GAS UTILITIES DOCKET NO. 10679 RAILROAD … · GAS UTILITIES DOCKET NO. 10679 ... Harris, Waller,...

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GAS UTILITIES DOCKET NO. 10679

STATEMENT OF INTENT TO INCREASE GAS UTILITY RATES WITHIN THE UNINCORPORATED AREAS SERVED BY SIENERGY, LP IN CENTRAL AND SOUTH TEXAS

§ § § § §

BEFORE THE

RAILROAD COMMISSION

OF TEXAS

STATEMENT OF INTENT TO INCREASE GAS UTILITY RATES WITHIN THE UNINCORPORATED AREAS SERVED BY

SIENERGY, LP IN CENTRAL AND SOUTH TEXAS

SiEnergy, LP (“SiEnergy” or the “Company”), a “gas utility” under Texas Utilities Code

§ 101.003(7), respectfully files this Statement of Intent, pursuant to Subchapter C of Chapter 104

of the Texas Utilities Code and the rules of the Gas Services Department of the Railroad

Commission of Texas (“Commission”), to increase gas utility rates within the areas it serves in the

unincorporated areas of Central and South Texas, specifically Fort Bend, Harris, Waller, and

Travis counties.1 The Company’s proposed rates were developed based on the cost of providing

service to all customers served by the Company within these counties.2

The Company requests that the proposed rate schedules and tariffs, attached as Exhibit A

to this Statement of Intent and incorporated herein by reference, become effective on February 9,

2018, which is 35 days from the date of this filing. In support of its request, the Company

respectfully shows as follows:

I. INTRODUCTION AND SUMMARY OF THE RATE REQUEST

SiEnergy calculated the revenue requirement for this filing using the system-wide cost of

providing service to all customers served by the Company, which is comprised of certain

incorporated and unincorporated areas in Fort Bend, Harris, Waller, and Travis counties. The new

rates will affect all SiEnergy customers in Central and South Texas. SiEnergy’s customers

1 This pleading uses the terms “unincorporated areas” and “environs” interchangeably. 2 Contemporaneously with this filing, SiEnergy is filing a Statement of Intent to Increase Rates with the municipalities of Conroe, Fulshear, Missouri City and Sugarland, which exercise original jurisdiction over the Company’s rates and services within their municipal boundaries.

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currently include residential, commercial, and public school customers. For the 12-month period

ended September 30, 2017, the Company’s overall combined revenue requirement on a system-

wide basis totaled approximately $9.5 million, as adjusted. The total base revenue SiEnergy

received during the test year from incorporated and unincorporated area customers, adjusted to

include additional revenues due to customer growth and the impact of weather experienced during

the test year, was approximately $6.5 million, leaving a revenue deficiency on a system-wide basis

of $2.984 million.

While the Company’s rate filing supports recovery of a $2.984 million system-wide

revenue deficiency, the Company has chosen to propose new rates designed to recover, on a

system-wide basis, only $2.267 million of the overall system-wide revenue deficiency. Adoption

of the Company’s proposed rates will increase the Company’s aggregate revenues, including

miscellaneous fee revenues, on a system-wide basis by 22% including gas costs or 35% excluding

gas costs. More specifically, the proposed rates will increase the annual revenues from the

unincorporated areas served by SiEnergy by approximately $1.9 million or 35% excluding gas

costs. Because the proposed rates will increase the Company’s total aggregate revenues within the

unincorporated areas by more than 2.5%, the proposed rate increase constitutes a “major change”

in rates as that term is defined by Texas Utilities Code § 104.101. The proposed rates will not,

however, exceed 115% of the average of all rates for similar services of all municipalities served

by the Company within the same county. See Texas Utilities Code § 104.006.

The rate schedules and tariffs, attached hereto as Exhibit A to the Rate Filing Package and

made a part hereof, evidence the rate changes proposed by the Company. The proposed tariffs

would be applicable to all areas served by the Company in Central and South Texas. As part of

this rate filing, the Company proposes to consolidate its Commercial and Public School rate tariffs

into new rate tariffs Rate GSSI-1 – General Service Small, Incorporated and GSSU – General

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Service Small, Unincorporated and as shown in Exhibit A. The Company also requests

Commission approval of new depreciation rates for distribution and general plant, a revised

Weather Normalization Adjustment tariff, amortization of the Company’s acquisition adjustment,

and the recovery of reasonable rate case expenses associated with this filing through a surcharge

on rates.3 This rate filing will also determine the prudence of SiEnergy’s invested capital through

September 30, 2017, and establish factors to be used in any future interim rate adjustment filing

made pursuant to Section 104.301 of the Texas Utilities Code.

Finally, the Company requests a Commission determination that the equity transaction

described in the accompanying Direct Testimony of Ms. June Dively included in Exhibit D is

consistent with the public interest pursuant to Texas Utilities Code § 102.051.4 Additional

proposed revisions to the Company’s rate schedules and tariffs are detailed in Section III(E) of this

Statement of Intent.

II. JURISDICTION

SiEnergy is a gas utility as that term is defined in § 101.003(7) of the Texas Utilities Code.

Pursuant to Texas Utilities Code § 102.001(a), the Commission has exclusive original jurisdiction

to approve the rates SiEnergy requests for customers in the unincorporated areas of the Company’s

service territory. Consistent with such jurisdiction, the proposed rates identified in Exhibit A are

applicable to the Company’s natural gas service within all unincorporated areas.

III. DETAILS OF PROPOSED CHANGES

A. Rate Filing Package

In addition to this Statement of Intent, the Rate Filing Package consists of the following:

3 The exact amount of rate case expenses will not be known until the case is complete. 4 On August 2, 2017, SiEnergy provided the Commission with the required notification that an equity transaction was closed on July 31, 2017. A copy of the Company’s notification letter to the Commission and the Commission’s acknowledgement of its review of the Transaction is attached to the direct testimony of June M. Dively as Exhibit JMD-2.

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• SOI Exhibit A Proposed Rate Schedules and Tariffs

• SOI Exhibit B Proposed Revenue Increase by Class

• SOI Exhibit C Average Bill Impact by Class

• SOI Exhibit D Direct Testimony

• SOI Exhibit E Proposed Notice

• SOI Exhibit F Proposed Protective Order

• SOI Exhibit G Cost of Service Schedules and Class Cost of Service Study

• SOI Exhibit H Workpapers

B. Test Year

The Company’s proposed cost of service, as set forth in this Statement of Intent and Rate

Filing Package, is based on the 12-month period ended September 30, 2017, updated for known

changes and conditions that are measurable with reasonable accuracy.

C. Effective Date

The Company requests that the Commission order the proposed rates to be effective for

bills rendered on and after February 9, 2018.

D. Class and Number of Customers Affected

The proposed changes to the Company’s rate schedules will affect all customers in the

incorporated and unincorporated areas served by the Company in Central and South Texas. The

table below shows the approximate number of customers in the unincorporated areas by class that

will be affected by the proposed rate changes.

All Current Company Classes Environs

Residential 14,598 Commercial 33 Public School 9

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Exhibits B and C, attached, show the amount of the proposed increase and the effect of

the proposed increase on the average bill for each class of customers.

E. Proposed Rate Schedules and Tariffs

SiEnergy proposes changes to the following rate schedules and tariffs, which are attached

to this Statement of Intent as Exhibit A and incorporated herein by reference:

(a) Proposed Rates for Residential and Small General Service Customers (customers using 30,000 Ccf per year or less): For Residential Customers, SiEnergy proposes the new rates shown in the attached rate tariffs Rate RSI-1 – Residential Sales, Incorporated Areas and Rate RSU Residential Sales, Unincorporated Areas. The Company currently has separate tariffs for Commercial and Public School customers; however, those tariffs reflect the same rates for both groups of customers. Therefore, the Company proposes to consolidate the two groups of customers and apply the proposed rates shown in attached rate tariffs Rate GSSI-1 – General Service Small, Incorporated and GSSU – General Service Small, Unincorporated to customers currently served under the Company’s current, separate Commercial and Public School tariffs.

(b) Rate Schedule WNA: In proposed Rate Schedule WNA, the Company seeks to modernize the Weather Normalization Adjustment (“WNA”) clause consistent with the WNA clause that is in effect for other natural gas distribution companies in Texas.

(c) Rate Schedule RCE – Rate Case Expenses: The Company seeks approval of Rider RCE to allow for the recovery of all rate case expenses determined by the Commission to be reasonably incurred.

(d) Rate Schedule PSF – Pipeline Safety Fee: Rate Schedule PSF currently references the applicable section of the Texas Administrative Code (“TAC”)5 and also currently incorporates several sections of that code, one of which has been updated in the actual TAC since the original tariff language was adopted. Therefore, the Company proposes to delete the language in Rate Schedule PSF that constitutes a partial reproduction of the applicable Commission rule and simply reference the applicable code.

(e) Rate Schedule TFF – Taxes and Franchise Fees: Rate Schedule TFF contains language relating to taxes and fees that is applicable to specific rate schedules, rather than duplicating that detailed language on each schedule.

(f) Rate Schedule M – Miscellaneous Fees and Deposits: The Company seeks approval of a minimum level of residential and small general service customer deposits. Additionally, so that customers requiring specific services more directly bear the cost of providing those services, the Company is requesting approval of increases to several miscellaneous fees, including increases to connection and reconnection fees,

5 16 Tex. Admin. Code § 8.201.

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service fees, the special field read of meter fee, the meter testing fee, and the fee to relocate or upgrade meters or add a second meter at the same location. The Company is also requesting approval of several new fees and charges including a fee to expedite service, an account history research or printing fee, a fee for failure to provide the Company with access to its own property, a fee to recover the cost of a police escort, and a fee to be assessed in the course of disconnecting customers for non-payment under specific circumstances. In addition, the Company requests approval of the ability to recover from customers the actual incremental cost required to support standby gas generation service. Lastly, the Company is proposing to eliminate builder “tap fees” as a miscellaneous revenue item.

The Company is not proposing any changes to Rate Schedule PGA – Purchased Gas

Adjustment or to its Rules of Service.

F. Effect of Proposed Rate Changes

The specific proposed changes to the Company’s rates are shown in the following side-by-

side comparison of existing and proposed rates for environs customers:

Customer Class Existing Rate Proposed Rate Residential Customer Charge $ 15.00 $ 19.50 Volumetric Charge per Ccf $ 0.3158 $ 0.4684 Commercial and Public Authority Customer Charge $ 30.00 $ 45.00 Volumetric Charge per Ccf $ 0.3710 $ 0.5698

Exhibit C shows the average bill impact by customer class.

G. Witness Testimony

Attached as Exhibit D to the Statement of Intent is the direct testimony supporting the

Company’s requested revenue requirement. The attached testimony includes the following

witnesses:

• June Dively is the Chief Executive Officer of SiEnergy. Ms. Dively’s testimony describes the main drivers for the Company’s request to increase rates, provides an overview of the filing and requested relief, describes the Company’s compliance with Commission requirements regarding the Company’s books and records, and supports the Company’s request for a Commission finding that the recent equity transaction is in the public interest.

• Paul Kennedy is Senior Vice-President of Operations for SiEnergy. Mr. Kennedy provides an overview of the Company’s operations, supports the reasonableness

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and necessity of the Company’s capital investment made to serve its customers, and explains that the equity transaction has had no impact on the day-to-day operations of the Company.

• Janet Simpson is Vice President for Dively Energy Services Company, which provides consulting services to utilities within the energy sector. Ms. Simpson provides an overview of the cost of service and overall revenue requirement calculation; explains and supports the Company’s rate base, expenses, revenues, and related adjustments; describes the Company’s requested tariff changes; and supports the Company’s request for rate case expenses recovery, including affiliate costs contained within rate case expenses.

• Dane Watson is Managing Partner of Alliance Consulting Group. Mr. Watson sponsors the Company’s proposed depreciation rates and underlying depreciation study.

• Bruce Fairchild is a principal with Financial Concepts and Applications, Inc. Dr. Fairchild addresses and supports the Company’s requested return on equity, cost of debt, capital structure, and overall return on invested capital (weighted average cost of capital).

IV. REQUEST FOR PUBLIC INTEREST FINDING

On July 31, 2017, SiEnergy closed an equity transaction.6 The Company respectfully

requests that the Commission find that the transaction is consistent with the public interest pursuant

to Texas Utilities Code § 102.051.

V. RATE CASE EXPENSES

Pursuant to Texas Utilities Code § 104.051 and Commission Substantive Rule § 7.5530,

SiEnergy requests recovery of all reasonable and necessary rate case expenses from affected

customers through a surcharge to the final approved rates.

VI. PUBLIC NOTICE AND REQUEST FOR APPROVAL OF FORM OF NOTICE

The Company will promptly undertake to notify the public of the proposed changes in its

gas rates consistent with the requirements of Texas Utilities Code § 104.103 and Commission

Substantive Rules §§ 7.230 and 7.235. The public notice that SiEnergy proposes to provide

6 See Application filed by SiEnergy, LP to Report the Sale of Assets to IX Si Investment Co., LLC. Under Tex. Util. Code § 102.051, GUD No. 10651 (Aug. 7, 2017).

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regarding the proposed increase in rates is attached as Exhibit E to the Statement of Intent.

SiEnergy asks that the Commission approve its form of notice prior to providing notice to affected

customers, and the Company will submit proof of notice to the Commission promptly upon

completion thereof.

VII. COMPANY REPRESENTATIVES FOR NOTIFICATION

SiEnergy’s authorized representatives are: June M. Dively SiEnergy, LP 3 Lakeway Centre CT, Suite 110 Lakeway, Texas 78734 512-261-6216 Janet M. Simpson Dively Energy Services 3 Lakeway Centre CT, Suite 110 Lakeway, Texas 78734 512-261-4152 and Ann M. Coffin Kate Norman Coffin Renner LLP P.O. Box 13366 Austin, Texas 78711 512-879-0900 512-879-0912 (fax)

VIII. REQUEST FOR APPROVAL OF PROTECTIVE ORDER

The Company’s Rate Filing Package includes certain confidential materials. In addition,

the scope of discovery in this case may require the production of additional confidential material.

Accordingly, SiEnergy attaches as Exhibit F to this Statement of Intent a proposed Protective

Order and respectfully requests that the Commission issue an order approving the Protective Order.

SiEnergy will provide confidential material upon execution of Exhibit A attached to the Protective

Order.

IX. CONCLUSION

SiEnergy requests that the Commission: (1) approve rates and tariffs consistent with those

proposed herein to become effective for bills rendered on and after February 9, 2018; (2) approve

new depreciation rates for the Company's plant in service; (3) approve the prudence of the

Company's capital investment through September 30, 2017; (4) issue a favorable public interest

determination regarding the equity transaction described in this Statement of Intent; ( 5) authorize

the Company to amortize its acquisition adjustment; ( 6) authorize the Company to recover all

reasonable rate case expenses incurred in connection with this Statement of Intent filing; and

(7) grant such further relief to which the Company may be entitled.

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Kate Norman State Bar No. 24051121 Coffin Renner LLP P.O. Box 13366 Austin, Texas 78711 512-879-0900 512-879-0912 (fax) [email protected] [email protected]

ATTORNEYS FOR SIENERGY, LP

TARIFF FOR GAS SERVICE SIENERGY, LP

Rate Schedule TOC

TOC - TABLE OF CONTENTS

Applicable to: Entire System Effective Date: February 9, 2018 Page 1 of 1

Rate Schedules TOC Table of Contents SA Service Areas and Applicability of Rate Schedules DEF Definitions MFD Miscellaneous Fees and Deposits RSI Residential Sales, Incorporated Areas RSU Residential Sales, Unincorporated Areas GSSI General Service Small, Incorporated Areas GSSU General Service Small, Unincorporated Areas PGA Purchased Gas Adjustment WNA Weather Normalization Adjustment RCE Rate Case Expense PSF Pipeline Safety Fee TFF Taxes and Franchise Fees QSR Quality of Service Rules

Communications regarding this Tariff should be addressed to:

SiEnergy, LP, 3 Lakeway Centre Court Blvd, Ste 110, Lakeway, Texas 78734

SOI Exhibit A Page 1 of 37


Rate Schedule SA

SERVICE AREAS AND APPLICABILITY OF RATE SCHEDULES

Applicable to: Entire System Effective Date: February 9, 2018 Page 1 of 2 Tariff Applicability SiEnergy, LP is a gas utility operating within the State of Texas. The Company will provide service to any person and/or business within its service area in accordance with the rates, terms and conditions provided for in this Tariff, inclusive of the Company’s Rate Schedules and Rules of Service. This Tariff supersedes and replaces all tariffs previously approved, other than to the extent to which different tariffs are required to be in effect based upon the rate making actions of a municipality. Determination of Rate Schedules Applicable to Individual Customers Customers will be assigned to rate schedules in accordance with the class of the particular Customer (i.e., Residential or General Service Small) based on the usage that will be made of the gas and that Customer’s volume requirements. The Company will advise the Applicant or Customer regarding the most advantageous rate for his usage if more than one rate is applicable. A Customer assigned to a rate schedule will remain on that schedule for a minimum of one (1) year except that an assignment made in error may be corrected immediately. In the event of a question regarding the Customer’s classification, the questions will be resolved by reference to the coding of the Customer’s primary business in the latest edition of the Standard Industrial Classification Manual of the United States Government’s Office Management and Budget. Special Contract Rate Customers Any Customer other than a Residential Customer who expects to use in excess of 30,000 Ccf per year may enter into a separate contract with the Company for the provision of Gas Service or may elect to receive service under Rate Schedule GSSI if located in an incorporated area or under Rate Schedule GSSU if located in an unincorporated area.



Rate Schedule SA

SERVICE AREAS AND APPLICABILITY OF RATE SCHEDULES

Applicable to: Entire System Effective Date: February 9, 2018 Page 2 of 2 Service Areas This Tariff applies to all of SiEnergy, LP’s service areas both inside municipalities (incorporated areas) and their environs (unincorporated areas). Within incorporated areas, service under this Tariff is subject to the original jurisdiction of the applicable municipalities and subject to the appellate jurisdiction of the Railroad Commission of Texas. In unincorporated areas, service under this Tariff is subject to the original jurisdiction of the Railroad Commission of Texas. To the extent possible, for each class of Customers, the same rates and rules apply for locations served by the Company, whether incorporated or unincorporated; however, because municipalities have original jurisdiction within their incorporated areas, from time to time, municipalities may approve or require rates and/or rules that differ from the system-wide rates and rules applicable to the remainder of the Company’s system. Accordingly, each Rate Schedule included in this Tariff is identified as applicable to one of the following:

(1) The Entire system, (2) Locations Subject to System Wide Rates, or (3) Individual Municipalities

Locations Subject to System-wide Rates Include the following: Area Incorporated (Municipalities) Unincorporated (Environs) South Texas Missouri City Environs of Missouri City South Texas Fulshear Environs of Fulshear South Texas Sugarland Environs of Sugarland South Texas Conroe Environs of Conroe South Texas Environs of Richmond South Texas Environs of Cypress South Texas Other Fort Bend County Unincorporated South Texas Other Harris County Unincorporated South Texas Other Waller County Unincorporated Central Texas None Environs of Pflugerville Central Texas Other Travis County Unincorporated

Locations Subject to Separate Rates and Rules Determined by Individual Municipality None



Rate Schedule DEF

DEFINITIONS

Applicable to: Entire System Effective Date: February 9, 2018 Page 1 of 3 “Applicant” means any person, organization or group of persons or organizations making a formal request either orally or in writing for gas service from the Company. “Btu” means British thermal unit(s) and will be calculated on a temperature base of sixty degrees (60°) Fahrenheit and at the standard pressure base of the applicable service area and on a gross-real-dry basis and will not be corrected for real water vapor as obtained by means commonly acceptable to the industry, and “MMBtu” will mean one million (1,000,000) Btu. “Ccf and Mcf” means for “Ccf,” one hundred (100) Standard Cubic Feet of Gas, where one Standard Cubic Foot of gas is the amount of gas contained in one (1) cubic foot of space at a standard pressure of fourteen and sixty-five hundredths (14.65) pounds per square inch, absolute and a standard temperature of sixty (60) degrees Fahrenheit; and, for “Mcf,” one thousand (1,000) Standard Cubic Feet of Gas. “Commission or The Commission” means the Railroad Commission of Texas. “Commodity Cost of Gas” means the portion of the cost of gas service recovered by the Company through any Purchased Gas Adjustment Rate Schedule. “Company” means SiEnergy, LP, its successors, and its assigns. “Consumer” means any person or organization receiving gas service from the Company for his or her own appliances or equipment whether or not the gas is billed directly to him or her. (For example, a rental unit where the utilities are part of the rent, the landlord is a Customer and the tenant is a Consumer.) “Customer” means any person or organization being billed for gas service whether used by him or her, or by others. Customer also means a Consumer that subscribes to natural gas services provided by SiEnergy. “Consumption” means the volumes consumed by a Customer during a volumetric read period.



Rate Schedule DEF

DEFINITIONS

Applicable to: Entire System Effective Date: February 9, 2018 Page 2 of 3 “Expedited Service” means a Customer request for same day or other acceleration of service relative to the Company’s standard scheduling process. “Gas or Natural Gas” means the effluent vapor stream in its natural, gaseous state, including gas-well gas, casing head gas, residue gas resulting from processing both casing head gas and gas-well gas, and all other hydrocarbon and non-hydrocarbon components thereof. “General Gas Service” means all service other than Residential Gas Service and that includes purchase of the Commodity Cost of Gas from the Company. General Gas Service Consumers include commercial Consumers engaged in the sale or furnishing of goods and services; industrial Consumers engaged primarily in processes that change raw or unfinished materials into another form of product; public authorities, including all governmental agencies and authorities; schools whether public or privately held; and, Consumers utilizing gas for any other purpose not otherwise provided for herein. “General Service Customer” means any person, individual, family, partnership, association, joint venture, corporation, etc., or governmental agency or organization being billed for General Gas Service. A General Service Customer also includes any Consumer that subscribes to natural gas services provided by SiEnergy for purposes of General Gas Service. “Month” means the period beginning at 9:00 a.m. Central clock time on the first Day of each calendar month and ending at 9:00 a.m. Central clock time on the first Day of the next succeeding calendar month. “Overtime Fee” means the fee charged by the Company to perform work outside its normal business hours or on holidays and includes changes to previously scheduled work that must be performed outside Company’s normal business hours. “Rate Schedule” means a statement of the method of determining charges for gas service, including the conditions under which such method applies. “Regulatory Authority” means the City Council or equivalent municipal governing body of each respective city in the Company’s Service Area, or the Railroad Commission of Texas, as applicable.



Rate Schedule DEF

DEFINITIONS

Applicable to: Entire System Effective Date: February 9, 2018 Page 3 of 3 “Residential Gas Service” means gas service used directly for domestic purposes including heating, air conditioning, cooking, water heating, pool water heating and other similar purposes, whether in a single dwelling, in a dwelling unit of a multiple dwelling facility, in a residential apartment unit, in a condominium unit, in a dwelling unit that is operated by a public housing agency acting as an administrator of public housing under the direction of the U.S. Department of Housing and Urban Development, or in other similar individual dwelling units. “Residential Customer” means any person, individual, family, partnership, association, joint venture, corporation, etc., or governmental agency or organization being billed for Residential Gas Service that is individually metered at the point of delivery, whether such service is used by that Customer or by others. A Residential Customer also includes any Consumer that subscribes to natural gas services provided by SiEnergy for purposes of Residential Gas Service. “Service Area” means the area receiving gas utility service provided by the Company under the terms of this Tariff. “Special Rate Schedule” means a rate schedule designed for a specific Customer. “System” means any group of interconnected pipelines and appurtenances owned or operated by the Company and independent from any other such group of facilities. “Tariff” means every rate schedule, or provision thereof, and all terms, conditions, rules and regulations for furnishing gas service filed with the regulatory authorities or agencies having jurisdiction over the Company or the services provided hereunder. “Temporary” means any service that will not be utilized continuously at the same location by the same Customer. “Year” means a period of three hundred sixty-five (365) consecutive Days, or three hundred sixty-six (366) consecutive Days when such period includes a February 29.



Rate Schedule M

RATE M – MISCELLANEOUS FEES AND DEPOSITS Applicable to: All Customers Subject to System Wide Rates as Identified on Rate Schedule SA Effective Date: February 9, 2018 Page 1 of 4 Application of Schedule This Schedule is applicable to all Customers who are located in the incorporated or unincorporated areas listed under Rate Schedule 2-GEN – Service Areas, Section 2.2.1 or Section 2.2.3. The fees and deposits listed shall be assessed in addition to any other charges applicable under the Company’s Tariff for Gas Service and will be applied for the conditions and services described. Other services not covered by these standard conditions will be charged on the basis of an estimate for the job or the Company’s actual cost plus appropriate surcharges. Missed Appointments If a Customer makes an appointment with the Company for the provision of any of the following services, but fails to appear, the applicable fee will be assessed for the missed appointment(s) as well as being assessed when the service is ultimately provided.

Number Name and Description Amount

M.1

Connection/Reconnection Charge During Business Hours During standard business hours, for each reconnection of gas service where service has been discontinued at the same premises for any reason, for the initial inauguration of service, and for each inauguration of service when the billable party has changed, with the following exceptions:

• For a builder who uses gas temporarily during construction or for display purposes;

• Whenever gas service has been temporarily interrupted because of System outage or service work done by Company; or

• For any reason deemed necessary for Company operations.

$ 65.00

M.2

Connection/Reconnection Charge After Business Hours After standard business hours, for each reconnection of gas service where service has been discontinued at the same premises for any reason, for the initial inauguration of service, and for each inauguration of service when the billable party has changed, with the following exceptions:

• For a builder who uses gas temporarily during construction or for display purposes;

• Whenever gas service has been temporarily interrupted because of System outage or service work done by Company; or

• For any reason deemed necessary for Company operations.

$ 97.00



Rate Schedule M

RATE M-1 – MISCELLANEOUS FEES AND DEPOSITS Applicable to: All Customers Subject to System Wide Rates as Identified on Rate Schedule SA Effective Date: February 9, 2018 Page 2 of 4

M.3

Field Read of Meter Charge to an existing Customer for the Company to read the meter at a currently served location at the request of the existing Customer for any purpose other than connection or reconnection of service by that Customer. For charges to a Customer to initiate or reconnect service, refer to Service Charge 1–Connection/Reconnection and Service Charge 2–Connection /Reconnection After Business Hours.

$ 60.00

M.4 Returned Check Charges Returned check handling charge for each check returned to Company for any reason.

$ 35.00

M.5

Temporary Discontinuance of Service Whenever service has been temporarily disconnected at the request of the Customer, this charge plus the appropriate Connection Charge will be made to reestablish such service for that Customer at the same address.

$ 65.00

M.6

Suspension of Disconnection This fee will be charged if a Customer responds to a delinquent notice after the delinquent due date but prior to completion of a scheduled disconnection and if, at the Company’s sole discretion the Company is able to terminate the disconnection order without unreasonably disrupting its scheduled work flow.

$ 65.00

M.7

Meter Testing The Company shall, upon request of a Customer, make a test of the accuracy of the meter serving that Customer. The Company shall inform the Customer of the time and place of the test and permit the Customer or his authorized representative to be present if the Customer so desires. If no such test has been performed within the previous four (4) years for the same Customer at the same location, the test shall be performed without charge. If such test has been performed for the same Customer at the same location within the previous four (4) years, the Company will charge the Meter Testing Fee. The Customer must be properly informed of the result of any test on a meter that services him.

$ 190.00

M.8

Charge for Service Calls During Business Hours A Service Call Charge is made for responding to a service call during standard business hours that is determined to be a Customer related problem rather than a Company or Company facilities problem.

$ 60.00

M.9

Charge for Service Calls After Business Hours A Service Call Charge is made for responding to a service call after standard business hours that is determined to be a Customer related problem rather than a Company or Company facilities problem.

$ 90.00



Rate Schedule M

RATE M – MISCELLANEOUS FEES AND DEPOSITS Applicable to: All Customers Subject to System Wide Rates as Identified on Rate Schedule SA Effective Date: February 9, 2018 Page 3 of 4

M.10

Tampering Charge No Company Meters, equipment, or other property, whether on Customer’s premises or elsewhere, are to be tampered with or interfered with for any reason. A Tampering Charge is made for unauthorized reconnection or other tampering with Company metering facilities or a theft of gas service by a person on the Customer’s premises or evidence by whomsoever at Customer’s premises. An additional cost for the cost of repairs and/or replacement of damaged facilities and the installation of protective facilities or relocation of meter are made at cost plus appropriate charges as may be detailed in the Company’s Service Rules and Regulations.

$ 125.00

M.11 Credit/Debit Card Payments Charge Bill payments using credit cards, debit cards, and electronic checks (includes third-party transaction fees and administrative costs).

Actual Cost

M.12 Pool or Upgraded Meter Installation Charge Fee to install meter and regulators to support higher or multiple pressure requirements on a residential service line.

$ 280.00

M.13

Expedited Service and Overtime Fee A Customer’s request for expedited service may be scheduled at any time to fit the Company’s work schedule, and an Expedited Service charge will be collected. The Company will not be obligated to provide Expedited Service when the personnel and resources to do so are not reasonably available. This Fee represents the minimum charge for Expedited Service. For Expedited Service requiring more than one hour to perform, the Fee will represent a rate per hour of time multiplied by the total time required to perform the requested Expedited Service, incremented in 15-minute intervals. This fee will be charged in addition to any other applicable fees.

$ 95.00

M.14 History Research Fee A fee will be charged for services related to account history research and/or provision of Customer accounting/billing history documentation.

$ 30.00

M.15

No Access Fee A fee will be charged to a Customer who, through padlocks, fencing, animals or other means, prevents access to the Company’s meter or other equipment located on the Customer’s premise.

$ 35.00

M.16

Police Escort Fee A fee will be charged for the Company to access a meter when the Company is required to use law enforcement personnel to escort it into locked sites or sites requiring animal control. The Company will charge the stated amounts or current rate charged by the entity providing the police escort for this service.

Actual Cost



Rate Schedule M

RATE M – MISCELLANEOUS FEES AND DEPOSITS Applicable to: All Customers Subject to System Wide Rates as Identified on Rate Schedule SA Effective Date: February 9, 2018 Page 4 of 4

M.17

Costs Associated with Certain Stand-By Gas Generators Customers installing stand-by gas generators to provide service in the event of an interruption in electric service in facilities where gas service is not otherwise adequate to operate the stand-by gas generators will reimburse the Company for the actual cost of acquiring and installing the additional and/or upgraded regulator, service line, and meter required to provide gas service for the stand-by generators. The subsequent gas service provided for the stand-by generators will be billed at the rate applicable for other gas service to the class of Customer making the request.

Actual Cost

M.18

Line Extensions The Company has the right to contract with individual Customers for the installation of gas facilities. Upon the request of a prospective new Customer for service in an area served by SiEnergy, LP, SiEnergy, LP will extend its main lines up to 100 feet from an existing SiEnergy, LP main in the Public Rights of Way, without charge. The 100-foot allowance applies to a single Customer or to a group of Customers requesting service from the same extension. Customers requesting mainline extensions in excess of 100 feet shall bear the actual cost of any additional mainline, the cost of all yard and service lines, and the cost of any appurtenant equipment and other costs necessary to install the extension, including applicable overhead charges. SiEnergy, LP is not required to extend its mains or facilities if the Customer will not use gas for space heating and water heating, or the equivalent load, at a minimum.

