Powercompute, Inc 8-K, filed Oct 6, 2026
Powercompute, Inc. (PWCM)
About this 8-K
Powercompute, Inc filed this 8-K on October 6, 2026.
Items reported
- Item 1.02: Ended a material agreement
- Item 7.01: Regulation FD disclosure
- Item 9.01: Financial statements and exhibits
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 1.02. Termination of a Material Definitive Agreement.
On September 30, 2026, US Digital Mining Mississippi LLC (the "Subsidiary"), a wholly owned subsidiary of PowerCompute, Inc. (the “Company”), entered into an Industrial Power Contract (the "Power Contract") with Columbus Light and Water ("CLW") for the supply of up to 11,000 kilowatts of firm power to the Subsidiary's data center in Columbus, Mississippi (the "Facility"). The Power Contract replaces the Subsidiary's prior power contract with CLW for the Facility and has an initial term ending September 16, 2030, with a five-year renewal if both parties agree.
Power is priced under CLW's Large Data Service Rate, Schedule DCB, subject to scheduled rate increases and periodic adjustment by the Tennessee Valley Authority. The Subsidiary's share of capital costs for CLW's facilities is estimated at $0.
The Power Contract also contains various other customary terms and conditions, including termination, early termination penalty, default, and limitation of liability provisions
There is no material relationship between the Company or its affiliates and CLW, other than in respect of the Power Contract and the prior power contract.
The foregoing description of the Power Contract does not purport to be complete and is qualified in its entirety by reference to the full text of the Power Contract, a copy of which is filed as Exhibit 10.1 to this Current Report on Form 8-K and incorporated herein by reference.
Item 7.01 Regulation FD Disclosure
On October 6, 2026, the Company issued a press release relating to the Power Contract. A copy of the press release is filed herewith as Exhibit 99.1 and is incorporated by reference.
The disclosure in this Item 7.01, including Exhibit 99.1, is not deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to liability under that Section. This information will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except to the extent that the Company specifically incorporates it by reference.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
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Exhibit |
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Description |
10.1 |
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Industrial Power Contract No. 217260-136802-2, entered into September 30, 2026 but effective as of September 16, 2026, between US Digital Mining Mississippi LLC and Columbus Light and Water |
99.1 |
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Press Release, dated October 6, 2026 |
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Cover Page Interactive Data File, formatted in Inline Extensible Business Reporting Language (iXBRL) |
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This Current Report on Form 8-K may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainty. Words such as “anticipate,” “estimate,” “expect,” “intend,” “plan,” and “project” and other similar words and expressions are intended to signify forward-looking statements. Forward-looking statements are not guarantees of future results and conditions but rather are subject to various risks and uncertainties. Such statements are based on the Company’s current expectations and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Investors are cautioned that there can be no assurance actual results or business conditions will not differ materially from those projected or suggested in such forward-looking statements as a result of various risks and uncertainties. Investors should refer to the risks detailed from time to time in the reports the Company files with the SEC, including the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, as well as other filings on Form 10-Q and periodic filings on Form 8-K, for additional factors that could cause actual results to differ materially from those stated or implied by such forward-looking statements. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, unless required by law.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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PowerCompute, Inc. |
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Date: |
October 6, 2026 |
By: |
/s/ Richard Russell |
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Richard Russell, Chief Financial Officer |
INDUSTRIAL POWER CONTRACT
Between
U S Digital Mining Mississippi LLC And
Columbus Light and Water
Date: September 16, 2026 Contract No.:217260-136802-2 THIS CONTRACT, made and entered into by and between US Digital Mining Mississippi LLC
(“Company”), a corporation created and existing under and by virtue of the laws of the State of Mississippi, and Columbus Light and Water (“Distributor”), a municipality created and existing under and by virtue of the laws of the State of Mississippi;
W I T N E S S E T H:
WHEREAS, Company is constructing facilities at: 249 Datco Industrial Drive, Columbus, Mississippi; and has requested that Distributor supply the firm power and energy requirements for said facilities; and
WHEREAS, Company and Distributor wish to agree upon the terms and conditions under which a specified amount of firm power will be made available by Distributor to Company for the operation of Company’s facilities;
NOW, THEREFORE, for and in consideration of the premises and of the mutual agreements set forth below, the parties agree as follows:
ARTICLE 1 SCOPE
Distributor will supply electric power and energy to Company, and Company will purchase, receive and pay Distributor for such electric power and energy in accordance with this Contract.
ARTICLE 2
EFFECTIVE DATE, TERM AND TERMINATION
This Contract shall become effective as of 0000 hours Central Prevailing Time on October 1, 2026; provided, however, that the provisions of this Contract for the delivery of power and energy shall be effective on the date the Distributor Facilities (as defined in Section 5.1) and the facilities to be constructed by the Company necessary to take delivery of power and energy are completed and placed into service (“In-Service Date”).
This Contract shall continue in effect for an initial term of five years from the In-Service Date and may be terminated by either party following one (1) year written notice to the other party. Such one
(1) year notice to terminate can be given at any time following year five (5) of the initial term. A renewal of five (5) years as agreed upon by both parties.
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Further, it is also expressly recognized that this Contract may be terminated by Distributor, or power supply from Distributor under this Contract may be suspended, in accordance with the Distributor Policies and Procedures attached hereto in Exhibit D.
If Company should give notice of termination hereunder, Distributor shall be under no obligation from the date of receipt of such notice to make or complete any additions to or changes in any transformation or distribution facilities for service to Company unless Company agrees to reimburse Distributor for its non-recoverable costs in connection with the making or completion of such additions or changes.
If either party terminates this Contract prior to the expiration of the initial term in a manner not consistent with Section 2.2 (Term and Termination of Contract) including termination by the Company before completion of the fourth (4th) year of the initial term, or without providing at least one (1) year prior written notice—an Early Termination Penalty shall apply.
2.4. Calculation of Penalty
The Early Termination Penalty shall be equal to (i) all fixed and demand-related charges that would have been payable for the remaining portion of the initial term, based on the Customer’s average monthly billing during the preceding twelve (12) months; and (ii) any direct costs incurred by the Distributor as a result of early termination, including but not limited to purchased power obligations, transmission or capacity commitments, and other non-recoverable expenses reasonably attributable to the Contract.
The Early Termination Penalty shall be invoiced by the Distributor and shall be due and payable within thirty (30) days following the effective date of termination. Any unpaid amounts are subject to the provisions as specified in Exhibit A (Large Data Service Rate- Schedule DCB) of this Contract.
No Early Termination Penalty shall apply if termination occurs after completion of the fourth (4th) year of the initial term and in accordance with the one (1) year notice provisions of Section 2.2 (Term and Termination of Contract).
ARTICLE 3 POWER SUPPLY
Distributor will make available to Company 300 kW of firm power during the hours designated as on-peak hours in the Rate Schedule, which amount shall be the “onpeak contract demand.”
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Distributor will make available to Company 11,000 kW of firm power during the hours designated as off-peak hours in the Rate Schedule, which amount shall be the “off-peak contract demand.”
This contract allows a maximum demand not exceeding 11,000 kW. The Company shall not take electric power in excess of such maximum demand except by agreement of Distributor, but nothing herein contained shall be construed to relieve Company of the obligation to pay for such amounts of electric power as may actually be taken.
