Baltimore Gas and Electric Company Gas Administrative Charge Calculations

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2 PART 1 Reduction to Rider 8 Targets Based on Case No Test Year Data General Reduction in Rider 8 Targets Residential Service Total Credit and Collections 1 $ 1,476,417 $ 106,363 $ 1,582,779 Uncollectible Expense 2 $ 1,081,283 $ 75,046 $ 1,156,328 Billing 3 $ 1,831,293 $ 109,918 $ 1,941,211 PSC Assessment 4 $ 303,892 $ 105,225 $ 409,117 Storage Inventory Carrying Costs 5 $ 1,408,682 $ 896,099 $ 2,304,781 Commodity Cash Working Capital 6 $ 323,472 $ 183,856 $ 507,328 Total $ 6,425,038 $ 1,476,506 $ 7,901,544 Notes 1- See Attachment A 2- See Attachment B 3- See Attachment C 4- See Attachment D 5- See Attachment E 6- See Attachment F Reduction to Rdr 8 - Part 1

3 Attachment A Credit and Collection Expense Calculations A Total Gas Revenue from End Users 1 CN 9484 Supp III.V(c) $ 680,405,000 B Gas Commodity Revenue Included in A CN 9484 Supp III.V(d) 213,045,588 C Percentage of Gas Commodity Revenue to Total Gas B/A 31.31% Revenue from End Users D CN 9484 Gas Credit and Collections Expense CN 9484 Gas allocation of total costs $ 4,944,292 E Estimated Gas Commodity Revenue Portion of Cost in D Above CxD 1,548,058 F Rider 12 - Gas Administrative Charge Credit and Collections Adder E $ 1,548,058 Reduction to Rider 8 Targets Calculation G Total Residential 2017 GCOSS Customer Accounts Expenses $ 19,122,718 H Total General Servic 2017 GCOSS Customer Accounts Expenses $ 1,377,390 I Total Residential and General Service G+H $ 20,500,108 J Percent Allocated to Residential G/I 93.28% K Percent Allocated to General Service H/I 6.72% L Residential portion of Credit and Collections FxJ $ 1,444,028 M Combined GRT and PSC Assessment Rate N Residential reduction to Rider 8 Target L/(1-M) $ 1,476,417 O General Service portion of Credit and Collections FxK 104,029 P Combined GRT and PSC Assessment Rate Q General Service reduction to Rider 8 Target O/(1-P) $ 106,363 1 Excludes Other Gas Revenues and Off System Sales Credit and Collections - Part 1

4 Attachment B Uncollectible Expense Factor Calculations A Total Gas Revenue from End Users 1 CN 9484 Supp III.V(c) $ 680,405,000 B Gas Commodity Revenue Included in A CN 9484 Supp III.V(d) 213,045,588 C Percentage of Gas Commodity Revenue to Total Gas B/A 31.31% Revenue from End Users D CN 9484 TY Gas Uncollectibles Expense CN 9484 Supp III.D $ 3,612,143 E Estimated Gas Commodity Revenue Portion of Cost in D Above CxD $ 1,130,962 F Rider 12 - Gas Administrative Charge Uncollectible Expense Gross Up Rate E/B % Reduction to Rider 8 Targets Calculation G Total Residential 2017 GCOSS Uncollectible Expenses $ 3,664,320 H Total General Service 2017 GCOSS Uncollectible Expenses $ 254,420 I Total Residential and General Service G+H $ 3,918,740 J Percent Allocated to Residential G/I 93.51% K Percent Allocated to General Service H/I 6.49% L Residential portion of Uncollectible Expense FxJ $ 1,057,563 M Combined GRT and PSC Assessment Rate N Residential reduction to Rider 8 Target L/(1-M) $ 1,081,283 O General Service portion of Uncollectible Expense FxK 73,399 P Combined GRT and PSC Assessment Rate Q General Service reduction to Rider 8 Target O/(1-P) $ 75,046 1 Excludes Other Gas Revenues and Off System Sales Uncollectible Expense - Part 1