Actual Cost

M.19

Customer Deposits Minimum deposit Residential Gas Service Minimum deposit General Gas Service Additional deposits may be required in accordance with Rate Schedule QSR – Quality of Service Rules

$ 75.00 $ 250.00

Taxes and Franchise Fees (Rate Schedule TFF) Other than with respect to M.19 – Customer Deposits, the amounts charged under Rate M are subject to all applicable taxes and fees in accordance with the provisions of Rate Schedule TFF – Taxes and Franchise Fees.



Rate Schedule RSI

RATE RSI - RESIDENTIAL SALES, INCORPORATED AREAS

Applicable to: All Residential Customers Located in Incorporated Areas that are Subject to System

Wide Rates as Identified on Rate Schedule SA Effective Date: February 9, 2018 Page 1 of 1 Application of Schedule This Schedule is applicable to all Customers meeting the definition of “Residential Customers” under Rate Schedule DEF – Definitions who are located in incorporated areas that are subject to system wide rates as identified on Rate Schedule SA. Monthly Base Rate Each Customer’s base monthly bill will be calculated using the following Customer and Ccf charges: Charge Amount Customer Charge $19.50 per month, plus All Ccf @ $ .4684 per Ccf In addition to the base monthly bill calculated using the Monthly Base Rates above, each Customer’s monthly bill shall be increased by amounts pursuant to the following:

Purchased Gas Adjustment (Rate Schedule PGA) Amounts billed for the commodity cost of gas in accordance with the provisions of Rate Schedule PGA - Purchased Gas Adjustment. Weather Normalization Adjustment (Rate Schedule WNA) Amounts billed to eliminate the effect of non-normal weather in accordance with the provisions of Rate Schedule WNA – Weather Normalization Adjustment. Rate Case Expense Recovery (Rate Schedule RCE) Amounts billed for the recovery of rate case expenses in accordance with the provisions of Rate Schedule RCE – Rate Case Expense. Taxes and Franchise Fees (Rate Schedule TFF) All applicable taxes and fees in accordance with the provisions of Rate Schedule TFF – Taxes and Franchise Fees, including fees pertaining to the Monthly Base Rate bill, PGA charges, WNA charges, RCE charges, and any other charge that is subject to taxes and fees described therein.

Other Conditions and Surcharges Subject in all respects to applicable laws, rules and regulations from time to time in effect. In addition to the monthly charges above, each Customer’s bill will include amounts required to be billed in accordance with any additional applicable rates, riders, surcharges or fees.



Rate Schedule RSU

RATE RSU - RESIDENTIAL SALES, UNINCORPORATED AREAS

Applicable to: All Residential Customers Located in Unincorporated Areas that are Subject to

System Wide Rates as Identified on Rate Schedule SA Effective Date: February 9, 2018 Page 1 of 1 Application of Schedule This Schedule is applicable to all Customers meeting the definition of “Residential Customers” under Rate Schedule DEF – Definitions who are located in unincorporated areas that are subject to system wide rates as identified on Rate Schedule SA. Monthly Base Rate Each Customer’s base monthly bill will be calculated using the following Customer and Ccf charges: Charge Amount Customer Charge $19.50 per month, plus All Ccf @ $ .4684 per Ccf In addition to the base monthly bill calculated using the Monthly Base Rates above, each Customer’s monthly bill shall be increased by amounts pursuant to the following:

Purchased Gas Adjustment (Rate Schedule PGA) Amounts billed for the commodity cost of gas in accordance with the provisions of Rate Schedule PGA - Purchased Gas Adjustment. Weather Normalization Adjustment (Rate Schedule WNA) Amounts billed to eliminate the effect of non-normal weather in accordance with the provisions of Rate Schedule WNA – Weather Normalization Adjustment. Rate Case Expense Recovery (Rate Schedule RCE) Amounts billed for the recovery of rate case expenses in accordance with the provisions of Rate Schedule RCE – Rate Case Expense. Taxes and Franchise Fees (Rate Schedule TFF) All applicable taxes and fees in accordance with the provisions of Rate Schedule TFF – Taxes and Franchise Fees, including fees pertaining to the Monthly Base Rate bill, PGA charges, WNA charges, RCE charges, and any other charge that is subject to taxes and fees described therein.




Schedule GSSI

RATE GSSI GENERAL SERVICE SMALL, INCORPORATED AREAS

Applicable to: All General Service Customers Located in Incorporated Areas that are Subject to

System Wide Rates as Identified on Rate Schedule SA and whose Annual Usage is 30,000 Ccf or less.

Effective Date: February 9, 2018 Page 1 of 1 Application of Schedule This Schedule is applicable to all Customers meeting the definition of “General Service Customers” under Rate Schedule DEF – Definitions (i.e., non-Residential Customers) who are located in incorporated areas that are subject to system wide rates as identified on Rate Schedule SA and whose annual usage is 30,000 Ccf or less. Monthly Base Rate Each Customer’s base monthly bill will be calculated using the following Customer and Ccf charges: Charge Amount Customer Charge $45.00 per month, plus All Ccf @ $ .5698 per Ccf In addition to the base monthly bill calculated using the Monthly Base Rates above, each Customer’s monthly bill shall be increased by amounts pursuant to the following:

Purchased Gas Adjustment (Rate Schedule PGA) Amounts billed for the commodity cost of gas in accordance with the provisions of Rate Schedule PGA - Purchased Gas Adjustment. Rate Case Expense Recovery (Rate Schedule RCE) Amounts billed for the recovery of rate case expenses in accordance with the provisions of Rate Schedule RCE – Rate Case Expense. Taxes and Franchise Fees (Rate Schedule TFF) All applicable taxes and fees in accordance with the provisions of Rate Schedule TFF – Taxes and Franchise Fees, including fees pertaining to the Monthly Base Rate bill, PGA charges, WNA charges, RCE charges, and any other charge that is subject to taxes and fees described therein.




Schedule GSSU

RATE GSSU GENERAL SERVICE SMALL, UNINCORPORATED AREAS

Applicable to: All General Service Customers Located in Unincorporated Areas that are Subject to

System Wide Rates as Identified on Rate Schedule SA and whose annual usage is 30,000 Ccf or less.

Effective Date: February 9, 2018 Page 1 of 1 Application of Schedule This Schedule is applicable to all Customers meeting the definition of “General Service Customers” under Rate Schedule DEF – Definitions (i.e., non-Residential Customers) who are located in unincorporated areas that are subject to system wide rates as identified on Rate Schedule SA and whose annual usage is 30,000 Ccf or less. Monthly Base Rate Each Customer’s base monthly bill will be calculated using the following Customer and Ccf charges: Charge Amount Customer Charge $45.00 per month, plus All Ccf @ $ .5698 per Ccf In addition to the base monthly bill calculated using the Monthly Base Rates above, each Customer’s monthly bill shall be increased by amounts pursuant to the following:

Purchased Gas Adjustment (Rate Schedule PGA) Amounts billed for the commodity cost of gas in accordance with the provisions of Rate Schedule PGA - Purchased Gas Adjustment. Rate Case Expense Recovery (Rate Schedule RCE) Amounts billed for the recovery of rate case expenses in accordance with the provisions of Rate Schedule RCE – Rate Case Expense. Taxes and Franchise Fees (Rate Schedule TFF) All applicable taxes and fees in accordance with the provisions of Rate Schedule TFF – Taxes and Franchise Fees, including fees pertaining to the Monthly Base Rate bill, PGA charges, WNA charges, RCE charges, and any other charge that is subject to taxes and fees described therein.




Rate Schedule PGA

RATE PGA – PURCHASED GAS ADJUSTMENT

Applicable to: Entire System. Effective Date: November 13, 2008 Page 1 of 4 Application of Schedule This Rate Schedule shall apply to all SiEnergy Rate Schedules that incorporate this Rate PGA - Purchased Gas Adjustment provision. Purpose and Intent This provision is intended to allow collection of the gas purchase costs of SiEnergy, L.P., (hereinafter “SiEnergy” or the “Company”) in a manner that will lessen monthly fluctuations in the Purchased Gas Adjustment and ensure that actual costs billed to Customers are fully reconciled with actual costs incurred, subject to limitations for excessive lost and unaccounted-for gas. The billing methods set forth herein are intended to be followed to the extent the goals are realized. To the extent billing methods fail to achieve these goals, the methodology shall be revised and a revised tariff filed to reflect such revisions. SiEnergy will make appropriate regulatory filings and obtain regulatory approvals, as required, before making changes to its rates. Definitions Purchased Gas Volumes - The volumes of gas, expressed in Mcfs, purchased by the Company and received into the Company’s distribution systems from all sources, including withdrawals from storage, and excluding gas injected into storage. Purchased Gas Cost(s) - The total cost of Purchased Gas Volumes, as received into the Company’s distribution systems, all as more specifically described herein. Weighted Average Cost of Gas - The Purchased Gas Costs divided by the Purchased Gas Volumes, calculated on a monthly basis, and expressed as dollars per Mcf. Billed Gas Volumes - The volumes of gas billed to Customers, plus volumes of gas billed to third parties following losses or damages, expressed in Mcfs. Billed Gas Revenues - The total amount of revenues attributable to billings by SiEnergy for Purchased Gas Costs during a given period, exclusive of any billings for any Reconciliation Adjustment during the same period.



Rate Schedule PGA


Applicable to: Entire System. Effective Date: November 13, 2008 Page 2 of 4 Lost and Unaccounted-for Gas (LUG) - Purchased Gas Volumes minus the sum of Billed Gas Volumes and metered Company used gas. Purchased Gas Adjustment (PGA) - An Adjustment on each Customer’s monthly bill, expressed in dollars per Ccf, to reflect the Purchase Gas Costs and the Reconciliation Adjustment, all as more specifically described herein. Annual Review Period - The 12-month period ending June 30 of each year. Annual Review - An annual review of the Company’s records covering the 12-month period ending June 30 to determine LUG volumes and any imbalances between the Purchased Gas Costs and Billed Gas Revenues existing at the end of the Annual Review Period. Annual Imbalance Total - The total amount determined through the Annual Review to be credited or surcharged to Customers’ bills in order to balance Purchased Gas Costs with Billed Gas Revenues. Reconciliation Adjustment - A credit or surcharge included in the Purchased Gas Adjustment to reflect the pro-rated adjustment in billings for any over or under collections on an annual basis. Record Keeping The Company shall keep accurate records of all gas metered in and out of its system, gas purchases, and Company-owned gas injected into and withdrawn from storage, and any adjustments relative to any imbalances. The records shall include date, quantity, and cost details for all gas handled. Purchased Gas Cost Calculation The Purchased Gas Cost shall be determined for each month to fairly and accurately reflect the cost to the Company at the points of delivery into the Company’s distribution systems. The determination shall include, but not be limited to, volumetric and demand charges for Purchased Gas Volumes, fees paid to others where such fees are integrally tied to the purchase or transportation of gas purchased by SiEnergy, pipeline transportation charges (both volumetric and demand), and gas storage charges (both volumetric and demand). The Company shall account for gas injected into and withdrawn from storage on a weighted average cost basis.



Rate Schedule PGA


Applicable to: Entire System. Effective Date: November 13, 2008 Page 3 of 4 Purchased Gas Adjustment Calculation (continued) Each Customer bill shall include a Purchased Gas Adjustment reflecting the estimated Weighted Average Cost of Gas for the period covered by the bill, which estimate shall include, as applicable, a pro-rata amount to adjust for previous over or under estimates of the Weighted Average Cost of Gas, plus a Reconciliation Adjustment to account for any Annual Imbalance Total. Annual Review For each Annual Review Period, the Company shall determine (i) the amount of any imbalance between the Purchased Gas Costs and Billed Gas Revenues, and (ii) the LUG volume for the Annual Review Period. As limited by the LUG volume limitation set forth below, the Annual Imbalance Total shall then be credited or surcharged to the Customers’ bills over a twelve-month period commencing each September 1 following the Annual Review Period. Accrual Imbalance Total - LUG Volume less than five percent of Purchased Gas Volumes or LUG Volume is negative If the Annual Review shows the LUG volume for the Annual Review Period to be less than five percent of the Purchased Gas Volumes, or if the LUG volume is negative (indicating a line gain), the Accrual Imbalance Total shall be the difference between the total Purchased Gas Cost and the total Billed Gas Revenues for the Annual Review Period. Annual Imbalance Total - LUG Volume is positive and is greater than five percent of Purchased Gas Volumes If the Annual Review shows the LUG volume for the Annual Review Period to be positive and to be greater than five percent of the Purchased Gas Volumes, the Annual Imbalance Total shall be determined as follows:

• The difference between the total Purchased Gas Costs and the total Billed Gas Revenues for the Annual Review Period shall be determined;

• Minus, the Purchased Gas Costs attributable to LUG volumes in excess of 5% of the Purchase Gas Volumes, using the Company’s Weighted Average Cost of Purchased Gas for the Review Period.



Rate Schedule PGA


Applicable to: Entire System. Effective Date: November 13, 2008 Page 4 of 4 Reconciliation Adjustment Calculation The Annual Imbalance Total (whether positive or negative) shall be credited or surcharged over twelve months in equal total amounts per month. The recovery shall be through a Reconciliation Adjustment included in the Purchased Gas Adjustment. The Reconciliation Adjustment for each month shall be determined as follows:

• Each month of the twelve-month reconciliation period, the Reconciliation Adjustment, expressed in Ccfs, shall be calculated by dividing the amount to be credited or surcharged during that month (which amount shall include, as necessary, an amount to correct for any previous over or under estimates of Billed Gas Volumes during the previous month or months in the same reconciliation period), by the estimated Billed Gas Volumes for the month.

• At the end of each 12-month period, any remaining balance in the Annual Imbalance Total shall be included in any Annual Imbalance Total to be credited or surcharged during the successor 12-month period.

Annual Reconciliation Report The Company shall file an Annual Reconciliation Report with the Regulatory Authority, which shall include but not necessarily be limited to:

1. A tabulation of volumes of gas purchased and costs incurred listed by account or type of gas, supplier and source by month for the twelve months ending June 30.

2. A tabulation of gas units sold to general service Customers and related Cost of Gas Clause revenues.

3. A description of all other costs and refunds made during the year and their effect on the Cost of Gas Clause to date.

4. A description of the imbalance payments made to and received from the Company’s transportation Customers within the service area, including monthly imbalances incurred, the monthly imbalances resolved, and the amount of the cumulative imbalance. The description should reflect the system imbalance and imbalance amount for each supplier using the Company's distribution system during the reconciliation period.

Taxes and Franchise Fees (Rate Schedule TFF) Subject to all applicable taxes and fees in accordance with the provisions of Rate Schedule TFF – Taxes and Franchise Fees.



Rate Schedule WNA

RATE WNA – WEATHER NORMALIZATION ADJUSTMENT

Applicable to: All Residential Customers Subject to System Wide Rates as Identified on Rate Schedule SA

Effective Date: February 9, 2018 Page 1 of 2 Application of Schedule This Rate Schedule shall apply to all SiEnergy Rate Schedules that incorporate this Rate WNA - Weather Normalization Adjustment provision. Purpose and Intent This provision provides for the refund or surcharge to Customers of over- or under-collections of revenue due to colder or warmer than normal weather as established in the Company’s most recent rate case that established the Rate Schedules applicable to the Customers. Monthly calculation In order to reflect weather variances in a timely and accurate manner, the Weather Normalization Adjustment (“WNA”) shall be calculated separately for each billing cycle and rate schedule. The weather factors, determined in the most recent rate case, identify the value per Ccf of one heating degree day for Residential Customers. During each billing cycle, the applicable Weather Factor is multiplied by the difference between normal and actual heating degree days for the billing period and by the number of Customers billed to yield the total WNA Ccf Adjustment. The resulting WNA Ccf Adjustment is then multiplied by the current applicable Base Rate per Ccf to determine the total WNA revenue adjustment. The WNA revenue adjustment is then spread to the Customers in the billing cycle on a prorated basis. Weather Factors

Area

Customer Rate Schedule

WNA Period

Weather Factor CCF per HDD

South TX 5-RSI Residential Incorporated November – May .236675 South TX 5-RSU Residential Unincorporated November – May .236675 Central TX 5-RSI Residential Incorporated November – May .175357 Central TX 5-RSU Residential Unincorporated November – May .175357



Rate Schedule WNA

RATE WNA – WEATHER NORMALIZATION ADJUSTMENT

Applicable to: All Residential Customers Subject to System Wide Rates as Identified on Rate Schedule SA

Effective Date: February 9, 2018 Page 2 of 2 Reconciliation Audit By October 1, the Company will file with each Regulatory Authority an annual report verifying the WNA collections or refunds for the prior WNA period. If the report reflects either an over recovery or under recovery of revenues in any rate class, such amount, if any, shall be divided by the gas sales volumes by rate class, adjusted for the effects of weather, growth, and conservation estimated for the applicable upcoming WNA period. The Reconciliation Component so determined to collect any revenue shortfall or to return any excess WNA revenue shall be applied during each month of the upcoming WNA period. Monthly Report By the 25th day of the following month, the Company will file with the applicable Regulatory Authority a monthly report showing the current rate adjustments applicable to each rate schedule. Supporting documentation will be made available for review upon request. Taxes and Franchise Fees (Rate Schedule TFF) Subject to all applicable taxes and fees in accordance with the provisions of Rate Schedule TFF – Taxes and Franchise Fees.



Rate Schedule RCE

RATE RCE – RATE CASE EXPENSES Applicable to: All Customers Subject to System Wide Rates as Identified on Rate Schedule SA Effective Date: February 9, 2018 Page 1 of 1 Application of Schedule This Rate Schedule shall apply to all SiEnergy Rate Schedules that incorporate this Rate RCE Rate Case Expense recovery provision. Monthly RCE Rate All Ccf during each billing period $_____per Ccf This rate will be in effect until all expended and approved rate case expenses are recovered. SiEnergy will recover ______ in actual expenses and up to ______ in estimated expenses, not to exceed the total of final actual rate case expenses incurred. The RCE will be billed as a separate line item on the Customer’s bill. Taxes and Franchise Fees (Rate Schedule TFF) Subject to all applicable taxes and fees in accordance with the provisions of Rate Schedule TFF – Taxes and Franchise Fees.



Rate Schedule PSF

RATE PSF – PIPELINE SAFETY FEE Applicable to: Entire System, Excluding State Agency Customers Effective Date: February 9, 2018 Page 1 of 1 Application of Schedule Applicable to all Customer classes in all areas, except state agencies, as defined in Texas Utilities Code, Section 101.003. Monthly calculation The Company will charge a surcharge to recover pipeline safety fees assessed by the Commission pursuant to Section 121.211 of the Texas Utilities Code and Commission Rule 16 TAC § 8.201.



Rate Schedule TFF

RATE TFF – TAXES AND FRANCHISE FEES Applicable to: All Customers Subject to System Wide Rates as Identified on Rate Schedule SA Effective Date: February 9, 2018 Page 1 of 1 Application of Schedule This Rate Schedule shall apply to all SiEnergy Rate Schedules that incorporate this Rate TFF provision. Taxes (Does Not Include City Franchise Fees) In addition to the monthly charges billed to each Customer under each Rate Schedule applicable to that Customer, Customers shall reimburse the Company for their proportionate part of any tax, charge, impost, assessment or fee of whatever kind and by whatever name (except ad valorem taxes, payroll taxes, and income taxes) levied upon the Company by any governmental authority under any law, rule, regulation, ordinance, or agreement (hereinafter referred to as “the Taxes”). If the law, rule, regulation, ordinance, or agreement levying the Tax specifies a method of collection from Customers, then the method so specified shall be utilized provided such method results in the collection of the Taxes from the Customers equal to the Taxes levied on the Company. If no method of collection is specified, then the Company shall collect an amount calculated as a percentage of the Customers’ bills applicable directly to those Customers located solely within the jurisdiction imposing the Taxes and/or within the jurisdiction where the Taxes are applicable. The percentage shall be determined so that the collection from Customers within the Company’s different legal jurisdictions (municipal or otherwise defined) is equal to the Taxes levied on the Company after allowing for the Taxes applicable to those collections. The initial Tax Adjustment Rate shall be based on the Taxes that are levied upon the Company on the effective date of this Rate Schedule. The Company will initiate a new or changed Tax Adjustment Rate beginning with the billing cycle immediately following the effective date of the new or changed Tax as specified by the applicable law, rule, regulation, ordinance, or agreement, provided that the Company has the Customer billing data necessary to bill and collect the Tax. If at any time there is a significant change that will cause an unreasonable over- or under-collection of the Taxes, the Company will adjust the Tax Adjustment Rate so that such over- or under-collection will be minimized. The Tax Adjustment Rate (calculated on a per Ccf or per Mcf basis, as appropriate) shall be reported to the applicable governmental authority by the last business day of the month in which the Tax Adjustment Rate became effective. City Franchise Fees In addition to the monthly charges billed to each Customer under each Rate Schedule applicable to that Customer, and in addition to the Taxes billed to each Customer as defined above, the monthly bill for Customers who are located inside the corporate limits of an incorporated municipality that imposes a municipal franchise fee upon Company for the Gas Service provided to Customer shall reimburse the Company for an amount equal to the municipal franchise fees payable for the Gas Service provided to the Customer by Company. Municipal franchise fees are determined by each municipality’s franchise ordinance. Each municipality’s franchise ordinance will specify the percentage and applicability of franchise fees. Customers located in unincorporated areas will not be assessed a City Franchise Fee.



Rate Schedule QSR

SCHEDULE QSR – QUALITY OF SERVICE RULES Applicable to: Entire System Effective Date: November 13, 2008 Page 1 of 14 Application of Schedule Applicable to all Customer classes in all areas. At a minimum, SiEnergy shall adhere to the Quality of Service requirements in the Railroad Commission of Texas Substantive Rules, Section 7.45.

Texas Administrative Code TITLE 16

ECONOMIC REGULATION PART 1

RAILROAD COMMISSION OF TEXAS CHAPTER 7

GAS SERVICES DIVISION SUBCHAPTER B

SPECIAL PROCEDURAL RULES RULE §7.45 Quality of Service

For gas utility service to residential and small commercial Customers, the following minimum service standards shall be applicable in unincorporated areas. In addition, each gas distribution utility is ordered to amend its service rules to include said minimum service standards within the utility service rules applicable to residential and small commercial Customers within incorporated areas, but only to the extent that said minimum service standards do not conflict with standards lawfully established within a particular municipality for a gas distribution utility. Said gas distribution utility shall file service rules incorporating said minimum service standards with the Railroad Commission and with the municipalities in the manner prescribed by law. (1) Continuity of service. (A) Service interruptions.

(i) Every gas utility shall make all reasonable efforts to prevent interruptions of service. When interruptions occur, the utility shall reestablish service within the shortest possible time consistent with prudent operating principles so that the smallest number of Customers are affected. (ii) Each utility shall make reasonable provisions to meet emergencies resulting from failure of service, and each utility shall issue instructions to its employees covering procedures to be followed in the event of an emergency in order to prevent or mitigate interruption or impairment of service. (iii) In the event of national emergency or local disaster resulting in disruption of normal service, the utility may, in the public interest, interrupt service to other Customers to provide necessary service to civil defense or other emergency service agencies on a temporary basis until normal service to these agencies can be restored.



Rate Schedule QSR

SCHEDULE QSR – QUALITY OF SERVICE RULES Applicable to: Entire System Effective Date: November 13, 2008 Page 2 of 14

(B) Record of interruption. Except for momentary interruptions which do not cause a major disruption of service, each utility shall keep a complete record of all interruptions, both emergency and scheduled. This record shall show the cause of interruptions, date, time duration, location, approximate number of Customers affected, and, in cases of emergency interruptions, the remedy and steps taken to prevent recurrence. (C) Report to commission. The commission shall be notified in writing within 48 hours of interruptions in service affecting the entire system or any major division thereof lasting more than four hours. The notice shall also state the cause of such interruptions. If any service interruption is reported to the commission otherwise (for example, as a curtailment report or safety report), such other report is sufficient to comply with the terms of this paragraph.

(2) Customer relations. (A) Information to Customers. Each utility shall:

(i) maintain a current set of maps showing the physical locations of its facilities. All distribution facilities shall be labeled to indicate the size or any pertinent information which will accurately describe the utility’s facilities. These maps, or such other maps as may be required by the regulatory authority, shall be kept by the utility in a central location and will be available for inspection by the regulatory authority during normal working hours. Each business office or service center shall have available up-to-date maps, plans, or records of its immediate area, with such other information as may be necessary to enable the utility to advise applicants and others entitled to the information as to the facilities available for serving that locality; (ii) assist the Customer or applicant in selecting the most economical rate schedule; (iii) in compliance with applicable law or regulations, notify Customers affected by a change in rates or schedule or classification; (iv) post a notice in a conspicuous place in each business office of the utility where applications for service are received informing the public that copies of the rate schedules and rules relating to the service of the utility as filed with the commission are available for inspection;

(v) upon request inform its Customers as to the method of reading meters; (vi) provide to new Customers, at the time service is initiated or as an insert in the first billing, a pamphlet or information packet containing the following information. This information shall be provided in English and Spanish as necessary to adequately inform the Customers; provided, however, the regulatory authority upon application and a showing of good cause may exempt the utility from the requirement that the information be provided in Spanish:



Rate Schedule QSR


(I) the Customer’s right to information concerning rates and services and the Customer’s right to inspect or obtain at reproduction cost a copy of the applicable tariffs and service rules. (II) the Customer’s right to have his or her meter checked without charge under paragraph (7) of this section, if applicable;

(III) the time allowed to pay outstanding bills; (IV) grounds for termination of service; (V) the steps the utility must take before terminating service;

(VI) how the Customer can resolve billing disputes with the utility and how disputes and health emergencies may affect termination of service;

(VII) information on alternative payment plans offered by the utility; (VIII) the steps necessary to have service reconnected after involuntary termination;

(IX) the appropriate regulatory authority with whom to register a complaint and how to contact such authority; (X) the hours, addresses, and telephone numbers of utility offices where bills may be paid and information may be obtained; and

(XI) the Customer’s right to be instructed by the utility how to read his or her meter; (vii) at least once each calendar year, notify Customers that information is available upon request, at no charge to the Customer, concerning the items listed in clause (vi)(I) - (XI) of this subparagraph. This notice may be accomplished by use of a billing insert or a printed statement upon the bill itself.

(B) Customer complaints. Upon complaint to the utility by residential or small commercial Customers either at its office, by letter, or by telephone, the utility shall promptly make a suitable investigation and advise the complainant of the results thereof. If shall keep a record of all complaints which shall show the name and address of the complainant, the date and nature of the complaint, and the adjustment or disposition thereof for a period of one year subsequent to the final disposition of the complaint. (C) Utility response. Upon receipt of a complaint, either by letter or by telephone, from the regulatory authority on behalf of a Customer, the utility shall make a suitable investigation and advise the regulatory authority and complainant of the results thereof. An initial response must be made by the next working day. The utility must make a final and complete response within 15 days from the date of the complaint, unless additional time is granted within the 15-day period. The commission encourages all Customer complaints to be made in writing to assist the regulatory authority in maintaining records of the quality of service of each utility; however, telephone communications will be acceptable.



Rate Schedule QSR


(D) Deferred payment plan. The utility is encouraged to offer a deferred payment plan for delinquent residential accounts. If such a plan is offered, it shall conform to the following guidelines:

(i) Every deferred payment plan entered into due to the Customer’s inability to pay the outstanding bill in full must provide that service will not be discontinued if the Customer pays current bills and a reasonable amount of the outstanding bill and agrees to pay the balance in reasonable installments until the bill is paid. (ii) For purposes of determining reasonableness under these rules, the following shall be considered: size of delinquent account; Customer’s ability to pay; Customer’s payment history; time that the debt has been outstanding; reasons why debt has been outstanding; and other relevant factors concerning the circumstances of the Customer. (iii) A deferred payment plan, if reduced to writing, offered by a utility shall state, immediately preceding the space provided for the Customer’s signature and in bold-face print at least two sizes larger than any other used, that: "If you are not satisfied with this agreement, do not sign. If you are satisfied with this agreement, you give up your right to dispute the amount due under the agreement except for the utility’s failure or refusal to comply with the terms of this agreement." (iv) A deferred payment plan may include a one-time 5.0% penalty for late payment on the original amount of the outstanding bill with no prompt payment discount allowed except in cases where the outstanding bill is unusually high as a result of the utility’s error (such as an inaccurately estimated bill or an incorrectly read meter). A deferred payment plan shall not include a finance charge. (v) If a Customer for utility service has not fulfilled terms of a deferred payment agreement or refuses to sign the same if it is reduced to writing, the utility shall have the right to disconnect pursuant to disconnection rules herein and, under such circumstances, it shall not be required to offer a subsequent negotiation of a deferred payment agreement prior to disconnection. (vi) Any utility which institutes a deferred payment plan shall not refuse a Customer participation in such a program on the basis of race, color, creed, sex, marital status, age, or any other form of discrimination prohibited by law.



Rate Schedule QSR

SCHEDULE QSR – QUALITY OF SERVICE RULES Applicable to: Entire System Effective Date: November 13, 2008 Page 5 of 14 (E) Delayed payment of bills by elderly persons. (i) Applicability. This subparagraph applies only to:

(I) a utility that assesses late payment charges on residential Customers and that suspends service before the 26th day after the date of the bill for which collection action is taken;

(II) utility bills issued on or after August 30, 1993; and (III) an elderly person, as defined in clause (ii) of this subparagraph, who is a residential Customer and who occupies the entire premises for which a delay is requested.

(ii) Definitions. (I) Elderly person--A person who is 60 years of age or older.

(II) Utility--A gas utility or municipally owned utility, as defined in Texas Utilities Code, §§101.003(7), 101.003(8), and 121.001 - 121.006.

(iii) An elderly person may request that the utility implement the delay for either the most recent utility bill or for the most recent utility bill and each subsequent utility bill. (iv) On request of an elderly person, a utility shall delay without penalty the payment date of a bill for providing utility services to that person until the 25th day after the date on which the bill is issued. (v) The utility may require the requesting person to present reasonable proof that the person is 60 years of age or older. (vi) Every utility shall notify its Customers of this delayed payment option no less often than yearly. A utility may include this notice with other information provided pursuant to subparagraph (A) of this paragraph.

(3) Refusal of service.

(A) Compliance by applicant. Any utility may decline to serve an applicant for whom service is available from previously installed facilities until such applicant has complied with the state and municipal regulations and approved rules and regulations of the utility on file with the commission governing the service applied for or for the following reasons.

(i) Applicant’s facilities inadequate. If the applicant’s installation or equipment is known to be hazardous or of such character that satisfactory service cannot be given. (ii) For indebtedness. If the applicant is indebted to any utility for the same kind of service as that applied for; provided, however, that in the event the indebtedness of the applicant for service is in dispute, the applicant shall be served upon complying with the applicable deposit requirement. (iii) Refusal to make deposit. For refusal to make a deposit if applicant is required to make a deposit under these rules.



Rate Schedule QSR


(B) Applicant’s recourse. In the event that the utility shall refuse to serve an applicant under the provisions of these rules, the utility must inform the applicant of the basis of its refusal and that the applicant may file a complaint with the municipal regulatory authority or commission, whichever is appropriate. (C) Insufficient grounds for refusal to serve. The following shall not constitute sufficient cause for refusal of service to a present Customer or applicant:

(i) delinquency in payment for service by a previous occupant of the premises to be served; (ii) failure to pay for merchandise or charges for nonutility service purchased from the utility; (iii) failure to pay a bill to correct previous underbilling due to misapplication of rates more than six months prior to the date of application; (iv) violation of the utility’s rules pertaining to operation of nonstandard equipment or unauthorized attachments which interfere with the service of others unless the Customer has first been notified and been afforded reasonable opportunity to comply with these rules; (v) failure to pay a bill of another Customer as guarantor thereof unless the guarantee was made in writing to the utility as a condition precedent to service; and (vi) failure to pay the bill of another Customer at the same address except where the change of Customer identity is made to avoid or evade payment of a utility bill.

