listed below (in the Standby Service is Not Applicable To Section), a customer who declines Standby Service under this Service Classification is required to electrically isolate their electric system from the Company s system, and the Company will not be required to maintain electric delivery service nor provide Electric Power Supply to such customer. A location will be considered electrically isolated, as defined in the Definitions Section, below. 4. Electricity Supply: Standby Service is a delivery service exclusive of Electric Power Supply. A Standby Service Customer may acquire Electric Power Supply from an ESCO/Marketer or NYSEG, pursuant to the ESCO s/marketer s or the Company s rates and terms. A customer served under this Service Classification is eligible to participate in NYSEG s Customer Advantage Program for General Retail Access, as defined in Section 16 of this Schedule. a. If Electric Power Supply is provided by an ESCO/Marketer, the customer will be charged based on the ESCO/Marketer s rates and terms. b. If Electric Power Supply is provided by an ESCO/Marketer, and upon application for Standby Service and the customer is not required to install an interval meter, at the Company s option, the customer must provide a suitable location for the Company to install an interval meter. c. If Electric Power Supply is provided by NYSEG, the customer will be charged, per kwh, an amount equal to the absolute value of the energy and capacity components of the Retail Access Credit ( RAC ), as set forth in Section 16 of this Schedule. Issued under authority of Orders of the Public Service Commission dated October 26, 2001, and April 5, 2002, in Case 99-E

17 TWELFTH REVISED LEAF NO. 57 NEW YORK STATE ELECTRIC & GAS CORPORATION SUPERSEDING ELEVENTH REVISED LEAF NO. 57 STANDBY SERVICE IS NOT APPLICABLE TO: SERVICE CLASSIFICATION NO. 11 (Cont'd) Residential Solar Electric Service: Standby Service is not applicable to a customer taking service under NYSEG s Residential Solar Electric Service Option, which service will be provided under the special provisions of Service Classification Nos. 1, 8 or 12 of this Schedule. Emergency Generators: 1. Service to a customer with an emergency generator, used principally as a source of emergency backup when the Company s delivery service is interrupted, will have all service provided under the otherwise applicable service classification for that customer. For the purpose of avoiding Standby Service under this Service Classification, a generating unit must meet each of the following three criteria to qualify as an emergency generator: a. The emergency generator is not capable of being operated in parallel with NYSEG s delivery system, except for closed-transition transfer switching (characterized as a momentary makebefore-break switching sequence); and b. The emergency generator is used exclusively for purposes of supplying electricity to the customer when NYSEG s electricity delivery service is not available; and c. None of the customer s load is served by the emergency generator while the Company delivers electricity to the customer s premises, except for regularly scheduled tests when the emergency generator is required to operate under load. 2. For a customer with an emergency generator(s) exceeding 10 kw, the customer shall maintain an operating log indicating the date, time, hours, and purpose of each operation of each such emergency generator. The log will be made available to NYSEG upon request. Failure to do so will permit the Company to bill the customer under this Service Classification for the amount of Electric Power Supply and/or delivery service that was provided to the customer based on the Company s reasonable estimate of demand and days or months of such service. Behind the Meter Service: Where a wholesale generator, when operating, supplies all of a customer s Electric Power Supply from a behind the meter (the energy does not pass through the point of interconnection between the generator s facility and NYSEG s retail delivery system) configuration, the customer is excluded from Standby Service. However, to the extent that the customer may need to rely on the Company for Electric Power Supply and/or delivery where the wholesale generator is not available or does not supply 100% of the customer s requirements, this Service Classification will be applicable. Separately Metered Accounts Not Served by OSG: All separately metered Electric Power Supply and/or delivery service not otherwise served by the OSG (e.g., separate delivery service to the facility s guardhouse or electrically isolated from the OSG) will be provided under the otherwise applicable service classification. Issued under authority of Orders of the Public Service Commission dated October 26, 2001, and April 5, 2002, in Case 99-E