5 Attachment C GAC Cost Factor and Reduction to Rider 8 Billing Targets Annual Commodity Total Number Total Number Total Number Commodity Billing Costs in GRT and PSC Reduction to of Bills of Bills - DRS of Bills - Sales Price/Bill Base Rates Assessment Rider 8 Target a b c= a-b d e=c*d f g=e/(1-f) CN 9484 Supp III V(a) From 9484 Total Participation CN 8950 Phase III Stip and Agreement, Pg. 3 Total Schedule D 7,553,008 1,622,148 5,930, $/bill $ 1,791, $ 1,831,293 Total Schedule C 524, , , $/bill 107, ,918 1 Excludes CL AMR customers. 8,077,849 1,791,007 6,286,842 $ 1,898,626 $ 1,941,211 Billing - Part 1

6 Attachment D PSC Assessment Calculations Aug 17 - Jun 18 Jul 18 A Gas Commodity Revenue $ 208,785,812 $ 4,259,776 B PSC Assessment Rate CN 9484 PSC Assessment Expenses Associated with $ 391,891 $ 8,251 Gas Commodity Revenues included in Base Rates C Total Sum AxB $ 400,142 D Rider 12 - Gas Administrative Charge PSC Assessment $ 400,142 NOTE: The actual PSC assessment in effect the month the MBR is filed will be used to gross up the Gas Commodity Price Reduction to Rider 8 Targets Calculation E Total Residential 2017 GCOSS PSC Assessment $ 859,770 F Total General Service 2017 GCOSS PSC Assessment $ 297,633 G Total Residential and General Service E+F $ 1,157,403 H Percent Allocated to Residential E/G 74.28% I Percent Allocated to General Service F/G 25.72% J Residential portion of PSC Assessment DxH $ 297,226 K Combined GRT and PSC Assessment Rate L Residential reduction to Rider 8 Target J/(1-K) $ 303,892 M General Service portion of PSC Assessment DxI $ 102,917 N Combined GRT and PSC Assessment Rate O General Service reduction to Rider 8 Target M/(1-N) $ 105,225 PSC Assessment - Part 1

7 A Average Interstate Pipeline Storage Carrying Costs Attachment E Storage Inventory Carrying Costs Calculations 13-Months Avg. - FERC Acct $ 24,881,026 B After-tax ROR¹ 6.56% C Income Tax Gross-Up Factor² D Grossed-Up ROR³ B/C 9.06% E Storage Inventory Carrying Costs Portion in A above A*D $ 2,254,221 Reduction to Rider 8 Targets Calculation F Total Residential 2017 GCOSS Storage Gas $ 19,145,105 G Total General Service 2017 GCOSS Storage Gas $ 12,181,224 H Total Residential and General Service F+G $ 31,326,329 I Percent Allocated to Residential F/H 61.12% J Percent Allocated to General Service G/H 38.88% K Residential portion of Storage Inventory Carrying Costs ExI $ 1,377,780 L Combined GRT and PSC Assessment Rate M Residential Reduction to Rider 8 Target K/(1-L) $ 1,408,682 N General Service portion of Storage Inventory Carrying Costs ExJ $ 876,441 O Combined GRT and PSC Assessment Rate P General Service Reduction to Rider 8 Target N/(1-O) $ 896,099 Notes Weighted Avg. Cost of Capital; Order No as revised by Case No After Tax 1 Debt 1.91% 1.38% Preference 0.00% 0.00% Equity 5.18% 5.18% Calculated After -Tax ROR 6.56% 2 Gross Up Factor % 3 Rate of Return Grossed up for Tax 9.06% 4 Calculation of Gross Up Factor based on the January 31, 2018 TCJA Letter Order Maryland Statutory Tax Rate a 8.25% Federal Statutory Tax Rate b 21.00% Less: Benefit from State Tax Deduction for Federal Purposes c = (a * b) -1.73% Federal Tax Rate Inclusive of Benefit from State Tax Deduction for Federal Purposes d = (b + c) 19.27% Total Rate Inclusive of Benefit from State Tax Deduction for Federal Purposes Final Tax Gross-Up Rate e = (a + d) 27.52% f = (1 - e) % Storage Inventory CarryingCosts - Part 1