(4) Discontinuance of service.

(A) The due date of the bill for utility service shall not be less than 15 days after issuance, or such other period of time as may be provided by order of the regulatory authority. A bill for utility service is delinquent if unpaid by the due date. (B) A utility may offer an inducement for prompt payment of bills by allowing a discount in the amount of 5.0% for payment of bills within 10 days after their issuance. This provision shall not apply where it conflicts with existing orders or ordinances of the appropriate regulatory authority. (C) A Customer’s utility service may be disconnected if the bill has not been paid or a deferred payment plan pursuant to paragraph (2)(D) of this section has not been entered into within five working days after the bill has become delinquent and proper notice has been given. Proper notice consists of a deposit in the United States mail, postage prepaid, or hand delivery to the Customer at least five working days prior to the stated date of disconnection, with the words "Termination Notice" or similar language prominently displayed on the notice.



Rate Schedule QSR


The notice shall be provided in English and Spanish as necessary to adequately inform the Customer, and shall include the date of termination, the hours, address, and telephone number where payment may be made, and a statement that if a health or other emergency exists, the utility may be contacted concerning the nature of the emergency and the relief available, if any, to meet such emergency.

(D) Utility service may be disconnected for any of the following reasons: (i) failure to pay a delinquent account or failure to comply with the terms of a deferred payment plan for installment payment of a delinquent account; (ii) violation of the utility’s rules pertaining to the use of service in a manner which interferes with the service of others or the operation of nonstandard equipment, if a reasonable attempt has been made to notify the Customer and the Customer is provided with a reasonable opportunity to remedy the situation; (iii) failure to comply with deposit or guarantee arrangements where required by paragraph (5) of this section; (iv) without notice where a known dangerous condition exists for as long as the condition exists;

(v) tampering with the utility company’s meter or equipment or bypassing the same. (E) Utility service may not be disconnected for any of the following reasons: (i) delinquency in payment for service by a previous occupant of the premises; (ii) failure to pay for merchandise or charges for nonutility service by the utility;

(iii) failure to pay for a different type or class of utility service unless fee for such service is included on the same bill; (iv) failure to pay the account of another Customer as guarantor thereof, unless the utility has in writing the guarantee as a condition precedent to service; (v) failure to pay charges arising from an underbilling occurring due to any misapplication of rates more than six months prior to the current billings; (vi) failure to pay charges arising from an underbilling due to any faulty metering, unless the meter has been tampered with or unless such underbilling charges are due; (vii) failure to pay an estimated bill other than a bill rendered pursuant to an approved meter reading plan, unless the utility is unable to read the meter due to circumstances beyond its control.

(F) Unless a dangerous condition exists, or unless the Customer requests disconnection, service shall not be disconnected on a day, or on a day immediately preceding a day, when personnel of the utility are not available to the public for the purpose of making collections and reconnecting service. (G) No utility may abandon a Customer without written approval from the regulatory authority.



Rate Schedule QSR


(H) No utility may discontinue service to a delinquent residential Customer permanently residing in an individually metered dwelling unit when that Customer establishes that discontinuance of service will result in some person residing at that residence becoming seriously ill or more seriously ill if the service is discontinued. Any Customer seeking to avoid termination of service under this section must make a written request supported by a written statement from a licensed physician. Both the request and the statement must be received by the utility not more than five working days after the date of delinquency of the bill. The prohibition against service termination provided by this section shall last 20 days from the date of receipt by the utility of the request and statement or such lesser period as may be agreed upon by the utility and the Customer. The Customer who makes such request shall sign an installment agreement which provides for payment of such service along with timely payments for subsequent monthly billings.

(5) Applicant deposit.

(A) Establishment of credit for residential applicants. Each utility may require a residential applicant for service to satisfactorily establish credit but such establishment of credit shall not relieve the Customer from complying with rules for prompt payment of bills. Subject to these rules, a residential applicant shall not be required to pay a deposit:

(i) if the residential applicant has been a Customer of any utility for the same kind of service within the last two years and is not delinquent in payment of any such utility service account and during the last 12 consecutive months of service did not have more than one occasion in which a bill for such utility service was paid after becoming delinquent and never had service disconnected for nonpayment; (ii) if the residential applicant furnishes in writing a satisfactory guarantee to secure payment of bills for the service required; or (iii) if the residential applicant furnishes in writing a satisfactory credit rating by appropriate means, including, but not limited to, the production of generally acceptable credit cards, letters of credit reference, the names of credit references which may be quickly and inexpensively contacted by the utility, or ownership of substantial equity.

(B) Reestablishment of credit. Every applicant who has previously been a Customer of the utility and whose service has been discontinued for nonpayment of bills shall be required before service is rendered to pay all his amounts due the utility or execute a written deferred payment agreement, if offered, and reestablish credit as provided in subparagraph (A) of this paragraph.



Rate Schedule QSR

SCHEDULE QSR – QUALITY OF SERVICE RULES Applicable to: Entire System Effective Date: November 13, 2008 Page 9 of 14 (C) Amount of deposit and interest for residential service, and exemption from deposit.

(i) Each gas utility shall waive any deposit requirement for residential service for an applicant who has been determined to be a victim of family violence as defined in Texas Family Code, §71.004, by a family violence center, by treating medical personnel, by law enforcement agency personnel, or by a designee of the Attorney General in the Crime Victim Services Division of the Office of the Attorney General. This determination shall be evidenced by the applicant’s submission of a certification letter developed by the Texas Council on Family Violence and made available on its web site. (ii) The required deposit shall not exceed an amount equivalent to one-sixth of the estimated annual billings. If actual use is at least twice the amount of the estimated billings, a new deposit requirement may be calculated and an additional deposit may be required within two days. If such additional deposit is not made, the utility may disconnect service under the standard disconnection procedure for failure to comply with deposit requirements. (iii) All applicants for residential service who are 65 years of age or older will be considered as having established credit if such applicant does not have an outstanding account balance with the utility or another utility for the same utility service which accrued within the last two years. No cash deposit shall be required of such applicant under these conditions. (iv) Each utility which requires deposits to be made by its Customers shall pay a minimum interest on such deposits according to the rate as established by law. If refund of deposit is made within 30 days of receipt of deposit, no interest payment is required. If the utility retains the deposit more than 30 days, payment of interest shall be made retroactive to the date of deposit.

(I) Payment of interest to the Customer shall be annually or at the time the deposit is returned or credited to the Customer’s account. (II) The deposit shall cease to draw interest on the date it is returned or credited to the Customer’s account.

(D) Deposits for temporary or seasonal service and for weekend or seasonal residences. The utility may require a deposit sufficient to reasonably protect it against the assumed risk, provided such a policy is applied in a uniform and nondiscriminatory manner.



Rate Schedule QSR

SCHEDULE QSR – QUALITY OF SERVICE RULES Applicable to: Entire System Effective Date: November 13, 2008 Page 10 of 14 (E) Records of deposits. (i) The utility shall keep records to show: (I) the name and address of each depositor; (II) the amount and date of the deposit; and (III) each transaction concerning the deposit.

(ii) The utility shall issue a receipt of deposit to each applicant from whom a deposit is received and shall provide means whereby a depositor may establish claim if the receipt is lost. (iii) A record of each unclaimed deposit must be maintained for at least four years, during which time the utility shall make a reasonable effort to return the deposit.

(F) Refund of deposit. (i) If service is not connected or after disconnection of service, the utility shall promptly and automatically refund the Customer’s deposit plus accrued interest on the balance, if any, in excess of the unpaid bills for service furnished. The transfer of service from one premise to another within the service area of the utility shall not be deemed a disconnection within the meaning of these rules, and no additional deposit may be demanded unless permitted by these rules. (ii) When the Customer has paid bills for service for 12 consecutive residential bills without having service disconnected for nonpayment of bill and without having more than two occasions in which a bill was delinquent and when the Customer is not delinquent in the payment of the current bills, the utility shall promptly and automatically refund the deposit plus accrued interest to the Customer in the form of cash or credit to a Customer’s account.

(G) Upon sale or transfer of utility or company. Upon the sale or transfer of any public utility or operating units thereof, the seller shall file with the commission under oath, in addition to other information, a list showing the names and addresses of all Customers served by such utility or unit who have to their credit a deposit, the date such deposit was made, the amount thereof, and the unpaid interest thereon. (H) Complaint by applicant or Customer. Each utility shall direct its personnel engaged in initial contact with an applicant or Customer for service seeking to establish or reestablish credit under the provisions of these rules to inform the Customer, if dissatisfaction is expressed with the utility’s decision, of the Customer’s right to file a complaint with the regulatory authority thereon.



Rate Schedule QSR

SCHEDULE QSR – QUALITY OF SERVICE RULES Applicable to: Entire System Effective Date: November 13, 2008 Page 11 of 14 (6) Billing.

(A) Bills for gas service shall be rendered monthly, unless otherwise authorized or unless service is rendered for a period less than a month. Bills shall be rendered as promptly as possible following the reading of meters. (B) The Customer’s bill must show all the following information. The information must be arranged and displayed in such a manner as to allow the Customer to compute his bill with the applicable rate schedule. The applicable rate schedule must be mailed to the Customer on request of the Customer. A utility may exhaust its present stock of nonconforming bill forms before compliance is required by this section:

(i) if the meter is read by the utility, the date and reading of the meter at the beginning and end of the period for which rendered;

(ii) the number and kind of units billed; (iii) the applicable rate schedule title or code; (iv) the total base bill;

(v) the total of any adjustments to the base bill and the amount of adjustments per billing unit;

(vi) the date by which the Customer must pay the bill to get prompt payment discount; (vii) the total amount due before and after any discount for prompt payment within a designated period;

(viii) a distinct marking to identify an estimated bill. (C) Where there is good reason for doing so, estimated bills may be submitted, provided that an actual meter reading is taken at least every six months. For the second consecutive month in which the meter reader is unable to gain access to the premises to read the meter on regular meter reading trips, or in months where meters are not read otherwise, the utility must provide the Customer with a postcard and request that the Customer read the meter and return the card to the utility if the meter is of a type that can be read by the Customer without significant inconvenience or special tools or equipment. If such a postcard is not received by the utility in time for billing, the utility may estimate the meter reading and render the bill accordingly.

(D) Disputed bills. (i) In the event of a dispute between the Customer and the utility regarding the bill, the utility must forthwith make such investigation as is required by the particular case and report the results thereof to the Customer. If the Customer wishes to obtain the benefits of clause (ii) of this subparagraph, notification of the dispute must be given to the utility prior to the date the bill becomes delinquent. In the event the dispute is not resolved, the utility shall inform the Customer of the complaint procedures of the appropriate regulatory authority.



Rate Schedule QSR


(ii) Notwithstanding any other subsection of this section, the Customer shall not be required to pay the disputed portion of the bill which exceeds the amount of that Customer’s average usage for the billing period at current rates until the earlier of the following: resolution of the dispute or the expiration of the 60-day period beginning on the day the disputed bill is issued. For purposes of this section only, the Customer’s average usage for the billing period shall be the average of the Customer’s usage for the same billing period during the preceding two years. Where no previous usage history exists, the average usage shall be estimated on the basis of usage levels of similar Customers and under similar conditions.

(7) Meters. (A) Meter requirements.

(i) Use of meter. All gas sold by a utility must be charged for by meter measurements, except where otherwise provided for by applicable law, regulation of the regulatory authority, or tariff. (ii) Installation by utility. Unless otherwise authorized by the regulatory authority, each utility must provide and install and will continue to own and maintain all meters necessary for measurement of gas delivered to its Customers. (iii) Standard type. No utility may furnish, set up, or put in use any meter which is not reliable and of a standard type which meets generally accepted industry standards; provided, however, special meters not necessarily conforming to such standard types may be used for investigation, testing, or experimental purposes.

(B) Meter records. Each utility must keep the following records: (i) Meter equipment records. Each utility must keep a record of all its meters, showing the Customer’s address and date of the last test. (ii) Records of meter tests. All meter tests must be properly referenced to the meter record provided for therein. The record of each test made on request of a Customer must show the identifying number and constants of the meter, the standard meter and other measuring devices used, the date and kind of test made, by whom made, the error (or percentage of accuracy) at each load tested, and sufficient data to permit verification of all calculations. (iii) Meter readings--meter unit location. In general, each meter must indicate clearly the units of service for which charge is made to the Customer.



Rate Schedule QSR


(iv) Meter tests on request of Customer.

(I) Each utility must, upon request of a Customer, make a test of the accuracy of the meter serving that Customer. The utility must inform the Customer of the time and place of the test and permit the Customer or his authorized representative to be present if the Customer so desires. If no such test has been performed within the previous four years for the same Customer at the same location, the test is to be performed without charge. If such a test has been performed for the same Customer at the same location within the previous four years, the utility is entitled to charge a fee for the test not to exceed $15 or such other fee for the testing of meters as may be set forth in the utility’s tariff properly on file with the regulatory authority. The Customer must be properly informed of the result of any test on a meter that serves him. (II) Notwithstanding subclause (I) of this clause, if the meter is found to be more than nominally defective, to either the Customer’s or the utility’s disadvantage, any fee charged for a meter test must be refunded to the Customer. More than nominally defective means a deviation of more than 2.0% from accurate registration.

(v) Bill adjustments due to meter error. (I) If any meter test reveals a meter to be more than nominally defective, the utility must correct previous readings consistent with the inaccuracy found in the meter for the period of either:

(-a-) the last six months; or (-b-) the last test of the meter, whichever is shorter. Any resulting underbillings or overbillings are to be corrected in subsequent bills, unless service is terminated, in which event a monetary adjustment is to be made. This requirement for a correction may be foregone by the utility if the error is to the utility’s disadvantage.

(II) If a meter is found not to register for any period of time, the utility may make a charge for units used but not metered for a period not to exceed three months previous to the time the meter is found not to be registering. The determination of amounts used but not metered is to be based on consumption during other like periods by the same Customer at the same location, when available, and on consumption under similar conditions at the same location or of other similarly situated Customers, when not available.

(8) New construction.

(A) Standards of construction. Each utility is to construct, install, operate, and maintain its plant, structures, equipment, and lines in accordance with the provisions of such codes and standards as are generally accepted by the industry, as modified by rule or regulation of the regulatory authority or otherwise by law, and in such manner to best accommodate the public and to prevent interference with service furnished by other public utilities insofar as practical.



Rate Schedule QSR


(B) Line extension and construction charges. Every utility must file its extension policy. The policy must be consistent, nondiscriminatory, and is subject to the approval of the regulatory authority. No contribution in aid of construction may be required of any Customer except as provided for in extension policy. (C) Response to request for service. Every gas utility must serve each qualified applicant for service within its service area as rapidly as practical. As a general policy, those applications not involving line extensions or new facilities should be filled within seven working days. Those applications for individual residential service requiring line extensions should be filled within 90 days unless unavailability of materials or other causes beyond the control of the utility result in unavoidable delays. In the event that residential service is delayed in excess of 90 days after an applicant has met credit requirements and made satisfactory arrangements for payment of any required construction charges, a report must be made to the regulatory authority listing the name of the applicant, location, and cause for delay. Unless such delays are due to causes which are reasonably beyond the control of the utility, a delay in excess of 90 days may be found to constitute a refusal to serve.


SOI Exhibit B Page 1 of 1

Proposed Revenue Increase by Current Customer Class - Total System

Description BillsVolumes

(Ccf)Customer Charge

Usage Charge (per

Ccf)

Adjusted Misc Fees

(Allocated to Classes)

Proposed Revenue

Test Year As Adjusted Revenue

Revenue Increase

% Change in

Revenue

Residential 17,350 8,210,956 19.50 0.4684 611,307 8,516,891 6,327,327 2,189,564 34.6%Commercial 80 213,450 45.00 0.5698 2,819 167,650 110,809 56,841 51.3%Public School 9 95,208 45.00 0.5698 317 59,430 38,879 20,550 52.9%All Classes 17,439 8,519,615 8,743,970 6,477,015 2,266,955 35.0%

Proposed Revenue Increase by Current Customer Class - Environs



Usage Charge (per

Ccf)

Adjusted Misc Fees


Proposed Revenue


Revenue Increase

% Change in

Revenue

Residential 14,598 6,906,336 19.50 0.4684 514,343 7,164,928 5,323,004 1,841,923 34.6%Commercial 33 86,510 45.00 0.5698 1,163 68,279 45,138 23,141 51.3%Public School 9 95,208 45.00 0.5698 317 59,430 38,879 20,550 52.9%All Classes 14,640 7,088,054 7,292,636 5,407,022 1,885,615 34.9%

Proposed Revenue Increase by Current Customer Class - Incorporated Areas



Usage Charge (per

Ccf)

Adjusted Misc Fees


Proposed Revenue


Revenue Increase

% Change in

Revenue

Residential 2,752 1,304,620 19.50 0.4684 96,963 1,351,963 1,004,322 347,641 34.6%Commercial 47 126,940 45.00 0.5698 1,656 99,371 65,671 33,700 51.3%Public School n/a n/a n/a n/a n/a n/a n/aAll Classes 2,799 1,431,560 1,451,334 1,069,993 381,341 35.6%

Proposed Rates

Proposed Rates

Proposed Rates

Exhibit B

Proposed Revenue Increase by Current Customer Class (Including Allocation of Miscellaneous Service Fee Revenue)

SOI Exhibit C Page 1 of 1

Customer Class - Total System

Average Monthly

Usage (Ccf)

Current Average

Monthly Bill Including

Cost of Gas

Proposed Average


Cost of Gas

Proposed Monthly Dollar

Change

Proposed Percentage

Change

Residential 39.4 44.94$ 55.45$ 10.52$ 23.4%

Commercial 222.3 211.04$ 270.25$ 59.21$ 28.1%

Public School 881.6 747.80$ 938.08$ 190.28$ 25.4%

Customer Class - Environs

Average Monthly

Usage (Ccf)

Current Average


Cost of Gas

Proposed Average


Cost of Gas


Change

Proposed Percentage

Change

Residential 39.4 44.93$ 55.44$ 10.51$ 23.4%

Commercial 218.5 207.88$ 266.32$ 58.44$ 28.1%

Public School 881.6 747.80$ 938.08$ 190.28$ 25.4%

Customer Class - Incorporated

Average Monthly

Usage (Ccf)

Current Average


Cost of Gas

Proposed Average


Cost of Gas


Change

Proposed Percentage

Change

Residential 39.5 44.99$ 55.51$ 10.53$ 23.4%

Commercial 225.1 213.26$ 273.01$ 59.75$ 28.0%

Public School n/a n/a n/a n/a n/a

Exhibit C

Average Bill Impact(Including Cost of Gas at $ .4432 Per Ccf, Excluding Miscellaneous Service Fees)

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GAS UTILITIES DOCKET NO. 10679

STATEMENT OF INTENT TO INCREASE GAS UTILITY RATES WITHIN THE UNINCORPORATED AREAS SERVED BY SIENERGY, LP IN CENTRAL AND SOUTH TEXAS

§ § § § §

BEFORE THE

RAILROAD COMMISSION

OF TEXAS

PROTECTIVE ORDER This Protective Order shall govern the use of all information deemed confidential or highly sensitive confidential information by a party providing information to the Railroad Commission of Texas (“Commission”) or responding to discovery requests, including information whose confidentiality may be under dispute in this docket and all dockets consolidated herewith. This order may be modified by the Examiner sua sponte, or on advice of the Open Records Coordinator, Office of General Counsel, and the Railroad Commission of Texas. 1. Designation of Protected Materials Any party or person producing or filing a document, including, but not limited to, records stored or encoded on a computer disk or other similar electronic storage medium, in this proceeding may designate that document, or any portion of it, as confidential by typing or stamping on its face “PROTECTED MATERIALS PROVIDED PURSUANT TO PROTECTIVE ORDER ISSUED IN GUD NO. 10679” (hereinafter referred to as “protected materials”). The documents shall be consecutively Bates Stamped when necessary. 2. Materials Excluded from Protected Materials Designation Protected materials shall not include any information or document contained in the public files of the Commission or any other federal or state agency, court, or local government authority subject to the Public Information Act or under the Federal Freedom of Information Act provided however, that any party or person may assert any privilege or exception available under these Acts. Protected materials also shall not include materials that at the time of or prior to disclosure in these proceedings, is or was publicly disclosed, on a non-confidential basis. The disclosure of materials to a party, its customers, or their respective employees, agents, consultants, or counsel in the normal course of business shall not preclude a claim that such materials are protected materials hereunder. Protected materials disclosed by someone other than an employee, agent, or consultant of the originating party in violation of this Protective Order shall not lose their status as protected material as a result of such disclosure. 3. Definition of “reviewing party.” A “reviewing party” is defined for purposes of this Protective Order as a party expressly admitted or that has had a Motion to Intervene granted in GUD No. 10679.

SOI Exhibit F Page 1 of 8

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4. Definition of “producing party.” A “producing party” is defined for purposes of this Protective Order as a party expressly admitted or that has had a Motion to Intervene granted in GUD No. 10679, which has had discovery propounded upon it in any form as provided by applicable law. 5. Access to Protected Materials A reviewing party shall be permitted access to protected materials only through its authorized representatives. “Authorized representatives” of a party include its counsel of record in this proceeding and associated attorneys, paralegals, economists, statisticians, accountants, consultants, or other persons employed or retained by the party and directly engaged in these proceedings, provided that such person has signed the certification required by Paragraph 8. 6. Designation of Highly Sensitive Protected Materials The term “highly sensitive protected materials” is a subset of “protected materials.” The term refers to, but is not limited to, documents and information the provision of which to the reviewing party or its authorized representatives would: (1) expose the producing party or any of its affiliates to an unreasonable risk of harm, or (2) would result in disclosure of information that would be subject to a privilege against disclosure, a contractual confidentiality agreement or other Protective Agreement or agreement. Highly sensitive protected materials further include, but are not limited to, business operations or financial information that is commercially sensitive. Documents so classified by a producing party shall bear the designation “HIGHLY SENSITIVE PROTECTED MATERIALS PROVIDED PURSUANT TO THE PROTECTIVE ORDER ISSUED IN GUD NO. 10679.” 7. Restrictions on Copies and Inspection of Highly Sensitive Protected Materials Highly sensitive protected materials shall be made available for inspection only at the address specified pursuant to Paragraph 9. Additionally, only one copy of highly sensitive protected materials shall be provided to counsel of any party to GUD No. 10679 upon written request following completion of the certifications required by Paragraph 8 herein. A party may make one additional copy of reproduced highly sensitive protected materials for use in this proceeding pursuant to this Protective Order. No additional copies of such highly sensitive protected materials may be made, except that additional copies may be made in order to have sufficient copies for introduction of the material into the evidentiary record if the material is to be offered for admission into the record. A record of any copies that are made of highly sensitive protected material shall be kept and a copy of the record shall be sent to the producing party upon request. The record shall include information on the location and the person in possession of the copy. The authorized representatives for the purpose of access to highly sensitive protected materials must be persons who are: (1) counsel for the reviewing party, (2) consultants for the reviewing party working under the direction of the reviewing party’s counsel, (3) permanent non-elected employees of municipalities that are parties in GUD No. 10679, who have primary responsibility for utility regulation. The authorized representatives for the Commission’s Director of Gas Services or the State of Texas for the purpose of access to these materials shall consist of its respective counsel of record in this docket and associated attorneys, paralegals, economists, statisticians, accountants, consultants, or other persons employed or retained by those agencies and


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directly engaged in this docket. Limited notes may be made of highly sensitive protected materials, and such notes shall themselves be treated as highly sensitive protected material unless such notes are restricted to a description of the document and a general characterization of its subject matter in a manner that does not include any substantive information contained in such highly sensitive protected materials. 8. Required Certification Each person who inspects the protected materials shall, before such inspection, agree in writing to follow certification set forth in Exhibit A to this Order:

I certify my understanding that the protected materials are provided to me pursuant to the terms and restrictions of the Protective Order in GUD No. 10679, and that I have been given a copy of it and have read the Protective Order and agree to be bound by it. I understand that the contents of the protected materials, any notes, memoranda, or any other form of information regarding or derived from the protected materials shall not be disclosed to anyone other than in accordance with the Protective Order and shall be used only for the purpose of the proceeding in GUD No. 10679. I acknowledge that the obligations imposed by this certification are pursuant to a ruling issued by the Examiners in this docket. However, if the information contained in the protected materials is obtained from independent sources that did not obtain such information from documents obtained in this docket, the understanding stated herein shall not apply.

In addition, reviewing parties who are permitted access to highly sensitive protected material under the terms of this ruling shall, before inspection of such materials, agree in writing to the following certification set forth in Exhibit A to this Protective Order:

I certify that I am eligible to have access to highly sensitive protected materials under the terms of the Protective Order in GUD No. 10679.

A copy of each signed certification shall be provided to counsel for the party asserting confidentiality. Except for highly sensitive protected materials, any authorized representative may disclose protected materials to any other person who is an authorized representative, provided that, if the person to whom disclosure is to be made has not executed and provided for delivery of a signed certification to the party asserting confidentiality, that certification shall be executed prior to any disclosure. An authorized representative may disclose highly sensitive protected material to other reviewing representatives who are permitted access to such materials and have executed the additional certification required for persons who receive access to highly sensitive protected material. In the event that any authorized representative to whom protected materials are disclosed ceases to be engaged in these proceedings, access to protected materials by that person shall be terminated and all notes or memoranda or other information derived from the protected material shall be returned to the party on whose behalf that person was acting. Any person who has agreed to either or both of the foregoing certifications shall continue to be bound by the provisions of this Protective Order, even if no longer engaged in these proceedings. Parties who assert confidentiality shall maintain a list of persons who sign a certification pursuant to this Paragraph.


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9. Voluminous Materials (a) Voluminous protected materials which exceed eight linear feet shall be made available for inspections in its normal repository between the hours of 9:30 a.m. and 5:00 p.m., Monday through Friday (except holidays) in accordance with the Texas Rules of Civil Procedure. A party shall notify the other parties of the address at which the voluminous data will be produced simultaneously with the production of such data. For purposes of this Protective Order voluminous materials or data shall mean responses to a particular question or subpart that consist of one hundred pages or more in the aggregate. (b) Except for highly sensitive protected materials as provided for in Paragraph 7, and for protected materials that are voluminous, the party asserting confidentiality shall provide a party one copy of the protected materials upon receipt of the signed certifications described in Paragraph 8. Except as provided above for highly sensitive protected materials, parties may take notes regarding the information contained in protected materials made available for inspection pursuant to Paragraph 9(a). Only one copy of such protected materials shall be reproduced for each party. Parties shall make a diligent, good-faith effort to limit the amount of copying requested to only that which is appropriate for purposes of this proceeding. Notwithstanding the foregoing provisions of this Paragraph 9(b), a party may make further copies of reproduced protected materials for use in this proceeding pursuant to this Protective Order, but a record shall be maintained as to the documents produced and the number of copies made, and upon request, the party shall provide the party asserting confidentiality with a copy of that record. 10. Availability for Purposes of this Filing All protected materials shall be made available to the parties solely for the purposes of this proceeding. Protected materials, as well as a party’s notes, memoranda, or other information regarding, or derived from the protected materials are to be treated confidentially by the parties and shall not be disclosed or used by the party except as permitted and provided in this Protective Order. Information derived from or describing the protected materials shall be maintained in a secure place and shall not be placed in the public or general files of the party except in accordance with the provisions of this Protective Order. A party must take all reasonable precautions to ensure that the protected materials, including notes and analysis made from protected materials, are not viewed or taken by any person other than an authorized representative of the party. All non-voluminous protected materials may be reviewed only during the “reviewing period,” which period shall commence upon issuance of this Protective Order and continue until conclusion of the plenary jurisdiction of the Commission in this proceeding. The “reviewing period” shall reopen if the Commission regains jurisdiction due to a remand as provided by law. Protected materials that are admitted into the evidentiary record or accompanying the evidentiary record as offers of proof, may be reviewed while this proceeding or any appeals hereof are pending. 11. Treatment of Protected Materials (a) If a party tenders for filing any written testimony, exhibit, brief, or other submission that quotes from protected materials or discloses the confidential content of protected materials, the confidential portion of such testimony, exhibit, brief, or other submission shall be sealed and shall be filed and served in accordance with the appropriate procedures utilized by the


5

Commission. The Examiners may subsequently, on their own motion or on motion of a party, issue a ruling respecting whether or not the inclusion, incorporation, or reference to protected materials is such that the written testimony, exhibit, brief, or other submission should remain under seal. (b) Any party or person giving testimony in this proceeding may designate those portions of his or her testimony deemed to be confidential materials in accordance with Paragraph 1 of this Protective Order by advising the Examiner of such fact. In that event, the Examiner shall, on a case-by-case basis, devise procedures which are fair to all parties without unduly burdening the record in this docket. (c) All protected materials filed with the Commission, the Examiner, any other judicial or administrative body in support of or as part of a motion, other pleading, brief, or other document, shall be filed and served in sealed envelopes or other appropriate containers. 12. Changes to Protective Order Nothing herein restricts the party seeking protected material and the party producing the protected material from agreeing to other procedures/methods for handling of protected material, including highly sensitive protected material. In addition, each party shall have the right to seek changes in this Protective Order as appropriate from the Examiners, the Commission, or the courts. Nothing herein shall prevent any party from opposing efforts to seek changes to this ruling. 13. Judicial Findings In the event that the Examiner at any time in the course of this proceeding finds that all or part of the protected materials are not confidential, by finding, for example, that such materials have entered the public domain, those materials shall nevertheless be subject to the protection afforded by this ruling for three full working days, unless otherwise ordered, from the latest of (i) the date of receipt by the party asserting confidentiality of the Examiner’s order, or (ii) the date of a final and appealable Commission order denying an appeal filed within the three full working day period from the Examiner’s order; or (iii) approval of such order by operation of law following the filing of such an appeal. Neither the party asserting confidentiality nor any reviewing party waives its right to seek additional administrative or judicial remedies after the Commission’s denial of any appeal. 14. Disclosure of Protected Materials (a) During the pendency of GUD No. 10679 at the Commission, in the event that a party wishes to disclose protected materials to any person to whom disclosure is not authorized by this Protective Order, or wishes to have changed the designation of certain information or material as protected materials by alleging, for example, that such information or material has entered the public domain, such party shall first file and serve on all parties written notice of such proposed disclosure or request for change in designation, identifying with particularity each of such protected materials. In the event that the party asserting confidentiality wishes to contest such proposed disclosure or request for change in designation, that party shall file with the Commission its objection to such proposal, with supporting sworn affidavits, if any, within five working days after receiving such notice of proposed disclosure or request for change in designation. Failure of


6

that party to file such an objection within this period shall be deemed a waiver of objection to the proposed disclosure or request for change in designation. Upon the request of either the producing party or reviewing party or upon the Examiner’s own initiative, the Examiner may conduct a prehearing conference. If either the producing or reviewing party wishes to submit materials in question for an in camera inspection, it shall do so at the time of filing its written notice or objection to disclosure. Responses to such an objection, with supporting affidavits, if any, shall be filed within five working days after receipt of the objection. The Examiner will determine whether the proposed disclosure or change in designation is appropriate. The burden is on the party asserting confidentiality to show that such proposed disclosure or change in designation should not be made. If the Examiner determines that such proposed disclosure or change in designation should be made, disclosure shall not take place earlier than three full working days after such determination unless otherwise ordered. No party waives any right to seek additional administrative or judicial remedies concerning such Examiner’s ruling. As long as the periods set out in this Protective Order for filing the pleadings described above for consideration by the Examiner and for challenging the determination of the Examiner or the Commission have not expired and while a challenge is pending, the protected materials shall maintain the confidential treatment and status provided for in this Protective Order. (b) All protected materials shall be afforded the confidential treatment and status provided for in this Protective Order during the period an appeal on an Examiner’s ruling is pending before the Commission and during the periods for challenging the various orders. (c) All notices, applications, responses, or other correspondence shall be made in a manner that protects protected materials from unauthorized disclosure. 15. Objection to Protected Materials Nothing in this ruling shall be construed as precluding any party from objecting to the use of protected materials on grounds other than confidentiality, including the lack of required relevance. Nothing in this ruling shall be construed as an agreement by any party that the protected materials are entitled to confidential classification. 16. Acts upon Conclusion of Proceeding Following the conclusion of these proceedings, each party must, no later than thirty days following receipt of the notice described below, destroy or return to the party asserting confidentiality all copies of the protected materials provided by that party pursuant to this Protective Order and all copies reproduced by a reviewing party, and counsel for each party must provide to the party asserting confidentiality a verified certification that, to the best of his or her knowledge, information, and belief, all copies of notes, memorandum, and other documents regarding or derived from the protected materials (including copies of protected materials) that have not been so returned, if any, have been destroyed, other than notes, memoranda, or other documents which contain information in a form which, if made public, would not cause disclosure of protected materials. Promptly following the conclusion of this proceeding, counsel for the party asserting confidentiality will send a written notice to all parties, reminding them of their obligations under this Paragraph. Nothing in this Paragraph shall prohibit counsel for each party from retaining two copies of any filed testimony, exhibit, brief, application for rehearing, or other pleading which refers to protected materials provided that any such protected materials retained


7

by counsel shall remain subject to the provisions of this ruling. As used in this Paragraph, “conclusion of this proceeding” refers to the exhaustion of available appeals, or the running of the time for making of such appeals, as provided by applicable law. If, following any appeal, the Commission conducts a remand proceeding, then “the conclusion of these proceedings” is extended by the remand to the exhaustion of available appeals, or the running of the time for the making of such appeals, as provided by applicable law. If, following any appeal, the Commission conducts a remand proceeding, then the “conclusion of this proceeding” is extended by the remand to the exhaustion of available appeals of the remand or the running of time for making such appeals of the remand, as provided by applicable law. 17. Compliance with Legal Requirements This Protective Order is subject to the requirements of the Public Information Act, the Open Meetings Act, and any other applicable law, provided that parties subject to those acts will give the party asserting confidentiality notice, if possible under those acts, prior to disclosure pursuant to those acts. 18. Effect of Court Order If required by order of a government or judicial body, the party may release to such body the confidential information required by such order, provided, however, the party agrees that prior to such disclosure, it shall promptly notify the party asserting confidentiality of the order and allow such party sufficient time to contest release of the confidential information; provided, further, the party shall use its best efforts to prevent such confidential information from being disclosed. The term “best efforts” as used in the preceding paragraph requires that the party’s attempt to ensure that disclosure is not made by its employees or authorized representatives unless such disclosure is pursuant to a final order of a governmental or judicial body or written opinion of the Attorney General which was sought in compliance with V.T.C.A., Government Code §552.301 (Public Information). The party is not required to delay compliance with a lawful order to disclose such information but is simply required to timely notify the party asserting confidentiality, or its counsel, that it has received a challenge to the confidentiality of the information and that the reviewing party will either proceed under the provisions of §552.301 of the Texas Government Code or intends to comply with the final governmental or court order. 19. Effect of Violation of Court Order In the event of a breach of the provisions contained in Paragraph 18, the party asserting confidentiality will not have an adequate remedy in money or damages, and accordingly, shall in addition to any other available legal or equitable remedies, be entitled to an injunction against such breach. The producing party shall not be relieved of proof of any element required to establish the right to injunctive relief.