ARTICLE 4 RATES
Rate Schedule shall mean the Distributor’s Large Data Service Rate, Schedule DCB, which is attached to and made a part of this Contract as Exhibit A, as it may be modified, changed, replaced, or adjusted from time to time as provided under contractual arrangements between Distributor and TVA, Distributor’s supplier of power.
The power and energy made available for Company hereunder shall be purchased and paid for by Company in accordance with the provisions of said Rate Schedule.
Meter-Reading Time for any calendar month shall mean 0000 hours Central Prevailing Time (“CPT”) on the first day of the following calendar month, except that Distributor may change the time and date of the meter reading upon notice to Company.
Company shall pay Distributor monthly for power and energy available under this Contract. Each and every charge and payment provided for under this Contract shall be separate and cumulative and except as otherwise provided shall be in accordance with the rates and provisions of the Rate Schedule.
The minimum bill for power and energy for any billing period shall be the minimum bill specified in the Rate Schedule.
In case of conflict between the Rate Schedule and the body of this Contract, the Contract shall control. In case of conflict between the Rate Schedule and the Rules and Regulations, the Rate Schedule shall control.
ARTICLE 5
FACILITIES ARRANGEMENTS AND RECOVERY OF CAPITAL COSTS
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Exhibit B (Power Supply Single Line) is attached to and made a part of this Contract. Exhibit B is a configuration sketch which depicts, at a very high level, the major equipment and facilities to be installed by the Distributor. Distributor will install, own, operate, and maintain the substation, distribution facilities and related improvements necessary to transform the power and energy from 13,090 volts to the service voltages indicated in paragraph 6.1 below as shown on Exhibit B (“Distributor Facilities”). The Distributor Facilities include facilities to provide electric service to Company (which will be paid for by Company as provided below) and facilities to serve Distributor’s electric system (which will not be paid for by Company). The In-Service Date shall be on or before September 16, 2025.
In the event Company fails to perform any of its obligations under the terms of this Contract, including but not limited to failing to make any payment due under the terms of this Contract, then Company shall be in default. Distributor may make written demand on Company to cure any such default and Company shall have a period of thirty days to cure any such default. If Company cures the default within thirty (30) days from receipt of the demand from Distributor, then this Contract shall remain full force and effect. In the event Company does not cure the default within thirty (30) days upon receipt of the demand, then this Contract shall terminate and Distributor may pursue collection of costs and expenses as provided for herein.
In the event of termination for default, Company shall also be liable for all damages incurred by Distributor caused by Company's default and costs and expenses of pursuing collection of any and all sums due Distributor including reasonable attorney's fees.
Demand for purposes of this Contract shall be deemed made when Distributor delivers or mails a written demand to cure default either by personal delivery, by United States Mail, or by other expedited delivery to the address provided by the Company for Notices to be sent as set out in this Contract. Notice shall also be deemed to have been given in the event such delivery or mail comes back "refused" or "non-deliverable" from such address.
ARTICLE 6 CONDITIONS OF DELIVERY
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Jeff Atwell
2024-06-17 21:07:00
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Corrected point of interconnection
The point of delivery for power and energy made available under this Contract shall be the point of interconnection between the Distributor’s 13.09 kV load side primary bushings of each of Distributor’s primary metering current transformers and the Company’s 13.09 kV primary overhead conductors.
The power made available at the Delivery Point specified in this Contract shall be in the form of three-phase alternating current, 13.09kV nominal, and at a frequency of approximately 60 hertz. To avoid unusual fluctuations or disturbances on Distributor’s system, Company shall meet the minimum requirements specified by Distributor for voltage flicker, harmonics (such as harmonic current distortion), and other electrical characteristics consistent with generally accepted electric utility industry practices (such as ANSI C84.1 – 2020, American National Standard for Electric Power Systems and Equipment – Voltage Ratings (60 Hertz) and IEEE 519-2022 Standard for Harmonic Control in Electric Power Systems). Company shall provide, at its expense, suitable apparatus that will reasonably meet such Distributor requirements.
Maintenance by Distributor at the Delivery Point of the above-stated frequency and voltage within the above-stated limits shall constitute availability of power for purposes of this Contract.
Company shall endeavor to take and use power and energy in such manner that the current will be reasonably balanced on all three phases. In the event that any check indicates that the current on the most heavily loaded phase exceeds the current on either of the other phases by more than twenty percent (20%), Company shall make at its expense, upon request by the Distributor, the changes necessary to correct the unbalanced condition. If an unbalanced condition is not corrected within 60 days, or such other period as may be agreed upon, Distributor may elect to meter the load on individual phases and compute the total demand as being equal to three (3) times the maximum kW load on any phase. For all purposes under this Contract, the load on any phase shall be the load measured by a wattmeter connected with its current coil in that phase wire and its potential coil connected between that phase wire and the neutral voltage point.
Distributor shall not be obligated to provide equipment for the protection of Company’s lines, facilities, or equipment, but Distributor may provide such protective equipment as it deems necessary for the protection of its own property and operations. The electrical equipment installed by Company shall, in Distributor's sole judgment, be capable of satisfactory coordination with any protective equipment installed by Distributor. Company shall exercise all reasonable precautions and install all equipment necessary to limit its total demand to the amount to which it is entitled under this Contract.
Company grants to Distributor for its use and without cost, such rights in, on, over, and across Company’s property as may be necessary or desirable to permit the maintenance, operation, repair, and replacement of Distributor’s electrical facilities required to serve Company. Such rights shall be subject to Company’s safety and security rules and regulations, which are provided to Distributor. Notwithstanding anything in this Contract which might be construed to the contrary, any of the electric substation facilities used in supplying power to Company under this Contract may be used in serving other loads in any manner which Distributor may deem necessary or desirable; provided, however, that in exercising such right of ingress and egress the Distributor will use regularly
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established roads or passageways and provide the Company the names of individuals entering the Company's property.
Company shall not use electric service furnished by Distributor in such a manner as to cause excessive voltage fluctuations or distortions on Distributor’s electric system. Example sources of excessive voltage fluctuations and distortions shall include but are not limited to motor loads and processes which cause flicker, harmonic producing loads, and capacitor applications interacting with the Distributor’s system. Company shall not install and operate equipment that creates harmonic current or transients that cause excessive distortion to Distributor’s sinusoidal voltage waves. Determination of Company generated voltage fluctuations and waveform distortion will be made solely at Distributor’s discretion, by Distributor, based on standards and policies adopted by Distributor. Distributor may, as a condition of providing service, or as a condition of continuance of service, require Company at Company’s own expense to provide suitable apparatus that will limit such fluctuations and distortions to levels deemed appropriate by Distributor. In the event of Company’s inability or refusal to remedy or rectify Distributor’s concerns, Distributor may discontinue service.
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Jeff Atwell
2024-06-17 21:07:00
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Added pandemic
It is also expressly recognized that the electric power and energy supplied under this Contract are supplied upon the condition that after they pass the Delivery Point, the power and energy become the responsibility of the Company. Accordingly,
The term "force majeure" shall be deemed to be a cause reasonably beyond the control of Distributor and TVA, such as, but without limitation to, injunction, administrative order, strike of employees, war, invasion, pandemic, fire, accident, floods, backwater caused by floods, acts of God, or inability to obtain or ship essential services, materials, or equipment because of the effect of similar causes on suppliers or carriers. Acts of God shall include without limitation the effects of drought if the drought is of such severity as to have a probability of occurrence not more often than an average of once in forty (40) years.
