May 6, Mr. Jeffrey R. Gaudiosi, Esq. Executive Secretary Public Utilities Regulatory Authority 10 Franklin Square New Britain, CT 06051

Transcription

1 May 6, 2016 Mr. Jeffrey R. Gaudiosi, Esq. Executive Secretary Public Utilities Regulatory Authority 10 Franklin Square New Britain, CT RE: Conn. Gen. Stat Dear Mr. Gaudiosi: Pursuant to Connecticut General Statute Section 16-27, enclosed is Connecticut Natural Gas Corporation s Annual Report (FERC Form II) for year ended December 31, Also, an electronic copy is being provided to the Authority via the Web Undocketed Filing System. Sincerely, Michael A. Coretto Vice President, Regulatory Affairs UIL Holdings Corporation As Agent for 157 Church Street, P. O. Box 1564, New Haven, CT An equal opportunity employer

2 PUBLIC UTILITIES REGULATORY AUTHORITY ANNUAL REPORT OF CONNECTICUT NATURAL GAS CORPORATION (Name of Respondent) 77 Hartland Street 4th, East Hartford, CT (Address of Respondent) TO THE OF THE STATE OF CONNECTICUT FOR THE YEAR ENDED DECEMBER 31, 2015 Municipalities (Only) Year Ended June 30,

3 ANNUAL REPORT Authority deems this report to be public information. penalties as provided by Sec C.G.S. The Public Utilities Regulatory SR-i REV 9/84 Tel No. 157 Church Street, New Haven CT Michael A. Coretto Associate Vice President, Regulatory Affairs, UIL Holdings Corporation, As Agent for Name, title and address of the officer or other person to whom should be addressed any communication concerning this report: Year Ended June 30, Municipalities Only YEAR ENDED DECEMBER 31, 2015 FOR THE OF THE STATE OF CONNECTICUT Public Utilities Regulatory Authority TO THE (Address of Respondent) 77 Hartland Street 4th Floor, East Hartford, CT (Name of Respondent) CONNECTICUT NATURAL GAS CORPORATION OF Statutes. Failure to file this report on time may make the respondent liable to the This report is mandatory under Section orl6-29 of the Connecticut General

4 pwc Independent Auditor s Report To the Board of Directors Connecticut Natural Gas Company We have audited the accompanying financial statements of Connecticut Natural Gas Company (the Company ), which comprise the balatice sheets as of December 31, 2015 and December 31, 2014, and the related statements of income, retained earnings, and of cash flows for the years then ended, included on pages no through 122 of the accompanying Federal Energy Regulatory Commission Form 2. Management s Responsibilityfor the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with the accounting requirements of the Federal Energy Regulatory Commission as set forth in its applicable Uniform System of Accounts and published accounting releases described in Note A. Management is also responsible for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor s Responsibility Our responsibility is to express an opinion on the financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on our judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the Company s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Connecticut Natural Gas Company as of December 31, 2015 and December 31, 2014, and the results of its operations and its cash flows for the years then ended in accordance with the accounting requirements of the Federal Energy Regulatory Commission as set forth in its applicable Uniform System of Accounts and published accounting releases described in Note A. PricewaterhouseCoopers LLP, 101 Seaport Boulevard, Boston, MA T: (617) , F: (617) ,

5 We draw attention to Note A of the financial statements, which describes the basis of accounting. As Commission as set forth in its applicable Uniform System of Accounts and published accounting releases, which is a basis of accounting other than accounting principles generally accepted in the United States of America, to meet the requirements of the Federal Energy Regulatory Commission. Our opinion is not modified with respect to this matter. Our report is intended solely for the information and use of the board of directors and management of Boston, MA May 5, Connecticut Natural Gas Company and for filing with the State of Connecticut Public Utilities Regulatory Authority (PUPA) and is not intended to be and should not be used by anyone other than these specified parties or for any other purpose. Other Matter Natural Gas Company on the basis of the accounting requirements of the Federal Energy Regulatory described in Note A to the financial statements, the financial statements are prepared by Connecticut Emphasis ofmatter pwc