8

EXHIBIT A

CERTIFICATIONS

Certification for protected materials only: I certify my understanding that the protected materials are provided to me pursuant to the terms and restrictions of the Protective Order in GUD No. 10679, and that I have been given a copy of it and have read the Protective Order and agree to be bound by it. I understand that the contents of the protected materials, any notes, memoranda, or any other form of information regarding or derived from the protected materials shall not be disclosed to anyone other than in accordance with the Protective Order and shall be used only for the purpose of the proceeding in GUD No. 10679. I acknowledge that the obligations imposed by this certification are pursuant to a ruling issued by the Examiners in this docket. However, if the information contained in the protected materials is obtained from independent sources that did not obtain such information from documents obtained in this docket, the understanding stated herein shall not apply. Signature Party Represented Printed Name Date Additional certification for highly sensitive protected materials: I certify that I am eligible to have access to highly sensitive protected materials under the terms of the Protective Order in GUD No. 10679. Signature Party Represented Printed Name Date


Schedule A1

SiEnergy, LPTwelve Months Ended September 30, 2017

Adjusted for Known and Measurable Changes

SUMMARY OF REVENUE REQUIREMENT AND REVENUE DEFICIENCY

Line No. Description

From Schedule Per Book Adjustments Total Adjusted

Proposed Reduction of

Revenue Requirement for

Rate Design

Total Proposed Deficiency and

Rev. Req for Rate Design

( a ) ( b ) ( c ) ( d ) ( e)

1 Rate Base B $39,261,482 $39,261,4822 Rate of Return E 8.28% 8.28% 8.28%3 Required Return $3,251,505 $0 $3,251,505 4 Payroll H-3 1,152,400 59,353 1,211,753 5 Payroll Taxes H-4 75,307 13,485 88,793 6 Employee Benefits H-5 248,807 95,254 344,061 7 TWE/Other Operations Clearing H-6 118,561 11,746 130,308 8 Office Rent H-7 97,179 (3,462) 93,717 9 Bad Debt Expense H-8 36,592 227 36,819

10 Billing and Collections H-9 180,291 12,059 192,349 11 Outside Services H-10 565,785 (19,672) 546,113 12 Business Insurance H-11 74,258 4,789 79,048 13 Misc Exp Subj to RRC Rules H-12 208,862 (68,890) 139,973 14 Depreciation and Amortization H-13 1,521,150 106,526 1,627,677 15 Property Tax Expense H-14 74,855 23,390 98,244 16 All Other H-2.3 355,748 355,748 17 Cost of Gas G 2,547,101 (2,547,101) - 18 Federal Income Tax F 0 1,261,278 1,261,278 19 Total Expenses Before Gross-ups 7,256,897 (1,051,016) 6,205,881

20 Base Revenue Requirement before Gross-up (Line 3 + Line 19) $10,508,403 ($1,051,016) $9,457,386 (716,238)$ 8,741,148$

21 Customer Charge and Volumetric Revenue G 8,205,360 (2,342,787) 5,862,572 22 Miscellaneous Fees G 879,180 (264,737) 614,443 23 Test Year Adjusted Base Revenue G 9,084,539 (2,607,524) 6,477,015 - 6,477,015

24 Revenue Deficiency before Gross-up (Line 20 - Line 21) $1,423,863 $1,556,508 $2,980,371 ($716,238) $2,264,133

25 Gross-up for Revenue Related Expenses:26 Bad Debt Expense on Revenue Deficiency Note 3 3,715 3,715 (893) 2,822

27 Total Revenue Deficiency (Line 22 + Line 24) $1,423,863 $1,560,223 $2,984,086 ($717,131) $2,266,955

28 Total Cost of Service (Revenue Requirement) (Line 20 + Line 24) $10,508,403 ($1,047,301) $9,461,102 ($717,131) $8,743,970

29 Note 1: Increase Required on Base Revenue30 Total Revenue Deficiency 2,984,086$ (717,131)$ 2,266,955$

31 Adjusted Base Revenue 6,477,015$ -$ 6,477,015$

32 Increase Required on Base Revenue 46.1% -11.1% 35.0%

33 Note 2: Increase Required on Total Revenue34 Total Revenue Deficiency $2,984,086 ($717,131) $2,266,955

35 Adjusted Base Revenue 6,477,015 0 6,477,01536 Gas Cost Revenue 3,776,289 - 3,776,289 37 Total As Adjusted Revenue 10,253,304$ -$ 10,253,304$

38 Increase Required on Total As Adusted Revenue 29.1% -7.0% 22.1%

39 Note 3: Bad Debt Expense on Revenue Deficiency40 Revenue Deficiency Before Uncollectible Expense 2,980,371$ (716,238)$ 2,264,133$ 41 Base Revenue Uncollectible Factor H8 0.1247% 0.1247% 0.1247%42 Bad Debt Expense on Revenue Deficiency 3,715$ (893)$ 2,822$

SOI Exhibit G Page 1 of 34

Schedule A-2


Revenues and Expenses

Excluding Gas Cost and Gas Cost Revenue

Gas Cost and Gas Cost Revenue

Total Revenues and Expenses Including Gas Cost and Gas Cost Revenue

Proposed Reduction of


Rate Design

Total Proposed Deficiency and


Rate Design( a ) ( b ) ( c ) ( d ) ( e)

1 Proof of Revenue Requirement

2 Return on Rate Base 3,251,505$ -$ 3,251,505$

3 Expenses before Gross-ups 6,205,881 3,776,289 9,982,1704 Revenue Requirement before Gross-ups 9,457,386 3,776,289 13,233,675 (716,238) 12,517,4375 Adjusted Revenue before Gross-ups and Deficiency 6,477,015 3,776,289 10,253,304 10,253,3046 Revenue Deficiency before Gross-ups 2,980,371 0 2,980,371 (716,238) 2,264,1337 Bad Debt Expense on Revenue Deficiency 3,715 3,715 (893) 2,822

8 Total Revenue Deficiency (required revenue Increase) 2,984,086$ -$ 2,984,086$ (717,131)$ 2,266,955$

9 Percent Increase Required 46.1% 29.1% 22.1%

10 Revenue Requirement before Gross-up Expenses 13,233,675$ 12,517,437$ 11 Bad Debt Expense on Revenue Deficiency 3,715 2,822 12 Total Revenues 13,237,390 12,520,259

13 Less COG (3,776,289) (3,776,289) 14 Margin 9,461,102 8,743,970 15 Less Operating Expenses16 Expenses before Gross-up Expenses 6,205,881 6,205,881 17 Less Income Tax (1,261,278) (1,261,278) 18 Bad Debt Expense on Revenue Deficiency 3,715 2,822 19 Total Operating Expenses 4,948,318 4,947,425

20 Less Interest 909,132 909,132

21 Subtotal - Income before Income Tax 3,603,651 2,887,413 22 Income Tax Rate 35% 35%23 Federal Income Tax 1,261,278 1,010,595 24 Net Income (Equity Return) 2,342,373 1,876,818

25 Required Equity Return per Schedule G 2,342,373$ 2,342,373$ 26 Variance 0 (465,555)$

27 Explanation of Variance28 Revenue Shortfall Due to Proposed Use of Less than 100% of Actual Deficiency for Rate Design (716,238) 29 Tax Effect of Shortfall at 35% 250,683 30 Variance in Required net Equity Return Due Company Proposal (465,555)$

0



PROOF OF REVENUE REQUIREMENT


Schedule B

Line No. Description Source

Total Adjusted Test Year

( a )1 Plant in Service2 Intangible Plant Schedule C 338,134$ 3 Distribution Plant Schedule C 46,678,3494 General Plant Schedule C 2,014,8175 Gross Plant in Service 49,031,299

6 Accumulated Depreciation7 Intangible Plant Schedule D (133,426)8 Distribution Plant Schedule D (5,531,909)9 General Plant Schedule D (1,020,966)

10 Depreciation & Amortization Reserves (6,686,301)

11 Net Plant in Service 42,344,998

12 Other Rate Base Items13 Prepayments Schedule B1 141,34314 Inventory Schedule B2 484,01215 Cash Working Capital Schedule B3 528,04416 Accumulated Deferred Taxes Schedule B4 (4,207,314)17 Customer Advances (29,600)

18 Total Rate Base 39,261,482

19 Rate of Return Schedule E 8.28%

20 Required Return 3,251,505$

21 Income Tax Schedule F 1,261,278$ 22 Return and Income Tax ln 19+ ln 41 4,512,783$ 23 Pretax Rate of Return Schedule E 11.49%



RATE BASE


Schedule B1

Line No. Description Amount

( a )

1 September, 2016 155,089$ 2 October, 2016 164,447 3 November, 2016 156,021 4 December, 2016 141,282 5 January, 2017 146,085 6 February, 2017 154,590 7 March, 2017 135,705 8 April, 2017 133,391 9 May, 2017 113,178

10 June, 2017 112,371 11 July, 2017 90,017 12 August, 2017 148,153 13 September, 2017 187,128

14 Thirteen Month Average 141,343$

SiEnergy, LP

PREPAYMENTS

Twelve Months Ended September 30, 2017Adjusted for Known and Measurable Changes


Schedule B2

Line No. Description Amount

( a )

1 September, 2016 479,114$ 2 October, 2016 481,991 3 November, 2016 484,869 4 December, 2016 487,746 5 January, 2017 466,390 6 February, 2017 445,034 7 March, 2017 423,677 8 April, 2017 401,845 9 May, 2017 380,013

10 June, 2017 358,181 11 July, 2017 492,972 12 August, 2017 627,763 13 September, 2017 762,554

14 Thirteen Month Average 484,012$

SiEnergy, LP

INVENTORY

Twelve Months Ended September 30, 2017Adjusted for Known and Measurable Changes


Schedule B3

Line No. Description Source

Test Year Adjusted

Average Daily Amount

Revenue Lag Days

Expense Lead Days

Net (Lead) Lag Days Amount

( a ) ( b ) ( c ) ( d ) ( e ) ( f )

1 Operations & Maintenance Costs2 Cost of Gas Schedule G 3,776,289$ 10,346 48.96 39.28 9.68 100,149$ 3 Payroll Schedule H3 1,211,753 3,320 48.96 11.08 37.88 125,757 4 401k and Retirement Plan Cost Note 1 82,545 226 48.96 14.23 34.73 7,854 5 Insured Benefits Note 2 206,697 566 48.96 (10.10) 59.06 33,445 6 Other O&M Note 3 1,601,658 4,388 48.96 39.81 9.15 40,151 7 Subtotal - O&M Expenses 6,878,943 18,846 48.96 32.65 16.31 307,357

8 Taxes Other Than Income Tax (Charged to Expense Accounts)9 Payroll Taxes Schedule H4 88,793 243 48.96 11.00 37.96 9,234

10 Property Taxes Schedule H14 98,244 269 48.96 210.00 (161.04) (43,346) 11 State Franchise Taxes Schedule H2.1 30,950 85 48.96 (73.38) 122.34 10,374 12 Subtotal - Other Tax Expense 217,988 597 48.96 88.71 (39.75) (23,738)

13 Taxes Other Than Income Tax (Charged to Taxes Payable)14 City Franchise Tax 42,709 117 48.96 75.70 (26.74) (3,129) 15 Gross Receipts Tax 26,446 72 48.96 85.24 (36.28) (2,629) 16 Sales Tax re Customer Billings 82,800 227 48.96 48.16 0.80 182 17 Subtotal - Other Tax Collections 151,956 416 48.96 111.18 (62.22) (5,575)

18 Other Items19 Depreciation Schedule H13 1,627,677 20 Return Schedule B 3,251,505 21 Income Tax Schedule F 1,261,278 22 Subtotal - Other Items 6,140,460

23 Total Calculated Cash Working Capital 13,389,346$ 278,044

24 Minimum Cash Balance in Bank 250,000

25 Total Cash Working Capital 528,044$ (Key into Sch B)

26 Reconcilation to Base Revenue Requirement (3,776,289)$ 27 Less Purchased Gas Expense (151,956) 28 Less Franchise, Gross Receipts and Sales Taxes 9,461,102$ 29 Total Base Revenue Requirement check to Schedule A1 -

30 Note 1 - 401k Expense and Retirement Plan31 Total 401k and Retirement Plan Cost Schedule H5 233,201$ 32 Portion Expensed Schedule H5 35.40%33 Total 401k Expense 82,545$

34 Note 2 - Benefits Insured35 Total Benefits Expensed Schedule H5 344,061$ 36 Less 401K and Retirement Plan Exp Note 1 (82,545) 37 Less Misc Other Benefits on Schedule H Schedule H5 (54,819) 38 Total Benefits Insured 206,697$

39 Note 3 - Other O&M Expense40 Total Expenses Schedule A2, ln 3 + ln 7 9,985,885$ 41 Less Cost of Gas (3,776,289) 42 Less Payroll (1,211,753) 43 Total 401k and Retirement Plan Cost (82,545) 44 Less Benefit Insurance (206,697) 45 Less Taxes Other Than on Income Expense (217,988) 46 Less Depreciation Expense (1,627,677) 47 Less Income Tax Expense (1,261,278) 48 Total Other O&M Expense 1,601,658$



CASH WORKING CAPITAL


Schedule B4

Line No. Description Per Books Per Tax Difference Total

( a ) ( b ) ( c ) ( d )

1 Gross Plant 49,031,299$ 50,114,195$ 1,082,896$ 2 Accumulated Depr/Amort (6,686,301) (30,353,275) (23,666,974) 3 Net Plant 42,344,998 19,760,921 (22,584,078) 4 Federal Income Tax Rate - 35%5 Accumulated Deferred Income Taxes - Depreciation Related (7,904,427) (7,904,427)$

6 Tax Net Operating Loss ("NOL") 10,563,179 7 Federal Income Tax Rate 35%8 Accumulated Deferred Income Tax - NOL 3,697,113$ 3,697,113

9 Total Accumulated Deferred Income Tax (4,207,314)$



ACCUMULATED DEFERRED FEDERAL INCOME TAXES


Schedule C


Per Books Test Year End

Retirement of Assets

Due to Change in

Depr Method

Remove Non-

Recoverable Labor and

Load

Remove Mansfield Franchise

Remove Fully

Depreciated TWE and

Intangibles

Apply Cumulative AMR CIAC

Remove Mains re Lots in

Inventory and Defer for

Future Recovery

Total Adjusted Plant in Service

( a ) ( b ) ( c ) ( d ) ( e ) ( f ) ( g ) ( h )1 Intangible Plant2 (301) Organization -$ -$ 3 (302) Franchises & Consents 89,114 (25,903) 63,211 4 (303)-(307) Misc. Intangible 318,059 (43,136) 274,923 5 Total Intangible Plant 407,173 - - (25,903) (43,136) - - 338,134

6 Distribution Plant7 (375) Structures & Improvements 38,454 38,454 8 (376) Mains 24,967,973 (6,365) (4,328,073) 20,633,536 9 (378) Meas. & Reg. Station Other 369,823 369,823 10 (379) Meas. & Reg. Station City Gate 7,502,614 (698) 7,501,916 11 (380) Services 11,158,326 (16,509) 11,141,817 12 (381) Meters 3,223,949 (6,531) 3,217,418 13 (381.5) Meters - ERTS 1,556,461 (434,997) 1,121,464 14 (383) House Regulators 1,889,817 1,889,817 15 (387) Other Equipment 84,420 84,420 16 (387.5) Other Equipment - AMR 290,898 290,898 17 (387.7) Other Equipment - Scada 388,787 388,787 18 Total Distribution Plant 51,471,521 - (30,102) - - (434,997) (4,328,073) 46,678,349

19 General Plant20 (391.1) Office Furniture & Equipment 103,564 103,564 21 (391.3) Major Software Systems 428,143 428,143 22 (391.5) Other Computer HW/SW 224,142 (40,600) 183,542 23 (392) Transportation Equipment 1,165,945 (39,525) 1,126,420 24 (394) Tools, Shop & Garage 101,453 101,453 25 (397) Communication Equipiment 39,006 39,006 26 (398) Miscellaneous Equipment 32,689 32,689 27 Total General plant 2,094,942 (40,600) - - (39,525) - - 2,014,817

28 Total Orig Cost Plant in Service 53,973,636$ (40,600)$ (30,102)$ (25,903)$ (82,661)$ (434,997)$ (4,328,073)$ 49,031,299$ -



PLANT IN SERVICE


Schedule D


Subtotal to be booked

Retirement of Assets

Due to Change in

Depr Method

Remove Mansfield Franchise

Remove Fully

Depreciated TWE and

Intangibles

Apply Cumulative AMR CIAC

Adjust ERT Accum Depr

Total Adjusted

( a ) ( b ) ( c ) ( d ) ( e ) ( f ) ( g )1 Intangible Plant2 (301) Organization -$ -$ 3 (302) Franchises & Consents (19,111) 1,943 (17,168)4 (303)-(307) Misc. Intangible (159,393) 43,136 (116,258)5 Total Intangible Plant (178,504) - 1,943 43,136 - - (133,426)

6 Distribution Plant7 (375) Structures & Improvements (7,648) (7,648)8 (376) Mains (2,369,433) (2,369,433)9 (378) Meas. & Reg. Station Other (22,812) (22,812)

10 (379) Meas. & Reg. Station City Gate (699,697) (699,697)11 (380) Services (1,694,300) (1,694,300)12 (381) Meters (483,151) (483,151)13 (381.5) Meters - ERTS 56,898 (87,068) 45,921 15,75114 (383) House Regulators (282,810) (282,810)15 (387) Other Equipment (9,811) (9,811)16 (387.5) Other Equipment - AMR (21,961) (21,961)17 (387.7) Other Equipment - Scada 43,963 43,96318 Total Distribution Plant (5,490,762) - - - (87,068) 45,921 (5,531,909)

19 General Plant20 (391.1) Office Furniture & Equipment (72,070) (72,070)21 (391.3) Major Software Systems (265,366) (265,366)22 (391.5) Other Computer HW/SW (127,204) 40,600 (86,604)23 (392) Transportation Equipment (543,567) 39,525 (504,041)24 (394) Tools, Shop & Garage (36,741) (36,741)25 (397) Communication Equipiment (28,823) (28,823)26 (398) Miscellaneous Equipment (27,320) (27,320)27 Total General plant (1,101,092) 40,600 0 39,525 0 0 (1,020,966)

28 Total Accumulated Depreciation (6,770,358)$ 40,600$ 1,943$ 82,661$ (87,068)$ 45,921$ (6,686,301)$ -



ACCUMULATED RESERVES FOR DEPRECIATION


Schedule E

Line No. Description Ratio Cost Rate %

Composite Rate % Pretax ROR

( a ) ( b ) ( c ) ( d )

1 Long-Term Debt 48.12% 4.81% 2.32% 2.32%

2 Common Equity 51.88% 11.50% 5.97% 9.18%

3 Total 100.00% 8.28% 11.49%



COST OF CAPITAL


Schedule F



FEDERAL INCOME TAX


From Schedule

Total Adjusted Test

Year( a )

1 Rate Base B 39,261,482$

2 Rate of Return F 8.28%

3 Required Return 3,251,505

4 Less: Interest on Long-Term Debt (1) (909,132)

5 Net After Tax Income (Equity Return) (2) 2,342,373

6 Gross-Up Factor [1 / (1-tax rate)] 1.538

7 Net Taxable Income 3,603,651

8 Tax Rate 35%

9 Net Income Tax Expense 1,261,278$

10 Note (1)11 Net Original Cost Rate Base B 39,261,48212 Debt Component of Return E 2.32%13 Interest on Long-Term Debt 909,132$

14 Note (2)15 Net Original Cost Rate Base B 39,261,48216 Equity Component of Return E 5.97%17 Equity Return 2,342,373$


Schedule G

Line No. Description Residential Commercial School Subtotal Misc. Fees

Total Base Revenue

Adjusted Cost of Gas

Revenue

Total As Adjusted Revenue

( a ) ( b ) ( c ) ( d ) ( e ) ( f ) ( g ) ( h )

1 Revenue Adjustments2 Test Year Revenue 7,942,343$ 184,767$ 78,250$ 8,205,360$ 879,180$ 9,084,539$

- 3 Gas Costs Revenue (2,423,225) (86,276) (37,601) (2,547,101) (2,547,101) 4 Remove Unbilled Revenue (91,990) (91,990) (91,990) 5 Remove Test Year WNA Revenue (757,675) (3,476) (7,287) (768,438) (768,438) 6 Normalize Weather 683,114 683,114 683,114 7 Customer Growth 360,320 12,927 4,453 377,700 377,700 8 Miscellaneous Other Adjustments 3,132 48 747 3,927 (15) 3,912 9 Reclassify AMR Payments to CIAC (121,838) (121,838)

10 Eliminate Builder Tap Fees (328,525) (328,525) 11 Other Miscellaneous Fee Adjustments - 185,641 185,641 12 Total Adjustments (2,226,323) (76,777) (39,688) (2,342,787) (264,737) (2,607,524)

13 Total Revenue As Adjusted 5,716,020$ 107,990$ 38,563$ 5,862,572$ 614,443$ 6,477,015$ 3,776,289$ 10,253,304$

14 Revenue Summary15 Customer Charge Revenue 3,123,000$ 28,800$ 3,240$ 3,155,040$ 3,155,040$ 16 Volumetric Revenue 2,593,020 79,190 35,322 2,707,532 2,707,532 17 Misc Service Charge Revenue - 614,443 614,443 18 Total Revenue As Adjusted 5,716,020$ 107,990$ 38,562$ 5,862,572$ 614,443$ 6,477,015$ 3,776,289$ 10,253,304$

(0) (0) 0 0 - 0

19 Volumes20 Test Year 5,474,750 187,219 84,498 5,746,467 5,746,467 21 Normalize Weather 2,163,123 2,163,123 2,163,123 22 Subtotal 7,637,873 187,219.00 84,497.94 7,909,590 - 7,909,590 23 Customer Growth 573,083 26,231 10,710 610,024 610,024 24 Total Adjusted Volumes 8,210,956 213,450 95,208 8,519,615 - 8,519,615

25 Annual Customer Bills26 Test Year 196,244 854 92 197,190 27 Customer Growth 11,956 107 16 12,079 28 Total Adjusted Customer Bills 208,200 960 108 - 209,268 29 Divide Months 12 12 12 12 30 Monthly Customer Bills 17,350 80 9 - 17,439

31 Cost of Gas Expense32 Test Year Cost of Gas 2,547,101$ 33 Adjustment (2,547,101) 34 Gas Cost Component of Base Rates -$

35 Test Year Cost of Gas 2,547,101$ 36 Test Year Volumes 5,746,467 37 Average Cost of Gas per Ccf 0.4432 38 Normalized Volumes 8,519,615 39 Normalized Gas Cost and Gas Cost Revenue 3,776,289$



SUMMARY OF ADJUSTED REVENUES AT CURRENT RATES


Schedule H1



DETAIL OF ADJUSTED EXPENSES BY ADJUSTMENT


From Schedule

Direct Expenses per

Books Adjustments

Total Adjusted Expenses

( a ) ( b ) ( c )

1 Payroll H3 1,152,400$ 59,353$ 1,211,753$ 2 Payroll Taxes H4 75,307 13,485 88,793 3 Employee Benefits H5 248,807 95,254 344,061 4 TWE/Other Operations Clearing H6 118,561 11,746 130,308 5 Office Rent H7 97,179 (3,462) 93,717 6 Bad Debt Expense H8 36,592 227 36,819 7 Billing and Collections H9 180,291 12,059 192,349 8 Outside Services H10 565,785 (19,672) 546,113 9 Business Insurance H11 74,258 4,789 79,048

10 Misc Exp Subj to RRC Rules H12 208,862 (68,890) 139,973 11 Depreciation and Amortization H13 1,521,150 106,526 1,627,677 12 Property Tax Expense H14 74,855 23,390 98,244 13 All Other Test Year Expense H2.3 355,748 355,748 14 Subtotal Operating Expenses Adjusted 4,709,796 234,807 4,944,603 15 Cost of Gas G 2,547,101 (2,547,101) - 16 Total Expenses Before Federal Income Taxes 7,256,897 (2,312,294) 4,944,603

17 Federal Income Taxes G - 1,261,278 1,261,278

18 Total Expenses 7,256,897$ (1,051,016)$ 6,205,881$ - -


Schedule H2.1



SUMMARY OF ADJUSTED EXPENSES BY FERC ACCOUNT


Account Number

Expenses per Book

Total Adjustments

Total Direct Expenses

( a ) ( b ) ( c )

1 Depreciation and Amortization2 Depreciation Expense 403 1,521,150$ 106,526$ 1,627,677$ 3 Amortization Expense 404 - - 4 Total Depr. & Amort. 1,521,150 106,526 1,627,677

5 Taxes Other than Income6 Property Taxes 408.14 74,855 23,390 98,244 7 Texas Gross Margin 408.15 30,950 - 30,950 8 Payroll/Benefits Related 408.10/16 21,987 6,698 28,685 9 Total Other Taxes. 127,792 30,087 157,880

10 Cost of Gas 804 2,547,101 (2,547,101) -

11 Distribution Operations12 Supervision and Engineering 870 145,805 (4,298) 141,506 13 Mains & Services 874 405,291 6,217 411,508 14 Measuring & Regulator Station 875 24 - 24 15 City Gate Station 877 6,272 - 6,272 16 Meter & House Regulator Expense 878 79,348 10,844 90,191 17 Customer Installation Expense 879 76,116 9,338 85,454 18 Other Operating Expense 880 49,597 - 49,597 19 Operations Rent 881 139,037 (3,458) 135,579 20 Total Distribution Operations 901,489 18,643 920,132

21 Distribution Maintenance22 Maintenance Supervision & Eng 885 95,317 (5,451) 89,865 23 Mains 887 68,157 955 69,113 24 Maintenance of Meas & Reg Stn 891 113,340 7,668 121,007 25 Maintenance of Services 892 90,466 (4,667) 85,799 26 Meters & House Reg. 893 109,148 13,075 122,223 27 Maintenance of Other Equipment 894 4,782 - 4,782 28 Total Distribution Maintenance 481,210 11,580 492,789

29 Customer Accounting & Information Expense30 Customer Accounts Supervision 901 92,073 6,302 98,375 31 Meter Reading 902 117,368 26,296 143,665 32 Customer Records & Collections 903 418,921 138,960 557,881 33 Bad Debts 904 36,592 227 36,819 34 Misc Cust Accounts 905 4,526 - 4,526 35 Demonstration and Selling 912 100,015 6,327 106,343 36 Total Customer Accounting 769,496 178,113 947,609

37 Administrative and General38 Salaries 920 380,771 10,690 391,461 39 Office Supplies & Expenses 921 317,246 (45,613) 271,633 40 Administrative Expenses Transferred 922 (451,444) 24,502 (426,942) 41 Outside Services 923 259,795 (117,714) 142,081 42 Injuries & Damages 925 74,258 4,789 79,048 43 Employee Pensions & Benefits 926 178,375 20,172 198,547 44 Misc. General Expenses 930 2,449 (313) 2,136 45 Rent 931 147,208 (6,656) 140,552 46 Total Admin & General Expense 908,659 (110,142) 798,516

47 Total Exp Before Federal Inc Taxes 7,256,897$ (2,312,294)$ 4,944,603$ -

48 Per Book Reconciliation dr/(cr)49 Net (Income)/loss per Books (946,449)$ 50 Items Not Included in Utility Expense Above51 Utility Revenue (9,084,539) 52 Non-Utility Operations (301,013) 53 Gain/Loss on Disposition of Property (544) 54 Donations/Penalies/Unsuccessful Dev 107,719 55 Interest on Long-Term Debt 1,086,481 56 Amortization of Debt Costs 27,398 57 Interest Expense-Other (0) 58 AFUDC/Carrying Costs (38,849) 59 (8,203,346)

60 Total for per Book Expense Schedules 7,256,897$ -


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Schedule H3



PAYROLL EXPENSE

Line No. Description Account

Test Year Payroll Ratio

(Note 1)Adjusted Payroll

Test Year Payroll

Payroll Adjustment

( a ) ( b ) ( c ) ( d )

1 Total Adjusted Payroll 2 Total Annual Payroll 3,423,358$ 3,414,664$ 8,694$

3 Capitalized 64.60% 2,211,604 2,262,263 (50,659)

4 Payroll Expense 35.40% 1,211,753 1,152,400 59,353

5 Adjusted Payroll Expense by Account Number6 Operation Supervision and Engineering 870 1.56% 53,239 56,622 (3,383) 7 Mains and Services Operations Expense 874 1.18% 40,352 36,965 3,387 8 Meter and House Regulator Expense 878 1.61% 55,133 50,506 4,627 9 Customer Installation Expense 879 1.45% 49,729 45,555 4,174

10 Maintenance Supervision and Engineering 885 1.63% 55,691 60,008 (4,317) 11 Maintenance of Mains 887 0.09% 3,165 2,899 266 12 Maintenance of Meas and Reg Station 891 1.25% 42,854 39,257 3,597 13 Maintenance of Services 892 1.26% 43,283 39,651 3,633 14 Maintenance of Meters and House Regs 893 2.24% 76,625 70,194 6,431 15 Customer Accounts Supervision 901 2.19% 74,983 72,030 2,952 16 Meter Reading Expenses 902 2.52% 86,197 78,963 7,234 17 Customer Accounting 903 4.95% 169,602 155,368 14,235 18 Demonstration and Selling 912 2.03% 69,441 63,613 5,828 19 Administrative and General Salaries 920 11.44% 391,461 358,606 32,855 20 Total Labor Expense 35.40% 1,211,753$ 1,130,236$ 81,518$

21 Less Activity re Payroll Billed to Third Parties 920 - 22,165 (22,165)

22 Total Adjustment to Test Year 1,211,753$ 1,152,400$ 59,353$ -

Note (1) - Adjusted to remove test year non-recoverable payroll and impact of change in accounting process re payroll billable to third parties.


