contributions required to reduce the capital cost of a project to serve one or more customers so that the project becomes economically feasible.

• Development Project - a system expansion project that will expand capacity over a certain area to serve increasing demands from existing and/or new customers. It may include a mix of large and small volume customers.

• Distribution New Business - Providing gas service to new customers in all market segments (i.e. new and existing housing, commercial and industrial). It also includes providing incremental gas supply capacity to existing customers.

• Hourly Allocation Factor (HAF) – An allocation of upfront capital costs of a Development Project to customers requiring additional firm service within an identified Area of Benefit. It is derived by dividing the net forecasted capital cost of the project by the forecasted capacity that the project services in the Area of Benefit. The HAF is expressed as a capital cost per m³/hour of incremental capacity.

• Investment Portfolio - The costs and revenues associated with all new distribution customers who are forecast to attach in a particular test year (including new customers attaching on existing mains). The Investment Portfolio includes a forecast of normalized reinforcement costs.

• Profitability Index (PI) – The Company’s calculation in accordance with its feasibility policy of the ratio of the net present value (NPV) of the net cash inflows