Appendix “A”

FUEL COST ADJUSTMENT (Applicable to Rates R, R(WH), GS, I , and LP)

The fuel cost adjustment in dollars per kWh, shall be the same as that recently billed to the Fulton County REMC by its purchase power supplier, less $.000000 per kWh. Such difference to be divided by one (1) minus the total energy losses of the utility for the preceding calendar year, expressed as a decimal fraction of the total energy purchased for the same year. For Current Fuel Cost Charge – See Appendix FC .

RATE ADJUSTMENT (Applicable to Rates R, R(WH), GS, I, and LP)

The Rate Adjustment shall be on the basis of a Purchased Power Cost Adjustment Tracking Factor, occasioned solely by changes in the cost of purchased power. The Rate Adjustment in dollars per kWh shall be the same as that recently billed to the Fulton County REMC by its purchased power supplier. This difference is to be divided by one (1) minus the total energy losses of the utility for the preceding calendar year expressed as a decimal fraction of the total energy purchased for the same year. This amount will be increased by $0.008806 per kWh to account for the level of power cost currently reflected in the base rate charges.

NON – FUEL COST ADJUSTMENT (Applicable to Rates R, R(WH), GS, I , and LP)

The non-fuel cost adjustment in dollars per kWh shall be equal to the total non-fuel adjustments billed by WVPA divided by the total kWh purchased during the month. This amount shall be divided by one (1) minus the total energy losses of the utility for the preceding calendar year expressed as a decimal fraction of the total energy purchased for the same year.