al customers including, without limitation, churches, clubs,
fraternities, orphanages, nursing homes, rooming or boarding houses, and like customers, provided that the
other conditions of this section are met.


For a customer requesting that its onpeak contract demand be different from its offpeak contract
demand, this schedule shall be available only for (1) a new contract, (2) a replacement or renewal contract
following expiration of the existing contract, or (3) a replacement or renewal contract or an amended existing
contract in which the customer is increasing its demand requirements above the existing contract demand
level, but under this item (3) neither the new onpeak nor the new offpeak contract demand shall be lower
than the customer's existing contract demand.
Character of Service

Alternating current, single- or three-phase, 60 hertz. Power shall be delivered at a service voltage
available in the vicinity or agreed to by Distributor.
Base Charges
1.
If the higher of (1) the higher of the customer's currently effective onpeak or offpeak contract demand
or (2) the customer's highest onpeak or offpeak billing demand during the latest 12-month period is
not more than 50 kW:


Customer Charge:
$158.25 per delivery point per month


Energy Charge:
12.315¢ per kWh per month for all onpeak kWh





4.053¢ per kWh per month for all offpeak kWh
2.
If the higher of (1) the higher of the customer's currently effective onpeak or offpeak contract demand
or (2) the customer's highest onpeak or offpeak billing demand during the latest 12-month period is
greater than 50 kW but no more than 1,000 kW:


Customer Charge:
$158.25 per delivery point per month


Distribution Capacity Charge:
$2.50 per kW per month of the higher of the customer's onpeak
billing demand or offpeak billing demand


Incorporates adjustments set out in October 2003 Adjustment Addendum (Environmental Adjustment)
Schedule TGSA
October 2003, R1
Page 2 of 4

Demand Charge:
$8.54 per kW of the customer's onpeak billing demand, plus

$1.19 per month for each kW, if any, of the amount by which the
customer's offpeak billing demand exceeds its onpeak billing demand


Energy Charge:
5.027¢ per kWh per month for all onpeak kWh





3.249¢ per kWh per month for all offpeak kWh
3.
If the higher of (1) the higher of the customer's currently effective onpeak or offpeak contract demand
or (2) the customer's highest onpeak or offpeak billing demand during the latest 12-month period is
greater than 1,000 kW:


Customer Charge:
$158.25 per delivery point per month


Distribution Capacity Charge:
$1.84 per kW per month of the higher of the customer's





onpeak billing demand or offpeak billing demand


Demand Charge:
$9.96 per kW per month of the customer's onpeak billing demand,




plus

$1.18 per month for each kW, if any, of the amount by which the
customer's offpeak billing demand exceeds its onpeak billing demand, plus
an additional

$9.96 per kW per month for each kW, if any, of the amount by which
(1) the customer's onpeak billing demand exceeds the higher of 2,500 kW
or its onpeak contract demand or (2) the customer's offpeak billing demand
exceeds the higher of 2,500 kW or its offpeak contract demand, whichever
is higher


Energy Charge:
4.755¢ per kWh per month for all onpeak kWh





2.977¢ per kWh per month for all offpeak kWh
Adjustment


The base demand and energy charges shall be increased or decreased in accordance with the
current Adjustment Addendum published by TVA. (In addition, such charges shall be increased or
decreased to correspond to increases or decreases determined by TVA under Adjustment 2 or
Adjustment 4 of the wholesale power rate schedule applicable under contractual arrangements between TVA
and Distributor.)
Determination of Onpeak and Offpeak Hours

Except for Saturdays and Sundays and the weekdays that are observed as Federal holidays for
New Year's Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, and Christmas Day,
onpeak hours for each day shall be 10 a.m. to 10 p.m. during calendar months of May through September
and from 6 a.m. to 12 noon and from 4 p.m. to 10 p.m. during all other calendar months. All other hours of
each day and all hours of such excepted days shall be offpeak hours. Such times shall be Central Standard
Time or Central Daylight Time, whichever is then in effect. The onpeak and offpeak hours under this rate
schedule are subject to change by TVA. In the event TVA determines that such changed onpeak and Schedule TGSA
October 2003, R1
Page 3 of 4
offpeak hours are appropriate, it shall so notify Distributor at least 12 months prior to the effective date of
such changed hours, and Distributor shall promptly notify customer.
Determination of Onpeak and Offpeak Demands and Energy Amounts

The onpeak and offpeak kWh for any month shall be the energy amounts taken during the
respective hours of the month designated under this rate schedule as onpeak and offpeak hours.