Schedule H4

Line No. Description Account Distribution

Adjusted Payroll

Payroll TaxTest Year

Payroll TaxPayroll Tax Adjustment

( a ) ( b ) ( c ) ( d )

1 Total Adjusted Payroll Tax2 Social Security 183,533$ 3 Medicare 49,641 4 Federal Unemployment Tax 1,880 5 State Unemployment Tax 15,797 6 Total Adjusted Payroll Taxes 250,851

7 Payroll Tax Capitalized 64.60% 162,058

8 Payroll Tax Expensed 35.40% 88,793$

9 Adjusted Payroll Tax Expense by Account Number10 Operation Supervision and Engineering 870 1.56% 3,901 5,394 (1,493) 11 Mains and Services Operations Expense 874 1.18% 2,957 2,744 213 12 Meter and House Regulator Expense 878 1.61% 4,040 3,458 582 13 Customer Installation Expense 879 1.45% 3,644 3,283 361 14 Maintenance Supervision and Engineering 885 1.63% 4,081 5,705 (1,624) 15 Maintenance of Mains 887 0.09% 232 142 89 16 Maintenance of Meas and Reg Station 891 1.25% 3,140 2,920 220 17 Maintenance of Services 892 1.26% 3,172 2,955 216 18 Maintenance of Meters and House Regs 893 2.24% 5,615 5,752 (138) 19 Customer Accounts Supervision 901 2.19% 5,494 5,255 240 20 Meter Reading Expenses 902 2.52% 6,316 6,171 146 21 Customer Accounting 903 4.95% 12,428 6,399 6,029 22 Demonstration and Selling 912 2.03% 5,088 3,142 1,947 23 Payroll Tax Expense (A&G Salaries) 408 11.44% 28,685 21,987 6,698 24 Total Payroll Tax Expense 35.40% 88,793$ 75,307$ 13,485$



PAYROLL TAX EXPENSE


Schedule H5



EMPLOYEE BENEFITS

Line No. Description Account Distribution

Adjusted Benefits

Test Year Benefits

Benefits Adjustment

( a ) ( b ) ( c ) ( d )

1 Total Benefits that are Distributed based on Payroll Distribution2 Medical 505,870$ 479,217$ 26,653$ 3 Dental 10,998 10,432 566 4 Vision 3,931 2,788 1,143 5 AFLAC 18,795 13,040 5,755 6 401k 96,267 69,041 27,226 7 Life/AD&D 19,466 18,838 628 8 Disability 24,886 25,128 (242) 9 Retirement Plan 136,934 - 136,934

10 Total Adjusted Benefits (Distributed based on Payroll Ratio) 817,147 618,484 198,663 11 Benefits Capitalized 64.60% 527,904 424,496 103,409 12 Benefits Expensed 35.40% 289,243 193,988 95,254

13Total Other Benefits Expense Charged to Account 926 (Other than amounts on Sch H10 and H12) 926 54,819 54,819 -

14 Total Benefits Expense 344,061 248,807 95,254

15 Adjusted Benefits Expense by Account Number16 Operation Supervision and Engineering 870 1.56% 12,708 13,571 (863) 17 Mains and Services Operations Expense 874 1.18% 9,632 7,076 2,556 18 Meter and House Regulator Expense 878 1.61% 13,160 8,581 4,579 19 Customer Installation Expense 879 1.45% 11,870 8,048 3,822 20 Maintenance Supervision and Engineering 885 1.63% 13,293 14,317 (1,024) 21 Maintenance of Mains 887 0.09% 755 328 427 22 Maintenance of Meas and Reg Station 891 1.25% 10,229 7,350 2,879 23 Maintenance of Services 892 1.26% 10,332 7,679 2,652 24 Maintenance of Meters and House Regs 893 2.24% 18,290 13,249 5,041 25 Customer Accounts Supervision 901 2.19% 17,898 14,788 3,110 26 Meter Reading Expenses 902 2.52% 20,575 15,725 4,850 27 Customer Accounting 903 4.95% 40,484 14,947 25,537 28 Demonstration and Selling 912 2.03% 16,575 7,682 8,893 29 Benefits Expense (A&G Salaries) 926 11.44% 93,441 60,646 32,795 30 Subtotal (Benefits Distributed Based on Payroll) 35.40% 289,243$ 193,988$ 95,254$

31 Other Misc Benefits Expense (line 13 above) 926 54,819 54,819 -

32 Total Benefits Expense 344,061$ 248,807$ 95,254$

(Other than Items on Schedule H10 and H12)


Schedule H6



(a) (b) (c) (d)

1 Test Year Charges into Clearing Accounts $334,7492 Less Test Year Amounts Cleared Out of Clearing Accounts 334,7493 Test Year Amount Under/(Over) Cleared $0

4 Plus/Minus Adjustments To Test Year Amounts Charged into Acct 184.1:Adjusted Recorded

5 Test Year Test Year Adjustment6 Vehicle Insurance (Note 1) 51,961$ 18,796$ 33,165$ 7 All Other Costs (Note 2) 315,953 315,953 08 Total Other than Depreciation 367,914$ 334,749$ 33,165$ 910 Spread Under/(Over) Clearing to Accounts based on Test Year Clearing:

11 Clearing Other than TWE Depreciation Acct.

Test Year Amount Cleared Percentage

Adjustment to Test Year

TWE Clearing

12 Operation Supervision and Engineering 870 $14,546 4.35% $1,44113 Mains and Services Operations Expense 874 8,416 2.51% 83414 Meter and House Regulator Expense 878 10,661 3.18% 1,05615 Customer Installation Expense 879 9,908 2.96% 98216 Maintenance Supervision and Engineering 885 15,286 4.57% 1,51417 Maintenance of Mains 887 1,744 0.52% 17318 Maintenance of Meas and Reg Station 891 9,809 2.93% 97219 Maintenance of Services 892 9,631 2.88% 95420 Maintenance of Meters and House Regs 893 17,561 5.25% 1,74021 Meter Reading Expenses 902 15,610 4.66% 1,54722 Customer Accounting 903 5,389 1.61% 53423 Subtotal - Expenses 118,561 35.42% 11,746

24 Capitalized 216,188 64.58% 21,419

25 Total (Other than TWE Depreciation) $334,749 100.00% $33,165

26 Note 1 - The majority of 2017 payments were charged to the I&D Clearing Account, which clears to account 925, rather27 than being charged to the TWE clearing Account. As a result, the remaining test year expense is deducted as part 28 of the per book amount on Schedule H-11.29 Note 2 - For Depreciation relating to Fleet, refer to Adjustment H13 - Depreciation


TRANSPORTATION AND WORK EQUIPMENT, SMALL TOOLS, SAFETY, AND FACILITIES CLEARING(Other than Clearing of TWE Depreciation - see Schedule H13)


Schedule H7



RENT

Line No. Description Account Adjusted Rents

Test Year Rents

Rents Adjustment

( a ) ( b ) ( c )

1 Rent - Field 881 135,579$ 139,037$ (3,458)$

2 Rent - Administrative 931 140,552 147,208 (6,656)

3 Total Rent Expense 276,131$ 286,246$ (10,115)$

4 Impact of Rent Adjustment on Test Year A&G Transfer Credit (Account 922)

5 Total Rents 276,131$ 6 Add Back Amount Transferred to Terra Gas 505 7 Gross Amount (before Allocation to Affiliate) 276,636 8 Test Year Effective Capitalization Rate -65.94%9 Total A&G Credit pertaining to Rents 922 (182,414)$ (189,067)$ 6,653$

10 Net Adjustment Pertaining to Rents 93,717$ 97,179$ (3,462)$


Schedule H8


Base Revenue Related

Gas Cost Revenue Related

Total Customer Accounts Bad Debt

Bad Debt re Third Party

Bills

Total Bad Debt

Expense( a ) ( b ) ( c ) ( d ) ( e )

1 As Adjusted Test Year Revenues 6,477,015 3,776,289

2 Average Bad Debt Ratio (Note 1) 0.1247% 0.1168%

3 Normalized Customer Bad Debt Expense 8,074 4,409 12,483 12,483

4 Bad debt re billings to third parties for line cut labor 24,336 24,336

4 Total Adjusted Bad Debt Expense 12,483 24,336 36,819

5 Test Year Bad Debt Expense 12,256 24,336 36,592

6 Adjustment to Test Year 227$ -$ 227$

Note 1: Calculation of Bad Debt Ratio

7

Base Revenue (Incl Misc

Gas Cost Revenue

Total Base and Gas

Cost 8 Write-offs Net of Recoveries9 12 me 9/2015 4,972 1,777 6,749 10 12 me 9/2016 6,587 2,651 9,237 11 12 me 9/2017 9,446 3,618 13,064

21,005 8,045 29,050

12 Revenue13 12 me 9/2015 4,699,096 2,653,607 7,352,703 14 12 me 9/2016 5,416,741 1,876,372 7,293,113 15 12 me 9/2017 6,445,449 2,547,101 8,992,550

16,561,287 7,077,079 23,638,366

16 Bad Debt Ratio17 12 me 9/2015 0.1058% 0.0670% 0.0918%18 12 me 9/2016 0.1216% 0.1413% 0.1267%19 12 me 9/2017 0.1466% 0.1420% 0.1453%20 Average 0.1247% 0.1168% 0.1212%



BAD DEBT EXPENSE


Schedule H9



CUSTOMER BILLING AND COLLECTIONS


Adjusted Expense

Test Year Expense


( a ) ( b ) ( c )

1 Bill Processing and Postage 111,667$ 90,631$ 21,036$

2 Amortization of Prepaid Bill/Notice Stock 9,632 17,885 (8,253)

3 Amortization of CUSI Licenses and Fees 50,692 51,083 (392)

4 Lockbox Fees 18,197 18,197 -

5 Other 2,161 2,494 (333)

6 Total 903 192,349$ 180,291$ 12,059$


Schedule H10



OUTSIDE SERVICES(Professional Fees, Customer Accounting, Line Locating, and One Call Service)


Adjusted Expense Test Year Expense


( a ) ( b ) ( c )Outside Services Adjustment:

1 Line Locating 257,393$ 259,496$ (2,103)$ 2 One Call Concepts 23,051 21,721 1,330 3 Subtotal 874 280,444 281,217 (772)

4 Information Technology (Reclass/Annualize to 923) 892 - 12,122 (12,122)

5 Temporary Labor - Cust Service 91,392 8,738 82,654 6 ERT License Amortization (Annualize to Account 902) - 2,087 (2,087) 7 Subtotal 903 91,392 10,825 80,567

8 Temporary Labor - Cust Service - 18,088 (18,088) 9 Accounting, Auditing, Regulatory, Tax 26,275 84,127 (57,853) 10 Information Technology 30,401 20,524 9,877 11 ERT License Amortization (Annualize to Account 902) - 7,303 (7,303) 12 Payroll Processing 25,322 25,317 5 13 Corporate Development 30,018 60,018 (30,000) 14 Legal 5,186 5,186 - 15 Executive Team (net of allocation to Affiliate) - 29,754 (29,754) 16 Other 24,879 9,477 15,402 17 Subtotal 923 142,081 259,795 (117,714)

18 Meter Reading - ERT License Amortization 902 12,520 12,520

19 Benefits 926 37,445 37,445 -

20 Total Account 874, 903, and 923 Outside Services 563,881$ 601,403$ (37,522)$

Impact of Outside Services Adjustment on Test Year A&G Transfer Credit (Account 922)21 Executive Team -$ 29,754$ (29,754)$ 22 Payroll Processing 25,322 25,317 5 23 Addback Amount Transferred to Terra Gas 96 347 (251) 24 Gross Amount (before Allocation to Affiliate) 25,419 55,419 (30,000) 25 Test Year Effective Capitalization Rate -69.90% -64.27%26 Total A&G Credit pertaining to Outside Services 922 (17,768) (35,618) 17,849

27 Net Adjustment Pertaining to Outside Services 546,113$ 565,785$ (19,672)$


Schedule H11



BUSINESS INSURANCE(Other than Auto Insurance - see Schedule H-6)

Line No. Description Account Amount

( a )

1 Pipeline Insurance2 Distribution Plant in Rate Base 46,678,349$ 3 Office Trailer (leased) 49,0004 ModSafe Storage Container (rental space) 8,0005 Basis for Premium 46,735,3496 Premium rate per $100 of Basis 0.113 7 Subtotal 52,811$ 52,811$

8 Other Insurance p9 Property 4,957$

10 General Liability 79,691 11 Workers Compensation 53,253 12 Excess Liability 31,336 13 Terrorisim 1,272 14 Subtotal 170,509$ 170,509

15 Total Proforma Insurance 223,320

16 Payroll Expense Ratio 35.40%

17 Proforma Expense 79,048

18 Test Year Expense 74,258

19 Adjustment to Test Year 925 4,789$


Schedule H12


Allowable Amount

Test Year Amount


( a ) ( b ) ( c )Items Subject to Various RRC Rules

1 Meals, Travel, Alcohol, etc. 921 44,029$ 57,411$ (13,382)$ 2 Meals, Travel, Alcohol, etc. 926 3,154 4,252 (1,098) 3 Subtotal 47,183 61,664 (14,481)

4 Employee Morale and Other Benefits 926 9,689 21,214 (11,525)

5 Dues and Subscriptions 921 65,621 97,852 (32,231) 6 Dues and Subscriptions 930 2,241 2,554 (313) 7 Subtotal 67,862 100,406 (32,543)

8 Demonstration and Selling 912 15,238 25,579 (10,341)

9 Total 139,973$ 208,862$ (68,890)$

Advertising Test10 Total Base Revenue Requirement 9,457,386$ 11 Normalized Gas Sales Revenue 3,776,289 12 Total Proforma Revenue 13,233,675$

13 Allowed Rate for Promotional Advertising 0.00514 Allowable Promortional Advertising 66,168$

15 Promotional Advertising 11,292

16 Adjustment for Advertising in Excess of Allowance -$

(Meals, Hotels, Dues, Advertising, etc.)



MISCELLANEOUS EXPENSES SUBJECT TO RRC RULES


Schedule H13

Line No. Description Account Adjusted Plant

Depreciation Rate Depreciation

( a ) ( b ) ( c )

1 Intangible Plant2 (301) Organization -$ -$ 3 (302) Franchises & Consents 63,211 9.86% (1) 6,2304 (303)-(307) Misc. Intangible 274,923 12.11% (1) 33,2935 Total Intangible 338,134 11.69% 39,523

6 Distribution Plant7 (375) Structures & Improvements 38,454 2.42% 9318 (376) Mains 20,633,536 2.90% 598,3869 (378) Meas. & Reg. Station Other 369,823 3.40% 12,56910 (379) Meas. & Reg. Station City Gate 7,501,916 2.98% 223,29211 (380) Services 11,141,817 3.12% 347,97912 (381) Meters 3,217,418 4.06% 130,52313 (381.5) Meters - ERTS 1,121,464 5.32% 59,63014 (383) House Regulators 1,889,817 3.89% 73,57515 (387) Other Equipment 84,420 4.23% 3,57116 (387.5) Other Equipment - AMR 290,898 6.94% 20,19317 (387.7) Other Equipment - Scada 388,787 7.09% 27,55218 Total Distribution 46,678,349 3.21% 1,498,201

19 General Plant20 (391.1) Office Furniture & Equipment 103,564 5.26% 5,45121 (391.3) Major Software Systems 428,143 10.00% 42,81422 (391.5) Other Computer HW/SW 183,542 16.67% 30,59023 (392) Transportation Equipment 1,126,420 7.57% 85,32624 (394) Tools, Shop & Garage 101,453 5.88% 5,96825 (397) Communication Equipiment 39,006 6.25% 2,43826 (398) Miscellaneous Equipment 32,689 5.00% 1,63427 Total General 2,014,817 8.65% 174,221

28 Total Adjusted Depreciation 49,031,299$ 3.49% 1,711,945$ 0

29 Less Reserve Credit Amortization30 (391.1) Office Furniture & Equipment (1,046)$ 31 (391.3) Major Software Systems (14,109) 32 (391.5) Other Computer HW/SW (12,377) 33 (394) Tools, Shop & Garage (581) 34 (397) Communication Equipiment (671) 35 (398) Miscellaneous Equipment (380) 36 Total Reserve Credit Amortization (29,164)$ (29,164)

37 Subtotal 1,682,782$

38 Less Transportation Equip Depr Capitalized39 Adjusted Transportation Equipment Depreciation 85,326$ 40 TWE Capitalization Ratio (Schedule H-6, line 24) 0.64582141 Tranportation Equip Depr Capitalized 55,105$ (55,105)

42 Total Adjusted Depreciation Expense 1,627,677

43 Test Year Depreciation Expense 1,521,150

44 Adjustment to Test Year 403 106,526$

(1) Effective Rate. Depreciation/Amortization expense is calculated separately by asset based on individual asset life.



DEPRECIATION AND AMORTIZATION


Schedule H14


Plant in Service

Accumulated Depreciation Net Plant

( a ) ( b ) ( c )

1 Property Tax Payments for Assessment Date 1/1/2016 66,993$

2 Net Distribution and General Plant as of 12/31/20153 Distribution Plant 31,789,614$ (4,090,196)$ 27,699,418$ 4 General Plant 1,682,980 (646,706) 1,036,274 5 Plant in Service 33,472,594 (4,736,902) 28,735,692

6 Property Tax Rate 0.2331%

7 Net Distribution and General Plant as of 3/31/20178 Distribution Plant 46,678,349$ (5,531,909) 41,146,440$ 9 General Plant 2,014,817 (1,020,966) 993,850

10 Plant in Service 48,693,165$ (6,552,876)$ 42,140,290$

11 Proforma Property Taxes 98,244$

12 Test Year Property Tax Expense 74,855

13 Adjustment to Test Year 408.1 23,390$



PROPERTY TAX EXPENSE


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ate

Base

39,2

61,4

82

15

,274

,665

22

,817

,773

38

,092

,438

31

0,18

8

85

8,85

6

1,

169,

045

12 13

Ret

urn

3,25

1,50

5

1,26

4,99

7

1,

889,

692

3,

154,

689

25

,689

71

,128

96

,816

14Fe

dera

l Inc

ome

Taxe

s1,

261,

278

49

0,70

0

733,

023

1,22

3,72

2

9,96

5

27

,591

37

,556

15O

pera

tions

& M

anin

tena

nce

Expe

nses

2,36

4,24

6

1,67

4,45

1

63

4,48

5

2,

308,

936

31

,458

23

,851

55

,309

16Ad

min

istra

tive

& G

ener

al E

xpen

ses:

798,

516

565,

541

21

4,29

5

77

9,83

6

10

,625

8,

056

18,6

80

17

Dep

reci

atio

n Ex

pens

e1,

627,

677

70

4,15

3

875,

772

1,57

9,92

5

14,8

30

32,9

21

47,7

52

18

Oth

er T

axes

157,

880

70,3

97

82

,972

15

3,36

9

1,

391

3,12

0

4,

511

19

Tota

l Rev

enue

Req

uire

men

ts9,

461,

102

4,

770,

239

4,43

0,23

9

9,20

0,47

8

93,9

58

166,

666

260,

624

20 21Le

ss R

educ

tion

in R

ev R

eq to

Yie

ld 3

5% In

cr(7

17,1

31)

(3

61,5

74)

(335

,803

)

(6

97,3

76)

(7,1

22)

(1

2,63

3)

(19,

755)

22Le

ss O

ther

Rev

enue

s (6

14,4

43)

(3

09,7

99)

(287

,718

)

(5

97,5

17)

(6,1

02)

(1

0,82

4)

(16,

926)

23 24N

et C

ost o

f Ser

vice

Exc

l Por

tion

Cov

ered

by

M

8,12

9,52

8$

4,09

8,86

6$

3,

806,

719

$

7,

905,

584

$

80

,734

$

14

3,20

9$

22

3,94

3$

25 26

Perc

enta

ge10

0%97

.25%

2.75

%27 28

Bills

and

Vol

umes

(ccf

)20

8,20

0

8,21

0,95

6

1,06

8

30

8,65

8

29 30

Cal

cula

ted

Rat

es p

er C

ost o

f Ser

vice

Stu

dy19

.69

0.46

36

75.5

9

0.

4640

31 32

Prop

osed

Rat

es19

.50

0.46

84

45.0

0

0.

5698

33 34

Proo

f of R

ates

8,12

9,52

8$

4,05

9,90

0$

3,

845,

684

$

7,

905,

584

$

48

,060

$

17

5,88

3$

22

3,94

3$

Resi

dent

ial

Gen

eral

Ser

vice

(Non

-Res

iden

tial)


Sche

dule

I2Pa

ge 1

of 5

SiEn

ergy

, LP

Twel

ve M

onth

s En

ded

Sept

embe

r 30,

201

7Ad

just

ed fo

r Kno

wn

and

Mea

sura

ble

Chan

ges

COST

OF

SERV

ICE

STUD

Y

Line

N

o.FE

RC

Ac

ctD

escr

iptio

nR

ef.

Tot

al

Allo

c. F

acto

rD

escr

iptio

nC

usto

mer

-R

elat

edC

apac

ity/C

om-

mod

ity-R

elat

edTo

tal

Cus

tom

er-

Rel

ated

Cap

acity

/Com

-m

odity

-Rel

ated

Tota

l( a

)( b

)( c

)( d

)( e

)( f

)( g

)( h

)( i

)

1Pl

ant i

n Se

rvic

e2

301

O

rgan

izat

ion

C-

$

GM

&S P

lant

-$

-$

-$

-$

-$

-$

3

302

Fr

anch

ises

& C

onse

nts

C63

,211

GM

&S P

lant

22,0

51

39,5

59

61,6

11

113

1,

487

1,60

0

430

3

Mis

c In

tang

ible

C27

4,92

3

G

M&S

Pla

nt95

,908

17

2,05

6

26

7,96

4

49

2

6,46

8

6,

960

5

375

St

ruct

ures

and

Impr

ovem

ents

C38

,454

GM

&S P

lant

13,4

15

24,0

66

37,4

81

69

905

97

3

6

376

M

ains

C20

,633

,536

AU

sage

-

19,8

86,0

00

19,8

86,0

00

-

74

7,53

5

74

7,53

5

737

8

Mea

sure

& R

egul

atin

g St

atio

n - O

ther

C36

9,82

3

A

Usa

ge-

35

6,42

4

35

6,42

4

-

13

,398

13

,398

837

9

Mea

sure

& R

egul

atin

g St

atio

n - C

ity G

ate

C7,

501,

916

A

Usa

ge-

7,

230,

128

7,

230,

128

-

27

1,78

8

27

1,78

8

938

0

Serv

ices

C11

,141

,817

BN

o. o

f Cus

t.11

,084

,954

-

11

,084

,954

56,8

62

-

56,8

62

10

381

M

eter

sC

3,21

7,41

8

CW

gt. C

ust.

3,02

7,92

4

-

3,

027,

924

18

9,49

4

-

18

9,49

4

1138

1.5

ERTs

C1,

121,

464

Al

l Res

iden

tial C

ust

1,12

1,46

4

-

1,

121,

464

-

-

-

1238

3

Hou

se R

egul

ator

sC

1,88

9,81

7

CW

gt. C

ust.

1,77

8,51

4

-

1,

778,

514

11

1,30

3

-

11

1,30

3

1338

7

Oth

er E

quip

men

tC

84,4

20

A

Usa

ge-

81

,361

81

,361

-

3,

058

3,05

8

1438

7.5

Oth

er E

quip

men

t - A

MR

C29

0,89

8

Al

l Res

iden

tial C

ust

290,

898

-

29

0,89

8

-

-

-

1538

7.7

Oth

er E

quip

men

t - S

cada

C38

8,78

7

A

Usa

ge-

37

4,70

2

37

4,70

2

-

14

,085

14

,085

1639

1

Offi

ce F

urni

ture

& E

quip

men

t, M

inor

HW

/SW

C28

7,10

5

F

O&M

203,

339

77

,050

28

0,38

9

3,

820

2,89

6

6,

717

17

391

M

ajor

Sof

twar

e Sy

stem

sC

428,

143

BN

o. o

f Cus

t.42

5,95

8

-

425,

958

2,18

5

-

2,

185

18

392

Tr

ansp

orta

tion

Equi

pmen

tC

1,12

6,42

0

FO

&M79

7,77

5

302,

294

1,10

0,06

9

14,9

88

11,3

64

26,3

51

19

394

To

ols,

Sho

p, &

Gar

age

C10

1,45

3

F

O&M

71,8

53

27,2

26

99,0

79

1,35

0

1,

023

2,37

3

2039

7

Com

mun

icat

ion

Equi

pmen

tC

39,0

06

F

O&M

27,6

26

10,4

68

38,0

94

519

39

4

913

2139

8

Mis

c Eq

uipm

ent

C32

,689

FO

&M23

,152

8,

773

31,9

25

435

33

0

765

22To

tal P

lant

in S

ervi

ce49

,031

,299

18,9

84,8

30

28,5

90,1

07

47,5

74,9

38

38

1,63

0

1,

074,

732

1,

456,

362

23 24

Accu

mul

ated

Dep

reci

atio

n25

Inta

ngib

le P

lant

D(1

33,4

26)

G

M&S

Pla

nt(4

6,54

6)

(83,

502)

(1

30,0

48)

(239

)

(3

,139

)

(3,3

78)

26D

istri

butio

n Pl

ant

D(5

,531

,909

)

E

Dis

t. Pl

ant

(2,0

52,2

79)

(3

,312

,707

)

(5,3

64,9

86)

(4

2,39

5)

(124

,528

)

(1

66,9

23)

27

Offi

ce F

urni

ture

& E

quip

men

t, M

inor

HW

/SW

D(1

58,6

74)

F

O&M

(112

,379

)

(4

2,58

3)

(154

,962

)

(2

,111

)

(1,6

01)

(3

,712

)

28

Maj

or S

oftw

are

Syst

ems

D(2

65,3

66)

B

No.

of C

ust.

(264

,012

)

-

(2

64,0

12)

(1,3

54)

-

(1

,354

)

29

Tran

spor

tatio

n Eq

uipm

ent

D(5

04,0

41)

F

O&M

(356

,982

)

(1

35,2

68)

(492

,250

)

(6

,707

)

(5,0

85)

(1

1,79

2)

30

Tool

s an

d Sh

op E

quip

men

tD

(36,

741)

FO

&M(2

6,02

2)

(9,8

60)

(3

5,88

2)

(4

89)

(371

)

(8

60)

31

Com

mun

icat

ion

Equi

pmen

tD

(28,

823)

FO

&M(2

0,41

4)

(7,7

35)

(2

8,14

9)

(3

84)

(291

)

(6

74)

32

Mis

c Eq

uipm

ent

D(2

7,32

0)

F

O&M

(19,

349)

(7

,332

)

(26,

681)

(364

)

(2

76)

(639

)

33To

tal A

ccum

ulat

ed D

epre

ciat

ion

(6,6

86,3

01)

(2

,897

,983

)

(

3,59

8,98

7)

(6

,496

,970

)

(5

4,04

2)

(13

5,29

0)

(

189,

331)

34 35W

orki

ng C

apita

l and

Non

-Inve

stor

Sup

plie

d C

apita

l36

Prep

aym

ents

B14

1,34

3

F

O&M

100,

105

37

,932

13

8,03

6

1,

881

1,42

6

3,

307

37

Inve

ntor

yB

484,

012

FO

&M34

2,79

6

129,

893

472,

689

6,44

0

4,

883

11,3

23

38

Cas

h W

orki

ng C

apita

lB

528,

044

FO

&M37

3,98

1

141,

709

515,

691

7,02

6

5,

327

12,3

53

39

Cus

tom

er A

dvan

ces

B(2

9,60

0)

R

2Al

l Res

iden

tial V

ol(2

9,60

0)

(29,

600)

40D

efer

red

Inco

me

Taxe

sB

(4,2

07,3

14)

DPl

ant

(1,6

29,0

64)

(2

,453

,281

)

(4,0

82,3

46)

(3

2,74

7)

(92,

221)

(1

24,9

69)

41

Tota

l

(3

,083

,516

)

(8

12,1

82)

(2,

173,

347)

(2,9

85,5

30)

(17,

400)

(80,

586)

(9

7,98

6)42 43

Tota

l Rat

e B

ase

$

3

9,26

1,48

2 $

15,2

74,6

65

$

22,

817,

773

$

38,

092,

438

$

310,

188

$

858,

856

$

1,1

69,0

45

-

Res

iden

tial

Gen

eral

Ser

vice

(Non

-Res

iden

tial)


Sche

dule

I2Pa

ge 2

of 5

SiEn

ergy

, LP

Twel

ve M

onth

s En

ded

Sept

embe

r 30,

201

7Ad

just

ed fo

r Kno

wn

and

Mea

sura

ble

Chan

ges

COST

OF

SERV

ICE

STUD

Y

Line

N

o.FE

RC

Ac

ctD

escr

iptio

nR

ef.

