Rules and Regulations

Rules and Regulations

SCHEDULE OF RULES AND REGULATIONS FOR ELECTRIC SERVICE

This Schedule of Rules and Regulations, hereinafter “Rules and Regulations”, approved by the Board of Trustees of Cullman Electric Cooperative, hereinafter “CEC”, and in accordance with the Rules of the Tennessee Valley Authority, hereinafter “TVA”, constitute CEC’s procedures and policies for supplying electric service to the members of the Cooperative.

PART I — GENERAL RULES

1.1       APPLICATION FOR SERVICE – Each prospective member desiring electric service may be required to sign CEC’s standard form of application for service or contract before service is supplied by CEC.

1.2       POINT OF DELIVERY – The point of delivery is the point, as designated by CEC, on member’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 member at no expense to CEC.

1.3       MEMBER’S WIRING STANDARDS – All wiring of members must conform to CEC’s requirements and accepted modern standards as stated in the National Electrical Safety Code and the National Electrical Code.

1.4      INSPECTIONS – CEC shall have the right, but shall not be obligated, to inspect any installation before electricity is introduced or at any later time, and reserves the right to reject any wiring or appliances not in accordance with CEC’s standards; but such inspection or failure to inspect or reject shall not render CEC liable or responsible for any loss or damage resulting from defects in the installation, wiring or appliances, or from violation of CEC’s rules, or from accidents which may occur upon member’s premises.

1.5       MEMBER’S RESPONSIBILITY FOR CEC’S PROPERTY – All meters, service connections, and other equipment furnished by CEC shall be, and remain, the property of CEC. Member shall provide a space for and exercise proper care to protect the property of CEC on its premises, and, in the event of loss or damage to CEC’s property arising from neglect of member to care for same, the cost of the necessary repairs or replacements shall be paid by member.

1.6       RIGHT OF ACCESS – CEC’s identified employees or any agents thereof shall have access to member’s premises at all reasonable times for the purpose of reading meters, testing, repairing, removing, or exchanging any or all equipment belonging to CEC.

PART II — DEPOSITS

RESIDENTIAL

2.1       DEPOSIT AMOUNT – A deposit or suitable guaranty equal to twice the average highest monthly bill for the residential rate classification and not less than current deposit amount of $350 may be required of any residential member before electric service is supplied. Either party may review deposits on residential accounts upon request after twelve (12) months of service and thereafter on an annual basis for the purpose of adjusting the deposit amount accordingly.

2.2       HARDSHIP – Members with residential hardships may negotiate installment payments, but the deposit must be paid in full within 120 days from the date electric service commences.

2.3       INTEREST ON DEPOSIT – After the deposit is paid in full, interest will accrue on the deposit held longer than twelve (12) months at the interest rate published by CFC Daily Fund Rate as of January 1 each year. The deposit balance will include earned interest and will be accounted for in order to credit each member.

2.4       DEPOSIT REFUND – CEC may, at its option, return deposit and any accrued interest to member after one year in which all payments were made on or before the due date and no payments were rejected or declined by the member’s financial institution.

2.5       DEPOSIT UPON TERMINATION – Upon termination of service, deposit and any accrued interest may be applied by CEC against unpaid bills of member, and if any balance remains after such application is made, said balance shall be refunded to member.

2.6       PREPAY – Members enrolled in Pay As You GO (prepay program) will not be required to provide a deposit.

NON-RESIDENTIAL/GENERAL SERVICE

2.7       SUITABLE DEPOSIT OPTIONS – A deposit or suitable guaranty will be required of any non-residential/general service member before electric service is supplied. A suitable guaranty includes any of the following or combination thereof:

  • Surety bond
  • Irrevocable letter of credit from bank
  • Certificate of Deposit made payable to CEC and account name
  • Cash
  • If qualified, member may provide up to one-half (1/2) of the required deposit amount in the form of accounts receivable insurance, and pay to the Cooperative the premium for said insurance.

2.8       DEPOSIT AMOUNT – The deposit amount for a non-residential account will be two (2) times the individual estimated usage. Either party may review deposits on non–residential accounts upon request after twelve (12) months of service and thereafter on an annual basis for the purpose of adjusting the deposit amount accordingly. In addition to a security deposit a non-residential account may be required to have account-holder sign a personal guaranty.

