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Rate Tariffs

Table of Contents

General Terms and Conditions
Application of Rates
Character of Service
Service Connections
Meters and Metering Equipment
Customer's Piping & Utilization Equipment
Access to Premises
Deposit Required
Meter Reading and Billing
Disconnection and Reconnection
Non-Sufficient Funds
Curtailment and Interruption

Rate Schedules
Residential Gas Service
General Gas Service
Industrial Gas Service
Large Volume Gas Sales Service
Large Volume Gas Transportation Service
School Transportation Service
Base Rates and Charges

Appendices
Appendix A - Gas Cost Adjustment Factor
Appendix B - Base Rate Cost of Gas per Last Rate Case
Appendix C - Normal Temperature Adjustment
Appendix D - Transportation Nomination and Balancing Provisions


GENERAL TERMS AND CONDITIONS APPLICABLE TO ALL GAS SERVICE

APPLICATION OF RATES

(A) GENERAL

A copy of all rates, rules and regulations under which service will be supplied is posted
or filed for the convenience of the public in the offices of the Company and with the
Indiana Utility Regulatory Commission.

A written application for gas service on forms provided for the purpose, or properly
executed contract, may be required from the customer before service will be supplied.
The Company shall have the right to reject, for any valid reason, any application for
service. When a written application or contract for gas service is accepted by the
Company, such acceptance shall constitute a binding agreement between the Customer
and the Company.

No promises, agreements, or representation of any agent or employee of the Company
shall be of binding force upon the Company unless the same shall be incorporated in
the application or contract for service.

The rate schedules of the Company contemplate that service will be supplied to each
separate premises as one customer.

The gas used by the same individual, entity, or corporation at different premises shall be
separately measured and billed. In no case may gas be shared with another or
transmitted off the premises at which it is delivered.

If service is taken on more than one meter on the same premises for the convenience of
the customer, the gas registered on each meter will be billed separately. Where service
is taken on more than one meter on the same premises for the convenience of the
Company, the gas registered on each meter will be added and billed as one customer.

(B) RESALE OF GAS

Gas furnished by the Company is for the sole use of the customer and shall not be
resold by him except on permission obtained from the Company. The renting of
premises with the cost of gas service included in the rental as an incident of tenancy will
be considered a resale of such service with payment of all rates, charges and costs
incurred the responsibility of the owner of the premises.

(C) UNUSUAL FACILITY REQUIREMENTS

The Company reserves the right, with respect to customers with large or unusual
requirements of gas, or whose establishments are remote from the Company's existing
suitable facilities, to determine in the Company's sole discretion whether service shall
be provided and if provided, then pursuant to a contract with the customer. Such a
contract to determine the provision of necessary service facilities, duration of service,
minimum bill, or other service conditions consistent with these rules, regulations, rates
and charges.

CHARACTER OF SERVICE

The Company does not guarantee but will endeavor to furnish a continuous supply of
gas. The Company shall not be liable for loss or damage which the customer may
sustain by reason of the failure of the service whether caused by accidents, repairs, or
other causes, or incurred by the use of gas or appliances or presence of the Company's
property on the customer's premises. Nor shall the Company be held liable for loss or
damage occurring under or by virtue to the exercise of authority or regulation by
governmental, military or lawfully established civilian agencies, or due to conditions or
causes beyond the Company's control.

SERVICE CONNECTIONS

Service connection shall be made at the Company's expense if no unusual demands or
requirements are made by the customer or the customer location and if the estimated
revenue from the estimated sale of gas to the customer for a three year period
commencing within a reasonable period of time following installation of such service
exceeds the cost of installation. Easements for the installation of facilities and the
operation and maintenance of facilities shall be provided by the customer to the
Company at no cost.

The Company will own and maintain all service pipes from the street main to the meter
installation, even if the customer is required to contribute to the cost of the original
installation. The facilities installed by the Company shall run to the location determined
appropriate by the Company following discussion with the customer.

Where relocation of service connections, or of other equipment of the Company
installed upon the customer's premises, becomes necessary because of the customer's
requirements, the cost of all changes made necessary thereby shall be borne by the
customer.

METERS AND METERING EQUIPMENT

The customer shall provide, free of expense to the Company and close to the point of
service entrance, suitable space for the installation of the Company's metering
equipment. The customer shall permit only authorized agents of the Company, or other
lawfully authorized persons, to inspect, test or remove the same. If the meters or
metering equipment are damaged or destroyed through the neglect of the customer, the
cost of necessary repair or replacement shall be paid by the customer.

Whenever a meter fails to register the amount of gas supplied during any period, an
estimated bill will be rendered based upon the use during similar periods or on other
available information in accordance with the rules and regulations of the Indiana Utility
Regulatory Commission.

CUSTOMER'S PIPING AND UTILIZATION EQUIPMENT

The customer shall install and maintain his piping and appliances in the condition
required by the insurance and governmental authorities having jurisdiction and in a
manner approved by the Company. The Company shall be under no duty to inspect the
piping and equipment of the customer.

ACCESS TO CUSTOMER'S PREMISES

The Company's authorized agents shall have access to the customer's premises at all
reasonable hours to install, inspect, test, repair, or remove its meters and other
property, and to inspect the appliances installed on the customer's premises.

DEPOSIT REQUIRED

The Company may require the customer to make a reasonable cash deposit with the
Company as security for payment of bills, as authorized by the rules and regulations
periodically promulgated or amended by the Indiana Utility Regulatory Commission.

METER READING AND BILLING

Meters will be read and bills rendered monthly. When the Company is unable to read
the meter due to physical conditions, the bill for the month will be estimated on the basis
of past service records or other available data. Bills rendered for gas service in months
in which meters are not read shall have the same force and effect as those based on
actual readings. Any customer who does not desire to receive an estimated bill may
read his meter and send the readings to the Company on appropriate forms which will
be provided by the Company.

DISCONNECTION AND RECONNECTION

The customer is responsible for the payment of bills until service is ordered
discontinued and the Company has had a reasonable time for securing a final meter
reading. If a bill remains unpaid after the final date shown thereon, the Company shall
then have the right to discontinue service to the delinquent customer after 14 days prior
written notice as authorized by the rules and regulations periodically promulgated or
amended by the Indiana Utility Regulatory Commission.

The Company may also discontinue service after 14 days prior written notice upon
violation of any of the Company's rules or regulations of which these General Terms
and Conditions are a part; provided, however, that where fraudulent use of gas is
detected or where the Company's regulating or measuring equipment has been
tampered with or where a dangerous condition is found to exist on the customer's
premises, service may be shut off without notice in advance.

A charge of $40.00 will be made for all disconnections to cover the cost of reconnection.
Such charge shall apply to all reconnections whether caused by voluntary or involuntary
disconnections, except disconnections done for the benefit of the Company.
Disconnections due to the customer's failure to pay a bill, violation of these Rules, fraud,
tampering with Company equipment, or a dangerous condition in existence on the
customer's premises, shall not constitute a disconnection for the benefit of the
Company.