It is recognized by the parties that the availability of power to Company may be interrupted or curtailed from time to time during the term of this Contract because of force majeure or otherwise. Company shall be solely responsible for providing and maintaining such equipment in its plant and such emergency operating procedures as may be required to safeguard persons on its property, its property, and its operations from the effects of such interruptions or curtailments. Company assumes all risk of loss, injury, or damage to Company resulting from such interruptions or curtailments.
ARTICLE 7 POLICIES AND PROCEDURES
The electric power and energy made available to the Company by the Distributor under this Contract shall be delivered, taken, and paid for in accordance with the terms of this Contract and the Policies and Procedures (as amended, supplemented, or replaced), attached hereto in Exhibit D and hereby made a part hereof. In the event of any conflict between the provisions of the Distributor Policies and Procedures and the other provisions of this Contract, the latter shall control.
SECTION 8 INSURANCES
Both Company and Distributor shall maintain, in full force and effect for the entire term of this Agreement, Liability Insurance for Personal Injury and Property damage. A copy of Company’s and Distributor’s respective Certificates of Insurance are attached hereto in Exhibit E. Company has the right to request and the Distributor furnish the Company an up-to-date Certificate of Insurance upon request. Correspondingly, Distributor has the right to request and the Company furnish the Distributor an up-to- date Certificate of Insurance upon request.
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SECTION 9 INCORPORATION OF APPENDICES
The attached Appendices are made a part of this Contract. In the event of any conflict between the body of this Contract and the Appendices, the Contract shall control.
ARTICLE 10 ASSIGNMENT OF CONTRACT
Company shall not assign this Contract without written notification to Distributor.
ARTICLE 11 WAIVERS
A waiver of one or more defaults shall not be considered a waiver of any other or subsequent default.
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ARTICLE 12 DUPLICATE ORIGINALS
Any number of duplicate originals of this Contract may be executed, and all such duplicates shall constitute but one and the same instrument.
ARTICLE 13 NOTICES
Any notice required by this Contract shall be deemed properly given if mailed, postage prepaid, or emailed and confirmed by telephone call, to:
Todd Liebel, Vice President
US Digital Mining Mississippi LLC 1200 W. Platt Street Suite 100
Tampa, FL 33606 TLiebel@Power-Compute.com 941-993-7577
on behalf of Company; or to
Angela Verdell, General Manager PO Box 949
Columbus MS 39703 Averdell@columbus-lw.com 662-328-7192
on behalf of Distributor.
The designation of the person to be so notified, or the address of such person, may be changed at any time and from time to time by either party by similar notice.
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IN WITNESS WHEREOF, the parties to this Contract have caused it to be executed by their duly authorized representatives, as of the day and year first above written.
US Digital Mining
By /s/ Todd Liebel
Name: Todd Liebel Title: Vice President
Date
September 30, 2026
Columbus Light & Water
By s/s Angela Verdell
Name: Angela Verdell Title: General Manager
Date 9/30/2026
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EXHIBIT A
LARGE DATA SERVICE RATE- SCHEDULE DC
Exhibit A
COLUMBUS LIGHT & WATER
LARGE DATA SERVICE RATES-SCHEDULE DC
(October 2026)
Availability
These rates and requirements shall apply to the electric power requirements where (a) a customer’s currently effective onpeak or offpeak contract demand, whichever is higher, is greater than 5,000 kW, and (b) the major use of electricity is for activities conducted at the delivery point serving that customer which are (1) classified with 2022 North American Industry Classification System (NAICS) subsector codes 518 or 519 (but excluding 519210), (2) classified with 2022 NAICS codes 522320 or 541214, or (3) used, in TVA’s sole judgment, for the operation of computational equipment; provided that the other conditions of this section are met.
Service under this rate schedule is subject to any certification requirements as TVA may require. Any customer taking service under this rate schedule is subject to the Capacity Commitment
Charge Rider (“CCC Rider”) for any new or expanded load. Prior to the effective date of any contract for
new or expanded load, any charge calculated under the CCC Rider must be paid by the customer to TVA in accordance with payment instructions and terms provided by TVA. Additionally, prior to entering into any contract for power for new or expanded load, Distributor must notify and consult with TVA. Distributor and customer will contract with TVA, as deemed necessary by TVA, to provide for any TVA-required conditions applicable to delivery of power and energy from TVA to Distributor and from Distributor to customer. Such conditions may include, but are not limited to, power interruption provisions and operating restrictions and guidelines, or installation of special power regulation equipment.
Unless otherwise provided for in a written agreement between TVA and the distributor providing service under this rate schedule, for customers served under this rate schedule, the customer’s “meter-reading time” shall be 0000 hours CST or CDT, whichever is currently effective, on the first day of the calendar month following the month for which a bill under this rate schedule is being calculated. Further, in accordance with TVA-furnished or TVA-approved guidelines or specifications, TVA shall have unrestricted remote access to the metering data at all times, as well as unrestricted physical access to the metering facilities for the purpose of confirming remotely-accessed data during such periods as are specified by TVA.
For a customer requesting that its onpeak contract demand be different from its offpeak contract demand, this rate 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.
The DCB rates below shall apply to customers with an onpeak or offpeak contract demand, whichever is higher, greater than 5,000 kW, but not more than 15,000 kW; DCC rates below shall apply to customers with an onpeak or offpeak contract demand, whichever is higher, greater than 15,000 kW, but not more than 25,000 kW; DCD rates below shall apply to customers with an onpeak or offpeak contract demand, whichever is higher, greater than 25,000 kW.
Character of Service
Alternating current, single- or three-phase, 60 hertz. Power shall be delivered at a transmission voltage of 161 kV or, if such transmission voltage is not available, at the highest voltage available in the vicinity, unless at the customer's request a lower standard voltage is agreed upon.
Base Charges
The base charges for DCB, DCC, and DCD are set forth under the Base Charges Attachment to the rate schedule. Any references to the Base Charges section for this Schedule DC or the DCB, DCC, and DCD rates will be deemed to include the Base Charges Attachment.
Adjustment
The base demand and energy charges shall be increased or decreased in accordance with the current Adjustment Addendum published by TVA.
Facilities Rental Charge
There shall be no facilities rental charge under this rate schedule for delivery at bulk transmission voltage levels of 161 kV or higher. For delivery at less than 161 kV, there shall be added to the customer's bill a facilities rental charge. This charge shall be 36¢ per kW per month except for delivery at voltages below 46 kV, in which case the charge shall be 93¢ per kW per month for the first 10,000 kW and 73¢ per kW per month for the excess over 10,000 kW. Such charge shall be applied to the higher of
(1) the highest billing demand established during the latest 12-consecutive-month period or (2) the customer's currently effective onpeak or offpeak contract demand, whichever is higher, and shall be in addition to all other charges under this rate schedule, including minimum bill charges.