6 Notice These blank forms for annual reports are transmitted in accordance with the provisions of the General Statutes of Connecticut. They are sent in duplicate, one to be filled out, sworn to and returned to the Public Utilities Regulatory Authority on or before the 30 of April following the close of the year for which the report is made. Municipalities filing reports on a Fiscal Year ending June 30 are to be filed on or before the 3l of October next following in a municipality which has adopted a Uniform Fiscal year. On the other blank form a copy of the report should be made and retained by the utility for future reference. Reports filed after the due date are subject to the penalties as stated in Sec C.G.S.. th The returns to be made are for the year ended December 3l or June 30 and must be in accordance with the books at the close of business on that date, and shall be signed and sworn to by the Chief Executive Officer and Chief Financial Officer of the utility, or by a majority of the trustees or receivers making the same, in the case of privately owned companies, and in the case of municipalities or departments thereof, by the general superintendent of the plant and by such person or persons as may be designated by such municipality or department. th General Instructions 1. This form of annual report is prepared in conformity with the Uniform Systems of Accounts for Electric and Gas Utilities prescribed by this Authority effective January 1, 1963, or water utilities prescribed by the Authority effective January 1, 1965, or CATV Utilities prescribed January 1, 1972, and all accounting words or phrases are to be interpreted in accordance therewith. 2. Instructions should be carefully observed and each question should be answered fully and accurately whether or not it has been answered in a previous report. Where the word none truly and completely states the fact, it should be given as the answer to any particular inquiry or any portion of an inquiry. Where dates are called for, the month and date should be stated, as well as the year. Customary abbreviations may be used in stating dates. 3. If any schedule does not apply to the respondent, such fact should be shown on the schedule by the words not applicable. 4. The spaces provided in this report are designed to be filled in on a typewriter having elite type, and such typewriter should be used if practicable. 5. All entries should be made in permanent form. Entries of a contrary or opposite character (such as decreases reported in a column providing for both increases and decreases) should be enclosed in parentheses. Report made out with a pencil, hectograph impression, or by other means which do not result in a permanent record, will not be accepted. 6. Commission, Department or Authority authorization used in this report means authorization of the Department of Public Utilities Control. 7. The annual report should in all particulars be complete in itself. Reference to reports of previous years or to other reports should not be made in lieu of the information requested for any particular inquiry or schedule except as specifically authorized. 8. Whenever schedules call for comparisons of figures of the previous year, the figures reported must be based on upon those shown in the annual report of the previous year, or an appropriate explanation given why the different figures were used. 9. If it is necessary or desirable to insert additional statements for the purpose of further explanation of accounts or schedules in this report, care should be taken that they be legibly made on durable paper conforming in sixe not exceeding the length of the page. The inserts should be securely bound at the inner margin. 10. The word respondent whenever used in this report means the person, firm, association or corporation in whose behalf the report is made. 11. The respondent is requested to file with the Authority immediately upon publication, three copies of its latest printed annual report to stockholders. If its annual report to stockholders are not printed, that fact should be stated below. 12. Cents may be omitted on all schedules except where they apply to averages and figures per unit where cents are important. The amounts shown on all supporting schedules shall agree with the items in the statements that they support.

7 THIS FILING IS Item 1: An Initial (Original) OR Resubmission No. Submission Form 2 Approved 0MB No (Expires 09/30/2017) Form 3-Q Approved 0MB No (Expires 11/30/2016) FERC FINANCIAL REPORT FERC FORM No. 2: Annual Report of Major Natural Gas Companies and Supplemental Form 3-Q: Quarterly Financial Report These reports are mandatory under the Natural Gas Act, Sections 10(a), and 16 and 18 CFR Parts and Failure to report may result in criminal fines, civil penalties, and other sanctions as provided by law. The Federal Energy Regulatory Commission does not consider these reports to be of a confidential nature. Exact Legal Name of Respondent (Company) YearlPeriod of Report End of 2015/Q4 FERC FORM No. 213Q (02-04)

8 These reports are also considered to be a non-confidential public use forms. natural gas companies subject to the jurisdiction of the Federal Energy Regulatory Commission. Form a quarterly regulatory support requirement which supplements Forms 2 and 2A under 18 CFR gas companies subject to the jurisdiction of the Federal Energy Regulatory Commission. Form 3-Q is I. Purpose Form 2 is an annual regulatory support requirement under 1$ CFR for major interstate 2-A is an annual regulatory support requirement under 18 CFR for nonmajor interstate natural GENERAL INFORMATION licensed by a regulatory authority of a State or other political subdivision of the U. S. (See 18 CFR far specific qualifications.) independent certified public accountants or an independent licensed public accountant certified or listed below with the Commission s applicable Uniform Systems of Accounts (including applicable notes relating thereto and the Chief Accountant s published accounting releases), and be signed by the filing date far Form 2 or 2-A, a letter or report (not applicable to respondents classified as Class C stockholders and any annual financial or statistical report regularly prepared and distributed to stockholders will be submitted or if no annual report to stockholders is prepared.) Mail these reports to bondholders, security analysts, or industry associations. (Do not include monthly and quarterly reports. the address in lll{c} above. Indicate by checking the appropriate box on Form 2, Page 3, List of Schedules, if the reports to Washington, DC Chief Accountant 888 First Street, NE Federal Energy Regulatory Commission original signed Corporate Officer Certification to: Retain one copy of each report for your files. each of the three previous calendar years. Nonmajor means having total gas sales or volume transactions exceeding 200,000 Mcf in Part Each Major natural gas company which meets the filing requirements of 18 CFR must file Each Major and Nonmajor natural gas company must submit Form 3-Q as prescribed in 18 CFR FORMS 2,2-A and 3-Q INSTRUCTIONS FOR FILING FERC II. Who Must Submit Form 2. Each Nonmajor natural gas company must submit Form 2-A as prescribed in 18 CFR Part Note: Major means having combined gas transported or stored for a fee exceeding 50 million Mcf in each of the three previous calendar years. Ill. What and Where to Submit (a) Submit Forms 2, 2-A and 3-Q electronically through the Form 21 3-Q Submission Software. (b) Respondents may submit the Corporate Officer Certification electronically, or file/mail an (c) Submit, immediately upon publication, four (4) copies of the latest annual report to (d) For the Annual CPA certification, submit with the original submission, or within 30 days after or Class D prior to January 1, 1984): (e) Contain a paragraph attesting to the conformity, in all material respects, of the schedules