18 FIFTEENTH REVISED LEAF NO. 58 NEW YORK STATE ELECTRIC & GAS CORPORATION SUPERSEDING FOURTEENTH REVISED LEAF NO. 58 SERVICE CLASSIFICATION NO. 11 (Cont'd) STANDBY SERVICE IS NOT APPLICABLE TO: ( Cont d.) NYPA Programs: Any existing contractual arrangement under one or more of New York Power Authority ( NYPA ) contract and/or tariff provisions will not be nullified by the provisions of this Service Classification. NYSEG s Standby Service rates will not apply to that portion of a customer's delivery service associated with the provision of applicable NYPA supply. Delivery service for NYPA supply will be governed by the applicable NYPA program contract and/or tariff. DEFINITIONS: For purposes of this Service Classification, the following terms will have the meanings set forth below. 1. Same Bus Bar: A bus bar is a continuous electrical conductive device located at a NYSEG substation or switching station. As of June 7, 2002, if the customer's load is connected to the same bus bar as their generation source, without the presence of any Company equipment connected to the same structure, including but not limited to switches, fuses, transformers, or circuit breakers, then the customer may self-supply their load. If however, the bus bar has Company equipment connected to the same structure, including but not limited to switches, fuses, transformers or circuit breakers, then the customer may not self-supply their load but must take third party supply and will be subject to delivery rates set forth in this Service Classification. The customer's OSG must be on a single unitary tract of land, adjoining and abutting the land upon which the NYSEG substation or switching station is located and the points of delivery and receipt must not be more than 500 feet apart. 2. Electrically Isolated: The separation of the electrical point of contact between NYSEG s facilities and a customer s system where interconnection may occur, provided that (a) such separation is at least 100 feet from any other interconnected electrical service of such customer, or (b) the isolated device is not within the same building structure as any other interconnected electrical service of such customer, and not housed within a common enclosure with other interconnected breakers and/or fuses of such customer. AVAILABILITY AND TYPES OF SERVICE: Prior to receiving service under this Service Classification, the appropriate agreements and forms must be signed by the customer and accepted by the Company. The agreements and forms are identified in the above Standby Service provisions, are in NYSEG s tariffs (as referenced above), are referenced in the customer s otherwise applicable service classification, and/or are on file with the Public Service Commission. CHARACTER OF SERVICE Continuous - Alternating Current, 60 cycle; Secondary Service at 120, 120/208, 120/240, 208, 240, 240/416, 277/480, or 480 Volts; or Primary (Distribution) Service at 2,400, 4,160, 4,800, 7,200, 8,320, 12,000, 12,470, 13,200, or 34,500 (Regulated) Volts; or Subtransmission Service at 34,500or 46,000 (Both Non-Regulated) Volts; or Transmission Service at 115,000 Volts and above (Non-Regulated). Single or Three Phase. (Characteristics depend upon available circuits and equipment.) Issued under authority of Orders of the Public Service Commission dated October 26, 2001, and April 5, 2002, in Case 99-E

19 TWELFTH REVISED LEAF NO. 59 NEW YORK STATE ELECTRIC & GAS CORPORATION SUPERSEDING ELEVENTH REVISED LEAF NO. 59 SERVICE CLASSIFICATION NO. 11 (Cont'd) RATES (Per Month) Delivery Rates: There are three rate components of the delivery portion of this Standby Service: customer charge, contract demand charge, and as-used demand charge, per kw or kwh, as applicable. Delivery Rates for Service Classification Nos. 1 and 6: Per meter, per month SC 1 Residential SC 6 General w/o Demand Customer Charge: $26.00 $26.00 Contract Demand Charge: $7.86 $16.69 As-Used Demand Charge: All kilowatt-hours, per kilowatt-hour $ $ Delivery Rates for Service Classification Nos. 8, 9, and 12: Per meter, per month SC 8 Residential Day/Night SC 9 General Day/Night SC 12 Residential Time-of-Use Customer Charge: $28.00 $28.00 $32.00 Contract Demand Charge: $11.14 $18.69 $21.47 As-Used Demand Charge: Day, or Peak and Mid- Peak, per kilowatt-hour $ $ $ Delivery Rates for Service Classification No. 2, and No. 2 High Load Factor ( HLF ): Per meter, per month SC 2 - Secondary SC 2 Secondary HLF Customer Charge: $49.00 $49.00 Contract Demand Charge: Contract kilowatts, per kilowatt $10.80 $5.47 As-Used Demand Charge: Per kilowatt, per day Or As-Used Demand Charge: $ $11.35 $ $7.12 All kilowatts, per kilowatt Reactive Charge: Reactive kilovolt-ampere hours, per billing reactive kilovolt-ampere hour $ $ Issued under authority of Orders of the Public Service Commission dated October 26, 2001, and April 5, 2002, in Case 99-E

