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An owner or occupant of any property abutting on any street, avenue, road, or way upon which there is no appropriate electric line within a distance of five hundred (500) feet for single-phase service or three hundred (300) feet for three-phase service from said property, may make a written application for service to the HMLP. HMLP shall furnish, place, and construct lines and make any other necessary system upgrades to serve said property, subject to the forgoing Terms and Conditions. HMLP shall be deemed the owner of such lines and all associated facilities regardless of whether they are located on public ways or on the Customer’s property, unless HMLP and the owner otherwise expressly agrees in writing.

Prior to any construction or installation of the necessary facilities to provide electric service, said owner or occupant shall first have executed an agreement, the terms of which shall provide substantially as follows:

a. The Applicant shall agree to pay to HMLP the rates charged to the Customers served as provided for elsewhere in this Schedule.  In addition, the Applicant shall pay a connection charge based on the cost of the line extension (excluding cost of service lateral) as per Section XII (Fixed Charges) that is in excess of five hundred (500) feet for a single-phase or three hundred feet for a three-phase overhead extension from the end of the nearest electric line, whichever is applicable, as well as the pro rata costs of any needed system upgrades to serve the Customer.   HMLP shall provide the Applicant with an estimate of the reimbursable costs of providing service to the Customer.

b. If more than one Customer is or becomes connected to such a line extension, the connection charge or any balance remaining shall be adjusted to allocate the costs among all such Customers served from the extension or system upgrade, taking into consideration the percentage of each Customer’s anticipated load to the total load of the Customers to be served by such line extension and/or upgrade, the length of the line extension and any unusual characteristics affecting its installation attributable to each Customer.

c. No surcharge shall be imposed whenever the number of Customers on a single-phase extension multiplied by five hundred (500) feet or in the case of three-phase service, three hundred (300) feet shall equal or exceed the length in feet of the electric extension.

d. HMLP’s total investment in the line extension will not exceed 1.5 times the annual estimated base revenue of the customer’s load (as determined by HMLP) within the first year following the completion of the construction.  The excess costs will be paid by the customer prior to the start of construction.

e. Each Applicant shall have furnished reasonable security for the performance of this Agreement on such terms determined by HMLP in its discretion.

March 7, 2006

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