9 Insert the Letter or report immediately following the cover sheet. When submitting after the Notes to Financial Statements Comparative Balance Sheet Statement of Income Statement of Retained Earnings Statement of Cash Flows In connection with our regular examination of the financial statements of IV. When to Submit: V. Where to Send Comments on Public Reporting Burden. H Submit Form 2 according to the filing dates contained in section 18 CFR of the Commission s regulations. Submit Form 2-A according to the filing dates contained in section 18 CFR of the Commission s regulations. Submit Form 3-Q according to the filing dates contained in section 18 CFR of the Commission s regulations. The public reporting burden for the Form 2 collection of information is estimated to average 1,570 hours per response, including the time for reviewing instructions, searching existing data sources, per response. The public reporting burden for the Form 3-Q collection of information is estimated to person shall be subject to any penalty if any collection of information does not display a valid control number (44 U.S.C (a)). gathering and maintaining the data-needed, and completing and reviewing the collection of information. The public reporting burden for the Form 2A collection of information is estimated to average 115 hours Regulatory Commission, 888 First Street NE, Washington, DC (Attention: Mr. Michael Miller, ED Washington, DC (Attention: Desk Officer for the Federal Energy Regulatory Commission). No 30); and to the Office of Information and Regulatory Affairs, Office of Management and Budget, these collections of information, including suggestions for reducing burden, to the Federal Energy average 150 hours per response. Send comments regarding these burden estimates or any aspect of (202) Branch, Federal Energy Regulatory Commission, 888 First Street, NE. Room 2A, Washington, DC copies to meet their requirements free of charge from: Public Reference and Files Maintenance (f) Federal, State and Local Governments and other authorized users may obtain additional blank Commission s requirements. Describe the discrepancies that exist. Based on our review, in our opinion the accompanying schedules identified in the preceding paragraph (except as noted below) conform in all material respects with the accounting requirements of the Federal Energy Regulatory Commission as set forth in its applicable Uniform State in the letter or report, which, if any, of the pages above do not conform to the System of Accounts and published accounting releases. phrases only when exceptions are reported: or conditions, explained in the letter or report, demand that it be varied, insert parenthetical schedules of FERC Form No. 2/2A for the year filed with the Federal Energy Regulatory Commission, releases. our review for this purpose included such tests of the accounting records and such other indicated at III (b). Use the following form for the letter or report unless unusual circumstances filing date for this form, send the letter or report to the Chief Accountant at the address on, which we have reported separately under date of We have also reviewed Comm ission as set forth in its applicable Uniform System of Accounts and published accounting auditing procedures as we considered necessary in the circumstances: for the year ended for conformity in all material respects with the requirements of the Federal Energy Regulatory Schedules Pages Reference Reference

10 A.). II. Enter in whole numbers (dollars or Dth) only, except where otherwise noted. (Enter cents for Interpret all accounting words and phrases in accordance with the U.S. of A. Prepare all reports in conformity with the Uniform System of Accounts (I8CFR 101) (U.S. of for balance sheet accounts the balances at the end of the current reporting period, and use for statement of income accounts the current year to date amounts. Ill. Complete each question fully and accurately, even if it has been answered in a previous report. Enter the word None where it truly and completely states the fact. IV. For any page(s) that is not applicable to the respondent, omit the page(s) and enter NA, NONE, or Not Applicable in column (d) on the List of Schedules, pages 2 V. Enter the month, day, and year for all dates. Use customary abbreviations. The Date of Report included in the header of each page is to be completed only for resubmissions (see VII. below). VI. Generally, except for certain schedules, all numbers, whether they are expected to be debits or credits, must be reported as positive. Numbers having a sign that is different from the VII. For any resubmissions, submit the electronic filing using the Form 213-Q software and send VIII. Footnote and further explain accounts or pages as necessary. IXI. Do not make references to reports of previous periods/years or to other reports in lieu of X. Wherever (schedule) pages refer to figures from a previous period/year, the figures reported XI. Report all gas volumes in MMBtu and Dth. III must be based upon those shown by the report of the previous period/year, or an appropriate explanation given as to why the different figures were used. required entries, except as specifically authorized. a letter identifying which pages in the form have been revised. Send the letter to the Office of the Secretary. expected sign must be reported by enclosing the numbers in parentheses. and 3. shown on all supporting pages must agree with the amounts entered on the statements that they support. When applying thresholds to determine significance for reporting purposes, use except on the four basic financial statements where rounding is required.) The amounts averages and figures per unit where cents are important. The truncating of cents is allowed General Instructions