Reactive Demand Charges
If the reactive demand (in kVAR) is lagging during the 30-consecutive-minute period beginning or ending on a clock hour of the month in which the customer's highest metered demand occurs, there shall be added to the customer's bill a reactive charge of $1.46 per kVAR of the amount, if any, by which the reactive demand exceeds 33 percent of such metered demand. If the reactive demand (in kVAR) is leading during the 30-consecutive-minute period beginning or ending on a clock hour of the month in which the customer's lowest metered demand (excluding any metered demands which are less than 25 percent of the highest metered demand) occurs, there shall be added to the customer's bill a reactive charge of $1.14 per kVAR of the amount of reactive demand. Such charges shall be in addition to all other charges under this rate schedule, including minimum bill charges.
Determination of Seasonal Periods
Summer Period shall mean the June, July, August, and September billing months. Winter Period shall mean the December, January, February, and March billing months. Transition Period shall mean the April, May, October, and November billing months.
Determination of Onpeak and Offpeak Hours
Except for Saturdays, Sundays, November 1, 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 for purposes of this rate schedule be from 1 p.m. to 7
p.m. during the months of April, May, June, July, August, September and October and from 4 a.m. to 10
a.m. during the months of January, February, March, November, and December. For 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. Said onpeak and offpeak hours are subject to change by TVA. In the event TVA determines that such changed onpeak and offpeak hours are appropriate, it shall so notify Distributor at least 12 months prior to the effective date of such changed hours.
Determination of Onpeak and Offpeak Demands, Maximum Metered Demand, 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; provided, however, that notwithstanding the metered energy amount, the offpeak energy for any month shall in no case be less than the product of (1) the offpeak billing demand as calculated in the last paragraph below and (2) 110 hours (reflecting a 15 percent load factor applied to the average number of hours in a month).
Distributor shall meter the onpeak and offpeak demands in kW of all customers taking service under this rate schedule. The onpeak metered demand and offpeak metered 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 highest average during any 30-consecutive-minute period beginning or ending on a clock hour.
Except as provided below, (1) the onpeak billing demand shall be the highest onpeak metered demand in the month, (2) the offpeak billing demand shall be the highest offpeak metered demand in the month, and (3) the maximum billing demand shall be the higher of the onpeak billing demand or offpeak billing demand in the month.
The onpeak billing demand shall in no case be less than the sum of (1) 30 percent of the first 5,000 kW, (2) 40 percent of the next 20,000 kW, (3) 50 percent of the next 25,000 kW, (4) 60 percent of
the next 50,000 kW, (5) 70 percent of the next 100,000 kW, (6) 80 percent of the next 150,000 kW, and
(7) 85 percent of all kW in excess of 350,000 kW of the higher of the currently effective onpeak contract demand or the highest onpeak billing demand established during the preceding 12 months.
The offpeak billing demand shall in no case be less than the sum of (1) 30 percent of the first 5,000 kW, (2) 40 percent of the next 20,000 kW, (3) 50 percent of the next 25,000 kW, (4) 60 percent of
the next 50,000 kW, (5) 70 percent of the next 100,000 kW, (6) 80 percent of the next 150,000 kW, and
(7) 85 percent of all kW in excess of 350,000 kW of the higher of the currently effective offpeak contract demand or the highest offpeak billing demand established during the preceding 12 months.
Minimum Bill
The monthly bill under this rate schedule, excluding any facilities rental charges and any reactive charges, shall not be less than the sum of (1) the base customer charge and administrative charge, (2) the portion of the base demand charge, as adjusted, applicable to onpeak billing demand applied to the customer's onpeak billing demand, (3) the portion of the base demand charge, as adjusted, applicable to maximum billing demand applied to the to the customer's maximum billing demand, (4) the base onpeak energy charge, as adjusted, applied to the customer's onpeak energy takings, and (5) the base offpeak energy charge, as adjusted, applied to the higher of customer's actual offpeak energy takings or the minimum offpeak energy takings amount provided for in the first paragraph of the section of this rate schedule entitled “Determination of Onpeak and Offpeak Demands, Maximum Metered Demand, and Energy Amounts.” Notwithstanding the foregoing, amounts calculated under any fuel cost adjustment
that is included in the Adjustment Addendum shall not be applied to any billed offpeak energy that exceeds the metered offpeak energy.
Excess demand charges are excluded from this calculation.
Distributor may require minimum bills higher than those stated above, including, without limitation, charges to cover any additional metering and related costs.
Contract Requirement
Distributor shall require contracts for all service provided under this rate schedule. The contract for customers served under DCB and DCC rates shall be for an initial term of at least 5 years and any renewals or extensions of the initial contract shall be for a term of at least 1 year; after 10 years of service, any such contract for the renewal or extension of service may provide for termination upon not less than 4 months’ notice. The contract for customers served under DCD rates shall be for an initial term of at least 5 years and any renewals or extensions of the initial contract shall be for a term of at least 5 years; after 10 years of service, any such contract for the renewal or extension of service may provide for termination upon not less than 16 months’ notice. 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 onpeak or offpeak 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.
Prior to entering into any contract for power for new or expanded load, Distributor must notify and consult with TVA. Distributor and Company will contract with TVA, as deemed necessary by TVA, to provide for any TVA-required conditions applicable to delivery of power and energy from TVA to Distributor and from Distributor to the customer.
The contract demand amounts and applicable rates specified in the contract may be adjusted by TVA as provided under this paragraph. For customers served under DCB, DCC, or DCD rates, beginning October 1, 2027, and occurring each October 1 thereafter, TVA will calculate the customer’s highest onpeak and offpeak billing demand, established in the preceding 36 months. In the event that the customer's onpeak and/or offpeak billing demand is below 75% of the onpeak or offpeak contract demand, which is higher, TVA will provide at least 60 days’ written notice of an adjustment to the onpeak and/or offpeak contract demands. Said adjustment to the onpeak and/or offpeak contract demands would be established by dividing the customer’s highest onpeak or offpeak billing demand from the preceding 36 months by 0.75. Distributor will promptly notify the customer, in writing, of the adjusted contract demand amounts and the TVA-specified effective date. In the event the adjustment of the contract demand warrants the customer being served under a different rate schedule, the applicable rate schedule will be attached to said notice. Within 30 days of the date of the notice from TVA, Distributor may submit to TVA a request for a one-year exemption due to force majeure or other events outside of the customer’s control that are impacting the onpeak or offpeak billing demand. TVA will approve such request so long as (1) the customer has previously met or exceeded 75% of its onpeak or offpeak contract demand, whichever is higher, and (2) customer demonstrates, to TVA’s satisfaction, customer’s plan for meeting or exceeding 75% of its contract demand.
The requirement set forth in preceding paragraph shall not apply to customers that have been supplied with service through a single-point of delivery for less than ten years. The requirement set forth in the preceding paragraph also shall not apply to federal customers whose primary use of power supports activities essential to national defense. For purposes of this provision, a customer’s use of power shall be considered in support of national defense when the predominant use of electricity directly
enables activities, operations, or facilities determined by TVA to be directly tied to national defense needs.
Payment
Bills under this rate schedule will be rendered monthly. Any amount of the bill that is unpaid after the due date specified on bill may be subject to additional charges under Distributor's standard policy.