NON-SUFFICIENT FUNDS

A charge of $15.00 will be made where any check is delivered by a customer to the
Company and thereafter returned to the Company for insufficient funds in such account
by the customers' bank.

CURTAILMENT AND INTERRUPTION

The Company shall have the right to curtail and interrupt deliveries from its system under the
following conditions and in the following manner:

A. Operating curtailment or interruption due to weather conditions or force majeure may be
ordered by the Company at any time if, in the Company's opinion, it is necessary for the
proper conduct of its business. Interruption or curtailment shall be upon such notice as
is reasonable under the circumstances.

B. In the event of a gas supply deficiency, curtailment may be ordered by the Company at
any time when, in the opinion of the Company, the natural gas supply needed for
authorized and contractual deliveries to its customers is not available without overrun,
excess tax or other such penalty from the Company's pipeline suppliers. In the event of
such curtailment, the Company shall give such notice of the proposed curtailment as is
reasonable under the circumstances. Such gas supply deficiency curtailment shall be
applied to tariffs in the following order and in the following manner, to the extent
practicable:

1. Deliveries under Industrial Gas Service shall be interrupted 100%, and Large
Volume Gas Transportation Service and School Transportation Service shall be
limited, on a daily basis, to their actual deliveries of transportation gas as
confirmed by the pipeline. This curtailment step shall not apply to human needs
customers referenced below.

2. Deliveries under General Gas Service or Large Volume Gas Sales Service
(except schools, public buildings or human needs customers) shall be next in
order of curtailment.

3. Deliveries under General Gas Service or Large Volume Gas Sales Service to
schools and public buildings (except human needs customers referenced below)
shall be next in order of curtailment.

4 Remaining deliveries not previously curtailed under Large Volume Gas
Transportation Service and School Transportation Service shall be next in order
of curtailment.

5. Deliveries to human needs customers to-wit; prisons, nursing homes,
convalescent homes and hospitals without emergency fuel supplies shall be at
the discretion of the Company.

6. Deliveries under Residential Gas Service to customers shall be last in order of
curtailment.

7. Provided, however, where only partial curtailment is necessary in any one of the
above classes or priority, the Company will endeavor to apportion the gas
available for the curtailed class as equitable as possible among the customers of
said class.

C. Procedures in the event of non-compliance of paragraph A and B above shall be as
follows:

1. Without regard to any other remedy provided by law or by the provisions hereof,
Company shall be entitled to seek an order from the Commission or any other
appropriate tribunal requiring compliance with curtailment or interruption ordered
by Company in compliance with these Tariffs or any directive from any
Governmental authority having jurisdiction in the premises.

2. All volumes taken in violation of Company's curtailment or interruption orders
shall constitute unauthorized gas usage, for which an adjustment may be added
for each Dekatherm of excess gas thus taken sufficient to recover all costs and
expenses of the company including but not limited to attorney fees, and all costs
and charges applied by the pipeline supplier and a penalty of $50/Dth.

D. The terms and conditions contained in these Rules and Regulations shall apply
notwithstanding any provisions contained in any agreement between Company and
Customer. The Tariffs hereinabove referred to are those rates so designated in the
Company's rate schedule as shall be on file with the Indiana Utility Regulatory
Commission.


RATE SCHEDULES

RESIDENTIAL GAS SERVICE

AVAILABILITY:

Available for general natural gas service to residential customers. Customer must be located
on Company's gas mains suitable and adequate for supplying this service. Service to
residential customers shall be to single-dwelling residences that are individually metered for
natural gas consumption for heating, cooling, cooking, drying, water heating, lighting, or similar
typical residential uses.

Where a single dwelling structure consists of separate apartments, but service is taken through
a single meter, the Company's bill will be established for each apartment based upon each
apartment being charged the service charge plus their pro rata share of commodity charges
based upon the total usage per month as if each apartment was separately metered and billed
according to the rate blocks.

RATES AND CHARGES:

The monthly Rates and Charges for Gas Service under this Rate Schedule shall be:

Service Charge and Distribution Charge:
The rates and charges shall be as set forth on Sheet No. 50, Base Rates and Charges.

Gas Cost Charge:
The Gas Cost Charge shall be as set forth on Appendix A, Gas Cost Adjustment, for each
dekatherm of usage.

Normal Temperature Adjustment:
The Normal Temperature Adjustment shall be as set forth on Appendix C, Normal
Temperature Adjustment.

Minimum Monthly Charge:
The Minimum Monthly Charge shall be the Service Charge.

Other Charges:
The Other Charges set forth in this Tariff for Gas Service shall be charged to Customer, if
applicable.

Late Payment Charge:
On the first $3.00 or less of net billing 10%
On the amount in excess of $3.00 3%

Pursuant to 170 IAC 5-1-13, bills shall be rendered and due monthly. If paid within 17 days
from date thereof, as stated in the bill, the net amount shall be paid. If not paid within such 17
days, the gross bill which includes the late payment charge is the amount to be paid.

OTHER TERMS AND CONDITIONS:

Service hereunder shall be subject to the Company's Rules and Regulations and to the Rules,
Regulations and Standards of Service for Gas Public Utilities prescribed by the Indiana Utility
Regulatory Commission from time to time.

 

GENERAL GAS SERVICE

AVAILABILITY:

Available for natural gas service to commercial and governmental customers whose principal
business is trade, service, education, medical care, religious service, or governmental service
or other businesses whose usage would cause the Company to classify as commercial. Gas
service to non-owner occupied multi dwelling units served collectively by a single meter where
gas service is included with the occupant's monthly rent may be considered commercial where
such structure is not a single residential dwelling. Customer must be located on Company's
gas mains suitable and adequate for supplying this service. Service herein shall be to
individually metered customers for natural gas consumption for heating, cooling, cooking,
drying, water hearing, and lighting.

This rate schedule is not available to a commercial customer that utilizes the natural gas
service in an industrial process.

RATES AND CHARGES:

The monthly Rates and Charges for Gas Service under this Rate Schedule shall be:

Service Charge and Distribution Charge:
The rates and charges shall be as set forth on Sheet No. 50, Base Rates and Charges.

Gas Cost Charge:
The Gas Cost Charge shall be as set forth on Appendix A, Gas Cost Adjustment, for each
dekatherm of usage.

Normal Temperature Adjustment:
The Normal Temperature Adjustment shall be as set forth on Appendix C, Normal
Temperature Adjustment.

Minimum Monthly Charge:
The Minimum Monthly Charge shall be the Service Charge.

Other Charges:
The Other Charges set forth in this Tariff for Gas Service shall be charged to Customer, if
applicable.