11 and under standard gravitational force ( cm. per sec) with air of the same temperature and and air when the water formed by combustion is condensed to the liquid state (called gross heating value or total eating value. pressure as the gas, when the products of combustion are cooled to the initial temperature of gas constant pressure, of the amount of the gas which would occupy a volume of I cubic foot at a temperature of 60 F if saturated with water vapor and under a pressure equivalent to that of 34 F, Btu er cubic foot-the total heating value, expressed in Btu, produced by the combustion, at Iv General Penalties Sec. 21(b). Any person who willfully and knowingly violates any rule, regulation, exceeding $500 for each and every day during which such offense occurs. restriction, condition, or order made or imposed by the Commission under authority of this act, shall, in addition to any other penalties provided by law, be punished upon conviction thereof by a fine of not General Penalties rescind such orders, rules, and regulations as it may find necessary or appropriate to carry out the provisions of this Commission, the information which they shall contain, and time within they shall be filed... and may prescribe the form or forms of all statements declarations, applications, and reports to be filed with the act. Among other things, such rules and regulations may define accounting, technical; and trade terms used in this act; Sectioni6 : The Commission-shall-have-power to-perform-all and any acts; and-to prescribe, issue, make, amend, and costs of renewal and replacementof such -facilities,-transportation-delivery; use and-sale-of-natural gas... Commission in the proper administration of this act. The Commission may prescribe the manner and form in among other things, full information as to assets and liabilities, capitalization, investment and reduction thereof, maintenance and operation of facilities for the production, transportation; delivery,- use, and sale of natural gas, gross receipts, interest dues and paid, depreciation, amortization, and other reserves, cost of facilities, costs of upon which the Commission may need information. The Commission may require that such reports include, which such reports shall be made and require from such natural-gas companies specific answers to all questions reports as the Commission may by rules and regulations or order prescribe as necessary or appropriate to assist the Sec. 10(a). Every natural-gas company shall file with the Commission such annual and other periodic or special (Natural Gas Act, 15 U.S.C w) THE LAW EXCERPTS FROM instrumentality on whose behalf the report is made. IV. Respondent-The person, corporation, licensee, agency, authority, or other legal entity or III. Dekatherm -A unit of heating value equivalent to 10 therms or 1,000,000 Btu. Commission Authorization --jhe authorization of the Federal Energy Regulatory Commission, or the authorization. any other Commission. Name the commission whose authorization was obtained and give date of DEFINITIONS

12 QUARTERLYIANNUAL REPORT OF MAJOR NATURAL GAS COMPANIES IDENTIFICATION 01 Exact Legal Name of Respondent Year/Period of Report End of 2015/Q4 03 Previous Name and Date of Change (If name changed during year) 04 Address of Principal Office at End of Year (Street, City, State, Zip Code) 77 Hartland Street, 4th Floor, East Hartford, CT Name of Contact Person 06 Title of Contact Person Michael Coretto Vice President, Regulatory Affairs 07 Address of Contact Person (Street, City, State, Zip Code) As agent for, 157 Church Street, New Haven, 08 Telephone of Contact Person, Including Area Code This Report Is: 10 Date of Report (1) Original (Mo, Da, Yr) (2) Resubmission An A The undersigned officer certifies that: ANNUAL CORPORATE OFFICER CERTIFICATION I have examined this report and to the best of my knowledge, information, and belief all statements of fact contained in this report are correct statements of the business affairs of the respondent and the financial statements, and other financial information contained in this report, conform in all material respects to the Uniform System of Accounts. 11 Name 12 Title Steven P. Favuzza Controller of UIL Holdings Corporation 13 Title 18, U.S.C. 1001, makes.eff fo any person knowingly and willingly to make to any Agency or Department of the United States any false, fictitious or fraudulent state ent as to any matter within its jurisdiction. FERC FORM NO. 213Q (02-04) Page 1

13 Name of Respondent I This Report Is: Date of Report I Year/Period of Repori (1) Original I (Mo Da, Yr) (2) List of Schedules (Natural Gas Company) An A ResubmissionEnd of 2015/Q4 Enter in column (d) the terms none, not applicable, or NA appropriate, where no information or amounts have been reported for certain pages. Omit are none, not applicable, or NA. pages where the responses as Title of Schedule Reference Date Revised Remarks Line Page No. No. (a) (b) (c) (d) GENERAL CORPORATE INFORMATION AND FINANCIAL STATEMENTS 1 General Information Control Over Respondent Corporations Controlled by Respondent 103 NA, Add 104,105 4 Security Holders and Voting Powers 107 Add 1 07A 5 Important Changes During the Year Comparative Balance Sheet Statement of Income for the Year Statement of Accumulated Comprehensive Income and Hedging Activities Statement of Retained Earnings for the Year Statements of Cash Flows Notes to Financial Statements 122 BALANCE SHEET SUPPORTING SCHEDULES (Assets and Other Debits) 12 Summary of Utility Plant and Accumulated Provisions for Depreciation, Amortization, and Depletion Gas Plant in Service Gas Property and Capacity Leased from Others Gas Property and Capacity Leased to Others 213 None 16 GasPlantHeldforFutureUse 214 None 17 Construction Work in Progress-Gas Non-Traditional Rate Treatment Afforded New Projects 217 None 19 General Description of Construction Overhead Procedure Accumulated Provision for Depredation of Gas Utility Plant Gas Stored Investments Investments in Subsidiary Companies None 24 Prepayments Extraordinary Property Losses 230 None 26 Unrecovered Plant and Regulatory Study Costs 230 None 27 Other Regulatory Assets 232 None 28 Miscellaneous Deferred Debits Accumulated Deferred Income Taxes BALANCE SHEET SUPPORTING SCHEDULES (Liabilities and Other Credits) 30 Capital Stock Capital Stock Subscribed, Capital Stock Liability for Conversion, Premium on Capital Stock, and Installments Received on Capital Stock 252 None 32 Other Paid-in Capital Discount on Capital Stock 254 None 34 Capital Stock Expense 254 None 35 Securities issued or Assumed and Securities Refunded or Retired During the Year Long-Term Debt Unamortized Debt Expense, Premium, and Discount on Long-Term Debt FERC FORM NO. 2 (REV 12-07) Page 2