Tot

al

Allo

c. F

acto

rD

escr

iptio

nC

usto

mer

-R

elat

edC

apac

ity/C

om-

mod

ity-R

elat

edTo

tal

Cus

tom

er-

Rel

ated

Cap

acity

/Com

-m

odity

-Rel

ated

Tota

l( a

)( b

)( c

)( d

)( e

)( f

)( g

)( h

)( i

)1

Ope

ratio

ns &

Man

inte

nanc

e Ex

pens

es2

870

O

pera

tion

Supe

rvis

ion

& En

gnr.

H2

141,

506

KO

ps E

xp, E

xcl 8

7073

,646

62

,855

13

6,50

1

2,

642

2,36

3

5,

005

3

874

M

ains

and

Ser

vice

s Ex

pens

esH

241

1,50

8

G

M&S

Pla

nt14

3,55

6

257,

535

401,

091

736

9,

681

10,4

17

4

875

M

easu

ring

& R

egul

ator

Sta

tion

H2

24

AU

sage

-

23

23

-

1

1

5

877

C

ity G

ate

Stat

ion

H2

6,27

2

AU

sage

-

6,04

5

6,

045

-

22

7

227

687

8

Met

er &

Hou

se R

egul

ator

Exp

ense

H2

90,1

91

C

Wgt

. Cus

t.84

,880

-

84

,880

5,

312

-

5,31

2

787

9

Cus

tom

er In

stal

latio

n Ex

pens

eH

285

,454

CW

gt. C

ust.

80,4

21

-

80,4

21

5,03

3

-

5,

033

8

880

O

ther

Ope

ratin

g Ex

pens

eH

249

,597

HO

&M E

xcl 8

80, 8

8125

,473

22

,348

47

,821

93

6

840

1,

776

9

881

O

pera

tions

Ren

tH

213

5,57

9

H

O&M

Exc

l 880

, 881

69,6

34

61,0

90

130,

724

2,55

9

2,

296

4,85

5

1088

5

Mai

nt S

uper

visi

on &

Eng

nr.

H2

89,8

65

L

Mai

nt E

xp, E

xcl 8

8545

,229

41

,358

86

,587

1,

724

1,55

5

3,

278

11

887

M

aint

enan

ce o

f Mai

nsH

269

,113

AU

sage

-

66,6

09

66,6

09

-

2,50

4

2,

504

12

891

M

aint

of M

eas

& R

eg S

tnH

212

1,00

7

A

Usa

ge-

11

6,62

3

11

6,62

3

-

4,

384

4,38

4

1389

2

Mai

nten

ance

of S

ervi

ces

H2

85,7

99

B

No.

of C

ust.

85,3

61

-

85,3

61

438

-

43

8

14

893

M

aint

. of M

eter

& H

ouse

Reg

ulat

ors

H2

122,

223

CW

gt. C

ust.

115,

025

-

11

5,02

5

7,

198

-

7,19

8

1589

4

Mai

nten

ance

of O

ther

Equ

ipm

ent

H2

4,78

2

BN

o. o

f Cus

t.4,

758

-

4,75

8

24

-

24

16

901

C

usto

mer

Acc

nts

Supe

rvis

ion

H2

98,3

75

B

No.

of C

ust.

97,8

73

-

97,8

73

502

-

50

2

17

902

M

eter

Rea

ding

Exp

ense

sH

214

3,66

5

B

No.

of C

ust.

142,

932

-

14

2,93

2

73

3

-

733

1890

3

Cus

tom

er R

ecor

ds &

Col

lect

ion

H2

557,

881

BN

o. o

f Cus

t.55

5,03

4

-

555,

034

2,84

7

-

2,

847

19

904

Ba

d D

ebt E

xpen

seH

240

,534

BN

o. o

f Cus

t.40

,327

-

40

,327

20

7

-

207

2090

5

Mis

c C

ust A

ccou

nts

H2

4,52

6

BN

o. o

f Cus

t.4,

503

-

4,50

3

23

-

23

20

912

Ad

verti

sing

H2

106,

343

BN

o. o

f Cus

t.10

5,80

0

-

105,

800

543

-

54

3

21

Tota

l O&M

Exp

ense

s2,

364,

246

1,

674,

451

634,

485

2,30

8,93

6

31,4

58

23,8

51

55,3

09

22

(0)

23

Adm

inis

trat

ive

& G

ener

al E

xpen

ses:

2492

0

Adm

in &

Gen

eral

Sal

arie

sH

239

1,46

1

F

O&M

277,

248

10

5,05

5

38

2,30

4

5,

209

3,94

9

9,

158

25

921

O

ffice

Sup

plie

s an

d Ex

pens

esH

227

1,63

3

F

O&M

192,

381

72

,897

26

5,27

8

3,

614

2,74

0

6,

355

26

922

Ad

min

Exp

ense

s Tr

ansf

erre

dH

2(4

26,9

42)

F

O&M

(302

,377

)

(1

14,5

77)

(416

,954

)

(5

,681

)

(4,3

07)

(9

,988

)

27

923

O

utsi

de S

ervi

ce E

mpl

oyed

H2

142,

081

FO

&M10

0,62

7

38,1

30

138,

757

1,89

0

1,

433

3,32

4

2892

5

Inju

ries

& D

amag

esH

279

,048

FO

&M55

,985

21

,214

77

,199

1,

052

797

1,

849

29

926

Em

ploy

ee P

ensi

ons

& Be

nefit

sH

219

8,54

7

F

O&M

140,

619

53

,283

19

3,90

2

2,

642

2,00

3

4,

645

30

930

M

isc.

Gen

eral

Exp

ense

H2

2,13

6

FO

&M1,

513

573

2,

086

28

22

50

3193

1

Ren

tsH

214

0,55

2

F

O&M

99,5

44

37,7

20

137,

264

1,87

0

1,

418

3,28

8

32To

tal A

&G E

xpen

ses

798,

516

565,

541

21

4,29

5

77

9,83

6

10

,625

8,

056

18,6

80

33

-

Res

iden

tial

Gen

eral

Ser

vice

(Non

-Res

iden

tial)


Sche

dule

I2Pa

ge 3

of 5

SiEn

ergy

, LP

Twel

ve M

onth

s En

ded

Sept

embe

r 30,

201

7Ad

just

ed fo

r Kno

wn

and

Mea

sura

ble

Chan

ges

COST

OF

SERV

ICE

STUD

Y

Line

N

o.FE

RC

Ac

ctD

escr

iptio

nR

ef.

Tot

al

Allo

c. F

acto

rD

escr

iptio

nC

usto

mer

-R

elat

edC

apac

ity/C

om-

mod

ity-R

elat

edTo

tal

Cus

tom

er-

Rel

ated

Cap

acity

/Com

-m

odity

-Rel

ated

Tota

l( a

)( b

)( c

)( d

)( e

)( f

)( g

)( h

)( i

)

1D

epre

ciat

ion

Expe

nse

230

2

Fran

chis

esH

136,

230

G

M&S

Pla

nt2,

173

3,89

9

6,

073

11

14

7

158

330

3

Mis

c In

tang

ible

H13

33,2

93

G

M&S

Pla

nt11

,614

20

,836

32

,450

60

78

3

843

437

5

Stru

ctur

es a

nd Im

prov

emen

tsH

1393

1

G

M&S

Pla

nt32

5

582

90

7

2

22

24

5

376

M

ains

H13

598,

386

AU

sage

-

576,

707

576,

707

-

21,6

79

21,6

79

6

378

M

easu

re &

Reg

ulat

ing

Stat

ion

- Oth

erH

1312

,569

AU

sage

-

12,1

13

12,1

13

-

455

45

5

7

379

M

easu

re &

Reg

ulat

ing

Stat

ion

- City

Gat

eH

1322

3,29

2

A

Usa

ge-

21

5,20

3

21

5,20

3

-

8,

090

8,09

0

838

0

Serv

ices

H13

347,

979

BN

o. o

f Cus

t.34

6,20

4

-

346,

204

1,77

6

-

1,

776

9

381

M

eter

sH

1313

0,52

3

C

Wgt

. Cus

t.12

2,83

6

-

122,

836

7,68

7

-

7,

687

10

382

ER

TSH

1359

,630

All R

esid

entia

l Cus

t59

,630

59

,630

-

1138

3

Hou

se R

egul

ator

sH

1373

,575

CW

gt. C

ust.

69,2

42

-

69,2

42

4,33

3

-

4,

333

12

387

O

ther

Equ

ipm

ent

H13

3,57

1

AU

sage

-

3,44

1

3,

441

-

12

9

129

1338

7.5

Oth

er E

quip

men

t - A

MR

H14

20,1

93

Al

l Res

iden

tial C

ust

20,1

93

20,1

93

-

14

387.

7

O

ther

Equ

ipm

ent -

Sca

daH

1527

,552

AU

sage

-

26,5

54

26,5

54

-

998

99

8

15

391

O

ffice

Fur

nitu

re &

Equ

ipm

ent,

Min

or H

W/S

WH

1622

,618

FO

&M16

,019

6,

070

22,0

89

301

22

8

529

1639

1

Maj

or S

oftw

are

Syst

ems

H17

28,7

05

B

No.

of C

ust.

28,5

59

-

28,5

59

146

-

14

6

17

392

Tr

ansp

orta

tion

Equi

pmen

tH

1830

,221

FO

&M21

,403

8,

110

29,5

14

402

30

5

707

1839

4

Tool

s, S

hop

& G

arag

eH

135,

387

F

O&M

3,81

5

1,

446

5,26

1

72

54

126

1939

7

Com

mun

icat

ion

Equi

pmen

tH

131,

767

F

O&M

1,25

1

47

4

1,72

5

24

18

41

20

398

M

isce

llane

ous

Equi

pmen

tH

131,

255

F

O&M

889

33

7

1,22

5

17

13

29

21

Tota

l Dep

reci

atio

n Ex

pens

e1,

627,

677

70

4,15

3

875,

772

1,57

9,92

5

14,8

30

32,9

21

47,7

52

22

-

23

Oth

er T

axes

2440

8

Taxe

s-Pa

yrol

lH

428

,685

FO

&M20

,316

7,

698

28,0

14

382

28

9

671

2540

8

Taxe

s-Pr

oper

tyH

1498

,244

DPl

ant

38,0

40

57,2

86

95,3

26

765

2,

153

2,91

8

2640

9

Taxe

s-St

ate

Gro

ss M

argi

n Ta

xH

230

,950

JR

ate

Base

12,0

41

17,9

88

30,0

29

245

67

7

922

27To

tal O

ther

Tax

es15

7,88

0

70

,397

82

,972

15

3,36

9

1,

391

3,12

0

4,

511

28 29

Ret

urn

B3,

251,

505

J

Rat

e Ba

se1,

264,

997

1,88

9,69

2

3,15

4,68

9

25,6

89

71,1

28

96,8

16

30 31

Fede

ral I

ncom

e Ta

xes

G1,

261,

278

J

Rat

e Ba

se49

0,70

0

733,

023

1,22

3,72

2

9,96

5

27

,591

37

,556

32 33R

even

ue R

equi

rem

ent a

s C

alcu

late

dA

9,46

1,10

2

4,77

0,23

9

4,

430,

239

9,

200,

478

93

,958

16

6,66

6

26

0,62

4

34ch

eck

to to

tal r

ev re

q:-

35Le

ss R

educ

tion

in R

ev R

eq to

Yie

ld 3

5% In

crA

(717

,131

)

IR

ev. R

eq.

(361

,574

)

(3

35,8

03)

(697

,376

)

(7

,122

)

(12,

633)

(1

9,75

5)

36

Rev

enue

Req

uire

men

t Pro

pose

d fo

r Rat

e D

esig

n8,

743,

970

4,

408,

665

4,09

4,43

6

8,50

3,10

1

86,8

36

154,

033

240,

869

37

chec

k to

tota

l pro

pose

d re

v re

q:-

38Le

ss O

ther

Rev

enue

s L1

(614

,443

)

IR

ev. R

eq.

(309

,799

)

(2

87,7

18)

(597

,517

)

(6

,102

)

(10,

824)

(1

6,92

6)

39 40

Net

Cos

t of S

ervi

ce E

xcl P

ortio

n C

over

ed b

y M

isc

Rev

enue

8,12

9,52

8$

4,09

8,86

6$

3,

806,

719

$

7,

905,

584

$

80

,734

$

14

3,20

9$

22

3,94

3$

41

Perc

ent b

y C

lass

100.

00%

97.2

5%2.

75%

Res

iden

tial

Gen

eral

Ser

vice

(Non

-Res

iden

tial)


Sche

dule

I2Pa

ge 4

of 5

SiEn

ergy

, LP

Twel

ve M

onth

s En

ded

Sept

embe

r 30,

201

7Ad

just

ed fo

r Kno

wn

and

Mea

sura

ble

Chan

ges

COST

OF

SERV

ICE

STUD

Y

Line

N

o.FE

RC

Ac

ctD

escr

iptio

nR

ef.

Tot

al

Allo

c. F

acto

rD

escr

iptio

nC

usto

mer

-R

elat

edC

apac

ity/C

om-

mod

ity-R

elat

edTo

tal

Cus

tom

er-

Rel

ated

Cap

acity

/Com

-m

odity

-Rel

ated

Tota

l( a

)( b

)( c

)( d

)( e

)( f

)( g

)( h

)( i

)

42N

et C

ost o

f Ser

vice

for R

ate

Des

ign

4,17

9,60

0

4,09

8,86

6$

80

,734

$

43

Div

ide

by B

ills

208,

200

1,

068

44Pr

elim

inar

y C

ust C

harg

e pe

r Mon

th19

.69

$

75.5

9$

45 46

Cur

rent

Rat

es15

.00

0.31

58

30.0

0

0.

3710

47 48

RAT

E D

ESIG

N -

CAL

CU

LATE

DTo

tal

Res

iden

tial

Gen

eral

Se

rvic

e 49

Cos

t of S

ervi

ce8,

129,

528

$

7,

905,

584

$

22

3,94

3$

50 51

Adju

sted

Num

ber o

f Bills

209,

268

208,

200

1,06

8

52C

usto

mer

Cha

rge

19.6

9

75.5

9

53C

ust C

harg

e R

ev4,

179,

600

4,

098,

866

80

,734

54 55Vo

lum

etric

Rev

enue

s3,

949,

928

3,

806,

719

14

3,20

9

56Ad

just

ed V

olum

es8,

519,

615

8,

210,

956

30

8,65

8

57C

alcu

late

d Vo

lum

etric

Rat

e0.

4636

0.

4640

58 59 60R

ATE

DES

IGN

- PR

OPO

SED

Res

iden

tial

Gen

eral

Se

rvic

e 61

Cus

tom

er C

harg

e19

.50

45

.00

62

Prop

osed

Vol

umet

ric R

ate

0.46

84

0.56

98

63 64

Proo

f65

Num

ber o

f Bills

208,

200

1,06

8

66 67Pr

opos

ed C

usto

mer

Cha

rge

Rev

enue

4,10

7,96

0

4,05

9,90

0

48,0

60

68

Prop

osed

Vol

umet

ric R

even

ue4,

021,

568

3,

845,

684

17

5,88

3

69Pr

opos

ed R

even

ues

8,12

9,52

8

7,90

5,58

4

223,

943

70 71

Cur

rent

Rev

enue

s5,

862,

572

5,

716,

020

14

6,55

3

72Pr

opos

ed In

crea

se2,

266,

955

2,

189,

565

77

,391

73Pr

opos

ed In

cr o

ver R

ev e

xcl M

isc

Serv

Fee

Rev

38.7

%38

.3%

52.8

%74 75

Adju

sted

Vol

umes

8,51

9,61

5

8,21

0,95

6

308,

658

76

Gas

Cos

t per

Ccf

0.44

$

0.44

$

0.44

$

77

3,77

6,28

8.65

3,

639,

476.

96

136,

811.

69

78 79

Prop

osed

Rev

enue

s w

ith G

as C

ost

11,9

05,8

16

11

,545

,061

360,

755

80

Cur

rent

Rev

enue

s w

ith G

as C

ost

9,63

8,86

1

9,35

5,49

7

283,

364

81

Prop

osed

Incr

ease

2,26

6,95

5

2,18

9,56

5

77,3

91

82

Prop

osed

Incr

ove

r Rev

exc

l Mis

c Se

rv F

ee R

ev23

.5%

23.4

%27

.3%

Che

ck-

-

-

Res

iden

tial

Gen

eral

Ser

vice

(Non

-Res

iden

tial)


Sche

dule

I2Pa

ge 5

of 5

SiEn

ergy

, LP

Twel

ve M

onth

s En

ded

Sept

embe

r 30,

201

7Ad

just

ed fo

r Kno

wn

and

Mea

sura

ble

Chan

ges

COST

OF

SERV

ICE

STUD

Y

Line

N

o.FE

RC

Ac

ctD

escr

iptio

nR

ef.

Tot

al

Allo

c. F

acto

rD

escr

iptio

nC

usto

mer

-R

elat

edC

apac

ity/C

om-

mod

ity-R

elat

edTo

tal

Cus

tom

er-

Rel

ated

Cap

acity

/Com

-m

odity

-Rel

ated

Tota

l( a

)( b

)( c

)( d

)( e

)( f

)( g

)( h

)( i

)

1AL

LOC

ATIO

N F

ACTO

RS

2A

Usa

ge3

Res

iden

tial

8,21

0,95

6

8,21

0,95

6

4C

omm

eric

ial a

nd S

choo

ls30

8,65

8

30

8,65

8

5

Tota

l8,

519,

615

8,

210,

956

30

8,65

8

6

Allo

catio

n Fa

ctor

-

100.

00%

96.3

8%3.

62%

7 8B

Num

ber o

f Cus

tom

ers

9R

esid

entia

l17

,350

17,3

50

10C

omm

eric

ial a

nd S

choo

ls89

89

11

Tota

l17

,439

17,3

50

89

12Al

loca

tion

Fact

or10

0.00

%99

.5%

0.5%

13 14C

Wei

ghte

d C

usto

mer

s15 16

Met

er C

ount

17,3

50

89

17W

eigh

ting

base

d on

Cos

t per

Met

er1

12.2

0

18

Wei

ghte

d C

usto

mer

s18

,436

17,3

50

1,08

6

19

Allo

catio

n Fa

ctor

- Al

l10

0.00

%94

.1%

5.9%

20 21 22D

Plan

t10

0.00

%38

.72%

58.3

1%0.

78%

2.19

%23

ED

istri

butio

n Pl

ant (

Acct

. Nos

. 375

-387

)10

0.00

%37

.10%

59.8

8%0.

77%

2.25

%24

FO

&M E

xpen

ses

(Acc

t. N

os.8

70-9

12)

100.

00%

70.8

2%26

.84%

1.33

%1.

01%

25G

M&S

Pla

nt (A

cct.

Nos

. 376

and

380

)10

0.00

%34

.89%

62.5

8%0.

18%

2.35

%26

HO

ther

Dis

tribu

tion

O&M

(Acc

t. N

os. 8

70-8

79 a

nd 8

85-8

93) -

use

to a

lloc

acct

s 88

0 an

d 88

110

0.00

%51

.36%

45.0

6%1.

89%

1.69

%27

ITo

tal R

even

ue R

equi

rem

ents

100.

00%

50.4

2%46

.83%

0.99

%1.

76%

28J

Rat

e Ba

se10

0.00

%38

.90%

58.1

2%0.

79%

2.19

%29

KO

pera

tions

Exp

ense

, exc

ludi

ng s

uper

visi

on -

use

to a

lloc

acct

870

100.

00%

52.0

4%44

.42%

1.87

%1.

67%

30L

Mai

nten

ance

Exp

ense

, exc

ludi

ng s

uper

visi

on =

use

to a

lloc

acct

885

100.

00%

50.3

3%46

.02%

1.92

%1.

73%

31 32 33 34

Res

iden

tial

Gen

eral

Ser

vice

(Non

-Res

iden

tial)


WORKPAPERS

TO

DIRECT TESTIMONY

OF

JUNE M. DIVELY

Workpapers to the Direct Testimony of June M. Dively are being provided in electronic format. Confidential and/or Highly Sensitive Workpapers will be provided pursuant to the terms of the Protective Order.

WORKPAPERS

TO

DIRECT TESTIMONY

OF

JANET M. SIMPSON

Workpapers to the Direct Testimony of Janet M. Simpson are being provided in electronic format. Confidential and/or Highly Sensitive Workpapers will be provided pursuant to the terms of the Protective Order.

WORKPAPERS

TO

DIRECT TESTIMONY

OF

DANE A. WATSON

Workpapers to the Direct Testimony of Dane A. Watson are being provided in electronic format.

WORKPAPERS

TO

DIRECT TESTIMONY

OF

BRUCE H. FAIRCHILD

Workpapers to the Direct Testimony of Bruce H. Fairchild are voluminous and are being provided in electronic format.

TARIFF FOR GAS SERVICE SIÍENERGY, LP

Rate Schedule TOC

Rate Schedule 1

TOC - TABLE OF CONTENTS TABLE OF CONTENTS

Applicable to: Entire SystemOutside City Limits of Missouri City Page 1 of 1 Effective Date: February 9, 2018November 13, 2008

Rate Schedules

TOC Table of Contents SA Service Areas and Applicability of Rate Schedules DEF Definitions MFD Miscellaneous Fees and Deposits RSI Residential Sales, Incorporated Areas RSU Residential Sales, Unincorporated Areas GSSI General Service Small, Incorporated Areas GSSU General Service Small, Unincorporated Areas PGA Purchased Gas Adjustment WNA Weather Normalization Adjustment RCE Rate Case Expense PSF Pipeline Safety Fee TFF Taxes and Franchise Fees QSR Quality of Service Rules

Communications regarding this Tariff should be addressed to:

SiEnergy, LP, 3 Lakeway Centre Court Blvd, Ste 110, Lakeway, Texas 78Rate Schedule Description


TABLE OF CONTENTS UTILITY OPERATIONS AND SERVICE AREAS DEFINITIONS RATE RE – RESIDENTIAL ENVIRONS SALES RATE CE – COMMERCIAL ENVIRONS SALES RATE SE – PUBLIC SCHOOL ENVIRONS SALES RIDER PSF – PIPELINE SAFETY FEE RIDER RCE – RATE CASE EXPENSES RATE M – MISCELLANEOUS SERVICE CHARGES RATE LEP – LINE EXTENSION POLICY RIDER WNA – WEATHER NORMALIZATION ADJUSTMENT RATE PGA – PURCHASED GAS ADJUSTMENT TARIFF


Rate Schedule SA

Rate Schedule 2

SERVICE AREAS AND APPLICABLITY OF RATE SCHEDULES UTILITY OPERATIONS AND SERVICE AREAS

Applicable to: Entire System Page 1 of 2Page 1 of 1 Effective Date: February 9, 2018 Tariff Applicability SiEnergy, LP is a gas utility operating within the State of Texas. The Company will provide service to any person and/or business within its service area in accordance with the rates, terms and conditions provided for in this Tariff, inclusive of the Company’s Rate Schedules and Rules of Service. This Tariff supersedes and replaces all tariffs previously approved, other than to the extent to which different tariffs are required to be in effect based upon the rate making actions of a municipality. Determination of Rate Schedules Applicable to Individual Customers Customers will be assigned to rate schedules in accordance with the class of the particular Customer (i.e., Residential or General Service Small) based on the usage that will be made of the gas, and that Customer’s volume requirements. The Company will advise the Applicant or Customer regarding the most advantageous rate for his usage if more than one rate is applicable. A Customer assigned to a rate schedule will remain on that schedule for a minimum of one (1) year except that an assignment made in error may be corrected immediately. In the event of a question regarding the Customer’s classification, the questions will be resolved by reference to the coding of the Customer’s primary business in the latest edition of the Standard Industrial Classification Manual of the United States Government’s Office Management and Budget.

Special Contract Rate Customers Any Customer other than a Residential Customer who expects to use in excess of 30,000 Ccf per year may enter into a separate contract with the Company for the provision of Gas Service or may elect to receive service under Rate Schedule GSSI if located in an incorporated area or under Rate Schedule GSSU if located in an unincorporated area.


Rate Schedule SA

SERVICE AREAS AND APPLICABLITY OF RATE SCHEDULES

Applicable to: Entire System Effective Date: February 9, 2018 Page 2 of 2 Service Areas This Tariff applies to all of SiEnergy, LP’s service areas both inside municipalities (incorporated areas) and their environs (unincorporated areas). Within incorporated areas, service under this Tariff is subject to the original jurisdiction of the applicable municipalities and subject to the appellate jurisdiction of the Railroad Commission of Texas. In unincorporated areas, service under this Tariff is subject to the original jurisdiction of the Railroad Commission of Texas. To the extent possible, for each class of Customers, the same rates and rules apply for locations served by the Company, whether incorporated or unincorporated; however, because municipalities have original jurisdiction within their incorporated areas, from time to time, municipalities may approve or require rates and/or rules that differ from the system-wide rates and rules applicable to the remainder of the Company’s system. Accordingly, each Rate Schedule included in this Tariff is identified as applicable to one of the following:

(1) The Entire system, (2) Locations Subject to System Wide Rates, or (3) Individual Municipalities

Locations Subject to System-wide Rates Include the following: Area Incorporated (Municipalities) Unincorporated (Environs) South Texas Missouri City Environs of Missouri City South Texas Fulshear Environs of Fulshear South Texas Sugarland Environs of Sugarland South Texas Conroe Environs of Conroe South Texas Environs of Richmond South Texas Environs of Cypress South Texas Other Fort Bend County Unincorporated South Texas Other Harris County Unincorporated South Texas Other Waller County Unincorporated Central Texas None Environs of Pflugerville Central Texas Other Travis County Unincorporated

Locations Subject to Separate Rates and Rules Determined by Individual Municipality None


SíEnergy, LP owns and operates a natural gas distribution system that provides natural gas service in the City of Missouri City, Texas and Fort Bend County, Texas. The following will respond to inquiries regarding provisions of this Tariff for Gas Service: June Dively SíEnergy, LP P.O. Box 340279 Austin, TX 78734-0279 (512) 261-4152


Rate Schedule DEF

DEFINITIONS Rate Schedule 3

DEFINITIONS

Applicable to: Entire SystemOutside City Limits of Missouri City Page 1 of 3Page 1 of 1 Effective Date: February 9, 2018November 13, 2008 “Applicant” means any person, organization or group of persons or organizations making a formal request either orally or in writing for gas service from the Company. “Btu” means British thermal unit(s) and will be calculated on a temperature base of sixty degrees (60°) Fahrenheit and at the standard pressure base of the applicable service area and on a gross-real-dry basis and will not be corrected for real water vapor as obtained by means commonly acceptable to the industry, and "MMBtu" will mean one million (1,000,000) Btu. “Ccf and Mcf” means for “Ccf,” one hundred (100) Standard Cubic Feet of Gas, where one Standard Cubic Foot of gas is the amount of gas contained in one (1) cubic foot of space at a standard pressure of fourteen and sixty-five hundredths (14.65) pounds per square inch, absolute and a standard temperature of sixty (60) degrees Fahrenheit; and, for “Mcf,” one thousand (1,000) Standard Cubic Feet of Gas. “Commission or The Commission” means the Railroad Commission of Texas.

“Commodity Cost of Gas” means the portion of the cost of gas service recovered by the Company through any Purchased Gas Adjustment Rate Schedule.

“Company” means SiEnergy, LP, its successors, and its assigns.

“Consumer” means any person or organization receiving gas service from the Company for his or her own appliances or equipment whether or not the gas is billed directly to him or her. (For example, a rental unit where the utilities are part of the rent, the landlord is a Customer and the tenant is a Consumer.) “Customer” means any person or organization being billed for gas service whether used by him or her, or by others. Customer also means a Consumer that subscribes to natural gas services provided by SiEnergy.

“Consumption” means the volumes consumed by a Customer during a volumetric read period.


Rate Schedule DEF

DEFINITIONS

Applicable to: Entire System Effective Date: February 9, 2018 Page 2 of 3 “Expedited Service” means a Customer request for same day or other acceleration of service relative to the Company’s standard scheduling process. “Gas or Natural Gas” means the effluent vapor stream in its natural, gaseous state, including gas-well gas, casing head gas, residue gas resulting from processing both casing head gas and gas-well gas, and all other hydrocarbon and non-hydrocarbon components thereof. “General Gas Service” means all service other than Residential Gas Service and that includes purchase of the Commodity Cost of Gas from the Company. General Gas Service Consumers include commercial Consumers engaged in the sale or furnishing of goods and services; industrial Consumers engaged primarily in processes that change raw or unfinished materials into another form of product; public authorities, including all governmental agencies and authorities; schools whether public or privately held; and, Consumers utilizing gas for any other purpose not otherwise provided for herein. “General Service Customer” means any person, individual, family, partnership, association, joint venture, corporation, etc., or governmental agency or organization being billed for General Gas Service. A General Service Customer also includes any Consumer that subscribes to natural gas services provided by SiEnergy for purposes of General Gas Service. “Month” means the period beginning at 9:00 a.m. Central clock time on the first Day of each calendar month and ending at 9:00 a.m. Central clock time on the first Day of the next succeeding calendar month. “Overtime Fee” means the fee charged by the Company to perform work outside its normal business hours or on holidays and includes changes to previously scheduled work that must be performed outside Company’s normal business hours. “Rate Schedule” means a statement of the method of determining charges for gas service, including the conditions under which such method applies. “Regulatory Authority” means the City Council or equivalent municipal governing body of each respective city in the Company’s Service Area, or the Railroad Commission of Texas, as applicable.


Rate Schedule DEF

DEFINITIONS

Applicable to: Entire System Effective Date: February 9, 2018 Page 3 of 3 “Residential Gas Service” means gas service used directly for domestic purposes including heating, air conditioning, cooking, water heating, pool water heating and other similar purposes, whether in a single dwelling, in a dwelling unit of a multiple dwelling facility, in a residential apartment unit, in a condominium unit, in a dwelling unit that is operated by a public housing agency acting as an administrator of public housing under the direction of the U.S. Department of Housing and Urban Development, or in other similar individual dwelling units. “Residential Customer” means any person, individual, family, partnership, association, joint venture, corporation, etc., or governmental agency or organization being billed for Residential Gas Service that is individually metered at the point of delivery, whether such service is used by that Customer or by others. A Residential Customer also includes any Consumer that subscribes to natural gas services provided by SiEnergy for purposes of Residential Gas Service. “Service Area” means the area receiving gas utility service provided by the Company under the terms of this Tariff. “Special Rate Schedule” means a rate schedule designed for a specific Customer. “System” means any group of interconnected pipelines and appurtenances owned or operated by the Company and independent from any other such group of facilities. “Tariff” means every rate schedule, or provision thereof, and all terms, conditions, rules and regulations for furnishing gas service filed with the regulatory authorities or agencies having jurisdiction over the Company or the services provided hereunder. “Temporary” means any service that will not be utilized continuously at the same location by the same Customer. “Year” means a period of three hundred sixty-five (365) consecutive Days, or three hundred sixty-six (366) consecutive Days when such period includes a February 29.


COMMERCIAL CUSTOMER – A customer, other than a Residential or Public School customer, and not otherwise covered by a contract under the contract rate provisions of Section 104.003 of the Texas Utilities Code. COMMISSION – The Railroad Commission of Texas. COMPANY – SíEnergy LP, its successors, and its assigns. CUSTOMER – An individual, family, partnership, association, joint venture, corporation, etc., or governmental agency who is receiving gas service or who is receiving the benefit of gas service at a specified point of delivery. ENVIRONS – The unincorporated areas in Fort Bend County, including, but not limited to, Sienna Plantation, Sienna Point, Sienna North and adjacent properties. RATE SCHEDULE – A statement of the method of determining charges for gas service, including the conditions under which such method applies. RESIDENTIAL CUSTOMER – Unless otherwise specified in the rate schedule, a customer whose service is separately and individually metered in an individual private dwelling unit or in an individually metered apartment, condominium, or similar dwelling and who uses natural gas primarily for Residential End Uses and occupies the building. RESIDENTIAL END USES – Heating, space heating, cooking, water heating, and other similar type uses in a dwelling.


