The Electrical District No. 3 (“ED3” or “the District”) is a political subdivision of the State of Arizona formed in 1926 as a Special District by the Pinal County Board of Supervisors. Electric Service Guidelines were adopted by the Board of Directors pursuant to ARS § 48-1747 and the ED3 Rates are a Section within the Electric Service Guidelines.

The ED3 Rates and Electric Service Guidelines are part of all ED3 contracts for receiving electric service and apply to all service received from the District, whether the service is based upon contract, agreement, signed application, or otherwise. These Electric Service Guidelines and Rates may be revised, amended, supplemented, or otherwise changed by the Board of Directors from time to time, without notice to the Customer other than that which is required under the open meeting laws. Such changes, when effective, shall have the same force as the present Electric Service Guidelines.

In case of conflict between any provision of a Rate Schedule and any Electric Service Guidelines provisions, the rate schedule shall apply. If an issue arises which is not, or is only partially addressed in these Electric Service Guidelines or other applicable documents, the District reserves the right to then consider the issue and implement the policy or practice pertinent to it.

See below for full details.

An electric service establishment charge will be assessed per meter each time the District is requested to establish, reconnect or re-establish electric service to customer's delivery point, or to make a special read without a disconnect and calculate a bill for a partial month. With the exception of a reconnection for non-payment, the billing for the service charge will be due immediately before service can begin. Payment for reconnection due to non-payment will be prior to or at the time of reconnection of service.

Accounts not paid by the Past Due Date are subject to disconnection. Additional processing fees, an added deposit, plus the past due and current bills will all have to be paid before services will be turned back on. Failure to receive mail by the customer will not be recognized as a valid reason for failure to pay bills when due.

Before services will be reconnected all accounts must be paid in full, including any processing fees, penalties, reconnection fees, additional deposits, past due and current bill on account. Cash, money order or credit card will be required.

The District purchases power from the Arizona Power Authority (Hoover Power), Western Area Power Authority (WAPA - Salt Lake City Area Integrated Projects “SLCA / IP” and Parker Davis Power), and other energy marketing firms such as Exelon, Public Service Company of Colorado (PSCO) and the Southwest Public Power Agency (SPPA). In addition, the District is a participant in the Hoover Power Resource Exchange Program and a party to an Integrated Resource Scheduling Agreement which permits the District and other similarly situated utilities to integrate and exchange Hoover, SLCA / IP, and Parker-Davis power resources.

The District anticipates that current federal resources under contract and continuation of the Integrated Resource Scheduling procedures and Hoover Resource Exchange Program will be sufficient for the District to meet a portion of its monthly power and energy requirements. However, a larger portion of the District’s requirements must be met through Supplemental Power Agreements.

The Purchased Power Cost Adjustor or PPCA is an adjustment mechanism that follows or tracks some unpredictable cost that a utility incurs (and usually has limited control over such as the price of natural gas) in providing service to customers. It creates a variable price paid by customers in order to recover unpredictable variable costs without the need to make constant changes to base rates. The adjustment mechanism may increase or decrease based on variable costs such as fuel and market power and adjusted based on the revenue requirements of the District. Bond rating agencies and bond holders typically view PPCA rate designs favorable as a result of the ability to adjust the PPCA efficiently when there are large swings in fuel and power costs. The PPCA is intended to pass along changes in power costs above or below those included in the base rates and forecasted revenue requirements.