Northern Indiana Public Service Company

TO WHOM AVAILABLE

Available to Commercial and General Service Customers who are certified by the Company to meet or exceed the energy efficient standards and who have suitable metering equipment acceptable to the Company. The Customer's service must be located on the Company's electric supply lines suitable and adequate for supplying the service requested. Service is subject to the conditions set forth in this Rate Schedule and the Company Rules.

The Customer must have a Company accepted heat pump or other electric energy efficient heating/cooling device as of the December 21, 2011 final Order in Cause No. 43969 and must operate that heat pump as the primary heating/cooling source for the Premise. The device must be permanently installed and the customer shall utilize the heat pump, device and/or associated appliance for both heating and cooling the same space. The Customer must arrange the wiring for the permanently installed heating/cooling equipment to permit measurement of the energy use of such heating and cooling equipment by suitable metering equipment as specified by the Company.

Service for heating and cooling shall be billed as follows: (1) Energy used by such heating and cooling equipment during any period more than half of which is in any month of May to September, inclusive, shall be deemed to be supplied for spacecooling and will be billed under the applicable electric Rate Schedule; and (2) Energy used by such heating and cooling equipment during other periods of the year shall be deemed to be supplied for spaceheating and will be billed under this Rate Schedule.

For Customers converting existing heating/cooling systems to heating/cooling systems which qualify under this Rate Schedule, who cannot, in the opinion of the Company, economically justify separately metering the heating/cooling equipment, a base usage shall be established which will consist of the average of the kWhs and the kW Demand billed during the billing months of May and October of the current year. Any energy and/or Demand used in excess of the base usage during any Billing Period more than half of which is within any calendar month from October to April, inclusive, shall be deemed to be supplied for spaceheating and will be billed under this Rate Schedule. All other use will be billed under the applicable rate schedule. The base usage(s) will be updated annually prior to the start of the heating season.

CHARACTER OF SERVICE

The Company will supply service at such frequency, phase, regulation and voltage as it has available at the location where service is requested. Service under this Rate Schedule shall be available only at the same voltage as other electric service supplied to the Premise. Any Applicant requiring service differing from that to be supplied by the Company as herein provided shall provide proper converting, transforming, regulating or other equipment upon Applicant's Premise and at Applicant's expense. (See Company Rule 3 for the Company's standard voltages.)

DETERMINATION OF AMOUNT OF ELECTRIC SERVICE SUPPLIED

The electric service to be supplied under this Rate Schedule shall be measured as to Energy consumption by a Watt-Hour Meter to be installed by the Company.

RATE

The rate for electric service and Energy supplied hereunder shall consist of a Customer Charge, an Energy Charge and applicable Riders as identified in Appendix A. The Customer Charge and Energy Charge are as follows:

Customer Charge

$38.90 per month.

Energy Charge

$0.156607 per kWh for all kWhs used per month.

For customers converting from electric spaceheating to natural gas, upon suitable verification acceptable to the Company, the Company will provide a one-time credit of $25.00 per permanently installed spaceheating unit.

MONTHLY MINIMUM CHARGE

The Customer's monthly Minimum Charge under this Rate Schedule shall be the Customer Charge and applicable Riders as identified in Appendix A.

RULES AND REGULATIONS

Service hereunder shall be subject to the Company Rules and IURC Rules.