SC-12 utilizes standardized discount schedules for customers who meet basic eligibility criteria. Generally, these discounts are administered as a 5-year declining percentage discount to the energy (per kWh) charge. In addition, we have the ability to individually negotiate SC-12 terms and conditions outside this standard structure in special cases—generally, situations involving extremely energy intensive customers or extremely large employers.

Eligibility for SC-12 is generally limited to manufacturing and certain service sector businesses such as wholesale trade, warehousing/storage, professional/scientific/technical services, and administrative/support services. Customer eligibility is driven by the North American Industry Classification System (NAICS), which is the new government standard for classifying businesses.

SC-12 Growth Programs

• Business Attraction
  
  This program offers discounts to prospective customers who are evaluating locations both inside and outside of our service territory. It is also open to new businesses considering a start-up of operations in our service territory. There are two levels of attraction discounts, the deeper of which is available to more energy intensive manufacturers, as defined in the tariff with specific NAICS code.
• Business Expansion
  
  Our business expansion program is available to current National Grid customers (25 kW or larger) who are evaluating an expansion of their existing usage—either through physical expansion (i.e., increase in kW) or increased utilization (i.e., higher kWh usage). The customer's existing usage is "baselined," and discounts are applied above those historical levels of usage. Certain growth thresholds must be hit in order to qualify for discounts.

SC-12 Retention Programs

• Revitalization
  
  This program is designed to retain large manufacturing facilities in danger of closure due to financial distress. In order to qualify for discounts, customers must provide detailed financial information that demonstrates financial distress, identify and implement non-energy cost savings, and develop a comprehensive revitalization plan that will return the company to profitability within the five-year discount period.
• Relocation
  
  Open primarily to our larger industrial customers, this program offers discounts to prevent the relocation of manufacturing facilities to areas outside our service territory. In order to qualify, customers must demonstrate that they have an economically viable relocation alternative. And in recognition of the fact that electricity cost by itself is seldom the only factor driving a relocation challenge, the SC-12 discount must be part of a comprehensive competitiveness plan that includes public involvement in the form of state and/or local incentives or concessions.