Rate Schedule RSU

RATE RSU - RESIDENTIAL SALES, UNINCORPORATED AREAS Rate Schedule 4

RATE RE – RESIDENTIAL ENVIRONS SALES

Applicable to: All Residential Customers Located in Unincorporated Areas that are Subject to System Wide Rates as Identified on Rate Schedule SAOutside City Limits of Missouri CityPage 1 of 1 Effective Date: February 9, 2018November 13, 2008 Application of Schedule This Schedule is applicable to all Customers meeting the definition of “Residential Customers” under Rate Schedule DEF – Definitions who are located in unincorporated areas that are subject to system wide rates as identified on Rate Schedule SA. This Schedule is applicable to all Residential Customers in the Environs purchasing natural gas from SíEnergy, L.P., (hereinafter “SíEnergy”) for use at the point of delivery. Monthly Base Rate Customer’s base monthly bill will be calculated using the following Customer and Ccf charges: Charge Amount Customer Charge $19.50 per month, plus$15.00 per month, plus All Ccf @ $ .4684 per Ccf $.3158 per Ccf In addition to the base monthly bill calculated using the Monthly Base Rates above, each Customer’s monthly bill shall be increased by amounts pursuant to the following:

Purchased Gas Adjustment (Rate Schedule PGA) Amounts billed for the commodity cost of gas in accordance with the provisions of Rate Schedule PGA - Purchased Gas Adjustment.

Purchased Gas Adjustment In addition to the base monthly bill above, each customer’s bill will include a Purchased Gas Adjustment which is equal to the estimated Weighted Average Cost of Gas for the period covered by the bill computed in accordance with SíEnergy’s Rate PGA - Purchased Gas Adjustment tariff in effect during the billing month.

Weather Normalization Adjustment (Rate Schedule WNA) Amounts billed to eliminate the effect of non-normal weather in accordance with the provisions of Rate Schedule WNA – Weather Normalization Adjustment. Rate Case Expense Recovery (Rate Schedule RCE) Amounts billed for the recovery of rate case expenses in accordance with the provisions of Rate Schedule RCE – Rate Case Expense.


Taxes and Franchise Fees (Rate Schedule TFF) All applicable taxes and fees in accordance with the provisions of Rate Schedule TFF – Taxes and Franchise Fees, including fees pertaining to the Monthly Base Rate bill, PGA charges, WNA charges, RCE charges, and any other charge that is subject to taxes and fees described therein.

Taxes In addition to the monthly charges above, each customer’s bill will include a charge for an amount equivalent to the customer’s proportional part of any governmental levies payable by the Company, exclusive of federal income taxes. From time to time, any tax factor may be adjusted, if required, to account for any over- or under-recovery by the Company and to include an amount equivalent to the proportionate part of any new tax or any other governmental imposition, rental fee, or charge levied, assessed or imposed subsequent to the effective date of this tariff by any governmental authority, including districts, created under the laws of the State of Texas. The Company will also collect sales taxes where applicable. Gross Receipts Taxes and Franchise Fees applicable within municipalities shall only be charged to customers within the incorporated areas.


Surcharges In addition to the monthly charges above, each customer’s bill will include an amount for surcharges calculated in accordance with the applicable rider: Rider PSF, Rider RCE, and Rider WNA.


Conditions Subject in all respects to applicable laws, rules and regulations from time to time in effect.


Schedule GSSU

RATE GSSU GENERAL SERVICE SMALL, UNINCORPORATED AREAS Rate Schedule 5

RATE CE –COMMERCIAL ENVIRONS SALES

Applicable to: All General Service Customers Located in Unincorporated Areas that are Subject to System Wide Rates as Identified on Rate Schedule SA and whose annual usage is 30,000 Ccf or less.Outside City Limits of Missouri City Page 1 of 1 Effective Date: February 9, 2018November 13, 2008 Application of Schedule This Schedule is applicable to all Customers meeting the definition of “General Service Customers” under Rate Schedule DEF – Definitions (i.e., non-Residential Customers) who are located in unincorporated areas that are subject to system wide rates as identified on Rate Schedule SA and whose annual usage is 30,000 Ccf or less. This Schedule is applicable to all Commercial Customers in the Environs purchasing natural gas from SíEnergy, L.P., (hereinafter “SíEnergy”) for use at the point of delivery. Monthly Base Rate Customer’s base monthly bill will be calculated using the following Customer and Ccf charges: Charge Amount Customer Charge $45.00 per month, plus30.00 per month, plus All Ccf @ $.5698 per Ccf.3710 per Ccf In addition to the base monthly bill calculated using the Monthly Base Rates above, each Customer’s monthly bill shall be increased by amounts pursuant to the following:



Rate Case Expense Recovery (Rate Schedule RCE) Amounts billed for the recovery of rate case expenses in accordance with the provisions of Rate Schedule RCE – Rate Case Expense.





Surcharges In addition to the monthly charges above, each customer’s bill will include an amount for surcharges calculated in accordance with the applicable rider: Rider PSF, Rider RCE, and Rider WNA. Other Conditions and Surcharges Subject in all respects to applicable laws, rules and regulations from time to time in effect. In addition to the monthly charges above, each Customer’s bill will include amounts required to be billed in accordance with any additional applicable rates, riders, surcharges or fees. Conditions Subject in all respects to applicable laws, rules and regulations from time to time in effect.


Schedule GSSU

RATE GSSU GENERAL SERVICE SMALL, UNINCORPORATED AREAS Rate Schedule 6

RATE SE – PUBLIC SCHOOL ENVIRONS SALES

Applicable to: All General Service Customers Located in Unincorporated Areas that are Subject to System Wide Rates as Identified on Rate Schedule SA and whose annual usage is 30,000 Ccf or less.Outside City Limits of Missouri City Page 1 of 1 Effective Date: February 9, 2018November 13, 2008 Application of Schedule This Schedule is applicable to all Customers meeting the definition of “General Service Customers” under Rate Schedule DEF – Definitions (i.e., non-Residential Customers) who are located in unincorporated areas that are subject to system wide rates as identified on Rate Schedule SA and whose annual usage is 30,000 Ccf or less. This Schedule is applicable to all non-contract Public School Customers in the Environs purchasing natural gas from SíEnergy, L.P., (hereinafter “SíEnergy”) for use at the point of delivery. Monthly Base Rate Customer’s base monthly bill will be calculated using the following Customer and Ccf charges: Charge Amount Customer Charge $45.00 per month, plus30.00 per month, plus All Ccf @ $.5698 per Ccf.3710 per Ccf



Rate Case Expense Recovery (Rate Schedule RCE) Amounts billed for the recovery of rate case expenses in accordance with the provisions of Rate Schedule RCE – Rate Case Expense.



Taxes In addition to the monthly charges above, each customer’s bill will include a charge for an amount equivalent to the customer’s proportional part of any governmental levies payable by the Company, exclusive of federal income taxes. From time to time, any tax factor may be adjusted, if required, to account for any over- or under-recovery by the Company and to include an amount equivalent to the proportionate part of any new tax or any other governmental imposition, rental fee, or charge levied, assessed or imposed subsequent to the effective date of this tariff by any governmental authority, including districts, created under the laws of the State of Texas. The Company will also collect sales taxes where applicable. Gross Receipts Taxes and Franchise Fees applicable within municipalities shall only be charged to customers within the incorporated areas. Surcharges In addition to the monthly charges above, each customer’s bill will include an amount for surcharges calculated in accordance with the applicable rider: Rider PSF, Rider RCE, and Rider WNA. Other Conditions and Surcharges Subject in all respects to applicable laws, rules and regulations from time to time in effect. In addition to the monthly charges above, each Customer’s bill will include amounts required to be billed in accordance with any additional applicable rates, riders, surcharges or fees. Conditions Subject in all respects to applicable laws, rules and regulations from time to time in effect.


Rate Schedule PSF

RATE PSF – PIPELINE SAFETY FEE Rate Schedule 7

RIDER PSF – PIPELINE SAFETY FEE Applicable to: Entire System, Excluding State Agency CustomersEntire System Page 1 of 1 Effective Date: February 9, 2018November 13, 2008 Application Applicable to all customer classes except state agencies, as defined in Texas Utilities Code, Section 101.003. Monthly calculation The Company will charge a surcharge to recover pipeline safety fees assessed by the Commission pursuant to Section 121.211 of the Texas Utilities Code and Commission Rule 16 TAC § 8.201Company will charge a surcharge to recover pipeline safety fees assessed by the Commission pursuant to Section 121.211 of the Texas Utilities Code and Commission Rule 16 TAC § 8.201. The surcharge will be charged not more often than once a year and will be billed following payment by the Company to the Commission, in accordance with the Commission’s rules. The surcharge:

(a) Shall be a flat rate, one-time surcharge; (b) Shall not be billed before the operator remits the pipeline safety program fee to the

Commission; (c) Shall be applied in the billing cycle or cycles immediately following the date on which the

operator paid the Commission; (d) Shall not exceed $0.50 per service or service line; and

No later than 90 days after the last billing cycle in which the pipeline safety program fee surcharge is billed to the customers, each operator of a natural gas distribution system shall file with the Commission’s Gas Services Division and the Pipeline Safety Division a report showing:

1. The pipeline safety program fee amount paid to the Commission 2. The unit rate and total amount of the surcharge billed to each customer, 3. The date or dates on which the surcharge was billed to customers; and 4. The total amount collected from customers from the surcharge


Rate Schedule RCE

RATE RCE – RATE CASE EXPENSES Rate Schedule 8

RIDER RCE – RATE CASE EXPENSES Applicable to: All Customers Subject to System Wide Rates as Identified on Rate Schedule SAEntire System Page 1 of 1 Effective Date: February 9, 2018November 13, 2008 Application This Rate Schedule shall apply to all SiEnergy Rate Schedules that incorporate this Rate RCE Rate Case Expense recovery provision. Applicable to all customer classes. Monthly RCE Rate All Ccf during each billing period $_____per Ccf This rate will be in effect until all expended and approved rate case expenses are recovered. SiEnergy will recover ______ in actual expenses and up to ______ in estimated expenses, not to exceed the total of final actual rate case expenses incurred. The RCE will be billed as a separate line item on the Customer’s bill. Taxes and Franchise Fees (Rate Schedule TFF) Subject to all applicable taxes and fees in accordance with the provisions of Rate Schedule TFF – Taxes and Franchise Fees. Monthly calculation The bill of each customer shall include a surcharge designed to recover the Company’s rate case expenses. The surcharge will be calculated on a Ccf basis using total company volumes for all customer classes, over a period of twelve (12) months commencing with the effective date of the rates set forth in this tariff. All collections of the surcharge will be applied monthly to the outstanding uncollected balance of such rate case expenses, and interest at the rate of 4.66 percent per year shall be calculated on, and added to, the declining balance each month. To the extent that some expenses may be estimates, Company is authorized to add such expenses as incurred to the amount to be surcharged up to the total estimated expenses of Company and municipalities being reimbursed pursuant to the order in question.


Rate Schedule M

RATE M – MISCELLANEOUS FEES AND DEPOSITS Rate Schedule 9

RATE M – MISCELLANEOUS SERVICE CHARGES Applicable to: All Customers Subject to System Wide Rates as Identified on Rate Schedule SAEntire System Page 1 of 34 Effective Date: February 9, 2018November 13, 2008 Application This Schedule is applicable to all Customers who are located in the incorporated or unincorporated areas listed under Rate Schedule 2-GEN – Service Areas, Section 2.2.1 or Section 2.2.3. The fees and deposits listed shall be assessed in addition to any other charges applicable under the Company’s Tariff for Gas Service and will be applied for the conditions and services described. Other services not covered by these standard conditions will be charged on the basis of an estimate for the job or the Company’s actual cost plus appropriate surcharges. Missed Appointments If a Customer makes an appointment with the Company for the provision of any of the following services, but fails to appear, the applicable fee will be assessed for the missed appointment(s) as well as being assessed when the service is ultimately provided. The service charges listed below are in addition to any other charges under the Company’s Tariff for Gas Service and will be applied for the condition described. Wording for each service charge below should match the Tar-10 electronic filings. Applicable Charges

Service Charge

No. Name and Description

Amount of Charge

M.1

Connection Charge During Business Hours During standard business hours, for each reconnection of gas service where service has been discontinued at the same premises for any reason, for the initial inauguration of service, and for each inauguration of service when the billable party has changed, with the following exceptions:

(a) For a builder who uses gas temporarily during construction or for display purposes.

(b) Whenever gas service has been temporarily interrupted because of System outage or service work done by Company; or

(c) For any reason deemed necessary for Company operations

$ 47.5065.00


M.2

Connection Charge After Business Hours After standard business hours, for each reconnection of gas service where service has been discontinued at the same premises for any reason, for the initial inauguration of service, and for each inauguration of service when the billable party has changed, with the following exceptions:

(a) For a builder who uses gas temporarily during construction or for display purposes.

(b) Whenever gas service has been temporarily interrupted because of System outage or service work done by Company; or

(c) For any reason deemed necessary for Company operations

$ 75.0097.00

M.3

Field Read of Meter Charge to an existing Customer for the Company to read the meter at a currently served location at the request of the existing Customer for any purpose other than connection or reconnection of service by that Customer. For charges to a Customer to initiate or reconnect service, refer to Service Charge 1–Connection/Reconnection and Service Charge 2–Connection /Reconnection After Business Hours.A read for change charge when it is necessary for the Company to read the meter at a currently served location because of a change in the billable party.

$ 37.5060.00


Rate Schedule M

RATE M-1 – MISCELLANEOUS FEES AND DEPOSITS Rate Schedule 9

RATE M – MISCELLANEOUS SERVICE CHARGES

Applicable to: All Customers Subject to System Wide Rates as Identified on Rate Schedule SAEntire System Page 2 of 34 Effective Date: February 9, 2018 November 13, 2008

Service Charge


Amount of Charge

M.4 Returned Check Charges

Returned check handling charge for each check returned to Company for any reason.

$ 35.00

M.5

Charge for Temporary Discontinuance of Service - Residential Whenever service has been temporarily disconnected at the request of the customer, this charge plus the appropriate Connection Charge will be made to reestablish such service for that customer at the same address.

$ 37.5065.00

M.6

Suspension of Disconnection This fee will be charged if a Customer responds to a delinquent notice after the delinquent due date but prior to completion of a scheduled disconnection and if, at the Company’s sole discretion the Company is able to terminate the disconnection order without unreasonably disrupting its scheduled work flow.Charge for Temporary Discontinuance of Service– Nonresidential

Whenever service has been temporarily disconnected at the request of the customer, this charge plus the appropriate Connection Charge will be made to reestablish such service for that customer at the same address.

$ 60.0065.00

M.7

Charge for Meter Testing The Company shall, upon request of a customer, make a test of the accuracy of the meter serving that customer. The Company shall inform the customer of the time and place of the test and permit the customer or his authorized representative to be present if the customer so desires. If no such test has been performed within the previous four (4) years for the same customer at the same location, the test shall be performed without charge. If such test has been performed for the same customer at the same location within the previous four (4) years, the Company will charge the Meter Testing Fee. The customer must be properly informed of the result of any test on a meter that services him.

$ 37.50190.00

M.8 Charge for Service Calls During Business Hours $ 37.5060.00


A Service Call Charge is made for responding to a service call during standard business hours that is determined to be a customer related problem rather than a Company or Company facilities problem.

M.9

Charge for Service Calls After Business Hours A Service Call Charge is made for responding to a service call after standard business hours that is determined to be a customer related problem rather than a Company or Company facilities problem.

$ 60.0090.00


Rate Schedule M

RATE M-1 – MISCELLANEOUS FEES AND DEPOSITS Rate Schedule 9

RATE M – MISCELLANEOUS SERVICE CHARGES

Applicable to: All Customers Subject to System Wide Rates as Identified on Rate Schedule SA Entire System Page 3 of 34 Effective Date: February 9, 2018November 13, 2008

Service Charge


Amount of Charge

M.10

Tampering Charge No Company Meters, equipment, or other property, whether on Customer’s premises or elsewhere, are to be tampered with or interfered with for any reason. A Tampering Charge is made for unauthorized reconnection or other tampering with Company metering facilities or a theft of gas service by a person on the customer’s premises or evidence by whomsoever at customer’s premises. An additional cost for the cost of repairs and/or replacement of damaged facilities and the installation of protective facilities or relocation of meter are made at cost plus appropriate charges as may be detailed in the Company’s Service Rules and Regulations

$ 125.00

M.11 Credit/Debit Card Payments Charge

Bill payments using credit cards, debit cards, and electronic checks (includes third-party transaction fees and administrative costs).

Actual Cost

12 Tap Fees – Residential Meter

Fee to provide initial tap into the Company’s distribution system for the establishment of service at a Residential location.

$ 125.00

13

Tap Fees – Commercial and Public School Meter Fee to provide initial tap into the Company’s distribution system for the establishment of service at a Commercial or Public School location.

$ 400.00

14M.12 Pool or Upgraded Meter Installation Charge

Fee to install meter and regulators to support higher or multiple pressure requirements on a residential service line.

$ 250.00280.00

M.13

Expedited Service and Overtime Fee A Customer’s request for expedited service may be scheduled at any time to fit the Company’s work schedule, and an Expedited Service charge will be collected. The Company will not be obligated to provide Expedited Service when the personnel and resources to do so are not reasonably available. This Fee represents the minimum charge for Expedited Service. For Expedited Service requiring more than one hour to perform, the Fee will represent a rate per hour of time multiplied by the total time required to perform the requested Expedited Service,

$ 95.00


incremented in 15-minute intervals. This fee will be charged in addition to any other applicable fees.

M.14 History Research Fee A fee will be charged for services related to account history research and/or provision of Customer accounting/billing history documentation.

$ 30.00

M.15

No Access Fee A fee will be charged to a Customer who, through padlocks, fencing, animals or other means, prevents access to the Company’s meter or other equipment located on the Customer’s premise.

$ 35.00

M.16

Police Escort Fee A fee will be charged for the Company to access a meter when the Company is required to use law enforcement personnel to escort it into locked sites or sites requiring animal control. The Company will charge the stated amounts or current rate charged by the entity providing the police escort for this service.

Actual Cost


Rate Schedule M

RATE M – MISCELLANEOUS FEES AND DEPOSITS Applicable to: All Customers Subject to System Wide Rates as Identified on Rate Schedule

SA Effective Date: February 9, 2018 Page 4 of 4

M.17

Costs Associated with Certain Stand-By Gas Generators Customers installing stand-by gas generators to provide service in the event of an interruption in electric service in facilities where gas service is not otherwise adequate to operate the stand-by gas generators will reimburse the Company for the actual cost of acquiring and installing the additional and/or upgraded regulator, service line, and meter required to provide gas service for the stand-by generators. The subsequent gas service provided for the stand-by generators will be billed at the rate applicable for other gas service to the class of Customer making the request.

Actual Cost

M.18

Line Extensions The Company has the right to contract with individual Customers for the installation of gas facilities. Upon the request of a prospective new Customer for service in an area served by SiEnergy, LP, SiEnergy, LP will extend its main lines up to 100 feet from an existing SiEnergy, LP main in the Public Rights of Way, without charge. The 100-foot allowance applies to a single Customer or to a group of Customers requesting service from the same extension. Customers requesting mainline extensions in excess of 100 feet shall bear the actual cost of any additional mainline, the cost of all yard and service lines, and the cost of any appurtenant equipment and other costs necessary to install the extension, including applicable overhead charges. SiEnergy, LP is not required to extend its mains or facilities if the Customer will not use gas for space heating and water heating, or the equivalent load, at a minimum.

Actual Cost

M.19

Customer Deposits Minimum deposit Residential Gas Service Minimum deposit General Gas Service Additional deposits may be required in accordance with Rate Schedule QSR – Quality of Service Rules

$ 75.00 $ 250.00

Taxes and Franchise Fees (Rate Schedule TFF) Other than with respect to M.19 – Customer Deposits, the amounts charged under Rate M are subject to all applicable taxes and fees in accordance with the provisions of Rate Schedule TFF – Taxes and Franchise Fees.




Rate Schedule 10

RATE LEP – LINE EXTENSION POLICY Applicable to: Entire System Page 1 of 1 Effective Date: November 13, 2008 The Company has the right to contract with individual customers for the installation of gas facilities. Upon the request of a prospective new customer for service in an area served by SíEnergy, LP, SíEnergy, LP will extend its main lines up to 100 feet from an existing SíEnergy, LP main in the Public Rights of Way, without charge. The 100-foot allowance applies to a single customer or to a group of customers requesting service from the same extension. Customers requesting mainline extensions in excess of 100 feet shall bear the actual cost of any additional mainline, the cost of all yard and service lines, and the cost of any appurtenant equipment and other costs necessary to install the extension, including applicable overhead charges. In addition, the Company will charge the applicable tap fee as provided for in Rate M – Miscellaneous Service Charges. SíEnergy, LP is not required to extend its mains or facilities if the customer will not use gas for space heating and water heating, or the equivalent load, at a minimum.


Rate Schedule WNA

RATE WNA – WEATHER NORMALIZATION ADJUSTMENT Rate Schedule 11

RIDER WNA – WEATHER NORMALIZATION ADJUSTMENT

Applicable to: All Residential Customers Subject to System Wide Rates as Identified on Rate Schedule SAAll customer classes Page 1 of 2Page 1 of 3 Effective Date: February 9, 2018November 13, 2008 Application This Rate Schedule shall apply to all SiEnergy Rate Schedules that incorporate this Rate WNA - Weather Normalization Adjustment provision. Applicable to all customer classes. Monthly calculation In order to reflect weather variances in a timely and accurate manner, the Weather Normalization Adjustment (“WNA”) shall be calculated separately for each billing cycle and rate schedule. The weather factors, determined in the most recent rate case, identify the value per Ccf of one heating degree day for Residential Customers. During each billing cycle, the applicable Weather Factor is multiplied by the difference between normal and actual heating degree days for the billing period and by the number of Customers billed to yield the total WNA Ccf Adjustment. The resulting WNA Ccf Adjustment is then multiplied by the current applicable Base Rate per Ccf to determine the total WNA revenue adjustment. The WNA revenue adjustment is then spread to the Customers in the billing cycle on a prorated basis. Weather Factors

Area

Customer Rate Schedule

WNA Period

Weather Factor CCF per HDD

South TX 5-RSI Residential Incorporated November – May .236675 South TX 5-RSU Residential Unincorporated November – May .236675 Central TX 5-RSI Residential Incorporated November – May .175357 Central TX 5-RSU Residential Unincorporated November – May .175357

In order to reflect weather variances in a timely and accurate manner, the Weather Normalization Adjustment rate (“WNA”) shall be separately calculated and adjusted monthly by rate class for each meter reading or billing cycle (“Cycle”). Monthly WNA adjustments will be based upon weather information for the periods beginning with the first full Cycle covering October volumes and ending with the last Cycle read in the following April.


The Weather Normalization Adjustment rate for each Cycle shall be based on the following formula:

WNA Rate = WND / CMV+ RC WND is calculated based on the following formula: WND = [(HDDn / HDDa * HL) – HL] * VR

Definitions

WND - Weather Normalized Dollars to be collected from the Cycle. CMV - Current Month Volumes billed for the Cycle. HDDn - Normal heating degree days during the Cycle. Normal weather is measured at Bush Intercontinental Airport (IAH) weather station. HDDa - Actual heating degree days during the Cycle. HL - Heat Load volumes calculated using the following formula: Total volumes for the Cycle less Base Load volumes where Base Load volumes are calculated by multiplying the Base Load per customer as established in the most recent rate case by the number of customers in the Cycle. VR - Volumetric cost of service rate for the applicable customer class.


Rate Schedule 11

RIDER WNA – WEATHER NORMALIZATION ADJUSTMENT Applicable to: All customer classes Page 2 of 3 Effective Date: November 13, 2008

RC – The Reconciliation Component amount to be return to or recovered from customers each month from October through April as a result of any prior year’s over or under collections.

Reconciliation Audit By October 1, the Company will file with each Regulatory Authority an annual report verifying the WNA collections or refunds for the prior WNA period. If the report reflects either an over recovery or under recovery of revenues in any rate class, such amount, if any, shall be divided by the gas sales volumes by rate class, adjusted for the effects of weather, growth, and conservation estimated for the applicable upcoming WNA period. The Reconciliation Component so determined to collect any revenue shortfall or to return any excess WNA revenue shall be applied during each month of the upcoming WNA period. An annual review shall be performed of the Company’s books and records for each seven month period beginning with October and ending with the subsequent April to determine the amount of over or under collection by customer class occurring during such seven month period. The audit shall determine: (a) the total amount of volumetric revenues collected from customers, including WNA revenues, (b) the Base Load revenues collected from customers using the Base Load per customer as established in the most recent rate case multiplied by the number of customers during the period, (c) the difference between the volumetric revenues collected from customers and the Base Load, which represents the weather-sensitive revenues billed, (d) the calculated WNA revenues determined by the operation of the provisions of this weather normalization adjustment clause, and (e) the amount of any over or under collection of WNA revenues from operation of the provisions of this clause. Determination and Application of the Reconciliation Component If the Reconciliation Audit reflects either an over recovery or under recovery of revenues in any rate class, such amount, if any, shall be divided by the gas sales volumes by rate class, adjusted for the effects of weather, growth, and conservation for the subsequent period beginning with the first full Cycle read in October and ending with the last Cycle read in the following April. The Reconciliation Component so determined to collect any revenue shortfall or to return any excess revenue shall be applied for a seven (7) period beginning with the first full Cycle in October and continuing through the last Cycle in April at which time it will terminate until a new Reconciliation Component is determined. Monthly Report By the 25th day of the following month, the Company will file with the Regulatory Authority a monthly report showing the current rate adjustments for each applicable rate schedule. Supporting documentation will be made available for review upon request.




Rate Schedule 11

RIDER WNA – WEATHER NORMALIZATION ADJUSTMENT Applicable to: All customer classes Page 3 of 3 Effective Date: November 13, 2008 Annual Report By each September 1, the Company will file with the Regulatory Authority an annual report verifying the past year’s WNA collections or refunds, which shall include but not necessarily be limited to:

1. A schedule of the actual gas sales volumes and respective revenues by rate class by month for the seven months ending April 30, with revenues collected via this clause identified separately.

2. A schedule of the weather normalized volumes and respective revenues by rate class for

the seven months ending April 30 using the methodology adopted in the most recent rate case.

3. A calculation of the difference between the actual gas sales volumes and revenues by rate

class and the weather normalized gas sales volumes and revenues.

4. A schedule showing the difference between the total amount to be collected or refunded through the annual reconciliation component and the actual amount collected or refunded during the same period.


Rate Schedule 12

RATE PGA – PURCHASED GAS ADJUSTMENT TARIFF Applicable to: All customer classes. Page 1 of 4 Effective Date: November 13, 2008 Purpose and Intent This provision is intended to allow collection of the gas purchase costs of SiEnergy, L.P., (hereinafter "SiEnergy'' or the "Company'') in a manner that will lessen monthly fluctuations in the Purchased Gas Adjustment and ensure that actual costs billed to customers are fully reconciled with actual costs incurred, subject to limitations for excessive lost and unaccounted for gas. The billing methods set forth herein are intended to be followed to the extent the goals are realized. To the extent billing methods fail to achieve these goals, the methodology shall be revised and a revised tariff filed to reflect such revisions. SiEnergy will make appropriate regulatory filings and obtain regulatory approvals, as required, before making changes to its rates. Applicability This clause shall apply to all SiEnergy gas tariffs that incorporate this Purchased Gas Adjustment tariff provision and which have been properly filed and implemented with the appropriate jurisdictional authority. Definitions Standard Cubic Foot of Gas - the amount of gas contained in one (1) cubic foot of space at a standard pressure of fourteen and sixty-five hundredths (14.65) pounds per square inch, absolute and a standard temperature of sixty (60) degrees Fahrenheit. Ccf- one hundred standard cubic feet of gas. Mcf - one thousand standard cubic feet of gas. Purchased Gas Volumes - The volumes of gas, expressed in Mcfs, purchased by the Company and received into the Company's distribution systems from all sources, including withdrawals from storage, and excluding gas injected into storage. Purchased Gas Cost(s) - The total cost of Purchased Gas Volumes, as received into the Company's distribution systems, all as more specifically described herein. Weighted Average Cost of Gas - The Purchased Gas Costs divided by the Purchased Gas Volumes, calculated on a monthly basis, and expressed as dollars per Mcf. Billed Gas Volumes - The volumes of gas billed to customers, plus volumes of gas billed to third parties following losses or damages, expressed in Mcfs.


Rate Schedule 12

RATE PGA – PURCHASED GAS ADJUSTMENT TARIFF Applicable to: All customer classes. Page 2 of 4 Effective Date: November 13, 2008 Billed Gas Revenues - The total amount of revenues attributable to billings by SiEnergy for Purchased Gas Costs during a given period, exclusive of any billings for any Reconciliation Adjustment during the same period. Lost and Unaccounted for Gas (LUG) - Purchased Gas Volumes minus the sum of Billed Gas Volumes and metered Company used gas. Purchased Gas Adjustment (PGA) - An Adjustment on each customer's monthly bill, expressed in dollars per Ccf, to reflect the Purchase Gas Costs and the Reconciliation Adjustment, all as more specifically described herein. Annual Review Period - The 12 month period ending June 30 of each year. Annual Review - An annual review of the Company's records covering the l2-month period ending June 30 to determine LUG volumes and any imbalances between the Purchased Gas Costs and Billed Gas Revenues existing at the end of the Annual Review Period. Annual Imbalance Total - The total amount determined through the Annual Review to be credited or surcharged to customers' bills in order to balance Purchased Gas Costs with Billed Gas Revenues. Reconciliation Adjustment - A credit or surcharge included in the Purchased Gas Adjustment to reflect the pro-rated adjustment in billings for any over or under collections on an annual basis. Record Keeping The Company shall keep accurate records of all gas metered in and out of its system, gas purchases, and Company-owned gas injected into and withdrawn from storage, and any adjustments relative to any imbalances. The records shall include date, quantity, and cost details for all gas handled. Purchased Gas Cost Calculation The Purchased Gas Cost shall be determined for each month to fairly and accurately reflect the cost to the Company at the points of delivery into the Company's distribution systems. The determination shall include, but not be limited to, volumetric and demand charges for Purchased Gas Volumes, fees paid to others where such fees are integrally tied to the purchase or transportation of gas purchased by SiEnergy, pipeline transportation charges (both volumetric and demand), and gas storage charges (both volumetric and demand).


