21. An incremental overhead allowance is added to the cost of mains and services and is incorporated in the feasibility analysis of all projects.

Consumption and Revenue

22. For subdivision and residential connections, consumption is estimated based on building type (single, semi-detached, townhouse) and configuration (bungalow, split or two-story). The Capital Project Feasibility ("CAPF") program calculates customer revenue based on consumption levels input by the Customer Connections Representative ("CCR").

23. A load sheet is used to estimate consumption of commercial and industrial connections. The load sheet information is provided by the customer and contains consumption of various appliances installed at the premises.

24. For large volume connections, consumption information should include monthly volumes and the customer's contract daily demand.

25. The Investment Review group calculates revenue, based on the input consumption profiles and the most recent Board-approved rates.

System Expansion Surcharge ("SES") and Temporary Connection Surcharge ("TCS")

26. As set out in Rider I of the Company's Rate Handbook, the Company may apply an SES or TCS to Rate 1 and Rate 6 customers receiving gas distribution services as part of a CE project, SME or Customer Attachment Project. The Company may apply the SES or TCS if the project PI is less than 1.0. The terms and conditions applicable to the SES and TCS are set out in Rider I.