8 Attachment F Commodity Cash Working Capital Calculations A Cash Working Capital 1 $ 5,476,807 B After-tax ROR See Attachment E 6.56% C Income Tax Gross-Up Factor See Attachment E D Grossed-Up ROR See Attachment E 9.06% E Commodity Cash Working Capital Costs A*D $ 496,199 Reduction to Rider 8 Targets Calculation F Total Residential 2017 GCOSS Fuel CWC $ 2,724,711 G Total General Service 2017 GCOSS Fuel CWC $ 1,548,363 H Total Residential and General Service F+G $ 4,273,074 I Percent Allocated to Residential F/H 63.76% J Percent Allocated to General Service G/H 36.24% K Residential portion of Storage Inventory Carrying Costs ExI $ 316,376 L Combined GRT and PSC Assessment Rate M Residential Reduction to Rider 8 Target K/(1-L) $ 323,472 N General Service portion of Storage Inventory Carrying Costs ExJ $ 179,822 O Combined GRT and PSC Assessment Rate P General Service Reduction to Rider 8 Target N/(1-O) $ 183,856 1 Calculation follows: 8.6 Lag Days (accepted in CN See AWH - 6a Actual) $636,838 (Average Daily Gas Purchased for Resale Expense for 12 Months ended July 2018) $5,476,807 Commodity CWC - Part 1

9 Effective April 1, 2019 PART 2 Rider 12 - Gas Administrative Charge Adder Target Amount Estimated Commodity Sales Volumes (therms) GAC Adder ($/therm) Nov 18 - Oct 19 Nov 18 - Oct 19 Nov 18 - Oct 19 a b c=a/b Credit and Collections 1 $ 1,442, ,876, Billing 2 $ 1,818, ,876, Storage Inventory Carrying Costs 3 $ 2,128, ,876, Commodity CWC 4 $ 472, ,876, Gross Up Rates Uncollectible Expense % PSC Assessment % Notes 1 See Attachment A. 2 See Attachment B. 3 See Attachment C. 4 See Attachment D. 5 See Part 1 Attachment B, Line Item F 6 PSC Assessment as of this instant filing. The actual PSC Assessment rate in effect the month the MBR is filed will be used to gross up the Gas Commodity Price.

10 Credit and Collections ATTACHMENT A Credit and Collections Expense A Total Gas Revenue from End Users 1 CN 9484 Supp III.V(c) $ 680,405,000 B Gas Commodity Revenue Included in A CN 9484 Supp III.V(d) $ 213,045,588 C Percentage of Gas Commodity Revenue to Total Gas B / A 31.31% Revenue from End Users D CN 9484 Gas Credit and Collections Expense CN 9484 Gas allocation of total costs $ 4,944,292 E Estimated Gas Commodity Revenue Portion of Cost in D Above C x D $ 1,548,058 F Rider 12 - Gas Administrative Charge Credit and Collections Adder E $ 1,548,058 F1 Nov-17-Oct-18 Credit and Collections Target 09/22/17 and 03/01/18 GAC Filings $ 2,260,139 G Nov-17-Oct-18 Actual Sales Volumes - Firm (therms) 2 458,720,585 H Nov-17-Oct-18 Credit and Collections GAC Adders ($/therm) 09/22/17 and 03/01/18 GAC Filings I Nov-17-Oct-18 Actual Credit and Collections G x H $ 2,385,347 J Nov-17-Oct-18 True-up for volumes F1 - I $ (125,208) J1 Sep and Oct-17 True-up for volumes Att A-1 $ 19,271 K Nov 18 - Oct 19 Credit and Collections Target F + J + J1 $ 1,442,121 Notes 1 Excludes Other Gas Revenues and Off System Sales 2 Nov Aug 2018 Based on 10 months actual Sep Oct months estimated

