PROPOSED REVISIONS TO UNION RATE ZONES' DISTRIBUTION NEW BUSINESS GUIDELINES

1. Purpose

• To ensure that customers are treated fairly and consistently.
• To manage growth of the natural gas distribution business by providing guidelines for capital investment to ensure no undue rate impact for existing customers.
• To provide business principles and guidelines for distribution new business investments.
• To streamline administrative processes and approvals where possible.
• To delegate authority where appropriate to field operations staff.

2. Definitions

• Area of Benefit - The Area of Benefit is defined as the geographic area, drawn as a polygon on a map, that includes all customers who will be served by, and benefit from, the infrastructure build or pressure increase from a Development Project where an Hourly Allocation Factor process is used to allocate capital costs based on peak hour capacity.
• Community Expansion Project - A natural gas system expansion project undertaken by the Company for which the PI is less than 1.0 and which will provide first-time natural gas system access to a minimum of 50 potential comers.
• Contribution in Aid of Construction (CIAC) - The Company's calculation in accordance with its feasibility policy of the amount of customer financial