CGV Files for Rate Case which will Impact TS1 and TS2 Rate Schedules

CGV has applied for changes to be made to their TS-1 and TS-2 rate schedules in Case # PUE-2016-00033 with the State Corporation Commission. Enspire Energy is concerned about the following 4 changes and how these changes will impact the future costs/ transparency to TS-1 and TS-2 accounts:

1. Standby Service: CGV is proposing a change to how the Commodity Charge portion of the Standby Service is calculated. Currently, the tariff reads as follows:

b. Commodity Charge – The first-of-month mid-point Transco, zone 6 non-N.Y. index price, as published in
Gas Daily, times the standby quantities delivered for the month.

CGV now wants to change the relevant index point for pricing Standby quantities to the following:

b. Commodity Charge – The highest of -1) the average of the Daily Index prices for each day of the
applicable month as reported in the PLATTS Gas Daily publication, in the Daily price survey section
under the heading “Transco, zone 6 non-N.Y.” Midpoint, 2) the average of the Daily Index prices for
each day of the applicable month as reported in the PLATTS Gas Daily publication, in the Daily price
survey section under the heading “Transco, zone 5 del.” Midpoint, or 3) the highest commodity cost of
purchases by Company during the calendar month, including the .cost to deliver the purchases to the
city gate, if any, excluding any purchases under fixed price commodity contracts for which the price
was determined more than thirty days before the beginning of the calendar month, times the standby
quantities delivered for the month.

2. Banking and Balancing Service: CGV is proposing a $.01 increase, from $.32 to $.33 per Dth on all volumes that exceed each customer’s allowed bank tolerance, also called an over the allowed bank penalty. CGV is pointing to the upstream pipeline overrun charges as justification for this increase.

3. Banking and Balancing Service: CGV is proposing to change how they invoice customers when they deliver less than they use in a given month, and when all banked volumes and standby service have been used, what is known as cashout volumes.

Currently, the tariff reads as follows:

For any billing month when the Company’s deliveries to the Customer at its facilities exceed
Customer’s deliveries to Company plus the Customer’s contracted daily Standby Service quantities,
available banked quantities, and Daily Gas Transfer Service Quantities, the Customer will be billed for
any such excess consumption (“Excess Quantities”) at the average of the mid-point Transco, zone 6
Non-N.Y. citygate prices for deliveries as published in Gas Daily for the month in which such Excess
Quantities are delivered. The foregoing charges are in addition to any penalties, fees and charges to
the Customer pursuant to this Rate Schedule.

CGV now wants to change the relevant index point for cashout volumes to the following:

For any billing month when the Company’s deliveries to the Customer at its facilities exceed
Customer’s deliveries to Company plus the Customer’s contracted daily Standby Service quantities,
available banked quantities, and Daily Gas Transfer Service Quantities, the Customer will be billed for
any such excess consumption (“Excess Quantities”) at the highest of 1) 120% of the average of the
Daily Index prices for each day of the applicable month-as reported in the PLATTS Gas Daily
publication, in the Daily price survey section under the heading “Transco, zone 6 Non-N.Y.” Midpoint,
2) 120% of the average of the Daily Index prices for each day of the applicable month as reported in
the PLATTS Gas Daily publication, in the Daily price survey section under the heading “Transco,
zone 5 del.” Midpoint, or3) 120% of the highest commodity cost of purchases by Company .during the
calendar month, including the cost to deliver the purchases to the city gate,’If’ any, excluding.any
purchases under fixed price commodity, contracts for which the price was determined more than-thirty
days before the beginning of the calendar month. The foregoing charges are in addition to any
penalties, fees and charges to the Customer pursuant to this Rate Schedule.

4. Daily Gas Transfer Service: Customers and marketers use this service to correct penalties when possible by transferring gas from one customer that used less than what a supplier delivered on a BSR day to a customer that unexpectedly used more and would otherwise incur a BSR penalty. CGV has proposed making this service more expensive by increasing the minimum charge from $15 for a transfer of up to 750 Dth to $15 for a transfer of up to 250 Dth. For volumes transferred exceeding the minimum charge, they are proposing changing the fee from $.02 per Dth to $.06 per Dth. CGV’s justification for the increase in daily transfer charges is that it takes 21 minutes on their side each time a daily transfer is done to go through their checklist of approvals and send confirmation through their system that the transfer is approved.

CGV has proposed other changes to their tariff, and all of the relevant documents may be found on the State Corporation Commission’s website by searching under Case No. PUE-2016-00033. Please feel free to call 757-963-9123 or email Mary Hensley at mhensley@enspireenergy.com to discuss how these proposed changes may impact your account specifically.