APPENDIX A

RATE ADJUSTMENT (Applicable to Rates: A and GPS)
The Rate Adjustment shall be on the basis of a Purchased Power Cost Adjustment Tracking Factor, occasioned solely by change in the cost of purchased power.

FUEL COST ADJUSTMENT (Applicable to Rates: A and GPS)
The fuel cost adjustment in dollars per kilowatt hour shall be the same as most recently billed to the United REMC by its purchased power supplier less $.020291 per kwh, such a 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.