20 THIRTEENTH REVISED LEAF NO. 60 NEW YORK STATE ELECTRIC & GAS CORPORATION SUPERSEDING TWELFTH REVISED LEAF NO. 60 RATES: (Per Month) (Cont d.) SERVICE CLASSIFICATION NO. 11 (Cont'd) Delivery Rates for Service Classification No. 3 and No. 3 High Load Factor ( HLF ): Per meter, per month: SC 3P - Primary SC 3P- Primary HLF SC 3S - Subtransmission Customer Charge: $ $ $ Contract Demand Charge: Contract kilowatts, per kilowatt $9.99 $4.20 $3.86 As-Used Demand Charge: Per kilowatt, per day Or As-Used Demand Charge: $ $10.78 $ $6.82 $ $8.05 All kilowatts, per kilowatt Reactive Charge: Reactive kilovolt-ampere hours, per billing reactive kilovolt-ampere hour $ $ $ Delivery Rates for Service Classification No. 7: Per meter, per month: SC 7-1 Secondary SC 7-2 Distribution SC 7-3 Subtransmission SC 7-4 Transmission Customer Charge: $82.00 $ $1, $4, Contract Demand Charge: Contract kilowatts, per $10.83 $10.44 $5.18 $3.24 kilowatt As-Used Demand Charge: Per kilowatt, per day Or As-Used Demand Charge: All kilowatts, per kilowatt $ $11.35 $ N/A $ N/A $ N/A Reactive Charge: Reactive kilovolt-ampere hours, per billing reactive kilovolt-ampere hour: $ $ $ $ Issued under authority of Orders of the Public Service Commission dated October 26, 2001, and April 5, 2002, in Case 99-E

21 FOURTH REVISED LEAF NO. 61 NEW YORK STATE ELECTRIC & GAS CORPORATION SUPERSEDING THIRD REVISED LEAF NO. 61 RATES: (Per Month) (Cont d.) SERVICE CLASSIFICATION NO. 11 (Cont'd) Delivery Rates for Service Classification No. 7, Industrial or High Load Factor ( I/HLF ) Per meter, per month: SC 7-1 I/HLF Secondary SC 7-2 I/HLF Distribution SC 7-3 I/HLF Subtransmission SC 7-4 I/HLF Transmission Customer Charge: $82.00 $ $1, $4, Contract Demand Charge: Contract kilowatts, per $7.40 $5.55 $1.65 $0.07 kilowatt As-Used Demand Charge: Per kilowatt, per day Or As-Used Demand Charge: All kilowatts, per kilowatt $ $7.12 $ N/A $ N/A $ N/A Reactive Charge: Reactive kilovolt-ampere hours, per billing reactive kilovolt-ampere hour: $ $ $ $ RATE PERIODS: For customers whose otherwise applicable service classification is SC 7, on-peak hours are defined as the hours between 7:00 A.M. and 10:00 P.M. (Local Time), Monday through Friday with the exception of the following holidays: New Year's Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day and Christmas Day. Those hours not designated as on-peak are defined as off-peak. Other rate periods are as defined in the customer s otherwise applicable service classification, i.e., SC 8, 9 or 12. Customers over 50 kw with required interval metering, or other customers with interval metering as provided by the Company or the customer (at its expense), will have As-Used Demand Charges, per kilowatt, per day, applied to daily peak demands during the on-peak periods only. DETERMINATION OF DEMAND: Contract Demand: 1. For a non-demand metered customer, the contract demand charge is based on the average customer s contribution to the class contribution to the NYSEG system peak. 2. For a demand metered customer, the contract demand will initially be set at the maximum anticipated demand of the customer, including any load that is not electrically isolated as defined in this Service Classification. The contract demand is determined as the customer's maximum load supplied by all sources, including the OSG and NYSEG-delivered Electric Power Supply, over the previous 12 months. Issued under authority of Orders of the Public Service Commission dated October 26, 2001, and April 5, 2002, in Case 99-E