Failure by the customer to pay to TVA any amount due under the CCC Rider will be deemed a failure by the customer to have paid its power bill and all remedies available for non-payment of the power bill will be applicable for any amount due.
Single-Point Delivery
The charges under this rate schedule are based upon the supply of service through a single delivery and metering point, and at a single voltage. If service is supplied to the same customer through more than one point of delivery or at different voltages, the supply of service at each delivery and metering point and at each different voltage shall be separately metered and billed.
Service is subject to Rules and Regulations of Distributor.
(This space intentionally left blank)
Base Charges Attachment
Any customer taking service under this rate schedule is subject to the Capacity Commitment Charge Rider for any new or expanded load. Prior to the effective date of any contract for new or expanded load, any charge calculated under the Capacity Commitment Charge Rider must be paid by the customer to TVA in accordance with payment instructions provided by TVA.
As used in this Base Charges Attachment, amounts designated in the format “Rate-FY27”, “Rate-FY28”, and “Rate-FY29+” shall be applied in the following manner: Rate-FY27 will be applicable for the period of October 2026 through September 2027; Rate-FY28 will be applicable for the period of October 2027 through September 2028; and Rate-FY29+ will be applicable for the period of October 2028 onward. All rate amounts, regardless of whether they are in effect at the time, continue to be subject to the Adjustments section of this rate schedule.
|
DCB |
DCC |
DCD |
|
Customer Charge |
$1,500.00 |
$1,500.00 |
$1,500.00 |
per delivery point per month |
Administrative Charge |
$350.00 |
$350.00 |
$350.00 |
per delivery point per month |
Demand Charges
|
|
DCB-FY27 ($/kW) |
DCB-FY28 ($/kW) |
DCB-FY29+ ($/kW) |
|
Summer Period |
Onpeak Demand |
11.27 |
12.20 |
13.13 |
per month of onpeak billing demand |
Maximum Demand |
1.81 |
1.96 |
2.09 |
per month of maximum billing demand |
|
Excess Demand |
11.27 |
12.20 |
13.13 |
per month of the amount, if any, by which (1) the customer's onpeak billing demand exceeds its onpeak contract demand or (2) the customer’s offpeak billing demand exceeds its offpeak contract demand, whichever is higher. |
|
Winter Period |
Onpeak Demand |
10.19 |
11.02 |
11.87 |
per month of onpeak billing demand |
Maximum Demand |
1.81 |
1.96 |
2.09 |
per month of maximum billing demand |
|
Excess Demand |
10.19 |
11.02 |
11.87 |
per month of the amount, if any, by which (1) the customer's onpeak billing demand exceeds its onpeak contract demand or (2) the customer’s offpeak billing demand exceeds its offpeak contract demand, whichever is higher. |
|
Transition Period |
Onpeak Demand |
10.19 |
11.02 |
11.87 |
per month of onpeak billing demand |
Maximum Demand |
1.81 |
1.96 |
2.09 |
per month of maximum billing demand |
|
Excess Demand |
10.19 |
11.02 |
11.87 |
per month of the amount, if any, by which (1) the customer's onpeak billing demand exceeds its onpeak contract demand or (2) the customer’s offpeak billing demand exceeds its offpeak contract demand, whichever is higher. |
|
|
DCC-FY27 ($/kW) |
DCC-FY28 ($/kW) |
DCC-FY29+ ($/kW) |
|
Summer Period |
Onpeak Demand |
11.27 |
12.20 |
13.13 |
per month of onpeak billing demand |
Maximum Demand |
1.30 |
1.45 |
1.58 |
per month of maximum billing demand |
|
Excess Demand |
11.27 |
12.20 |
13.13 |
per month of the amount, if any, by which (1) the customer's onpeak billing demand exceeds its onpeak contract demand or (2) the customer’s offpeak billing demand exceeds its offpeak contract demand, whichever is higher. |
|
Winter Period |
Onpeak Demand |
10.19 |
11.02 |
11.87 |
per month of onpeak billing demand |
Maximum Demand |
1.30 |
1.45 |
1.58 |
per month of maximum billing demand |
|
Excess Demand |
10.19 |
11.02 |
11.87 |
per month of the amount, if any, by which (1) the customer's onpeak billing demand exceeds its onpeak contract demand or (2) the customer’s offpeak billing demand exceeds its offpeak contract demand, whichever is higher. |
|
Transition Period |
Onpeak Demand |
10.19 |
11.02 |
11.87 |
per month of onpeak billing demand |
Maximum Demand |
1.30 |
1.45 |
1.58 |
per month of maximum billing demand |
|
Excess Demand |
10.19 |
11.02 |
11.87 |
per month of the amount, if any, by which (1) the customer's onpeak billing demand exceeds its onpeak contract demand or (2) the customer’s offpeak billing demand exceeds its offpeak contract demand, whichever is higher. |
|
|
|
DCD-FY27 ($/kW) |
DCD-FY28 ($/kW) |
DCD-FY29+ ($/kW) |
|
Summer Period |
Onpeak Demand |
11.27 |
12.20 |
13.13 |
per month of onpeak billing demand |
Maximum Demand |
1.19 |
1.34 |
1.47 |
per month of maximum billing demand |
|
Excess Demand |
11.27 |
12.20 |
13.13 |
per month of the amount, if any, by which (1) the customer's onpeak billing demand exceeds its onpeak contract demand or (2) the customer’s offpeak billing demand exceeds its offpeak contract demand, whichever is higher. |
|
|
|
DCD-FY27 ($/kW) |
DCD-FY28 ($/kW) |
DCD-FY29 ($/kW) |
|
Winter Period |
Onpeak Demand |
10.19 |
11.02 |
11.87 |
per month of onpeak billing demand |
Maximum Demand |
1.19 |
1.34 |
1.47 |
per month of maximum billing demand |
|
|
DCD-FY27 ($/kW) |
DCD-FY28 ($/kW) |
DCD-FY29 ($/kW) |
|
|
Excess Demand |
10.19 |
11.02 |
11.87 |
per month of the amount, if any, by which (1) the customer's onpeak billing demand exceeds its onpeak contract demand or (2) the customer’s offpeak billing demand exceeds its offpeak contract demand, whichever is higher. |
Transition Period |
Onpeak Demand |
10.19 |
11.02 |
11.87 |
per month of onpeak billing demand |
Maximum Demand |
1.19 |
1.34 |
1.47 |
per month of maximum billing demand |
|
Excess Demand |
10.19 |
11.02 |
11.87 |
per month of the amount, if any, by which (1) the customer's onpeak billing demand exceeds its onpeak contract demand or (2) the customer’s offpeak billing demand exceeds its offpeak contract demand, whichever is higher. |
Energy Charges
|
|
DCB-FY27 (¢/kWh) |
DCB-FY28 (¢/kWh) |
DCB-FY29+ (¢/kWh) |
|
Summer Period |
Onpeak Hours |
6.084 |
6.595 |
7.106 |
per month for all metered onpeak kWh |
Offpeak Hours Block 1 |
3.484 |
3.781 |
4.077 |
per month for the first 200 hours use of metered onpeak demand multiplied by the ratio of offpeak energy to total energy |
|
Offpeak Hours Block 2 |
0.22 |
0.248 |
0.275 |
per month for the next 200 hours use of metered onpeak demand multiplied by the ratio of offpeak energy to total energy |
|
Offpeak Hours Block 3 |
0.011 |
0.022 |
0.031 |
per month for the hours use of metered onpeak demand in excess of 400 hours multiplied by the ratio of offpeak energy to total energy |
|
Minimum Offpeak Energy |
3.484 |
3.781 |
4.077 |
per month shall be applied to the portion, if any, of the minimum offpeak energy takings amount that is greater than the metered energy |
Winter Period |
Onpeak Hours |
4.873 |
5.284 |
5.695 |
per month for all metered onpeak kWh |
Offpeak Hours Block 1 |
3.73 |
4.047 |
4.364 |
per month for the first 200 hours use of metered onpeak demand multiplied by the ratio of offpeak energy to total energy |