14 Name of Respondent This Report Is: Date of Report Year/Period of Reporl I (1) Original I (Mo, Da, Yr) I (2) List of Schedules (Natural Gas Company) (continued) An A Resubmission/ / End of 201 5/Q4 Enter in column (d) the terms none, not applicable, or NA as appropriate, where no information or amounts have been reported for certain pages. Omit pages where the responses are none, not applicable, or NA. Title of Schedule Reference Date Revised Remarks Line Page No. No. (a) (b) (c) (d) 38 Unamortized Loss and Gain on Reacquired Debt 260 None 39 Reconciliation of Reported Net Income with Taxable Income for Federal Income Taxes Taxes Accrued, Prepaid, and Charged During Year Miscellaneous Current and Accrued Liabilities Other Deferred Credits Accumulated Deferred Income Taxes-Other Property Accumulated Deferred Income Taxes-Other Other Regulatory Liabilities 278 None INCOME ACCOUNT SUPPORTING SCHEDULES 46 Monthly Quantity & Revenue Data by Rate Schedule Gas Operating Revenues Revenues from Transportation of Gas of Others Through Gathering Facilities None 49 Revenues from Transportation of Gas of Others Through Transmission Facilities None 50 Revenues from Storage Gas of Others None 51 Other Gas Revenues Discounted Rate Services and Negotiated Rate Services 313 None 53 Gas Operation and Maintenance Expenses Exchange and Imbalance Transactions Gas Used in Utility Operations Transmission and Compression of Gas by Others 332 None 57 Other Gas Supply Expenses 334 None 58 Miscellaneous General Expenses-Gas Depredation, Depletion, and Amortization of Gas Plant Particulars Concerning Certain Income Deduction and Interest Charges Accounts 340 COMMON SECTION 61 Regulatory Commission Expenses Employee Pensions and Benefits (Account 926) Distribution of Salaries and Wages Charges for Outside Professional and Other Consultative Services Transactions with Associated (Affiliated) Companies 358 GAS PLANT STATISTICAL DATA 66 Compressor Stations None 67 Gas Storage Projects Transmission Lines 514 None 69 Transmission System Peak Deliveries Auxiliary Peaking Facilities Gas Account-Natural Gas Shipper Supplied Gas for the Current Quarter System Map Footnote Reference 551 None 75 Footnote Text 552 None 76 StockhoIdes Reports (check appropriate box) None Four copies will be submitted No annual report to stockholders is prepared FERC FORM NO. 2 (REV 12-07) Page 3

15 Name of Respondent This Re art Is: Date of Report Year/Period of Repoil (Mo, Da, Yr) End of 2015/04 General Information IZArri 1. Provide name and title of officer having custody of the general corporate books of account and address of office where the general corporate books are kept and address of office where any other corporate books of account are kept, if different from that where the general corporate books are kept Steven P. Favuzza Controller of UIL Holdings Corporation as agent of 157 Church Street New Haven, CT Provide the name of the State under the laws of which respondent is incorporated and date of incorporation. If incorporated under a special law, give reference to such law, If not incorporated, state that fact and give the type of organization and the date organized. Special Contract Granted at New Haven, CT on the first Wednesday of May If at any time dung the year the property of respondent was held by a receiver or trustee, give (a) name of receiver or trustee, (b) date such receiver or trustee took possession, (c) the authority by which the receivership or trusteeship was created, and (d) date when possession by receiver or trustee ceased. The property of the Respondent was not held by a receiver or trustee at any time during State the classes of utility and other services furnished by respondent dunng the year in each State in which the respondent operated. The Respondent is primarily engaged in the intrastate transportation and distribution of natural gas, equipment maintenance and inspection, and certain merchandising and jobbing activities in Connecticut. 5. Have you engaged as the principal accountant to audit your financial statements an accountant who is not the principal accountant for your previous years certified financial statements? (1) Yes... Enter the date when such independent accountant was initially engaged: (2)No FERC FORM NO. 2 (12-96) Page 101

16 Name of Respondent This Re ort Is: Date of Report Year/Period of Report Connecticut Natural (Mo, Gas Corporation Da, Yr) End of 2015/04 Control Over Respondent 1. Report in column (a) the names of all corporations, partnerships, business trusts, and similar organizations that directly, indirectly, or jointly held control (see page 103 for definition of control) over the respondent at the end of the year. If control is in a holding company organization, report in a footnote the chain of organization. 2. If control is held by trustees, state in a footnote the names of trustees, the names of beneficiaries for whom the trust is maintained, and the purpose of the trust. 3. In column (b) designate type of control over the respondent. Report an M if the company is the main parent or controlling company having ultimate control over the respondent. Otherwise, report a D for direct, an I for indirect, or a J for joint control. Line Company Name Type of Control State of Percent Voting No. Incorporation Stock Owned (a) (b) (C) (d) 1 CTG Resources, Inc. (1) D CT UIL Holdings Corporation (2) I CT AVANGRID, Inc(3) I (1) CTG Resources, Inc. is a holding company 6 engaged in the retail distribution of natural gas 7 through it s wholly-owned subsidiary, Connecticut 8 Natural Gas Corporation (2) UIL Holdings Corporation holds 100% of the 11 voting stock of CTG Resources, Inc (3) AVANGRID, Inc. holds 100% of the voting stock 14 UIL Holdings Corporation FERC FORM NO. 2 (12-96) Page 102