The estimated monthly bill will be determined by:

  • Previous actual usage at the location
  • Load data provided by the member
  • Usage of load information of comparable service type

2.9       LOW USAGE SERVICE – A non-residential member with anticipated usage of less than 500 kWh (such as electric fences, tractor sheds, water pumps, grain bins, barns, hay barns, etc.) with a previous twelve (12) month approved pay history with CEC may be exempt from a deposit for the low usage service.

2.10     INTEREST ON DEPOSIT – After the deposit is paid in full, interest will accrue on the deposit held longer than twelve (12) months at the interest rate published by CFC Daily Fund Rate as of January 1 each year. The deposit balance will include earned interest and will be accounted for in order to credit each member.

2.11     DEPOSIT UPON TERMINATION – Upon termination of service, deposit and any accrued interest may be applied by CEC against any unpaid bills of member, and if any balance     remains after such application is made, said balance shall be refunded to member.

PART III — BILLING

3.1       BILLING – Bills will be rendered monthly. Failure to receive bill will not release member from payment obligation. Should bills not be paid by due date specified on bill, CEC may at any time thereafter, upon five (5) days written notice to member, 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. A written notice on the bill shall include the information to contact CEC to ask questions, remedy errors, or dispute charges on the bill by calling CEC at (256) 737-3200.

3.2       SPECIAL BILLING PROVISIONS – With mutual agreement between CEC and the member, billing periods of weekly, bi-weekly, or other periods of less than one month may be made available to non-residential accounts. Bills rendered under these arrangements are due and payable within ten (10) days of the billing date. Should bills not be paid by due date specified on the bill, CEC may at any time thereafter, upon five (5) days written notice to the member, discontinue electric service. Bills paid after due date specified on bill may be subject to the additional standard late fees.

3.3       LATE FEES – All bills from CEC to the member shall include a due date deadline for the payment of charges to the Cooperative. A late fee shall apply to all unpaid balances due       and owing after the due date deadline. Said late charge shall not exceed five (5) percent of the unpaid portion of the bill. The due date deadline shall not be less than fifteen (15) days from the date of the bill for residential member accounts and not less than ten (10) days from the date of the bill for all non-residential accounts.

PART IV — TERMINATION OF SERVICES

4.1       DISCONTINUANCE OF SERVICE BY CEC – CEC may refuse to connect or may discontinue service for the violation of any of its Schedule of Rules and Regulations, Member’s Wiring Standard, (Part 1, Sec. 1.3), or for violation of any of the provisions of the Schedule of Fees and Services, of the application for membership or contract with member. CEC may discontinue service to member for the theft of current or the appearance of current theft devise on the premises of member. The discontinuance of service by CEC for any causes as stated in this rule does not release member from his/her obligation to CEC for the payment of minimum bills as specified in application for  membership or contract with member. The member has the right to contact CEC to ask questions, remedy errors or dispute charges on member’s bill.

4.2       CONNECTION, RECONNECTION AND DISCONNECTION CHARGES – CEC may establish and collect standard charges to cover the reasonable average cost, including administration,   of connecting or reconnecting 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.

4.3       TERMINATION OF CONTRACT BY MEMBER – Members who have fulfilled their contract terms and wish to discontinue service must give at least three (3) days written notice to that effect, unless contract specifies otherwise. Notice to discontinue service prior to expiration of contract term will not relieve member from any minimum or guaranteed payment under any contract or rate.

4.4       SERVICE CHARGES FOR TEMPORARY SERVICE – Members requiring electric service on a temporary basis may be required by CEC 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.

4.5       EXTREME WEATHER CONDITION – During extreme weather conditions CEC evaluates the forecasted temperature as forecast by the National Weather Service for zip code 35055 prior to disconnecting service for nonpayment. In the event the forecasted temperature is expected to exceed 98 degrees Fahrenheit (F), disconnection of service will be temporarily postponed until the following day/s that the temperature is forecast    not to exceed 98 degrees. If the forecasted high temperature for the day is not to exceed 32 degrees F, service will not be disconnected until the high for the day exceeds 32 degrees F. When disconnection is postponed due to an extreme weather condition, the postponement will not extend beyond the extreme weather condition.

4.6       MEDICAL NECCESSITY – It shall be the responsibility of the member to inform CEC of a medical condition necessitating a delay of service disconnection. Upon receipt of   properly executed CEC Medical Waiver form disconnection of service for nonpayment   will be postponed for 30 days from the original scheduled disconnection date to allow  member time to make payment or make alternative shelter arrangements. The medical necessity form must be completed by a medical doctor or nurse practitioner   licensed to practice in the state of Alabama certifying that the disconnection of electric service would create a life-threatening medical situation for the member or other permanent resident of the member’s household. A life threatening medical condition does not relieve a member of the obligation to pay for electric service, including any late     fees incurred or other applicable charges. If full payment of the past due amount,    including all late fees, is not received by the end of the 30 day postponement period, electric service will be disconnected without further notice.