|
Offpeak Hours Block 2 |
0.22 |
0.248 |
0.275 |
per month for the next 200 hours use of metered onpeak demand multiplied by the ratio of offpeak energy to total energy |
|
Offpeak Hours Block 3 |
0.011 |
0.022 |
0.031 |
per month for the hours use of metered onpeak demand in excess of 400 hours multiplied by the ratio of offpeak energy to total energy |
|
Minimum Offpeak Energy |
3.73 |
4.047 |
4.364 |
per month shall be applied to the portion, if any, of the minimum offpeak energy takings amount that is greater than the metered energy |
|
Transition Period |
Onpeak Hours |
3.825 |
4.15 |
4.474 |
per month for all metered onpeak kWh |
Offpeak Hours Block 1 |
3.825 |
4.15 |
4.474 |
per month for the first 200 hours use of metered onpeak demand multiplied by the ratio of offpeak energy to total energy |
|
Offpeak Hours Block 2 |
0.22 |
0.248 |
0.275 |
per month for the next 200 hours use of metered onpeak demand multiplied by the ratio of offpeak energy to total energy |
|
Offpeak Hours Block 3 |
0.011 |
0.022 |
0.031 |
per month for the hours use of metered onpeak demand in excess of 400 hours multiplied by the ratio of offpeak energy to total energy |
|
Minimum Offpeak Energy |
3.825 |
4.15 |
4.474 |
per month shall be applied to the portion, if any, of the minimum offpeak energy takings amount that is greater than the metered energy |
|
|
DCC-FY27 (¢/kWh) |
DCC-FY28 (¢/kWh) |
DCC-FY29+ (¢/kWh) |
|
Summer Period |
Onpeak Hours |
6.111 |
6.625 |
7.138 |
per month for all metered onpeak kWh |
Offpeak Hours Block 1 |
3.36 |
3.646 |
3.933 |
per month for the first 200 hours use of metered onpeak demand multiplied by the ratio of offpeak energy to total energy |
|
Offpeak Hours Block 2 |
0.374 |
0.414 |
0.454 |
per month for the next 200 hours use of metered onpeak demand multiplied by the ratio of offpeak energy to total energy |
|
Offpeak Hours Block 3 |
0.374 |
0.414 |
0.454 |
per month for the hours use of metered onpeak demand in excess of 400 hours multiplied by the ratio of offpeak energy to total energy |
|
Minimum Offpeak Energy |
3.36 |
3.646 |
3.933 |
per month shall be applied to the portion, if any, of the minimum offpeak energy takings amount that is greater than the metered energy |
|
|
DCC-FY27 (¢/kWh) |
DCC-FY28 (¢/kWh) |
DCC-FY29+ (¢/kWh) |
|
Winter Period |
Onpeak Hours |
4.856 |
5.266 |
5.676 |
per month for all metered onpeak kWh |
Offpeak Hours Block 1 |
3.605 |
3.912 |
4.218 |
per month for the first 200 hours use of metered onpeak demand multiplied by the ratio of offpeak energy to total energy |
|
Offpeak Hours Block 2 |
0.374 |
0.414 |
0.454 |
per month for the next 200 hours use of metered onpeak demand multiplied by the ratio of offpeak energy to total energy |
|
Offpeak Hours Block 3 |
0.374 |
0.414 |
0.454 |
per month for the hours use of metered onpeak demand in excess of 400 hours multiplied by the ratio of offpeak energy to total energy |
|
Minimum Offpeak Energy |
3.605 |
3.912 |
4.218 |
per month shall be applied to the portion, if any, of the minimum offpeak energy takings amount that is greater than the metered energy |
|
Transition Period |
Onpeak Hours |
3.701 |
4.016 |
4.33 |
per month for all metered onpeak kWh |
Offpeak Hours Block 1 |
3.701 |
4.016 |
4.33 |
per month for the first 200 hours use of metered onpeak demand multiplied by the ratio of offpeak energy to total energy |
|
Offpeak Hours Block 2 |
0.374 |
0.414 |
0.454 |
per month for the next 200 hours use of metered onpeak demand multiplied by the ratio of offpeak energy to total energy |
|
Offpeak Hours Block 3 |
0.374 |
0.414 |
0.454 |
per month for the hours use of metered onpeak demand in excess of 400 hours multiplied by the ratio of offpeak energy to total energy |
|
Minimum Offpeak Energy |
3.701 |
4.016 |
4.33 |
per month shall be applied to the portion, if any, of the minimum offpeak energy takings amount that is greater than the metered energy |
|
|
DCD-FY27 (¢/kWh) |
DCD-FY28 (¢/kWh) |
DCD-FY29+ (¢/kWh) |
|
Summer Period |
Onpeak Hours |
5.861 |
6.354 |
6.846 |
per month for all metered onpeak kWh |
Offpeak Hours Block 1 |
3.111 |
3.377 |
3.643 |
per month for the first 200 hours use of metered onpeak demand multiplied by the ratio of offpeak energy to total energy |
|
Offpeak Hours Block 2 |
0.188 |
0.213 |
0.237 |
per month for the next 200 hours use of metered onpeak demand multiplied by the ratio of offpeak energy to total energy |
|
Offpeak Hours Block 3 |
0.123 |
0.142 |
0.162 |
per month for the hours use of metered onpeak demand in excess of 400 hours multiplied by the ratio of offpeak energy to total energy |
|
Minimum Offpeak Energy |
3.111 |
3.377 |
3.643 |
per month shall be applied to the portion, if any, of the minimum offpeak energy takings amount that is greater than the metered energy |
|
|
DCD-FY27 (¢/kWh) |
DCD-FY28 (¢/kWh) |
DCD-FY29+ (¢/kWh) |
|
Winter Period |
Onpeak Hours |
4.605 |
4.994 |
5.383 |
per month for all metered onpeak kWh |
Offpeak Hours Block 1 |
3.354 |
3.64 |
3.926 |
per month for the first 200 hours use of metered onpeak demand multiplied by the ratio of offpeak energy to total energy |
|
Offpeak Hours Block 2 |
0.188 |
0.213 |
0.237 |
per month for the next 200 hours use of metered onpeak demand multiplied by the ratio of offpeak energy to total energy |
|
Offpeak Hours Block 3 |
0.123 |
0.142 |
0.162 |
per month for the hours use of metered onpeak demand in excess of 400 hours multiplied by the ratio of offpeak energy to total energy |
|
Minimum Offpeak Energy |
3.354 |
3.64 |
3.926 |
per month shall be applied to the portion, if any, of the minimum offpeak energy takings amount that is greater than the metered energy |
|
Transition Period |
Onpeak Hours |
3.45 |
3.744 |
4.038 |
per month for all metered onpeak kWh |
Offpeak Hours Block 1 |
3.45 |
3.744 |
4.038 |
per month for the first 200 hours use of metered onpeak demand multiplied by the ratio of offpeak energy to total energy |
|
Offpeak Hours Block 2 |
0.188 |
0.213 |
0.237 |
per month for the next 200 hours use of metered onpeak demand multiplied by the ratio of offpeak energy to total energy |
|
Offpeak Hours Block 3 |
0.123 |
0.142 |
0.162 |
per month for the hours use of metered onpeak demand in excess of 400 hours multiplied by the ratio of offpeak energy to total energy |
|
Minimum Offpeak Energy |
3.45 |
3.744 |
4.038 |
per month shall be applied to the portion, if any, of the minimum offpeak energy takings amount that is greater than the metered energy |
Capacity Commitment Charge Rider
This Capacity Commitment Charge Rider (“Rider”) will be in addition to all charges applicable under the “Large Data Service Rates -- Schedule DC” to which this Rider is attached. For applicability of this Rider, a customer (served by either the Tennessee Valley Authority (“TVA”) or a Distributor under Schedule DC) is required to pay the Capacity Commitment Charge for new or expanded load if the customer meets one or more of the following criteria:
For new load requests, the Capacity Commitment Charge will only apply above the first 5 MW of contract demand. Existing loads (as defined below) may request a one-time, location-specific, 5 MW or less waiver, of the Capacity Commitment Charge for load expansions.