Late Payment Charge:
On the first $3.00 or less of net billing 10%
On the amount in excess of $3.00 3%

Pursuant to 170 IAC 5-1-13, bills shall be rendered and due monthly. If paid within 17 days
from date thereof, as stated in the bill, the net amount shall be paid. If not paid within such 17
days, the gross bill which includes the late payment charge is the amount to be paid.

OTHER TERMS AND CONDITIONS:

Service hereunder shall be subject to the Company's Rules and Regulations and to the Rules,
Regulations and Standards of Service for Gas Public Utilities prescribed by the Indiana Utility
Regulatory Commission from time to time.

A written contract with a minimum term of one year may be required for establishment of
service under this rate schedule.

 

INDUSTRIAL GAS SERVICE

AVAILABILITY:

Available for firm natural gas service to industrial customers that utilize the natural gas service
for manufacturing and/or processing a product along with ancillary uses of natural gas.
Customer must be located on Company's gas mains suitable and adequate for supplying this
service.

RATES AND CHARGES:

The monthly Rates and Charges for Gas Service under this Rate Schedule shall be:

Service Charge and Distribution Charge:
The rates and charges shall be as set forth on Sheet No. 50, Base Rates and Charges.

Gas Cost Charge:
The Gas Cost Charge shall be as set forth on Appendix A, Gas Cost Adjustment, for each
dekatherm of usage.

Minimum Monthly Charge:
The Minimum Monthly Charge shall be the Service Charge.

Other Charges:
The Other Charges set forth in this Tariff for Gas Service shall be charged to Customer, if
applicable.

Late Payment Charge:
On the first $3.00 or less of net billing 10%
On the amount in excess of $3.00 3%

Pursuant to 170 IAC 5-1-13, bills shall be rendered and due monthly. If paid within 17 days
from date thereof, as stated in the bill, the net amount shall be paid. If not paid within such 17
days, the gross bill which includes the late payment charge is the amount to be paid.

OTHER TERMS AND CONDITIONS:

Service hereunder shall be subject to the Company's Rules and Regulations and to the Rules,
Regulations and Standards of Service for Gas Public Utilities prescribed by the Indiana Utility
Regulatory Commission from time to time.

A written contract with a minimum term of one year may be required for establishment of
service under this rate schedule.

 

LARGE VOLUME GAS SALES SERVICE

AVAILABILITY:

Available for firm natural gas service to customers that use at least 75,000 Dth per year
subject to the availability of adequate capacity on the company's system. Customer must be
located on Company's gas mains suitable and adequate for supplying this service.

RATES AND CHARGES:

The monthly Rates and Charges for Gas Service under this Rate Schedule shall be:

Service Charge and Distribution Charge:
The rates and charges shall be as set forth on Sheet No. 50, Base Rates and Charges.

Gas Cost Charge:
The Gas Cost Charge shall be as set forth on Appendix A, Gas Cost Adjustment, for each
dekatherm of usage.

Normal Temperature Adjustment:
The Normal Temperature Adjustment shall be as set forth on Appendix C, Normal
Temperature Adjustment.

Minimum Monthly Charge:
The Minimum Monthly Charge shall be the Service Charge.

Other Charges:
The Other Charges set forth in this Tariff for Gas Service shall be charged to Customer, if
applicable.

Late Payment Charge:
On the first $3.00 or less of net billing 10%
On the amount in excess of $3.00 3%

Pursuant to 170 IAC 5-1-13, bills shall be rendered and due monthly. If paid within 17 days
from date thereof, as stated in the bill, the net amount shall be paid. If not paid within such 17
days, the gross bill which includes the late payment charge is the amount to be paid.

OTHER TERMS AND CONDITIONS:

Service hereunder shall be subject to the Company's Rules and Regulations and to the Rules,
Regulations and Standards of Service for Gas Public Utilities prescribed by the Indiana Utility
Regulatory Commission from time to time.
A written contract with a minimum term of one year may be required for establishment of
service under this rate schedule.

 

LARGE VOLUME GAS TRANSPORTATION SERVICE

AVAILABILITY

This Rate Schedule is available to any Non-Residential Customer located within the
Company's Service Area whose Annual Usage equals or exceeds 75,000 dekatherms.

Transportation Service shall be available and will be subject to the availability of adequate
capacity on the Company's system to perform such service without detriment to the
Company's other customers.

Transportation Service shall be available after the Customer has made arrangements to pay
all under-collections for prior service received from the Company, including, without limitation,
any under-collection existing in the Gas Cost Adjustment. Transportation Service shall be
initiated at the beginning of a Gas Cost Adjustment period.

CHARACTER OF SERVICE

This Rate Schedule applies to the provision of Transportation Service. Gas Service provided
hereunder shall be metered and billed separately from Gas Service provided under any other
Rate Schedule.

Transportation under this rate shall be considered firm once the Customer's gas is accepted
by the Company from the point where the Company's lines interconnect with the Customer's
upstream pipeline transporter (Receipt Point) to the delivery point at the Customer's place of
utilization (Delivery Point), subject to the interruption or curtailment provisions of the General
Terms and Conditions of the Company and the terms of this rate schedule. The Company's
sole obligation hereunder shall be to deliver the Customer's gas from the Receipt Point to the
Delivery Point. The Company shall have no obligation to provide volumes of gas greater than
that received, nor quality of gas better than that received from the Customer at the Company's
Receipt Point. No storage of gas by the Company shall be available through this
Transportation Service.

RATES AND CHARGES

The monthly Rates and Charges for Gas Service under this Rate Schedule shall be:

Service Charge and Distribution Charge:
The rates and charges shall be as set forth on Tariff Sheet No. 50, Base Rates and Charges.

Normal Temperature Adjustment:
The Normal Temperature Adjustment shall be as set forth on Appendix C, Normal
Temperature Adjustment.

Minimum Monthly Charge:
The Minimum Monthly Charge shall be the Service Charge.

Other Charges:
The Other Charges set forth in this Tariff for Gas Service shall be charged to Customer, if
applicable.

Late Payment Charge:
On the first $3.00 or less of net billing 10%
On the amount in excess of $3.00 3%

Pursuant to 170 IAC 5-1-13, bills shall be rendered and due monthly. If paid within 17 days
from date thereof, as stated in the bill, the net amount shall be paid. If not paid within such 17
days, the gross bill which includes the late payment charge is the amount to be paid.

CONTRACT

Transportation Customer shall enter into a written contract that specifies the hourly and daily
maximum gas requirements of Customer and any other terms reasonably required by
Company. The Contract shall have an initial term of not less than one year and shall
automatically extend for succeeding annual terms thereafter, subject to cancellation by either
party after written notice submitted not less than ninety days prior to the end of the initial term
or any succeeding annual term. However, in no event shall the contract expire during the
Winter Season, unless such mid-winter termination date is mutually agreed upon.