Distributor shall meter the onpeak and offpeak demands in kW of all customers taking service under
this rate schedule. The onpeak demand and the offpeak demand for any month shall be determined
separately for the respective hours of the month designated under this rate schedule as onpeak and offpeak
hours and in each case shall be the higher of the highest average during any 30-consecutive-minute period
beginning or ending on a clock hour of the month of (a) the load metered in kW or (b) 85 percent of the load
in kVA plus an additional 10 percent for that part of the load over 5,000 kVA, and, except as provided below
in this section, such amounts shall be used as the onpeak and offpeak billing demands. The onpeak billing
demand shall in no case be less than 30 percent of the customer's onpeak demand amount. The offpeak
billing demand shall in no case be less than 30 percent of the customer's offpeak demand amount.


For purposes of this section, the onpeak demand amount referred to above shall be the higher of the
currently effective onpeak contract demand or the highest onpeak billing demand established in the
preceding 12 months, and the offpeak demand amount referred to above shall be the higher of the currently
effective offpeak contract demand or the highest offpeak billing demand established in the preceding
12 months.
Minimum Bill

The monthly bill under this rate schedule shall not be less than the sum of (a) the base customer
charge, (b) the portion of the base demand charge, as adjusted, applicable to onpeak billing demand applied
to the customer's onpeak billing demand, (c) the portion of the base demand charge, as adjusted, applicable
to the excess of offpeak over onpeak billing demand applied to the amount, if any, by which the customer's
offpeak billing demand exceeds its onpeak billing demand, (d) the base onpeak energy charge, as adjusted,
applied to the customer's onpeak energy takings, (e) the base offpeak energy charge, as adjusted, applied to
the customer's offpeak energy takings, and (f) the distribution capacity charge applied to the higher of the
customer's onpeak or offpeak billing demand; provided, however, under 2 of the Base Charges, the monthly bill
shall in no event be less than the sum of (a) the base customer charge, (b) 20 percent of the base onpeak
demand charge, as adjusted, multiplied by the customer's onpeak billing demand, (c) 20 percent of the portion
of the base demand charge, as adjusted, applicable to the excess of offpeak over onpeak billing demand
applied to the amount, if any, by which the customer's offpeak billing demand exceeds its onpeak billing
demand, and (d) 20 percent of the distribution capacity charge, as adjusted, applied to the higher of the
customer's onpeak or offpeak billing demand.


Distributor may require minimum bills higher than those stated above.
Seasonal Service

Customers who contract for service on a seasonal basis shall be limited to 2,500 kW and shall pay
the above charges, as adjusted, plus an additional seasonal use charge equal to (1) 1.33¢ per kWh per
month under 1 above and (2) $4.00 per kW per month of the higher of the onpeak or offpeak billing demand
under 2 and 3 above. Consistent with Distributor's standard policy, the customer may arrange for seasonal
testing of equipment during offpeak hours.
Schedule TGSA
October 2003, R1
Page 4 of 4

For such customers, the minimum bill provided for above shall not apply. Distributor may require
additional charges to provide recovery of costs for customer-specific distribution facilities.
Contract Requirement

Distributor shall require contracts for all service provided under this rate schedule and such
contracts shall be for an initial term of at least 1 year. The customer shall contract for its maximum
requirements, which shall not exceed the amount of power capable of being used by customer, and
Distributor shall not be obligated to supply power in greater amount at any time than the customer's
currently effective contract demand. If the customer uses any power other than that supplied by Distributor
under this rate schedule, the contract may include other special provisions. The rate schedule in any power
contract shall be subject to adjustment, modification, change, or replacement from time to time as provided
under the power contract between Distributor and TVA.