Section 26 - Residential Water Heater Cycling Program

26-A PROGRAM DESCRIPTION. The Company will conduct a Residential Water Heater Cycling Program by which it will interrupt or cycle electric service to residential water heaters to reduce capacity needs.

26-B PROGRAM PARTICIPATION REQUIREMENTS. A qualified Program Participant (Participant) is a customer of the Company who agreed prior to March 15, 1997 to allow the Company to interrupt or cycle electric service to the Participant's electric resistance water heater that is of the automatic (thermostatically controlled), insulated, storage type, not less than 30 gallons in capacity, and installed and operated without alternative water heating system assistance. Participants may not use any secondary water heater control devices such as clock timers. Participants must utilize their electric resistance water heater as the dwelling unit's sole hot water source. Each participant must also be:

1. A year-round residential customer of the Company who takes service under the Residential Service Classes A, A-2, A-3 or A-4 and who owns the premises that receives electric service and is subject to interruption or cycling; or

2. A year-round residential customer of the Company who takes service under the Residential Service Classes A, A-2, A-3 or A-4 and who is a tenant in a unit of a residential building, and who has written approval from the owner allowing installation of the load control equipment; or

3. A customer of the Company who owns a building containing one or more year-round residential dwelling units that are subject to interruption or cycling, who leases the unit or units to a tenant or tenants and who pays the electric bill for those units.

26-C RESTRICTIONS ON INTERRUPTION. The Company may interrupt electric service to the Participant's electric resistance water heater at any time during the year which the Company chooses. The Company will attempt to interrupt and cycle water heaters so as to minimize inconvenience to the Participants.

26-D TERMS OF PARTICIPATION. The Company will continue to distribute a $20.00 annual payment to all customers who enrolled in the program prior to June 1, 1992, for as long as they remain active participants in the program. However, the Company will attempt to buy back its obligation to this participant group by offering each participant a $75.00 payment. Those who accept the payment will no longer be entitled to receive the annual $20.00 incentive. Customers who enrolled in the program after June 1, 1992 will not be eligible to receive this annual $20.00 incentive payment. Payments to the participants shall be subject to change upon approval by the Commission. Participants may withdraw from the program at any time without penalty.

26-E INSPECTIONS. The Company or a party designated by the Company may inspect, test, and perform maintenance on the load control equipment during normal business hours upon reasonable notification to the Participan

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