17 Name of Respondent This Re ort Is: Date of Report Year/Period of Report Connecticut Natural (Mo, Da, Yr) Gas Corporation (2) AResubmission End of 2015/04 Corporations Controlled by Respondent 1. Report below the names of all corporations, business trusts, and similar organizations, controlled directly or indirectly by respondent at any time during the year. If control ceased prior to end of year, give particulars (details) in a footnote. 2. If control was by other means than a direct holding of voting rights, state in a footnote the manner in which control was held, naming any intermediaries involved. 3. If control was held jointly with one or more other interests, state the fact in a footnote and name the other interests. 4. In column (b) designate type of control of the respondent as D for direct, an I for indirect, or a J for joint control. DEFINITIONS 1. See the Uniform System of Accounts for a definition of control. 2. Direct control is that which is exercised without interposition of an intermediary. 3. Indirect control is that which is exercised by the interposition of an intermediary that exercises direct control. 4. Joint control is that in which neither interest can effectively control or direct action without the consent of the other, as where the voting control is equally divided between two holders, or each party holds a veto power over the other. Joint control may exist by mutual agreement or understanding between two or more parties who together have control within the meaning of the definition of control in the Uniform System of Accounts, regardless of the relative voting rights of each party. Line Name of Company Controlled Type of Control Kind of Business Percent Voting Footnote No. Stock Owned Reference (a) (b) (c) (d) (e) I None Not used FERC FORM NO. 2 (12-96) Page 103

18 Dec. 31 $65,000; Amount of Salary Other Compensation Total Compensation Total Compensation Line Name of person Paid During the Paid During the Paid During the Charged to Title Year Year Year Intrastate No. (a) (1) (b) (c) (d) (e) (2) (f) 1 None 708 COMPENSATION OF OFFICERS 1. Furnish the indicated data with respect to all officers having received total compensation for the year of $85,000 or more, If fewer than ten officers receive $85,000 or more list the ten highest paid officers. 2. All officers having received total compensation of from $35,000 to $85,000 may be reported in aggregate in the following compensation groups: $35,000 - $45,000; $45,000- $55,000; $55,000 - $65,000 -$75,000; $75,000- $85, For the purpose of this schedule, information wit be induded as follows: Column (a) number of persons; Column (b) wage group; Column (C) through (f) totals of category. The respondent shall keep such records as are necessary to provide the Authority the individual data with respect to all columns of information for each of the persons aggregated, and will upon request of the Authority provide such individual data, Page 104a

19 Dec. 31, 2015 DIRECTORS 1. Report below the information called for concerning each director of the respondent who held office at any time during the year. Include in column (a) abbreviated titles of the directors who are officers of the respondent. 2. Designate members of the Executive Committee by an asterisk and the Chairman of the Executive Committee by a double asterisk. Name (and Title) of Director Principal Business Address No. of Dir. Fees (a) (b) Meetings (d) James P. Torgerson, Chairman Richard J. Nicholas, CFO Linda L. Randell, General Counsel Robert M. Allesslo, President & CEO UIL Holdings Church Street, Po Box 1564 NewHaven,CT_06510 UIL Holdings Church Street, Po Box 1564 New_Haven,_CT_06510 UIL Holdings 157 Church Street, Po Box 1564 NewHaven,CT_06510 Connecticut Natural Gas Company 77 Hartland Street Floor East Hartford, CT (c) 0 0 Page 105

20 Name of Respondent This Re ort Is: Date of Report Year/Period of Report Connecbcut Natural Gas Corporation (1) X An Original (Mo, Da, Yr) (2) Resubmission / / End of 20151Q4 Security Holders and Voting Powers 1. Give the names and addresses of the 10 security holders of the respondent who, at the date of the latest closing of the stock book or compilation of list of stockholders of the respondent, prior to the end of the year, had the highest voting powers in the respondent, and state the number of votes that each could cast on that date if a meeting were held. If any such holder held in trust, give in a footnote the known particulars of the trust (whether voting trust, etc.), duration of trust, and principal holders of beneficiary interests in the trust. If the company did not close the stock book or did not compile a list of stockholders within one year prior to the end of the year, or if since it compiled the previous list of stockholders, some other class of security has become vested with voting rights, then show such 10 security holders as of the close of the year. Arrange the names of the security holders in the order of voting power, commencing with the highest. Show in column (a) the titles of officers and directors included in such list of 10 security holders. 2. If any security other than stock carries voting rights, explain in a supplemental statement how such security became vested with voting rights and give other important details concerning the voting rights of such security. State whether voting rights are actual or contingent; if contingent, describe the contingency. 3. If any class or issue of security has any special privileges in the election of directors, trustees or managers, or in the determination of corporate action by any method, explain briefly in a footnote. 4. Furnish details concerning any options, warrants, or rights outstanding at the end of the year for others to purchase securities of the respondent or any securities or other assets owned by the respondent, including prices, expiration dates, and other material information relating to exercise of the options, warrants, or rights. Specify the amount of such securities or assets any officer, director, associated company, or any of the 10 largest security holders is entitled to purchase. This instruction is inapplicable to convertible securities or to any securities substantially all of which are outstanding in the hands of the general public where the options, warrants, 1. Give date of the latest closing of the stock 2. State the total number of votes cast at the latest general 3. Give the date and place of book prior to end of year, and, in a footnote, state meeting prior to the end of year for election of directors of the such meeting: the purpose of such closing: respondent and number of such votes cast by proxy. 12/31/2015 Total: By Proxy: EA 4. Number of votes as of (date): VOTING SECURITIES Written Stockhold consent in hew of meeting dated March 17, 2009 Line Name (Title) and Address of Total Votes Common Stock Preferred Stock Other No Security Holder (a) (b) (c) (d) (e) 5 ToTALvotesofahlvotingsecurities 10,743,142 10,634, ,706 6 TOTAL number of security holders TOTAL votes of security holders listed below 10,741,840 10,634, , CTG RESOURCES INC.,157 CHURCH STREET,NEW HAVEN CT ,195 10,634,496 70, CEDE & CO P0 BOX 20, BOWLING GREEN STN,NEW YORK NY ,021 30, DONALDSON LUFKIN & JENRETTE SECURITIES CORPORATIONPO BOX 2058,JERSEY CITY NJ ,220 2, TADEUSZ GRODZKI,154 VALLEY VIEW DR,WEThERSFIELD CT ,360 1, VIRGINIA M LANGFORD & RICHARD LANGFORD JT TEN, 18 MARSHALL PHELPS RDWINDSOR CT ,000 1, WALTER R DRIGGS, 26 DYER AyE, COLLINSVILLE CT MARIA LUISE OLSEN, 9385 S PLEASANT GROVE RD,INVERNESS FL NEW YORK STATE COMPTROLLER,AR A085416A, OFFICE OF UNCLAIMED FUNDS,REMITtANCE CENTER 2ND FLR,1 10 STA VERA J GARY, 25 EAST 86 ST APT 5G,NEW YORK NY LYNN L LOCKE & KAREN LOCKE THOMS JT TEN,234 SHORE RD,WATERFORD CT DOROTHY R LOUDIN TOD,SUSAN JENSEN CARUSO,1600 NE DIXIE HWY,JENSEN BEACH FL DOROTHY R LOUDIN TOD,JANIS L LOUDIN,1600 NE DIXIE HWY,JENSEN BEACH FL FERC FORM NO. 2 (12-96) Page 107