For customers that meet the eligibility requirements in the “Availability” section of Schedule DC, “Existing” load is not subject to the Capacity Commitment Charge. A customer’s load is considered “Existing” if:
In the event (1) Distributor and a customer enter into a new power contract, or amend an existing power contract to increase power availability, and (2) the power consumed or to be consumed by the customer meets the eligibility requirements in the “Availability” section of Schedule DC, and (3) Distributor and/or Company have not properly coordinated with TVA as required under the power contract between TVA and Distributor and other TVA-established coordination policies and procedures, then the customer’s load will be considered new or expanded load and the provisions of this Rider will apply.
The Capacity Commitment Charge is a TVA Board-approved charge calculated on a per MW basis and represents the cost of building the additional generation assets needed to serve the next MW of capacity (“Incremental Capacity Cost”) that would not be recovered through the rates provided in Large Data Service Rates -- Schedule DC. Capacity Commitment Charge payments are non-refundable.
At least once each fiscal year, the TVA Board will establish a specified MW amount of capacity available for that fiscal year (“Cohort Threshold”) and approve a Capacity Commitment Charge that will apply to the Cohort Threshold until either (a) the Cohort Threshold is met or (b) the fiscal year passes and a new Capacity Commitment Charge is established and approved by the TVA Board for the next Cohort.
Available capacity (MW) in each Cohort Threshold will be applied to customers on a first-come, first-serve
basis. All customers who have secured capacity (MW) available under the Cohort Threshold will make up the “Cohort.” Each Cohort member will be subject to the same Capacity Commitment Charge and interruption requirements established by TVA (currently designated as power interruption provisions “PIP") until the date TVA no longer requires such interruption provisions (“Firm Generation Date”).
The customer will secure a spot in the then-current Cohort and the Capacity Commitment Charge for the Firm Generation Date will become fixed upon complete execution of the TVA-required contractual arrangements (under which there are Capacity Commitment Charge payment obligations) between TVA and the customer (and Distributor, if applicable). In the event customer fails to take power within five (5) years of the Firm Generation Date, the greater of 1) the Capacity Commitment Charge based on the Firm Generation Date, or 2) the then-current Capacity Commitment Charge, will apply.
For fiscal year 2027, the first Cohort Threshold is 2,000 MW (“Cohort 1”), and the Capacity Commitment Charge is $1.521 million/MW. Specific PIP requirements required by TVA will be set forth in any TVA-required contractual arrangement necessary for service to the customer. Future Cohort Thresholds and the applicable Capacity Commitment Charge will be determined by the TVA Board and applied as set out above. Future Cohort members will be subject to any interruption requirements established by TVA.
For initial implementation, the Capacity Commitment Charge will not apply to new or expanded load requests 100 MW or less that are deemed to be “inflight” in accordance with criteria established by TVA. Inflight load requests will be subject to the same PIP requirements established by TVA for Cohort 1.
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DISTRIBUTOR POLICIES AND PROCEDURES
C.Olumbus =6
Light water
City of Columbus, MS, Light and Water Department Schedule of Rules and Regulations
Approved by Board on 4/21/16 EFFECTIVE 5/1/16
The Schedule of Rules and Regulation is part of all contracts for receiving utility service from Columbus Light and Water and applies to all services received from Columbus Light and Water, whether the service is based upon contract, agreement, signed application, or otherwise. A copy of this Schedule of Rules and Regulations together with a copy of Columbus Light and Water's Schedule of Standard Rates and Charges, which was approved in a public Columbus Light and Water's Utility Commissioners meeting, shall be kept open to inspection at the offices of Columbus Light and Water located at 420 4th Avenue South, Columbus, MS 39701 (or found on our website - www.columbus-lw.com. Our Customer Service Department can be reached at (662)328-7192.
monthly bill.
Columbus Light and Water Rules and Regulations - MAY, 2016
Columbus Light and Water Rules and Regulations - MAY, 2016 ColumbusQ
Light Water
Columbus Light and Water Rules and Regulations - MAY, 2016
Columbus Light and Water Rules and Regulations - MAY, 2016
voltages, or for the supply of closer voltage regulation than required by standard practice and fire protection requirements.
mail, newsletter, newspaper, radio, and television to inform customers about rates (both locally-initiated and initiated by lVA) and service policies. Furthermore, Columbus Light and Water will provide information regarding rates, service practice policies, dispute resolution processes, and guidelines to customers via the website and information including brochures and print media will also be available in our offices.
Columbus Light and Water Rules and Regulations - MAY, 2016
Columbus Light and Water Rules and Regulations - MAY, 2016 Colurnbt_1$�_
DUE PROCESS PROCEDURES FOR DISPUTED BILLS !4/111s1
8. Escalate adverse decision rendered from initial investigation to General Manager (GM) for his review
Ill. Options if Unsuccessful Dispute from GM Review
PowerCompute Increases Contracted Power at Mississippi Site to 11 Megawatts Under TVA's New Data Center Tariff
PWCM not subject to TVA new tariffs of approximately $1.5 million per megawatt for new and expanded data center load above the first five megawatts
Columbus Light and Water returns $300,000 deposit and requires no capital contribution from PowerCompute for the increase
TAMPA, Fla., October 6, 2026 — PowerCompute, Inc. (Nasdaq: PWCM) (“PowerCompute”) or the (“Company”) today announced that its subsidiary US Digital Mining Mississippi LLC executed a power contract with Columbus Light and Water (“Columbus Power”) on September 30, 2026 that increases contracted power demand at the Company's Columbus, Mississippi site from 8.5 megawatts to 11 megawatts.