22 ORIGINAL LEAF NO. FIRST REVISED LEAF NO. 61-A NEW YORK STATE ELECTRIC & GAS CORPORATION SUPERSEDING ORIGINAL LEAF NO. 61-A DETERMINATION OF DEMAND: (Cont d.) Contract Demand: (Cont d.) SERVICE CLASSIFICATION NO. 11 (Cont'd) 3. For a demand metered customer, the contract demand will automatically be increased to the highest average kilowatts used in any fifteen-minute interval during the month. 4. For a demand metered customer, in the case of a new customer (where historical consumption data does not exist) the contract demand will be the maximum anticipated demand of load on NYSEG s system based upon the electrical equipment to be served. 5. The contract demand for a wholesale generator, which, except for OSG, would otherwise be served directly by the Company will be set at the maximum potential demand of the station service loads of the wholesale generator when the generator is out of service, plus the maximum potential demand of the customer connected to the wholesale generator. 6. A customers may change its contract demand nominations annually, or whenever a new rate design is implemented, except that the nomination: (a) will not be demonstrably unreasonable in light of likely demand by the customer, should the customer take Standby Service from NYSEG; and (b) will not be lower than the metered demand by the customer in the twelve months prior to the date of the contract demand nomination. Contract demand nominations may be increased based upon a written notice by the customer to the Company at any time, but not more than one time in a 12-month period. The contract demand, as determined above, may also be reduced based upon a written notice by the customer to the Company, but may be reduced no more than one time in a 12-month period. The effective date of the revised Contract Demand will be the next billing cycle following the Company's receipt of the customer's written notice, provided such notice is received 10 business days prior to the first day of the next billing cycle. Seasonal or other temporary fluctuations in the customer s load (existing facilities such as heating and air conditioning) and temporary reductions in operations will not qualify for reductions in the Contract Demand. 7. Contract Demand Penalty: A demand metered customer will be subject to a monthly contract demand penalty surcharge if the customer's metered demand exceeds the contract demand. During any billing period, the penalty surcharge will be calculated as follows: a. When the metered demand exceeds the customer s nominated demand by 10% or more, the penalty surcharge will be 24 times the product of (1) the applicable contract demand charge; and (2) the difference between the metered demand for that month and the contract demand, or b. When the recorded maximum demand exceeds the customer s contract demand by less than 10%, the penalty surcharge will be 12 times the product of (1) applicable contract demand charge; and (2) the difference between the metered demand for that month and the contract demand. Issued under authority of Orders of the Public Service Commission dated October 26, 2001, and April 5, 2002, in Case 99-E

23 ORIGINAL LEAF NO FIRST REVISED LEAF NO. 61-B NEW YORK STATE ELECTRIC & GAS CORPORATION SUPERSEDING ORIGINAL LEAF NO. 61-B DETERMINATION OF DEMAND: (Cont d.) As-Used Demand: SERVICE CLASSIFICATION NO. 11 (Cont'd) 1. For a customer with mandatory interval metering, with a contract demand of 50 kw or more, the As- Used Demand will be the maximum metered demand during on-peak hours for each such daily occurrence, and each such occurrence demand will be subject to the As-Used Demand Charge, per kilowatt, per day. 2. For a customer without mandatory interval metering but with demand metering, the As-Used Demand will be the monthly metered kilowatts, subject to the As-Used Demand Charge, per kilowatt. A customer with a contract demand of less than 50 kw desiring to be billed on the basis of the interval meter rate, which is mandatory for customers with connected loads of 50 kw or more, must install an interval meter at the customer s expense. 3. The As-Used Demand for customers without demand metering will be the monthly metered kilowatthours, subject to the As-Used Demand Charge, per kilowatt-hour. METERING AND COMMUNICATIONS: 1. A customer taking Standby Service shall comply with all federal, state and local laws, regulations, and requirements, including the requirements listed below in the Interconnection Requirements Section, paragraphs 2.a. through 2.d., as applicable. 2. A customer who provides a telephone connection to the meter will be responsible for all costs associated with the installation, operation and maintenance of the telephone line, including but not limited to, all telephone service bills. If the Company is unable to read the meter through a customerprovided telephone line, and NYSEG has determined that the problem is not caused by the Company's equipment, the customer shall be responsible for resolution of the problem. The customer shall also be responsible for reimbursement of NYSEG expenses incurred for visits to the meter location. 3. A customer with 50 kw or more of connected load is required to have interval metering and remote meter reading capability. Such customers will be responsible for the following: a. The costs of interval metering equipment and its installation; b. The costs of providing remote meter reading capability through telecommunications to and from the meter; and c. The costs associated with resolution of any problems with the telephone provider, including reimbursing the Company for any expenses the Company incurred. Issued under authority of Orders of the Public Service Commission dated October 26, 2001, and April 5, 2002, in Case 99-E