21 Name of Respondent The Report is: Date of Report Year of Report (1) X An Original (Mo, Day, Yr) (2) A Resubmission December 31, 2015 Capital Stock and Stockholders in Connecticut State the total par value authorized of Preferred Capital Stock $1,002,670,284 State the total par value authorized of Common Capital Stock $62,500,000 State the total number of shares outstanding of Preferred Capital Stock 108,706 State the total number of shares outstanding of Common Capital Stock 10,634,496 State the par value of each share of Preferred Capital Stock $3.125 State the par value of each share of Common Capital Stock $3.125 State the par value issued and outstanding of Preferred Capital Stock $339,706 State the par value issued and outstanding of Common Capital Stock (net of treasury) $33,232,800 State the total value at par of all shares held in Connecticut of Preferred Capital Stock State the total value at par of all shares held in Connecticut of Common Capital Stock $232,841 $33,232,800 State the total number of Stockholders of Preferred Capital Stock 27 State the total number of Stockholders of Common Capital Stock 1 State the total number of Stockholders in Connecticut of Preferred Capital Stock 14 State the total number of Stockholders in Connecticut of Common Capital Stock 1 State the total number of shares held in Connecticut of Preferred Capital Stock 74,509 State the total number of shares held in Connecticut of Common Capital Stock 10,634, (A)

22 Name of Respondent (2) This is: of Report Year/Period of Report (1) An Original (Mo, Da, Yr) A Resubmission Report Important Changes During the Quarter!Year Date / / 2015/Q4 Give details concerning the matters indicated below. Make the statements explicit and precise, and number them in accordance with the inquiries. Answer each inquiry. Enter none or not applicable where applicable. If the answer is given elsewhere in the report, refer to the schedule in which it appears. 1. Changes in and important additions to franchise rights: Describe the actual consideration and state from whom the franchise rights were acquired. If the franchise rights were acquired without the payment of consideration, state that fact. 2. Acquisition of ownership in other companies by reorganization, merger, or consolidation with other companies: Give names of companies involved, particulars concerning the transactions, name of the Commission authorizing the transaction, and reference to Commission authorization. 3. Purchase or sale of an operating unit or system: Briefly describe the property, and the related transactions, and cite Commission authorization, if any was required. Give date journal entries called for by Uniform System of Accounts were submitted to the Commission. 4. Important leaseholds (other than leaseholds for natural gas lands) that have been acquired or given, assigned or surrendered: Give effective dates, lengths of terms, names of parties, rents, and other conditions. State name of Commission authorizing lease and give reference to such authorization. 5. Important extension or reduction of transmission or distribution system: State territory added or relinquished and date operations began or ceased and cite Commission authorization, if any was required. State also the approximate number of customers added or lost and approximate annual revenues of each class of service. Each natural gas company must also state major new continuing sources of gas made available to it from purchases, development, purchase contract or otherwise, giving location and approximate total gas volumes available, period of contracts, and other parties to any such arrangements, etc. 6. Obligations incurred or assumed by respondent as guarantor for the performance by another of any agreement or obligation, including ordinary commercial paper maturing on demand or not later than one year after date of issue: State on behalf of whom the obligation was assumed and amount of the obligation. Cite Commission authorization if any was required. 7. Changes in articles of incorporation or amendments to charter: Explain the nature and purpose of such changes or amendments. 8. State the estimated annual effect and nature of any important wage scale changes during the year. 9. State briefly the status of any materially important legal proceedings pending at the end of the year, and the results of any such proceedings culminated during the year. 10. Describe briefly any materially important transactions of the respondent not disclosed elsewhere in this report in which an officer, director, security holder, voting trustee, associated company or known associate of any of these persons was a party or in which any such person had a material interest. 11 Estimated increase or decrease in annual revenues caused by important rate changes: State effective date and approximate amount of increase or decrease for each revenue classification. State the number of customers affected. 12. Describe fully any changes in officers, directors, major security holders and voting powers of the respondent that may have occurred during the reporting period. 13. In the event that the respondent participates in a cash management program(s) and its proprietary capital ratio is less than 30 percent please describe the significant events or transactions causing the proprietary capital ratio to be less than 30 percent, and the extent to which the respondent has amounts loaned or money advanced to its parent, subsidiary, or affiliated companies through a cash management program(s). Additionally, please describe plans, if any to regain at least a 30 percent proprietary ratio. Item 1: Please refer to Notes to Financial Statements footnote (A) Statement of Accounting Policies. Item 2: Please refer to Notes to Financial Statements footnote (A) Statement of Accounting Policies. Items 3-10: None. Item 11: Please refer to Notes to Financial Statements footnote (C) Regulatory Proceedings. Item 12 13: None. f FERC FORM NO. 2 (12-96) 108.1