GAS TRANSPORTATION PROVISIONS

The following Gas Transportation Provisions are applicable to Customers entering into
Transportation Service Contracts.

1. Transportation Customers shall be subject to the Nomination and Balancing Provisions set
forth in Appendix D.

2. The Company shall meter the gas at the delivery point through a Company-owned meter.
Company may require Customer to utilize a meter having the ability to measure gas usage
on a daily basis for purposes of applying the Nomination and Balancing Provisions.
Customer shall reimburse Company for the cost of such meters and appurtenances.
Transportation Customer shall provide and maintain on the Premises at the Company's
meter location electric and telephone service as required by Company for the operation of
Company-owned electronic gas measurement devices and related communications
equipment.

3. All volumes of natural gas transported hereunder shall be of the same quality and meet the
same specifications as that delivered to the Company by the Company's own pipeline
transporter.

4. Transportation Customer must have clear title and all required regulatory approvals to the
gas that is to be transported and provided for gas delivery to a mutually agreeable point of
receipt on the Company's system.

5. Transportation Customer may return to firm sales service upon thirty (30) days notice
provided the Company can secure appropriate quantities of gas supply and capacity from
the Company's pipeline transporter to supply said sales service. A Customer that has
returned from transportation service to sales service must remain on sales service for not
less than twelve months before returning to Transportation Service.

6. Customer shall reimburse Company for all charges incurred in connection with
transportation of Customer's gas including any gas costs, penalty charges, or cashouts. In
addition, the Customer shall indemnify the Company against all damages incurred as a
result of Customer's actions.

7. Should Customer be unable to deliver sufficient volumes of transportation gas to the
Company's system, Company will not be obligated hereunder to provide standby quantities
for purposes of supplying such Customer's requirements.

8. Company shall not be required to render service under this rate schedule to any Customer
that fails to comply with any and all of the terms and conditions of this rate schedule.

9. The gas transported shall be the same quality as the Company's pipeline supplier is
required to furnish to the Company.

CURTAILMENT PROVISIONS

In the event of any actual or threatened shortage of natural gas, due to any cause whatsoever,
(including curtailments of total gas deliveries required to comply with supply contract
limitations), the Company shall have the right to require such curtailment or interruption of gas
usage as it deems necessary to avoid impairment of its gas supply to Customers served under
its firm sales service rate schedules. When a curtailment is in effect pursuant to this section,
gas usage by the Customer in excess of the quantity permitted for such Customer shall
constitute Unauthorized Gas Usage and shall be subject to the Unauthorized Gas Usage
Charge set forth in the General Terms and Conditions of this Tariff for Gas Service.

TERMS AND CONDITIONS

Service hereunder shall be subject to the Company's General Terms and Conditions and to
the Rules, Regulations and Standards of Service for Gas Public Utilities prescribed by the
Indiana Utility Regulatory Commission from time to time.

 

SCHOOL TRANSPORTATION SERVICE

AVAILABILITY:

This Rate Schedule shall be available to Customers with a public School Corporation ("School
Corporation Customer") serving students in grades K through 12.

Multiple School Corporation Customers may elect to act jointly to aggregate purchases of
natural gas commodity supply from any available natural gas commodity seller for all schools
included in the aggregated purchases. Notwithstanding the aggregation of natural gas
commodity supply or the use of Summary Billing, each School Corporation Customer shall
individually be subject to and pay the applicable rates and charges pursuant to this Rate
Schedule.

Transportation Service shall be available after the Customer has made arrangements to pay
all under-collections for prior service received from the Company, including, without limitation,
any under-collection existing in the Gas Cost Adjustment. Transportation Service shall be
initiated at the beginning of a Gas Cost Adjustment period.

CHARACTER OF SERVICE

This Rate Schedule applies to the provision of Transportation Service. Gas Service provided
hereunder shall be metered and billed separately from Gas Service provided under any other
Rate Schedule.

Transportation under this rate shall be considered firm once the Customer's gas is accepted
by the Company from the point where the Company's lines interconnect with the Customer's
upstream pipeline transporter (Receipt Point) to the delivery point at the Customer's place of
utilization (Delivery Point), subject to the interruption or curtailment provisions of the General
Terms and Conditions of the Company and the terms of this rate schedule. The Company's
sole obligation hereunder shall be to deliver the Customer's gas from the Receipt Point to the
Delivery Point. The Company shall have no obligation to provide volumes of gas greater than
that received, nor quality of gas better than that received from the Customer at the Company's
Receipt Point. No storage of gas by the Company shall be available through this
Transportation Service.

RATES AND CHARGES:

The monthly Rates and Charges for Gas Service under this Rate Schedule shall be:

Service Charge and Distribution Charge:
The rates and charges shall be as set forth on Tariff Sheet No. 50.

Normal Temperature Adjustment:
The Normal Temperature Adjustment shall be as set forth on Appendix C, Normal
Temperature Adjustment.

Minimum Monthly Charge:
The Minimum Monthly Charge shall be the Service Charge.

Other Charges:
The Other Charges set forth in this Tariff for Gas Service shall be charged to Customer, if
applicable.

Late Payment Charge:
On the first $3.00 or less of net billing 10%
On the amount in excess of $3.00 3%

Pursuant to 170 IAC 5-1-13, bills shall be rendered and due monthly. If paid within 17 days
from date thereof, as stated in the bill, the net amount shall be paid. If not paid within such 17
days, the gross bill which includes the late payment charge is the amount to be paid.

CONTRACT:

The customer requesting transportation service by the Utility shall enter into a written contract
with the Utility, which said contract shall provide for quantities of gas to be transported,
penalties, the term thereof and other conditions of service agreed upon between customer and
the Utility. Each such contract shall provide further that Utility will be held harmless by the
customer against any increases in its monthly demand charges and any overrun quantity
charges or penalties by reason of any failure or refusal of customer to curtail quantities of
transport gas after timely curtailment requests pursuant to the Company's General Terms and
Conditions.

GAS TRANSPORTATION PROVISIONS

The following Gas Transportation Provisions are applicable to Customers entering into
Transportation Service Contracts.

1. Transportation Customers shall be subject to the Nomination and Balancing Provisions set
forth in Appendix D.

2. The Company shall meter the gas at the delivery point through a Company-owned meter.
Company may require Customer to utilize a meter having the ability to measure gas usage
on a daily basis for purposes of applying the Nomination and Balancing Provisions.
Customer shall reimburse Company for the cost of such meters and appurtenances.
Transportation Customer shall provide and maintain on the Premises at the Company's
meter location electric and telephone service as required by Company for the operation of
Company-owned electronic gas measurement devices and related communications
equipment.

3. All volumes of natural gas transported hereunder shall be of the same quality and meet the
same specifications as that delivered to the Company by the Company's own pipeline
transporter.