PART V — SERVICE CONNECTION REGULATIONS

5.1       INTERRUPTION OF SERVICE – CEC 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, or otherwise unsatisfactory service, whether or not caused by negligence.

5.2       CAPACITY LIMITATIONS – In the event of an emergency situation where CEC is requested to reduce or curtail its use of electricity in an effort to keep the grid secure, it    will do so in accordance with the TVA Emergency Load Curtailment Program. The activation of this plan includes a public appeal for voluntary load reductions and in extreme circumstances may necessitate the utilization of rolling blackouts to keep CEC        load levels below critical limits. In the event of rolling blackouts, loads critical to public health, safety and welfare such as hospitals, nursing homes and water treatment plants are excluded from the curtailment schedule.

5.3       VOLTAGE FLUCTUATIONS CAUSED BY MEMBER – Electric service must not be used in such a manner as to cause unusual fluctuations or disturbances to CEC’s system. CEC may require member, at his/her own expense, to install suitable apparatus which will reasonably limit such fluctuations.

5.4       ADDITIONAL LOAD – The service supplied by CEC for each member consists of transformers, service wire, fuses and associated connectors. The service has a finite capacity and is designed to adequately serve the load present at the time of  construction. The addition of significant amounts of load to an existing service without consulting CEC can jeopardize the ability of the service to serve the load and cause an interruption in service or damage to the member’s equipment. CEC shall not be held   liable for interruptions of damages caused by the failure to provide notice to the    Cooperative of significant changes in load requirements for a service. Furthermore, the member shall be liable for any damages to the Cooperative’s lines or equipment caused by unauthorized additions of load.

5.5       STANDBY AND RESALE SERVICE – All purchased electric service (other than emergency or standby service) used on the premises of member shall be supplied exclusively by CEC, and member shall not, directly or indirectly, sell, sublet, assign, or otherwise dispose of the electric service or any part thereof.

5.6       NOTICE OF TROUBLE – Member shall notify CEC 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.

5.7       NON-STANDARD SERVICE – Member shall pay the cost of any special installation necessary to meet his/her particular requirements for service at other than standard voltages, or for the supply of closer voltage regulation than required by standard practice.

5.8       METER TESTS – CEC will, at its own expense, make periodic tests and inspections of its meters in order to maintain a high standard of accuracy. CEC will make additional tests or inspections of its meters at the request of member. If tests made at member’s request show that the meter is accurate within two percent (2%), slow or fast, no adjustment will be made in member’s bill, and CEC ‘s standard testing charge will be paid by member. In case the test shows member to be in excess of two percent (2%), slow or fast, an adjustment shall be made in member’s bill and cost of making test shall    be borne by CEC.

5.9       RELOCATION OF FACILITIES – CEC will accommodate member requests to relocate or modify existing Cooperative facilities when possible. When facilities are relocated at the request of the member and such relocation provides no benefit to CEC, all costs associated with the relocation will be borne by the member and paid in advance. In   addition to being responsible for the relocation expenses, it shall be the responsibility of the member to clear any right-of-way needed for the relocation and obtain all  necessary easements from any affected land owners.

5.10     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 (1) month. In the case of the first billing of new accounts (temporary service, cotton gins and other seasonal members 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.

PART VI — SCOPE

6.1       SCOPE – These Rules and Regulations are part of all contracts for receiving electric service from CEC, and applies to all service received from CEC, whether the service is based upon contract, agreement, signed application or otherwise. A copy of these Rules and Regulations, together with a copy of CEC’s Schedule of Fees and Services, which was approved in a public CEC Board of Trustees’ meeting, shall be kept open to inspection at the office of CEC or found on our website, cullmanec.com. A member will also receive such information upon application for electrical service, and at any time upon request. Any local rate adjustment approved in a public meeting by the CEC Board of Trustees’ will be published in the Cooperative’s monthly Alabama Living Magazine. Members are provided a statement of monthly consumption for the prior twelve (12) months on each bill and usage information may be found on the member’s billing account on the website – www.cullmanec.com.

6.2       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.

6.3       CONFLICT – In case of conflict between any provision of any rate schedule and the Rules and Regulations, the rate schedule shall apply.