11 FOR INFORMATIONAL PURPOSES ONLY NO CHANGES FROM SEPTEMBER 2018 FILING Credit and Collections September and October-17 Volume True-Up Attachment A-1 Estimated Actual Credit & Difference Volume Volume Difference Collections Rate Estimate - Actual (therms) (therms) (therms) ($/therm) a b c = a - b d e = c x d Sep-17 8,839,666 10,266,620 (1,426,954) $ (7,420) Oct-17 20,394,433 15,261,490 5,132, $ 26,691 $ 19,271 Note: Below are the amounts that will be used in next year's filing to true-up September and October current estimates: Therms September ,040,390 October ,727,254

12 FOR INFORMATIONAL PURPOSES ONLY NO CHANGES FROM SEPTEMBER 2018 FILING Billing Attachment B A Nov 18 - Oct 19 Estimated # of Bills 6,360,563 CN 8950 B Price per bill Stip & Agreement $ C Nov 18 - Oct 19 Preliminary Estimated Billing Target A x B $ 1,920,890 D Nov-17-Oct-18 Billing Target (from previous filing) $ 2,152,611 E Nov-17-Oct-18 Actual # of Bills 1 6,304,996 F Nov-17-Oct-18 Estimated # of Bills (from previous filing) 6,243,972 G Difference E - F 61,024 CN 8950 H Price per bill Stip & Agreement $ I Nov-17-Oct-18 Adjustment to Billing Target G x H $ 18,429 J Nov-17-Oct-18 Actual Billing Target D + I $ 2,171,040 K Nov-17-Oct-18 Actual Sales Volumes - Firm (therms) 1 458,720,585 L Nov-17-Oct-18 Billing Adder Rate 09/22/17 and 03/01/18 GAC Filings $ M Nov-17-Oct-18 Actual Billing Revenue K x L $ 2,293,603 N Nov-17-Oct-18 True-up J - M $ (122,563) O Sep and Oct-17 True-up for Volumes Att B-1 $ 17,789 P Sep and Oct-17 True-up for # of bills Att B-1 $ 2,391 Q Nov 18 - Oct 19 Adjusted Billing Target C + N + O + P $ 1,818,507 Note 1 Nov Aug 2018 Based on 10 months actual Sep Oct months estimated

13 FOR INFORMATIONAL PURPOSES ONLY NO CHANGES FROM SEPTEMBER 2018 FILING Billing True-Up September and October-17 Attachment B-1 Commodity Volumes Commodity Adjusted Commodity Estimated Actual Difference Adder Billing Revenue (therms) (therms) (therms) ($/therm) a b c = a - b d e = c x d Sep-17 8,839,666 10,266,620 (1,426,954) $ (6,849) Oct-17 20,394,433 15,261,490 5,132, $ 24,638 $ 17,789 Number of Bills Commodity Adjusted Billing Estimated Actual Difference Price Target Revenue $/bill f g h = f - g i j = h x i Sep , ,395 3, $ 1,183 Oct , ,824 4, $ 1,209 $ 2,391 Note: Below are the amounts that will be used in next year's filing to true-up September and October current estimates: Bills Therms September ,837 10,040,390 October ,267 20,727,254

14 Storage Inventory Carrying Costs (SICC) Attachment C Storage Inventory Carrying Costs Calculation A 12 Month Target Amount 1 09/22/17 and 03/01/18 GAC Filings $ 2,484,472 B Nov-17-Oct-18 Actual Sales Volumes (therms) 2 458,720,585 C Nov-17-Oct-18 SICC Adder ($/therm) 09/22/17 and 03/01/18 GAC Filings / D Nov-17-Oct-18 Actual SICC Revenue 3 B x C $ 2,630,633 E Storage Inventory Carrying Costs True-Up A - D $ (146,161) 13-Months Avg. - FERC Acct F Average Interstate Pipeline Storage Balance Jul 2017 to Jul 2018 $ 24,881,026 G After-tax ROR CN % H Income Tax Gross-Up Factor 03/01/2018 GAC Filing I Grossed-Up ROR G/H 9.05% J Storage Inventory Carrying Costs Portion for F above F x I $ 2,251,733 J1 Sep and Oct-17 True-up for volumes Att C-1 $ 23,348 K Nov 18 - Oct 19 SICC Target Amount E + J + J1 $ 2,128,919 Notes Volume (therms) Rate Target 1 Nov 2017 through Mar 2018 Target 335,614,183 $ $ 1,980,124 Apr 2018 through Oct 2018 Target 96,990,104 $ $ 504,349 $ 2,484,472 2 Nov Aug 2018 Based on 10 months actual Sep Oct months estimated Volume (therms) Rate Revenue 3 Nov 2017 through Mar 2018 Revenue 350,409,090 $ $ 2,067,414 Apr 2018 through Oct 2018 Revenue 108,311,495 $ $ 563,220 $ 2,630,633