Rate Schedule 12

RATE PGA – PURCHASED GAS ADJUSTMENT TARIFF Applicable to: All customer classes. Page 3 of 4 Effective Date: November 13, 2008 The Company shall account for gas injected into and withdrawn from storage on a weighted average cost basis. Purchased Gas Adjustment Calculation Each customer bill shall include a Purchased Gas Adjustment reflecting the estimated Weighted Average Cost of Gas for the period covered by the bill, which estimate shall include, as applicable, a pro-rata amount to adjust for previous over or under estimates of the Weighted Average Cost of Gas, plus a Reconciliation Adjustment to account for any Annual Imbalance Total. Annual Review For each Annual Review Period, the Company shall determine (i) the amount of any imbalance between the Purchased Gas Costs and Billed Gas Revenues, and (ii) the LUG volume for the Annual Review Period. As limited by the LUG volume limitation set forth below, the Annual Imbalance Total shall then be credited or surcharged to the customers' bills over a twelve month period commencing each September 1 following the Annual Review Period. Accrual Imbalance Total - LUG Volume less than five percent of Purchased Gas Volumes or LUG Volume is negative If the Annual Review shows the LUG volume for the Annual Review Period to be less than five percent of the Purchased Gas Volumes, or if the LUG volume is negative (indicating a line gain), the Accrual Imbalance Total shall be the difference between the total Purchased Gas Cost and the total Billed Gas Revenues for the Annual Review Period. Annual Imbalance Total - LUG Volume is positive and is greater than five percent of Purchased Gas Volumes If the Annual Review shows the LUG volume for the Annual Review Period to be positive and to be greater than five percent of the Purchased Gas Volumes, the Annual Imbalance Total shall be determined as follows:

The difference between the total Purchased Gas Costs and the total Billed Gas Revenues for the Annual Review Period shall be determined;

Minus, the Purchased Gas Costs attributable to LUG volumes in excess of 5% of the

Purchase Gas Volumes, using the Company's Weighted Average Cost of Purchased Gas for the Review Period.


Rate Schedule 12

RATE PGA – PURCHASED GAS ADJUSTMENT TARIFF Applicable to: All customer classes. Page 4 of 4 Effective Date: November 13, 2008 Reconciliation Adjustment Calculation The Annual Imbalance Total (whether positive or negative) shall be credited or surcharged over twelve months in equal total amounts per month. The recovery shall be through a Reconciliation Adjustment included in the Purchased Gas Adjustment. The Reconciliation Adjustment for each month shall be determined as follows:

Each month of the twelve-month reconciliation period, the Reconciliation Adjustment, expressed in Ccfs, shall be calculated by dividing the amount to be credited or surcharged during that month (which amount shall include, as necessary, an amount to correct for any previous over or under estimates of Billed Gas Volumes during the previous month or months in the same reconciliation period), by the estimated Billed Gas Volumes for the month.

At the end of each l2-month period, any remaining balance in the Annual Imbalance Total

shall be included in any Annual Imbalance Total to be credited or surcharged during the successor l2 -month period.

Annual Reconciliation Report ANNUAL RECONCILIATION REPORT The Company shall file an Annual Reconciliation Report with the Regulatory Authority which shall include but not necessarily be limited to:

1. A tabulation of volumes of gas purchased and costs incurred listed by account or type of gas, supplier and source by month for the twelve months ending June 30.

2. A tabulation of gas units sold to general service customers and related Cost of Gas Clause revenues.

3. A description of all other costs and refunds made during the year and their effect on the Cost of Gas Clause to date.

4. A description of the imbalance payments made to and received from the Company's transportation customers within the service area, including monthly imbalances incurred, the monthly imbalances resolved, and the amount of the cumulative imbalance. The description should reflect the system imbalance and imbalance amount for each supplier using the Company's distribution system during the reconciliation period.



Rate Schedule TFF

RATE TFF – TAXES AND FRANCHISE FEES Applicable to: All Customers Subject to System Wide Rates as Identified on Rate Schedule SA Effective Date: February 9, 2018 Page 1 of 1 Application of Schedule This Rate Schedule shall apply to all SiEnergy Rate Schedules that incorporate this Rate TFF provision. Taxes (Does Not Include City Franchise Fees) In addition to the monthly charges billed to each Customer under each Rate Schedule applicable to that Customer, Customers shall reimburse the Company for their proportionate part of any tax, charge, impost, assessment or fee of whatever kind and by whatever name (except ad valorem taxes, payroll taxes, and income taxes) levied upon the Company by any governmental authority under any law, rule, regulation, ordinance, or agreement (hereinafter referred to as “the Taxes”). If the law, rule, regulation, ordinance, or agreement levying the Tax specifies a method of collection from Customers, then the method so specified shall be utilized provided such method results in the collection of the Taxes from the Customers equal to the Taxes levied on the Company. If no method of collection is specified, then the Company shall collect an amount calculated as a percentage of the Customers’ bills applicable directly to those Customers located solely within the jurisdiction imposing the Taxes and/or within the jurisdiction where the Taxes are applicable. The percentage shall be determined so that the collection from Customers within the Company’s different legal jurisdictions (municipal or otherwise defined) is equal to the Taxes levied on the Company after allowing for the Taxes applicable to those collections. The initial Tax Adjustment Rate shall be based on the Taxes that are levied upon the Company on the effective date of this Rate Schedule. The Company will initiate a new or changed Tax Adjustment Rate beginning with the billing cycle immediately following the effective date of the new or changed Tax as specified by the applicable law, rule, regulation, ordinance, or agreement, provided that the Company has the Customer billing data necessary to bill and collect the Tax. If at any time there is a significant change that will cause an unreasonable over- or under-collection of the Taxes, the Company will adjust the Tax Adjustment Rate so that such over- or under-collection will be minimized. The Tax Adjustment Rate (calculated on a per Ccf or per Mcf basis, as appropriate) shall be reported to the applicable governmental authority by the last business day of the month in which the Tax Adjustment Rate became effective. City Franchise Fees In addition to the monthly charges billed to each Customer under each Rate Schedule applicable to that Customer, and in addition to the Taxes billed to each Customer as defined above, the monthly bill for Customers who are located inside the corporate limits of an incorporated municipality that imposes a municipal franchise fee upon Company for the Gas Service provided to Customer shall reimburse the Company for an amount equal to the municipal franchise fees payable for the Gas Service provided to the Customer by Company. Municipal franchise fees are


determined by each municipality’s franchise ordinance. Each municipality’s franchise ordinance will specify the percentage and applicability of franchise fees. Customers located in unincorporated areas will not be assessed a City Franchise Fee.


Rate Schedule QSR

SCHEDULE QSR – QUALITY OF SERVICE RULES Applicable to: Entire System Effective Date: November 13, 2008 Page 1 of 14 Application of Schedule Applicable to all Customer classes in all areas. At a minimum, SiEnergy shall adhere to the Quality of Service requirements in the Railroad Commission of Texas Substantive Rules, Section 7.45.

Texas Administrative Code TITLE 16

ECONOMIC REGULATION PART 1

RAILROAD COMMISSION OF TEXAS CHAPTER 7

GAS SERVICES DIVISION SUBCHAPTER B

SPECIAL PROCEDURAL RULES RULE §7.45 Quality of Service

For gas utility service to residential and small commercial Customers, the following minimum service standards shall be applicable in unincorporated areas. In addition, each gas distribution utility is ordered to amend its service rules to include said minimum service standards within the utility service rules applicable to residential and small commercial Customers within incorporated areas, but only to the extent that said minimum service standards do not conflict with standards lawfully established within a particular municipality for a gas distribution utility. Said gas distribution utility shall file service rules incorporating said minimum service standards with the Railroad Commission and with the municipalities in the manner prescribed by law. (1) Continuity of service. (A) Service interruptions.

(i) Every gas utility shall make all reasonable efforts to prevent interruptions of service. When interruptions occur, the utility shall reestablish service within the shortest possible time consistent with prudent operating principles so that the smallest number of Customers are affected. (ii) Each utility shall make reasonable provisions to meet emergencies resulting from failure of service, and each utility shall issue instructions to its employees covering procedures to be followed in the event of an emergency in order to prevent or mitigate interruption or impairment of service. (iii) In the event of national emergency or local disaster resulting in disruption of normal service, the utility may, in the public interest, interrupt service to other Customers to provide necessary service to civil defense or other emergency service agencies on a temporary basis until normal service to these agencies can be restored.


Rate Schedule QSR


(B) Record of interruption. Except for momentary interruptions which do not cause a major disruption of service, each utility shall keep a complete record of all interruptions, both emergency and scheduled. This record shall show the cause of interruptions, date, time duration, location, approximate number of Customers affected, and, in cases of emergency interruptions, the remedy and steps taken to prevent recurrence. (C) Report to commission. The commission shall be notified in writing within 48 hours of interruptions in service affecting the entire system or any major division thereof lasting more than four hours. The notice shall also state the cause of such interruptions. If any service interruption is reported to the commission otherwise (for example, as a curtailment report or safety report), such other report is sufficient to comply with the terms of this paragraph.

(2) Customer relations. (A) Information to Customers. Each utility shall:

(i) maintain a current set of maps showing the physical locations of its facilities. All distribution facilities shall be labeled to indicate the size or any pertinent information which will accurately describe the utility's facilities. These maps, or such other maps as may be required by the regulatory authority, shall be kept by the utility in a central location and will be available for inspection by the regulatory authority during normal working hours. Each business office or service center shall have available up-to-date maps, plans, or records of its immediate area, with such other information as may be necessary to enable the utility to advise applicants and others entitled to the information as to the facilities available for serving that locality; (ii) assist the Customer or applicant in selecting the most economical rate schedule; (iii) in compliance with applicable law or regulations, notify Customers affected by a change in rates or schedule or classification; (iv) post a notice in a conspicuous place in each business office of the utility where applications for service are received informing the public that copies of the rate schedules and rules relating to the service of the utility as filed with the commission are available for inspection;

(v) upon request inform its Customers as to the method of reading meters; (vi) provide to new Customers, at the time service is initiated or as an insert in the first billing, a pamphlet or information packet containing the following information. This information shall be provided in English and Spanish as necessary to adequately inform the Customers; provided, however, the regulatory authority upon application and a showing of good cause may exempt the utility from the requirement that the information be provided in Spanish:


Rate Schedule QSR


(I) the Customer's right to information concerning rates and services and the Customer's right to inspect or obtain at reproduction cost a copy of the applicable tariffs and service rules. (II) the Customer's right to have his or her meter checked without charge under paragraph (7) of this section, if applicable;

(III) the time allowed to pay outstanding bills; (IV) grounds for termination of service; (V) the steps the utility must take before terminating service;

(VI) how the Customer can resolve billing disputes with the utility and how disputes and health emergencies may affect termination of service;

(VII) information on alternative payment plans offered by the utility; (VIII) the steps necessary to have service reconnected after involuntary termination;

(IX) the appropriate regulatory authority with whom to register a complaint and how to contact such authority; (X) the hours, addresses, and telephone numbers of utility offices where bills may be paid and information may be obtained; and

(XI) the Customer's right to be instructed by the utility how to read his or her meter; (vii) at least once each calendar year, notify Customers that information is available upon request, at no charge to the Customer, concerning the items listed in clause (vi)(I) - (XI) of this subparagraph. This notice may be accomplished by use of a billing insert or a printed statement upon the bill itself.

(B) Customer complaints. Upon complaint to the utility by residential or small commercial Customers either at its office, by letter, or by telephone, the utility shall promptly make a suitable investigation and advise the complainant of the results thereof. If shall keep a record of all complaints which shall show the name and address of the complainant, the date and nature of the complaint, and the adjustment or disposition thereof for a period of one year subsequent to the final disposition of the complaint. (C) Utility response. Upon receipt of a complaint, either by letter or by telephone, from the regulatory authority on behalf of a Customer, the utility shall make a suitable investigation and advise the regulatory authority and complainant of the results thereof. An initial response must be made by the next working day. The utility must make a final and complete response within 15 days from the date of the complaint, unless additional time is granted within the 15-day period. The commission encourages all Customer complaints to be made in writing to assist the regulatory authority in maintaining records of the quality of service of each utility; however, telephone communications will be acceptable.


Rate Schedule QSR


(D) Deferred payment plan. The utility is encouraged to offer a deferred payment plan for delinquent residential accounts. If such a plan is offered, it shall conform to the following guidelines:

(i) Every deferred payment plan entered into due to the Customer's inability to pay the outstanding bill in full must provide that service will not be discontinued if the Customer pays current bills and a reasonable amount of the outstanding bill and agrees to pay the balance in reasonable installments until the bill is paid. (ii) For purposes of determining reasonableness under these rules, the following shall be considered: size of delinquent account; Customer's ability to pay; Customer's payment history; time that the debt has been outstanding; reasons why debt has been outstanding; and other relevant factors concerning the circumstances of the Customer. (iii) A deferred payment plan, if reduced to writing, offered by a utility shall state, immediately preceding the space provided for the Customer's signature and in bold-face print at least two sizes larger than any other used, that: "If you are not satisfied with this agreement, do not sign. If you are satisfied with this agreement, you give up your right to dispute the amount due under the agreement except for the utility's failure or refusal to comply with the terms of this agreement." (iv) A deferred payment plan may include a one-time 5.0% penalty for late payment on the original amount of the outstanding bill with no prompt payment discount allowed except in cases where the outstanding bill is unusually high as a result of the utility's error (such as an inaccurately estimated bill or an incorrectly read meter). A deferred payment plan shall not include a finance charge. (v) If a Customer for utility service has not fulfilled terms of a deferred payment agreement or refuses to sign the same if it is reduced to writing, the utility shall have the right to disconnect pursuant to disconnection rules herein and, under such circumstances, it shall not be required to offer a subsequent negotiation of a deferred payment agreement prior to disconnection. (vi) Any utility which institutes a deferred payment plan shall not refuse a Customer participation in such a program on the basis of race, color, creed, sex, marital status, age, or any other form of discrimination prohibited by law.


Rate Schedule QSR

SCHEDULE QSR – QUALITY OF SERVICE RULES Applicable to: Entire System Effective Date: November 13, 2008 Page 5 of 14 (E) Delayed payment of bills by elderly persons. (i) Applicability. This subparagraph applies only to:

(I) a utility that assesses late payment charges on residential Customers and that suspends service before the 26th day after the date of the bill for which collection action is taken;

(II) utility bills issued on or after August 30, 1993; and (III) an elderly person, as defined in clause (ii) of this subparagraph, who is a residential Customer and who occupies the entire premises for which a delay is requested.

(ii) Definitions. (I) Elderly person--A person who is 60 years of age or older.

(II) Utility--A gas utility or municipally owned utility, as defined in Texas Utilities Code, §§101.003(7), 101.003(8), and 121.001 - 121.006.

(iii) An elderly person may request that the utility implement the delay for either the most recent utility bill or for the most recent utility bill and each subsequent utility bill. (iv) On request of an elderly person, a utility shall delay without penalty the payment date of a bill for providing utility services to that person until the 25th day after the date on which the bill is issued. (v) The utility may require the requesting person to present reasonable proof that the person is 60 years of age or older. (vi) Every utility shall notify its Customers of this delayed payment option no less often than yearly. A utility may include this notice with other information provided pursuant to subparagraph (A) of this paragraph.

(3) Refusal of service.

(A) Compliance by applicant. Any utility may decline to serve an applicant for whom service is available from previously installed facilities until such applicant has complied with the state and municipal regulations and approved rules and regulations of the utility on file with the commission governing the service applied for or for the following reasons.

(i) Applicant's facilities inadequate. If the applicant's installation or equipment is known to be hazardous or of such character that satisfactory service cannot be given. (ii) For indebtedness. If the applicant is indebted to any utility for the same kind of service as that applied for; provided, however, that in the event the indebtedness of the applicant for service is in dispute, the applicant shall be served upon complying with the applicable deposit requirement. (iii) Refusal to make deposit. For refusal to make a deposit if applicant is required to make a deposit under these rules.


Rate Schedule QSR


(B) Applicant's recourse. In the event that the utility shall refuse to serve an applicant under the provisions of these rules, the utility must inform the applicant of the basis of its refusal and that the applicant may file a complaint with the municipal regulatory authority or commission, whichever is appropriate. (C) Insufficient grounds for refusal to serve. The following shall not constitute sufficient cause for refusal of service to a present Customer or applicant:

(i) delinquency in payment for service by a previous occupant of the premises to be served; (ii) failure to pay for merchandise or charges for nonutility service purchased from the utility; (iii) failure to pay a bill to correct previous underbilling due to misapplication of rates more than six months prior to the date of application; (iv) violation of the utility's rules pertaining to operation of nonstandard equipment or unauthorized attachments which interfere with the service of others unless the Customer has first been notified and been afforded reasonable opportunity to comply with these rules; (v) failure to pay a bill of another Customer as guarantor thereof unless the guarantee was made in writing to the utility as a condition precedent to service; and (vi) failure to pay the bill of another Customer at the same address except where the change of Customer identity is made to avoid or evade payment of a utility bill.

(4) Discontinuance of service.

(A) The due date of the bill for utility service shall not be less than 15 days after issuance, or such other period of time as may be provided by order of the regulatory authority. A bill for utility service is delinquent if unpaid by the due date. (B) A utility may offer an inducement for prompt payment of bills by allowing a discount in the amount of 5.0% for payment of bills within 10 days after their issuance. This provision shall not apply where it conflicts with existing orders or ordinances of the appropriate regulatory authority. (C) A Customer's utility service may be disconnected if the bill has not been paid or a deferred payment plan pursuant to paragraph (2)(D) of this section has not been entered into within five working days after the bill has become delinquent and proper notice has been given. Proper notice consists of a deposit in the United States mail, postage prepaid, or hand delivery to the Customer at least five working days prior to the stated date of disconnection, with the words "Termination Notice" or similar language prominently displayed on the notice.


Rate Schedule QSR


The notice shall be provided in English and Spanish as necessary to adequately inform the Customer, and shall include the date of termination, the hours, address, and telephone number where payment may be made, and a statement that if a health or other emergency exists, the utility may be contacted concerning the nature of the emergency and the relief available, if any, to meet such emergency.

(D) Utility service may be disconnected for any of the following reasons: (i) failure to pay a delinquent account or failure to comply with the terms of a deferred payment plan for installment payment of a delinquent account; (ii) violation of the utility's rules pertaining to the use of service in a manner which interferes with the service of others or the operation of nonstandard equipment, if a reasonable attempt has been made to notify the Customer and the Customer is provided with a reasonable opportunity to remedy the situation; (iii) failure to comply with deposit or guarantee arrangements where required by paragraph (5) of this section; (iv) without notice where a known dangerous condition exists for as long as the condition exists;

(v) tampering with the utility company's meter or equipment or bypassing the same. (E) Utility service may not be disconnected for any of the following reasons: (i) delinquency in payment for service by a previous occupant of the premises; (ii) failure to pay for merchandise or charges for nonutility service by the utility;

(iii) failure to pay for a different type or class of utility service unless fee for such service is included on the same bill; (iv) failure to pay the account of another Customer as guarantor thereof, unless the utility has in writing the guarantee as a condition precedent to service; (v) failure to pay charges arising from an underbilling occurring due to any misapplication of rates more than six months prior to the current billings; (vi) failure to pay charges arising from an underbilling due to any faulty metering, unless the meter has been tampered with or unless such underbilling charges are due; (vii) failure to pay an estimated bill other than a bill rendered pursuant to an approved meter reading plan, unless the utility is unable to read the meter due to circumstances beyond its control.

(F) Unless a dangerous condition exists, or unless the Customer requests disconnection, service shall not be disconnected on a day, or on a day immediately preceding a day, when personnel of the utility are not available to the public for the purpose of making collections and reconnecting service. (G) No utility may abandon a Customer without written approval from the regulatory authority.


Rate Schedule QSR


(H) No utility may discontinue service to a delinquent residential Customer permanently residing in an individually metered dwelling unit when that Customer establishes that discontinuance of service will result in some person residing at that residence becoming seriously ill or more seriously ill if the service is discontinued. Any Customer seeking to avoid termination of service under this section must make a written request supported by a written statement from a licensed physician. Both the request and the statement must be received by the utility not more than five working days after the date of delinquency of the bill. The prohibition against service termination provided by this section shall last 20 days from the date of receipt by the utility of the request and statement or such lesser period as may be agreed upon by the utility and the Customer. The Customer who makes such request shall sign an installment agreement which provides for payment of such service along with timely payments for subsequent monthly billings.

(5) Applicant deposit.

(A) Establishment of credit for residential applicants. Each utility may require a residential applicant for service to satisfactorily establish credit but such establishment of credit shall not relieve the Customer from complying with rules for prompt payment of bills. Subject to these rules, a residential applicant shall not be required to pay a deposit:

(i) if the residential applicant has been a Customer of any utility for the same kind of service within the last two years and is not delinquent in payment of any such utility service account and during the last 12 consecutive months of service did not have more than one occasion in which a bill for such utility service was paid after becoming delinquent and never had service disconnected for nonpayment; (ii) if the residential applicant furnishes in writing a satisfactory guarantee to secure payment of bills for the service required; or (iii) if the residential applicant furnishes in writing a satisfactory credit rating by appropriate means, including, but not limited to, the production of generally acceptable credit cards, letters of credit reference, the names of credit references which may be quickly and inexpensively contacted by the utility, or ownership of substantial equity.

(B) Reestablishment of credit. Every applicant who has previously been a Customer of the utility and whose service has been discontinued for nonpayment of bills shall be required before service is rendered to pay all his amounts due the utility or execute a written deferred payment agreement, if offered, and reestablish credit as provided in subparagraph (A) of this paragraph.


Rate Schedule QSR

SCHEDULE QSR – QUALITY OF SERVICE RULES Applicable to: Entire System Effective Date: November 13, 2008 Page 9 of 14 (C) Amount of deposit and interest for residential service, and exemption from deposit.

(i) Each gas utility shall waive any deposit requirement for residential service for an applicant who has been determined to be a victim of family violence as defined in Texas Family Code, §71.004, by a family violence center, by treating medical personnel, by law enforcement agency personnel, or by a designee of the Attorney General in the Crime Victim Services Division of the Office of the Attorney General. This determination shall be evidenced by the applicant's submission of a certification letter developed by the Texas Council on Family Violence and made available on its web site. (ii) The required deposit shall not exceed an amount equivalent to one-sixth of the estimated annual billings. If actual use is at least twice the amount of the estimated billings, a new deposit requirement may be calculated and an additional deposit may be required within two days. If such additional deposit is not made, the utility may disconnect service under the standard disconnection procedure for failure to comply with deposit requirements. (iii) All applicants for residential service who are 65 years of age or older will be considered as having established credit if such applicant does not have an outstanding account balance with the utility or another utility for the same utility service which accrued within the last two years. No cash deposit shall be required of such applicant under these conditions. (iv) Each utility which requires deposits to be made by its Customers shall pay a minimum interest on such deposits according to the rate as established by law. If refund of deposit is made within 30 days of receipt of deposit, no interest payment is required. If the utility retains the deposit more than 30 days, payment of interest shall be made retroactive to the date of deposit.

(I) Payment of interest to the Customer shall be annually or at the time the deposit is returned or credited to the Customer's account. (II) The deposit shall cease to draw interest on the date it is returned or credited to the Customer's account.

(D) Deposits for temporary or seasonal service and for weekend or seasonal residences. The utility may require a deposit sufficient to reasonably protect it against the assumed risk, provided such a policy is applied in a uniform and nondiscriminatory manner.


Rate Schedule QSR

SCHEDULE QSR – QUALITY OF SERVICE RULES Applicable to: Entire System Effective Date: November 13, 2008 Page 10 of 14 (E) Records of deposits. (i) The utility shall keep records to show: (I) the name and address of each depositor; (II) the amount and date of the deposit; and (III) each transaction concerning the deposit.

(ii) The utility shall issue a receipt of deposit to each applicant from whom a deposit is received and shall provide means whereby a depositor may establish claim if the receipt is lost. (iii) A record of each unclaimed deposit must be maintained for at least four years, during which time the utility shall make a reasonable effort to return the deposit.

(F) Refund of deposit. (i) If service is not connected or after disconnection of service, the utility shall promptly and automatically refund the Customer's deposit plus accrued interest on the balance, if any, in excess of the unpaid bills for service furnished. The transfer of service from one premise to another within the service area of the utility shall not be deemed a disconnection within the meaning of these rules, and no additional deposit may be demanded unless permitted by these rules. (ii) When the Customer has paid bills for service for 12 consecutive residential bills without having service disconnected for nonpayment of bill and without having more than two occasions in which a bill was delinquent and when the Customer is not delinquent in the payment of the current bills, the utility shall promptly and automatically refund the deposit plus accrued interest to the Customer in the form of cash or credit to a Customer's account.

(G) Upon sale or transfer of utility or company. Upon the sale or transfer of any public utility or operating units thereof, the seller shall file with the commission under oath, in addition to other information, a list showing the names and addresses of all Customers served by such utility or unit who have to their credit a deposit, the date such deposit was made, the amount thereof, and the unpaid interest thereon. (H) Complaint by applicant or Customer. Each utility shall direct its personnel engaged in initial contact with an applicant or Customer for service seeking to establish or reestablish credit under the provisions of these rules to inform the Customer, if dissatisfaction is expressed with the utility's decision, of the Customer's right to file a complaint with the regulatory authority thereon.


Rate Schedule QSR

SCHEDULE QSR – QUALITY OF SERVICE RULES Applicable to: Entire System Effective Date: November 13, 2008 Page 11 of 14 (6) Billing.

(A) Bills for gas service shall be rendered monthly, unless otherwise authorized or unless service is rendered for a period less than a month. Bills shall be rendered as promptly as possible following the reading of meters. (B) The Customer's bill must show all the following information. The information must be arranged and displayed in such a manner as to allow the Customer to compute his bill with the applicable rate schedule. The applicable rate schedule must be mailed to the Customer on request of the Customer. A utility may exhaust its present stock of nonconforming bill forms before compliance is required by this section:

(i) if the meter is read by the utility, the date and reading of the meter at the beginning and end of the period for which rendered;

(ii) the number and kind of units billed; (iii) the applicable rate schedule title or code; (iv) the total base bill;

(v) the total of any adjustments to the base bill and the amount of adjustments per billing unit;

(vi) the date by which the Customer must pay the bill to get prompt payment discount; (vii) the total amount due before and after any discount for prompt payment within a designated period;

(viii) a distinct marking to identify an estimated bill. (C) Where there is good reason for doing so, estimated bills may be submitted, provided that an actual meter reading is taken at least every six months. For the second consecutive month in which the meter reader is unable to gain access to the premises to read the meter on regular meter reading trips, or in months where meters are not read otherwise, the utility must provide the Customer with a postcard and request that the Customer read the meter and return the card to the utility if the meter is of a type that can be read by the Customer without significant inconvenience or special tools or equipment. If such a postcard is not received by the utility in time for billing, the utility may estimate the meter reading and render the bill accordingly.

(D) Disputed bills. (i) In the event of a dispute between the Customer and the utility regarding the bill, the utility must forthwith make such investigation as is required by the particular case and report the results thereof to the Customer. If the Customer wishes to obtain the benefits of clause (ii) of this subparagraph, notification of the dispute must be given to the utility prior to the date the bill becomes delinquent. In the event the dispute is not resolved, the utility shall inform the Customer of the complaint procedures of the appropriate regulatory authority.


Rate Schedule QSR


(ii) Notwithstanding any other subsection of this section, the Customer shall not be required to pay the disputed portion of the bill which exceeds the amount of that Customer's average usage for the billing period at current rates until the earlier of the following: resolution of the dispute or the expiration of the 60-day period beginning on the day the disputed bill is issued. For purposes of this section only, the Customer's average usage for the billing period shall be the average of the Customer's usage for the same billing period during the preceding two years. Where no previous usage history exists, the average usage shall be estimated on the basis of usage levels of similar Customers and under similar conditions.

(7) Meters. (A) Meter requirements.

(i) Use of meter. All gas sold by a utility must be charged for by meter measurements, except where otherwise provided for by applicable law, regulation of the regulatory authority, or tariff. (ii) Installation by utility. Unless otherwise authorized by the regulatory authority, each utility must provide and install and will continue to own and maintain all meters necessary for measurement of gas delivered to its Customers. (iii) Standard type. No utility may furnish, set up, or put in use any meter which is not reliable and of a standard type which meets generally accepted industry standards; provided, however, special meters not necessarily conforming to such standard types may be used for investigation, testing, or experimental purposes.

(B) Meter records. Each utility must keep the following records: (i) Meter equipment records. Each utility must keep a record of all its meters, showing the Customer's address and date of the last test. (ii) Records of meter tests. All meter tests must be properly referenced to the meter record provided for therein. The record of each test made on request of a Customer must show the identifying number and constants of the meter, the standard meter and other measuring devices used, the date and kind of test made, by whom made, the error (or percentage of accuracy) at each load tested, and sufficient data to permit verification of all calculations. (iii) Meter readings--meter unit location. In general, each meter must indicate clearly the units of service for which charge is made to the Customer.


Rate Schedule QSR


(iv) Meter tests on request of Customer.

(I) Each utility must, upon request of a Customer, make a test of the accuracy of the meter serving that Customer. The utility must inform the Customer of the time and place of the test and permit the Customer or his authorized representative to be present if the Customer so desires. If no such test has been performed within the previous four years for the same Customer at the same location, the test is to be performed without charge. If such a test has been performed for the same Customer at the same location within the previous four years, the utility is entitled to charge a fee for the test not to exceed $15 or such other fee for the testing of meters as may be set forth in the utility's tariff properly on file with the regulatory authority. The Customer must be properly informed of the result of any test on a meter that serves him. (II) Notwithstanding subclause (I) of this clause, if the meter is found to be more than nominally defective, to either the Customer's or the utility's disadvantage, any fee charged for a meter test must be refunded to the Customer. More than nominally defective means a deviation of more than 2.0% from accurate registration.

(v) Bill adjustments due to meter error. (I) If any meter test reveals a meter to be more than nominally defective, the utility must correct previous readings consistent with the inaccuracy found in the meter for the period of either:

(-a-) the last six months; or (-b-) the last test of the meter, whichever is shorter. Any resulting underbillings or overbillings are to be corrected in subsequent bills, unless service is terminated, in which event a monetary adjustment is to be made. This requirement for a correction may be foregone by the utility if the error is to the utility's disadvantage.

(II) If a meter is found not to register for any period of time, the utility may make a charge for units used but not metered for a period not to exceed three months previous to the time the meter is found not to be registering. The determination of amounts used but not metered is to be based on consumption during other like periods by the same Customer at the same location, when available, and on consumption under similar conditions at the same location or of other similarly situated Customers, when not available.

(8) New construction. (A) Standards of construction. Each utility is to construct, install, operate, and maintain its plant, structures, equipment, and lines in accordance with the provisions of such codes and standards as are generally accepted by the industry, as modified by rule or regulation of the regulatory authority or otherwise by law, and in such manner to best accommodate the public and to prevent interference with service furnished by other public utilities insofar as practical.


Rate Schedule QSR


(B) Line extension and construction charges. Every utility must file its extension policy. The policy must be consistent, nondiscriminatory, and is subject to the approval of the regulatory authority. No contribution in aid of construction may be required of any Customer except as provided for in extension policy. (C) Response to request for service. Every gas utility must serve each qualified applicant for service within its service area as rapidly as practical. As a general policy, those applications not involving line extensions or new facilities should be filled within seven working days. Those applications for individual residential service requiring line extensions should be filled within 90 days unless unavailability of materials or other causes beyond the control of the utility result in unavoidable delays. In the event that residential service is delayed in excess of 90 days after an applicant has met credit requirements and made satisfactory arrangements for payment of any required construction charges, a report must be made to the regulatory authority listing the name of the applicant, location, and cause for delay. Unless such delays are due to causes which are reasonably beyond the control of the utility, a delay in excess of 90 days may be found to constitute a refusal to serve.

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