4. Transportation Customer must have clear title and all required regulatory approvals to the
gas that is to be transported and provided for gas delivery to a mutually agreeable point of
receipt on the Company's system.

5. Transportation Customer may return to firm sales service upon thirty (30) days notice
provided the Company can secure appropriate quantities of gas supply and capacity from
the Company's pipeline transporter to supply said sales service. A Customer that has
returned from transportation service to sales service must remain on sales service for not
less than twelve months before returning to Transportation Service.

6. Customer shall reimburse Company for all charges incurred in connection with
transportation of Customer's gas including any gas costs, penalty charges, or cashouts. In
addition, the Customer shall indemnify the Company against all damages incurred as a
result of Customer's actions.

7. Should Customer be unable to deliver sufficient volumes of transportation gas to the
Company's system, Company will not be obligated hereunder to provide standby quantities
for purposes of supplying such Customer's requirements.

8. Company shall not be required to render service under this rate schedule to any Customer
that fails to comply with any and all of the terms and conditions of this rate schedule.

9. The gas transported shall be the same quality as the Company's pipeline supplier is
required to furnish to the Company.

10. A customer's prior delinquencies must be cured prior to commencing participating in School
Transportation Service, unless otherwise agreed to in advance by Company.

11. The School Corporation shall designate how partial bills, late payment charges, nomination
and balancing charges, and other similar charges shall be prorated between each School
Corporation Customer. If the School Corporation fails to so designate, Company shall
prorate such charges between the School Corporation Customers using its reasonable
discretion.

CURTAILMENT PROVISIONS

In the event of any actual or threatened shortage of natural gas, due to any cause whatsoever,
(including curtailments of total gas deliveries required to comply with supply contract
limitations), the Company shall have the right to require such curtailment or interruption of gas
usage as it deems necessary to avoid impairment of its gas supply to Customers served under
its firm sales service rate schedules. When a curtailment is in effect pursuant to this section,
gas usage by the Customer in excess of the quantity permitted for such Customer shall
constitute Unauthorized Gas Usage and shall be subject to the Unauthorized Gas Usage
Charge set forth in the General Terms and Conditions of this Tariff for Gas Service.

SUMMARY BILLING:

Upon request from a School Corporation, the rates and charges for providing service to each
School Corporation Customer in the School Corporation shall be summarized on one summary
bill for remitting payment to the Utility. Each School Corporation Customer shall remain
responsible for the amount of its bill. A monthly charge of $50.00 shall be added for each
summary bill to cover the administrative costs of performing the summary billing. All School
Corporation Customers utilizing Summary Billing will have their billing cycles adjusted to a
calendar month basis.

TERMS AND CONDITIONS:

Service hereunder shall be subject to the Company's Rules and Regulations and to the Rules,
Regulations and Standards of Service for Gas Public Utilities prescribed by the Indiana Utility
Regulatory Commission from time to time.

 

BASE RATES AND CHARGES

 

 


 

APPENDIX A
GAS COST ADJUSTMENT

 

 

APPENDIX B
BASE RATE COST OF GAS

The base rate cost of gas utilized in the calculation of the Gas Cost Adjustment rates specified
on Sheet No. 51 and in accordance with the Order of the Indiana Utility Regulatory
Commission in Cause No. 43377 is as follows:

Gas Rate Base Rate Cost of Gas
ALL SERVICE $0.0000/Dth

 

APPENDIX C
NORMAL TEMPERATURE ADJUSTMENT

 

The billed amount for each Residential Gas Service General Gas Service, Large Volume Gas Sales Service, Large
Volume Gas Transportation Service, or School Transportation customer, who is deemed to be heat sensitive shall be
subject to a Normal Temperature Adjustment (NTA) for each bill rendered during the billing months of October through
April inclusive.

The NTA adjusts each Customer's monthly billed amount to reverse the impact on margin recovery caused by non-normal
temperatures during the billing period, as measured by actual heating degree day variations from normal heating degree
days.

NTA COMPUTATION

The NTA for each Customer's monthly billing shall be computed as follows:

NTA = NTA Therms x NTA Margin

NTA THERMS

The NTA Therms usage for each Customer to which the NTA Margin shall be applied is computed as follows:

NTA Therms = [Actual Usage - Base Load Usage] x [Normal Degree Days - Actual Degree Days]

Actual Degree Days

NTA MARGIN

The NTA Margin shall be the margin (non-gas cost) component of the tail block rate (Base Rate Less Base Rate Cost of
Gas) for the applicable Rate Schedule.

BASE LOAD THERMS

Base Load Therms shall be Customer's average daily therms usage for the previous summer months (months of July and
August) multiplied by the number of days in the billing period.

For Customers whose Base Load Usage cannot be accurately determined (e.g., new Customers without two months of
summer usage history), an estimated Average Daily Therms shall be used.

NORMAL AND ACTUAL DEGREE DAYS

Normal Degree Days for each Customer's billing period shall be as set forth in the tables on the following pages.

Actual Degree Days for each Customer's billing period shall be taken from the actual heating degree days reported each
day by the National Weather Service.

Normal Degree Days and Actual Degree Days are based on a weighted average of 50 percent Evansville Heating Degree
Days and 50 percent Indianapolis Heating Degree Days.

 