The new contract took effect on October 1, 2026 and moved the site from the Tennessee Valley Authority (“TVA”) Manufacturing Service Rate, Schedule MSB, the general industrial rate class from which TVA removed data center load to Columbus Power’s Large Data Service Rate, Schedule DCB, which is the tariff adopted to implement the TVA’s new data center rate. The Company continues to take power at the site without interruption.
Bruce M. Rodgers, Chairman, Chief Executive Officer and President of PowerCompute, said: “We proactively moved to the data center rate on our own, before October 1 ahead of the changes taking effect. Our contracted power at Columbus went from 8.5 megawatts to 11 megawatts and we were not assessed a capacity commitment charge on any of it. A company building 11 megawatts of new data center load in the TVA region today would be subject to a capacity commitment charge of approximately $1.5 million a megawatt above the first 5 megawatts. Columbus is now a better mining site today, and it means the site already carries the tariff classification any HPC facility on TVA power must have, which could not have been bought later at the same price.”
TVA's Data Center Rate and Capacity Commitment Charge
TVA adopted the Large Data Service rate in August 2026 and removed data center load from the general industrial rate class. Data center load, as defined under the new rate, includes Bitcoin mining operations. Beginning with TVA’s fiscal year 2027, which started October 1, 2026, the Large Data Service charges approximately $1.5 million per megawatt Capacity Commitment Rider to new or expanded data center loads above the first five megawatts of contracted demand. For fiscal year 2027, there is a 2,000 megawatt cohort threshold capacity available on a first-come, first-served basis.
Under the TVA’s tariff's Capacity Commitment Charge Rider, the power load under contract that was effective before October 1 is not subject to the new $1.5 million Capacity Commitment Charge. The Company has not been assessed a Capacity Commitment Charge on any portion of its 11 megawatts of contracted demand. Service under the new rate is available only where the major use of electricity at the delivery point is classified under 2022 NAICS subsector 518 or 519, under NAICS 522320 or 541214, or is used, in TVA's sole judgment, for the operation of computational equipment.
1
Columbus Light & Water On-Peak Demand and Curtailment
The new Columbus Power rate schedule continues to price power differently during on-peak and off-peak hours. The Company curtails during on-peak hours and draws its contracted demand during the remaining hours, which lowers the demand charge component of its power cost. On-peak power remains available to the Company at the tariff's on-peak and excess demand rates. The change to Schedule DCB did not alter the Company's on-peak demand or its operating practice at the site.
In connection with the new contract which is effective through September 16, 2030, Columbus Power:
Richard Russell, Chief Financial Officer, said “Columbus Light and Water is returning our $300,000 deposit and we are posting a bond in its place, which puts the cash back to work in the Columbus capacity buildout rather than sitting with the utility. We added two and a half megawatts of contracted power with no capital contribution to the utility and no capacity commitment charge. Our on-peak contract demand did not change, so nothing about how we run the site had to change to get there.”
PowerCompute Sites
PowerCompute operates a 15 megawatt site in Calumet, Oklahoma and the 11 megawatt site in Columbus, Mississippi site, for total operating capacity of 26 megawatts. The Oklahoma site is not in the TVA service territory and is not affected by this contract. The Company monetizes its electrical capacity through Bitcoin mining and, at Calumet, Oklahoma through GPU compute rented on the Vast.ai marketplace.
Power, Bitcoin Mining and High-Performance (“HPC”)
PowerCompute owns 26 MW of interconnected electrical capacity: 15 MW at Calumet, Oklahoma and 11 MW at Columbus, Mississippi. Approximately 22.5 MW primarily supports Bitcoin mining, with a portion allocated to an enterprise HPC pilot program. Both locations are mining data centers developed around electrical capacity the Company owns outright.
The Company views Bitcoin mining and HPC and artificial intelligence (“AI”) applications as alternative ways to monetize its electrical infrastructure. Bitcoin mining can monetize available power immediately and can be curtailed rapidly when power sales are more economically attractive. HPC and AI workloads can potentially generate higher revenue per megawatt but require sustained uptime, additional infrastructure and customers.
Following the repayment and termination of the Bitcoin-backed credit facility announced on September 30, 2026, PowerCompute no longer pursues a leveraged Bitcoin treasury strategy. The Company intends to focus capital on acquiring and monetizing low-cost electrical infrastructure, increasing Bitcoin mining production and efficiency, and developing HPC and AI computing capacity.
About PowerCompute
PowerCompute, Inc. (Nasdaq: PWCM), formerly LM Funding America, Inc., is an owner and operator of electrical infrastructure that converts electricity into Bitcoin and high-performance computing and artificial intelligence capacity. Founded in 2008 and headquartered in Tampa, Florida, the Company
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operates 26 megawatts of wholly owned, interconnected electrical infrastructure across Bitcoin data center facilities in Oklahoma and Mississippi.
The Company also operates a technology-enabled specialty finance business providing funding to nonprofit community associations primarily in Florida. For more information, please visit https://www.power-compute.com.
Forward-Looking Statements
This press release may contain forward-looking statements made pursuant to the Private Securities Litigation Reform Act of 1995. Words such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “plan,” and “project” and other similar words and expressions are intended to signify forward-looking statements. Forward-looking statements are not guarantees of future results and conditions but rather are subject to various risks and uncertainties.
Some of these risks and uncertainties are identified in the Company’s most recent Annual Report on Form 10-K and its other filings with the SEC, which are available at www.sec.gov. These risks and uncertainties include, without limitation, the Company’s ability to maintain compliance with the continued listing requirements of The Nasdaq Stock Market, including the minimum bid price requirement; the Company’s ability to apply the returned deposit as intended; the availability, cost and timely delivery and installation of mining equipment and related infrastructure, including the effect of tariffs on imported equipment; the Company’s ability to increase active mining hash rate or realize anticipated improvements in fleet efficiency; the Company’s ability to energize remaining power capacity on anticipated timelines or at anticipated cost; the Company’s ability to repay or refinance its remaining indebtedness at or before maturity; changes in Bitcoin prices, Bitcoin network difficulty and total network hash rate; the availability and pricing of energy sales and curtailment revenue; the Company’s ability to convert owned power capacity to HPC and AI use on anticipated timelines or at anticipated cost; the Company’s ability to acquire additional electrical capacity on acceptable terms; the Company’s ability to secure customers for HPC and AI capacity; ; capacity; changes in TVA or Columbus Light and Water rate schedules, tariffs or rate classifications, including the application, amount or timing of any capacity commitment charge, and the Company’s ability to maintain its current rate classification at the Columbus site; the anticipated reduction in interest and collar-related expense following repayment of the Company’s Bitcoin-backed credit facility; the availability and cost of GPU and related infrastructure equipment; competition in the HPC and AI compute market; and other risks associated with the Company’s Bitcoin mining, HPC, AI and specialty finance businesses.
The occurrence of any of these risks and uncertainties could have a material adverse effect on the Company’s business, financial condition and results of operations. Forward-looking statements speak only as of the date made, and the Company undertakes no obligation to update such statements except as required by applicable law.
Investor and Media Contact
KCSA Strategic Communications
Philip Carlson
pwcm@kcsa.com
212-896-1233
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