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Section 4 <br /> from their perspective as loyal existing customers. ERMU has new infrastructure <br /> (substations) in its capital plans, this would tend to indicate that there is not significant <br /> excess local distribution capacity. As a wholesale purchaser under a tariff, the <br /> wholesale costs to serve new load are the same as the cost to serve existing <br /> customers. If the costs to serve new customers is similar to the costs to serve existing <br /> customers, there is not a cost-of-service justification for an economic development rate. <br /> However, some utilities opt to offer a subsidized rate in order to try stimulate customer <br /> growth in their service territories. <br /> - 8 - <br /> RR <br />