NORMAL TEMPERATURE ADJUSTMENT
NORMAL DEGREE DAYS (NDD)
NON-LEAP YEAR


Date NDD Date NDD Date NDD Date NDD Date NDD Date NDD Date NDD
Jul 1 0 Aug 22 0 Oct 13 8.5 Dec 4 27.5 Jan 25 36.5 Mar 18 20 May 9 5
Jul 2 0 Aug 23 0 Oct 14 9 Dec 5 27.5 Jan 26 36 Mar 19 20 May 10 5
Jul 3 0 Aug 24 0 Oct 15 9 Dec 6 28 Jan 27 36 Mar 20 19.5 May 11 4
Jul 4 0 Aug 25 0 Oct 16 9.5 Dec 7 28 Jan 28 36 Mar 21 19 May 12 4
Jul 5 0 Aug 26 0 Oct 17 10 Dec 8 29 Jan 29 35.5 Mar 22 19 May 13 4
Jul 6 0 Aug 27 0 Oct 18 10 Dec 9 29 Jan 30 35.5 Mar 23 19 May 14 4
Jul 7 0 Aug 28 0.5 Oct 19 10.5 Dec 10 29 Jan 31 35.5 Mar 24 18 May 15 4
Jul 8 0 Aug 29 0.5 Oct 20 11 Dec 11 30 Feb 1 35.5 Mar 25 18 May 16 3
Jul 9 0 Aug 30 1 Oct 21 11 Dec 12 30 Feb 2 35.5 Mar 26 18 May 17 3
Jul 10 0 Aug 31 0.5 Oct 22 11.5 Dec 13 30 Feb 3 35 Mar 27 17 May 18 3
Jul 11 0 Sep 1 0.5 Oct 23 11.5 Dec 14 30.5 Feb 4 34.5 Mar 28 17 May 19 3
Jul 12 0 Sep 2 0.5 Oct 24 12.5 Dec 15 31 Feb 5 34.5 Mar 29 17 May 20 2.5
Jul 13 0 Sep 3 0.5 Oct 25 12.5 Dec 16 31 Feb 6 34.5 Mar 30 16 May 21 2.5
Jul 14 0.5 Sep 4 0.5 Oct 26 13 Dec 17 31 Feb 7 34 Mar 31 16 May 22 2.5
Jul 15 0.5 Sep 5 0.5 Oct 27 13.5 Dec 18 32 Feb 8 33.5 Apr 1 16 May 23 2.5
Jul 16 0 Sep 6 0.5 Oct 28 13.5 Dec 19 32 Feb 9 33.5 Apr 2 15.5 May 24 2
Jul 17 0 Sep 7 0.5 Oct 29 14 Dec 20 32 Feb 10 33.5 Apr 3 15 May 25 2
Jul 18 0 Sep 8 1 Oct 30 14.5 Dec 21 32.5 Feb 11 33 Apr 4 15 May 26 1.5
Jul 19 0 Sep 9 1 Oct 31 14.5 Dec 22 33 Feb 12 32.5 Apr 5 14.5 May 27 1.5
Jul 20 0 Sep 10 1 Nov 1 15 Dec 23 33 Feb 13 32.5 Apr 6 14 May 28 1.5
Jul 21 0 Sep 11 1.5 Nov 2 15.5 Dec 24 33 Feb 14 32.5 Apr 7 14 May 29 1.5
Jul 22 0 Sep 12 1.5 Nov 3 15.5 Dec 25 33.5 Feb 15 32 Apr 8 13.5 May 30 1.5
Jul 23 0 Sep 13 1.5 Nov 4 16.5 Dec 26 34 Feb 16 31.5 Apr 9 13.5 May 31 1.5
Jul 24 0 Sep 14 1.5 Nov 5 16.5 Dec 27 34 Feb 17 31.5 Apr 10 13 Jun 1 1.5
Jul 25 0 Sep 15 1.5 Nov 6 16.5 Dec 28 34 Feb 18 31 Apr 11 13 Jun 2 1.5
Jul 26 0 Sep 16 1.5 Nov 7 17.5 Dec 29 34.5 Feb 19 30.5 Apr 12 12.5 Jun 3 1
Jul 27 0 Sep 17 1.5 Nov 8 17.5 Dec 30 34.5 Feb 20 30.5 Apr 13 12 Jun 4 1
Jul 28 0 Sep 18 2.5 Nov 9 17.5 Dec 31 35 Feb 21 30 Apr 14 12 Jun 5 1
Jul 29 0 Sep 19 2.5 Nov 10 18.5 Jan 1 35 Feb 22 29.5 Apr 15 11.5 Jun 6 0.5
Jul 30 0 Sep 20 2.5 Nov 11 18.5 Jan 2 35 Feb 23 29.5 Apr 16 11.5 Jun 7 0.5
Jul 31 0 Sep 21 2.5 Nov 12 19.5 Jan 3 35.5 Feb 24 29 Apr 17 11 Jun 8 0.5
Aug 1 0 Sep 22 3 Nov 13 19.5 Jan 4 35.5 Feb 25 28.5 Apr 18 10.5 Jun 9 0.5
Aug 2 0 Sep 23 3 Nov 14 19.5 Jan 5 36 Feb 26 28 Apr 19 10.5 Jun 10 0.5
Aug 3 0 Sep 24 3.5 Nov 15 20.5 Jan 6 36 Feb 27 27.5 Apr 20 10.5 Jun 11 0.5
Aug 4 0 Sep 25 3.5 Nov 16 20.5 Jan 7 36 Feb 28 27.5 Apr 21 9.5 Jun 12 0.5
Aug 5 0 Sep 26 3.5 Nov 17 21 Jan 8 36 Mar 1 27 Apr 22 9.5 Jun 13 0.5
Aug 6 0 Sep 27 4 Nov 18 21.5 Jan 9 36 Mar 2 26.5 Apr 23 9.5 Jun 14 0.5
Aug 7 0 Sep 28 4 Nov 19 21.5 Jan 10 36.5 Mar 3 26 Apr 24 9 Jun 15 0
Aug 8 0 Sep 29 4.5 Nov 20 22 Jan 11 36.5 Mar 4 25.5 Apr 25 8.5 Jun 16 0
Aug 9 0 Sep 30 5 Nov 21 22.5 Jan 12 36.5 Mar 5 25.5 Apr 26 8.5 Jun 17 0
Aug 10 0 Oct 1 5 Nov 22 22.5 Jan 13 36.5 Mar 6 25 Apr 27 8.5 Jun 18 0
Aug 11 0 Oct 2 5 Nov 23 23.5 Jan 14 36.5 Mar 7 24.5 Apr 28 7.5 Jun 19 0
Aug 12 0 Oct 3 6 Nov 24 23.5 Jan 15 36.5 Mar 8 24 Apr 29 7.5 Jun 20 0
Aug 13 0 Oct 4 6 Nov 25 24 Jan 16 36.5 Mar 9 23.5 Apr 30 7.5 Jun 21 0
Aug 14 0 Oct 5 6 Nov 26 24.5 Jan 17 36.5 Mar 10 23.5 May 1 7 Jun 22 0
Aug 15 0 Oct 6 6 Nov 27 24.5 Jan 18 36.5 Mar 11 23 May 2 6.5 Jun 23 0
Aug 16 0 Oct 7 7 Nov 28 25 Jan 19 36.5 Mar 12 22.5 May 3 6.5 Jun 24 0
Aug 17 0 Oct 8 7 Nov 29 25.5 Jan 20 36.5 Mar 13 22 May 4 6 Jun 25 0
Aug 18 0 Oct 9 7 Nov 30 26 Jan 21 36.5 Mar 14 22 May 5 6 Jun 26 0
Aug 19 0 Oct 10 8 Dec 1 26 Jan 22 36.5 Mar 15 21.5 May 6 5.5 Jun 27 0
Aug 20 0 Oct 11 8 Dec 2 26.5 Jan 23 36.5 Mar 16 21 May 7 5.5 Jun 28 0
Aug 21 0 Oct 12 8 Dec 3 27 Jan 24 36.5 Mar 17 21 May 8 5 Jun 29 0
                        Jun 30 0


NORMAL TEMPERATURE ADJUSTMENT
NORMAL DEGREE DAYS (NDD)
LEAP YEAR

 

