Customer Meeting
February 28, 2014
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1
Discovery – Company
answers over 800 data
requests and performs
technical conferences
Jul
Aug
Company
applies for
rate relief
Sept
Parties
engage in
Settlement
Discussions
Oct
Nov
Intervening
parties file
rebuttal
testimony
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Hearings
on
Stipulation
and
remaining
items
Dec
Parties file
Settlement
Stipulation
Jan
Feb
Utah PSC
issues order
effective
3/1/2014
2
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

Revenue Requirement
Cost of Service
Revenue
CostRate
of Service
Requirement
Design
Rate Design
- Basic Service Fee
-
-
GS
Admin Charge
FS
IS
Demand Charge
TS
Volumetric FT-1
Charges
▪ None of theNGV
fees or charges
change the amount
collected
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
Cost Causation
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4

First Stipulation
- Revenue Requirement
- Cost-of-Service
- Rate Design
- Interruption Policy
- FT-1 Qualifying Criteria
- Infrastructure Tracker
- Basic Service Fees
- Interim Studies
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Meter Size
Current
Meter Count
0-700
862,461
701-2,000
22,425
2,001-30,000
30,000 +
9,498
290
Basic Service Fee
Ordered
0-899
900-6,999
7,000-23,999
24,000 +
864,796
27,884
1,598
396
Count
Current
Ordered
$ 5.00
$ 6.75
$ 21.00
$ 18.25
$ 55.00
$ 63.50
$ 244.00
$ 420.25
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Meter Count
7


Interruption Testing will not be conducted
Instead:
- Customer will need to warrant annually that:
▪ They can and will interrupt when called upon to do
so by the Company
▪ They have and maintain a backup system capable
of providing back-up service during an interruption
or are able to fully interrupt when required
▪ They understand and acknowledge the financial and
other consequences associated with a failure to
interrupt
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- Penalty of $40-per-decatherm for all restricted
volumes utilized during an interruption
- All interruptible volumes utilized during
interruption will be moved to a firm rate
schedule for three years
▪ Beginning on July 1st following the failure to interrupt
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Event
Normal Timing
Timing in 2014 only
Written Request
February 15
March 30
Contract Submitted
February 28
April 30
Service Begins
July 1
July 1
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
Basic Service Fee changes

Typical bill increasing $6.02/yr or 1%
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
Basic Service Fee changes

Average bill increasing 1%
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12


Basic Service Fee changes
Weighted average cost of gas (WACOG)
in commodity
- Effective in Fall 2014

Average total bill increase
User
Annual Usage
(Dth)
Average Total
Bill Increase
Low
< 25,000
4%
High
> 25,001
-0.3%
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
Basic Service Fee changes

Change in qualification criteria
Current
Ordered
At least 100,000 Dth, within
5 miles or
At least 350,000 Dth and
At least 4,000,000 Dth
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For every mile you must
have another 225,000 Dth
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

Basic Service Fee changes
Average total bill increase
User
Annual Usage
(Dth)
Average Total
Bill Increase
March 1, 2014
Low
< 30,000
6%
Medium
30,001 – 100,000
3%
High
> 100,001
1%
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15

Moved 60% to full cost in March 2014

Will move 72% to full cost in Fall 2015

Company plans to propose 100% full cost
by July 2016
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
Second Stipulation
- Company withdrew its positions on several
issues related to the TS class
- “Company will work with customers, upstream
pipelines and marketers to better understand
potential solutions”
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