customers may elect to pay the required CIAC through an SES and/or negotiate other contribution arrangements.

The SES will be treated as a revenue for the purpose of the Company’s economic feasibility analysis of the project. The term of the SES for each project will be set at the minimum term required for the project to achieve a PI of at least 1.0 or 40 years, whichever is less.

Both the TCS and SES will apply to the property for the full term, notwithstanding any change of ownership or occupancy.

8. Project Costs

a) When available, economic feasibility analysis shall use project specific data (costs, volumes, customer attachments) based on survey data, historical practice, weather and local conditions to determine the costs, load and forecast.

b) When no specific data is available or the project is a minor project, regional averages shall be used.

9. Service Laterals