15 FOR INFORMATIONAL PURPOSES ONLY NO CHANGES FROM SEPTEMBER 2018 FILING Storage and Inventory Carrying Costs (SICC) September and October-17 Volume True-Up Attachment C-1 Estimated Actual Storage & Inventory Difference Volume Volume Difference Carrying Cost Rate Estimate - Actual (therms) (therms) (therms) ($/therm) a b c = a - b d e = c x d Sep-17 8,839,666 10,266,620 (1,426,954) $ (8,990) Oct-17 20,394,433 15,261,490 5,132, $ 32,338 $ 23,348 Note: Below are the amounts that will be used in next year's filing to true-up September and October current estimates: Therms September ,040,390 October ,727,254

16 Baltimore Gas & Electric Company Commodity Cash Working Capital (CCWC) Attachment D Commodity Cash Working Capital Calculation A 12 Month Target Amount 1 09/22/17 and 03/01/18 GAC Filings $ 456,467 B Nov-17-Oct-18 Actual Sales Volumes (therms) 2 458,720,585 C Nov-17-Oct-18 CCWC Adder ($/therm) 09/22/17 and 03/01/18 GAC Filings / D Nov-17-Oct-18 Actual CCWC Revenue 3 B x C $ 482,930 E CCWC True-Up A - D $ (26,464) F Commodity Cash Working Capital Asset 4 $ 5,476,807 G After-tax ROR CN % H Income Tax Gross-Up Factor 03/01/2018 GAC Filing I Grossed-Up ROR G/H 9.05% J Commodity Cash Working Capital Portion for F above I x F $ 495,651 J1 Sep and Oct-17 True-up for volumes Att D-1 $ 3,706 K Nov 18 - Oct 19 CCWC Target Amount E + J + J1 $ 472,893 Notes Volume (therms) Rate Target 1 Nov 2017 through Mar 2018 Target 335,614,183 $ $ 369,176 Apr 2018 through Oct 2018 Target 96,990,104 $ $ 87,291 $ 456,467 2 Nov Aug 2018 Based on 10 months actual Sep Oct months estimated Volume (therms) Rate Revenue 3 Nov 2017 through Mar 2018 Revenue 350,409,090 $ $ 385,450 Apr 2018 through Oct 2018 Revenue 108,311,495 $ $ 97,480 $ 482,930 4 Calculation follows: 8.6 Lag Days (CN9484. See AWH - 6a Actual)) $ 636,838 (Average Daily Gas Purchased for Resale Expense for 12 Months ended July 2018) $ 5,476,807

17 FOR INFORMATIONAL PURPOSES ONLY NO CHANGES FROM SEPTEMBER 2018 FILING Commodity Cash Working Capital (CCWC) September and October-17 Volume True-Up Attachment D-1 Estimated Actual Commodity Difference Volume Volume Difference CWC Rate Estimate - Actual (therms) (therms) (therms) ($/therm) a b c = a - b d e = c x d Sep-17 8,839,666 10,266,620 (1,426,954) $ (1,427) Oct-17 20,394,433 15,261,490 5,132, $ 5,133 $ 3,706 Note: Below are the amounts that will be used in next year's filing to true-up September and October current estimates: Therms September ,040,390 October ,727,254