Date NDD Date NDD Date NDD Date NDD Date NDD Date NDD Date NDD
Jul 1 0 Aug 22 0 Oct 13 8.5 Dec 4 27.5 Jan 25 36.5 Mar 17 20 May 8 5
Jul 2 0 Aug 23 0 Oct 14 9 Dec 5 27.5 Jan 26 36 Mar 18 20 May 9 5
Jul 3 0 Aug 24 0 Oct 15 9 Dec 6 28 Jan 27 36 Mar 19 19.5 May 10 4
Jul 4 0 Aug 25 0 Oct 16 9.5 Dec 7 28 Jan 28 36 Mar 20 19 May 11 4
Jul 5 0 Aug 26 0 Oct 17 10 Dec 8 29 Jan 29 35.5 Mar 21 19 May 12 4
Jul 6 0 Aug 27 0 Oct 18 10 Dec 9 29 Jan 30 35.5 Mar 22 19 May 13 4
Jul 7 0 Aug 28 0.5 Oct 19 10.5 Dec 10 29 Jan 31 35.5 Mar 23 18 May 14 4
Jul 8 0 Aug 29 0.5 Oct 20 11 Dec 11 30 Feb 1 35.5 Mar 24 18 May 15 3
Jul 9 0 Aug 30 1 Oct 21 11 Dec 12 30 Feb 2 35.5 Mar 25 18 May 16 3
Jul 10 0 Aug 31 0.5 Oct 22 11.5 Dec 13 30 Feb 3 35 Mar 26 17 May 17 3
Jul 11 0 Sep 1 0.5 Oct 23 11.5 Dec 14 30.5 Feb 4 34.5 Mar 27 17 May 18 3
Jul 12 0 Sep 2 0.5 Oct 24 12.5 Dec 15 31 Feb 5 34.5 Mar 28 17 May 19 2.5
Jul 13 0 Sep 3 0.5 Oct 25 12.5 Dec 16 31 Feb 6 34.5 Mar 29 16 May 20 2.5
Jul 14 0.5 Sep 4 0.5 Oct 26 13 Dec 17 31 Feb 7 34 Mar 30 16 May 21 2.5
Jul 15 0.5 Sep 5 0.5 Oct 27 13.5 Dec 18 32 Feb 8 33.5 Mar 31 16 May 22 2.5
Jul 16 0 Sep 6 0.5 Oct 28 13.5 Dec 19 32 Feb 9 33.5 Apr 1 15.5 May 23 2
Jul 17 0 Sep 7 0.5 Oct 29 14 Dec 20 32 Feb 10 33.5 Apr 2 15 May 24 2
Jul 18 0 Sep 8 1 Oct 30 14.5 Dec 21 32.5 Feb 11 33 Apr 3 15 May 25 1.5
Jul 19 0 Sep 9 1 Oct 31 14.5 Dec 22 33 Feb 12 32.5 Apr 4 14.5 May 26 1.5
Jul 20 0 Sep 10 1 Nov 1 15 Dec 23 33 Feb 13 32.5 Apr 5 14 May 27 1.5
Jul 21 0 Sep 11 1.5 Nov 2 15.5 Dec 24 33 Feb 14 32.5 Apr 6 14 May 28 1.5
Jul 22 0 Sep 12 1.5 Nov 3 15.5 Dec 25 33.5 Feb 15 32 Apr 7 13.5 May 29 1.5
Jul 23 0 Sep 13 1.5 Nov 4 16.5 Dec 26 34 Feb 16 31.5 Apr 8 13.5 May 30 1.5
Jul 24 0 Sep 14 1.5 Nov 5 16.5 Dec 27 34 Feb 17 31.5 Apr 9 13 May 31 1.5
Jul 25 0 Sep 15 1.5 Nov 6 16.5 Dec 28 34 Feb 18 31 Apr 10 13 Jun 1 1.5
Jul 26 0 Sep 16 1.5 Nov 7 17.5 Dec 29 34.5 Feb 19 30.5 Apr 11 12.5 Jun 2 1
Jul 27 0 Sep 17 1.5 Nov 8 17.5 Dec 30 34.5 Feb 20 30.5 Apr 12 12 Jun 3 1
Jul 28 0 Sep 18 2.5 Nov 9 17.5 Dec 31 35 Feb 21 30 Apr 13 12 Jun 4 1
Jul 29 0 Sep 19 2.5 Nov 10 18.5 Jan 1 35 Feb 22 29.5 Apr 14 11.5 Jun 5 0.5
Jul 30 0 Sep 20 2.5 Nov 11 18.5 Jan 2 35 Feb 23 29.5 Apr 15 11.5 Jun 6 0.5
Jul 31 0 Sep 21 2.5 Nov 12 19.5 Jan 3 35.5 Feb 24 29 Apr 16 11 Jun 7 0.5
Aug 1 0 Sep 22 3 Nov 13 19.5 Jan 4 35.5 Feb 25 28.5 Apr 17 10.5 Jun 8 0.5
Aug 2 0 Sep 23 3 Nov 14 19.5 Jan 5 36 Feb 26 28 Apr 18 10.5 Jun 9 0.5
Aug 3 0 Sep 24 3.5 Nov 15 20.5 Jan 6 36 Feb 27 27.5 Apr 19 10.5 Jun 10 0.5
Aug 4 0 Sep 25 3.5 Nov 16 20.5 Jan 7 36 Feb 28 27.5 Apr 20 9.5 Jun 11 0.5
Aug 5 0 Sep 26 3.5 Nov 17 21 Jan 8 36 Feb 29 27 Apr 21 9.5 Jun 12 0.5
Aug 6 0 Sep 27 4 Nov 18 21.5 Jan 9 36 Mar 1 26.5 Apr 22 9.5 Jun 13 0.5
Aug 7 0 Sep 28 4 Nov 19 21.5 Jan 10 36.5 Mar 2 26 Apr 23 9 Jun 14 0
Aug 8 0 Sep 29 4.5 Nov 20 22 Jan 11 36.5 Mar 3 25.5 Apr 24 8.5 Jun 15 0
Aug 9 0 Sep 30 5 Nov 21 22.5 Jan 12 36.5 Mar 4 25.5 Apr 25 8.5 Jun 16 0
Aug 10 0 Oct 1 5 Nov 22 22.5 Jan 13 36.5 Mar 5 25 Apr 26 8.5 Jun 17 0
Aug 11 0 Oct 2 5 Nov 23 23.5 Jan 14 36.5 Mar 6 24.5 Apr 27 7.5 Jun 18 0
Aug 12 0 Oct 3 6 Nov 24 23.5 Jan 15 36.5 Mar 7 24 Apr 28 7.5 Jun 19 0
Aug 13 0 Oct 4 6 Nov 25 24 Jan 16 36.5 Mar 8 23.5 Apr 29 7.5 Jun 20 0
Aug 14 0 Oct 5 6 Nov 26 24.5 Jan 17 36.5 Mar 9 23.5 Apr 30 7 Jun 21 0
Aug 15 0 Oct 6 6 Nov 27 24.5 Jan 18 36.5 Mar 10 23 May 1 6.5 Jun 22 0
Aug 16 0 Oct 7 7 Nov 28 25 Jan 19 36.5 Mar 11 22.5 May 2 6.5 Jun 23 0
Aug 17 0 Oct 8 7 Nov 29 25.5 Jan 20 36.5 Mar 12 22 May 3 6 Jun 24 0
Aug 18 0 Oct 9 7 Nov 30 26 Jan 21 36.5 Mar 13 22 May 4 6 Jun 25 0
Aug 19 0 Oct 10 8 Dec 1 26 Jan 22 36.5 Mar 14 21.5 May 5 5.5 Jun 26 0
Aug 20 0 Oct 11 8 Dec 2 26.5 Jan 23 36.5 Mar 15 21 May 6 5.5 Jun 27 0
Aug 21 0 Oct 12 8 Dec 3 27 Jan 24 36.5 Mar 16 21 May 7 5 Jun 28 0
                        Jun 29 0
                        Jun 30 0

 

APPENDIX D
NOMINATION AND BALANCING PROVISIONS

 

The following Provisions shall apply to individual transportation Customers being provided
Transportation Service under the Large Volume Gas Transportation Service and the School
Transportation Service..

NOMINATION PROVISIONS

At least ten (10) days prior to the beginning of each month, Customer shall provide Company
with nominations specifying the daily volumes of gas to be delivered into the Company's
system for Customer's account. Intra-month daily nomination changes shall be allowed by the
Company, provided the delivering pipeline will accept the nomination change, and only if such
change will not prevent the Company from acquiring that amount of gas that the Company has
nominated for its firm service customers during such period.

The Customer shall be obligated to notify Company of the exact daily quantity of its nomination
to the delivering pipeline of Customer-owned gas to be delivered to Company at pipeline
delivery points agreeable to Company (Daily Pipeline Nomination). Customer must provide
the notice specified above prior to each change in Customer's Daily Pipeline Nomination by
submitting to Company the nomination via facsimile, by no later than 10:00 AM Central Clock
Time ("CCT") of the workday previous to the start date of the Daily Pipeline Nomination.
Company may accept nominations submitted after the deadlines specified above within its
reasonable discretion. Until Customer submits the required nomination, Customer's
nominations of daily quantities shall be zero.

The nomination form shall include the following information:

1. Start and end dates of nomination (Nomination Period);

2. Daily quantity, in dekatherms, of Customer's Daily Pipeline Nomination (Daily
Transportation Nomination) along with;

a. Delivering pipeline;
b. Shipper on the delivering pipeline;
c. Transportation contract number;
d. The pipeline delivery points and quantities; and
e. Any other information reasonably required by company to properly identify and
apply Customer's Daily Transportation Nomination.

Unless otherwise permitted by Company, the Nomination Period shall not exceed thirty-one
days. When Customer is not the shipper on a pipeline, Customer shall cause the shipper to
provide Company with a written statement detailing Customer's actual deliveries under
Customer's Daily Pipeline Nomination during each Nomination Period by no later than one day
following the end of the billing month.

Customer shall pay a NOMINATION ERROR CHARGE of $0.50 per dekatherm on the
quantity difference between Customer's Daily Transportation Nomination and the actual
deliveries under Customer's Daily Pipeline Nomination for each day such difference occurs.

BALANCING PROVISIONS

Customer shall be obligated to balance its total usage with the total deliveries of Customerowned
gas by the pipeline, as adjusted for prior month Over-Delivery Gas made available to
Customer on an average daily basis or prior month Under-Delivery Gas made up by Customer
on an average daily basis. An imbalance Quantity shall exist when the Customer's total usage
is greater than or less than its total deliveries on a daily basis and/or a monthly basis. For
purposes of applying the Daily and Monthly Balancing Provisions, the following definitions
shall apply:

Daily Index Price: The Daily Midpoint Prices as reported in Gas Daily in the table "Daily
Price Survey."

Monthly Index Price: The monthly index reported in Inside FERC's Gas Market Report,
in the table "Prices of Spot Gas Delivered to Interstate Pipelines."

Daily Imbalance Provisions: Customer shall pay Company the following Daily Imbalance
Charge on the portion of the Daily Imbalance Quantity that is greater than 9% of Total Daily
Usage:

• 0.2 times the Daily Index Price on the portion of the Daily Imbalance Quantity that is
greater than 9%, up to and including 20% of Total Daily Usage: plus
• 0.4 times the Daily Index Price on the portion of the Daily Imbalance Quantity that is
greater than 20% of Total Daily Usage.

During an Operational Flow Order ("OFO"), the aforementioned Daily Balancing Provisions will
be replaced by those specified in the section entitled Operational Flow Orders. During a Warm
Weather OFO, Daily Under-Delivery Imbalance Quantities shall not be assessed the Daily
Imbalance Charge. During a Cold Weather OFO, Daily Over-Delivery Imbalance Quantities
shall not be assessed the Daily Imbalance Charge.

Monthly Imbalance Provisions: Monthly Imbalance Quantities shall be carried forward to the
following month and shall be considered to be received from Customer on an average daily
basis in the following month. Customer shall pay Company the following Monthly Imbalance
Charge on the portion of the Monthly Imbalance Quantity that is greater than 5% of Total
Monthly Usage:

• 0.2 times the Monthly Index Price on the portion of the Monthly Imbalance Quantity that
is greater than 5%, up to and including 15% of actual usage, plus
• 0.4 times the Monthly Index Price on the portion of the Monthly Imbalance Quantity that
is greater than 15% of actual usage.

OPERATIONAL FLOW ORDERS

Customer agrees, when requested by the Company through an Operational Flow Order
("OFO"), to nominate and deliver gas supply to the Company's city gate in the manner
instructed by the Company. Company may call a Cold Weather OFO or a Warm Weather
OFO where such action is necessary, in the Company's sole judgment, to (1) protect the
reliability of the Company's gas system; (2) assure deliveries of gas supplies to all of the
Company's Firm Customers, (3) adhere to the various interstate pipeline companies' balancing
requirements, as stated in their FERC-approved gas tariffs under which the Company is
served, and/or (4) avoid high priced daily purchases detrimental to system supply Sales
Customers.

During an Operational Flow Order Over-deliveries or Under-deliveries in excess of the quantity
allowed shall be subject to an OFO Daily Imbalance Charge of fifteen dollars ($15.00) per
dekatherm in addition to the normally applicable Daily Imbalance Charge.

WAIVER OF CHARGES

In its reasonable discretion, on a case-by-case basis, the Company may waive all or part of the
provisions herein; provided, however, that the waiver of such provisions shall be exercised on
a non-discriminatory basis.