23 Name of Respondent This Re ort Is: Date of Report Year/Period of Report Connecticut Natural (Mo, Da, Yr) Gas Corporation (2) End of 20151Q4 Comparative Balance Sheet (Assets and Other Debits) Line Title of Account Reference Current Year End of Prior Year No. Page Number Quarter/Year Balance End Balance (c) 12/31 (a) (b) (d) 1 UTILITY PLANT 2 Utility Plant ( , 114) ,120, ,201,544 3 Construction Work in Progress (107) ,285,985 16,586,607 4 TOTAL Utility Plant (Total of lines 2 and 3) ,406, ,788,151 5 (Less) Accum. Provision for Depr., Amort., Depl. (108, 111, 115) 434,340, ,108,707 6 Net Utility Plant (Total of line 4 less 5) 459,066, ,679,444 7 Nuclear Fuel (120.1 thru 120.4, and 120.6) (Less) Accum. Provision for Amort., of Nuclear Fuel Assemblies (120.5) Nuclear Fuel (Total of line 7 less 8) Net Utility Plant (Total of lines 6 and 9) 459,066, ,679, Utility Plant Adjustments (116) Gas Stored-Base Gas (117.1) System Balancing Gas (117.2) Gas Stored in Reservoirs and Pipelines-Noncurrent (117.3) Gas Owed to System Gas (117.4) OTHER PROPERTY AND INVESTMENTS 17 Nonutility Property (121) (Less) Accum. Provision for Depreciation and Amortization (122) Investments in Associated Companies (123) Investments in Subsidiary Companies (123.1) (For Cost of Account See Footnote Page 224, line 40) 22 Noncurrent Portion of Allowances Other Investments (124) , , Sinking Funds (125) Depreciation Fund (126) Amortization Fund - Federal (127) Other Special Funds (128) 1,197, , Long-Term Portion of Derivative Assets (175) Long-Term Portion of Derivative Assets - Hedges (176) TOTAL Other Property and Investments (Total of lines 17-20, 22-29) 1,292, , CURRENT AND ACCRUED ASSETS 32 Cash (131) 2,835,284 7,074, Special Deposits ( ) Working Funds (135) Temporary Cash Investments (136) Notes Receivable (141) Customer Accounts Receivable (142) 43,480,362 57,001, Other Accounts Receivable (143) 7,775,630 9,829, (Less) Accum. Provision for Uncollectible Accounts - Credit (144) 2,495,814 3,906, Notes Receivable from Associated Companies (145) Accounts Receivable from Associated Companies (146) 1,652,137 1,350, Fuel Stock (151) Fuel Stock Expenses Undistributed (152) 0 0 FERC FORM NO. 2 (REV 06-04) Page 110

24 Name of Respondent This Report Is: Date of Report Year/Period of Report Connecticut Natural (Mo, Da, Yr) Gas Corporation End of 2015/Q4 AResubmission Comparative Balance Sheet (Assets and Other Debits)(continued) Line Title of Account Reference Current Year End of Prior Year No. Page Number Quarter/Year Balance End Balance (C) 12/31 (a) (b) (d) 44 Residuals (Elec) and Extracted Products (Gas) (153) Plant Materials and Operating Supplies (154) 1,395,166 1,252, Merchandise (155) 0 47 Other Materials and Supplies (156) Nuclear Materials Held for Sale (157) Allowances (158.1 and 158.2) (Less) Noncurrent Portion of Allowances Stores Expense Undistributed (163) Gas Stored Underground-Current (1641) ,349,318 31,615, Liquefied Natural Gas Stored and Held for Processing (164.2 thru 164.3) 220 7,487,205 8,010, Prepayments (165) ,359 1,021, Advances for Gas (166 thru 167) Interest and Dividends Receivable (171) ( 8,739) ( 8,739) 57 Rents Receivable (172) Accrued Utility Revenues (173) 16,904,370 21,401, Miscellaneous Current and Accrued Assets (174) 409, , Derivative Instrument Assets (175) (Less) Long-Term Portion of Derivative Instrument Assets (175) Derivative Instrument Assets - Hedges (176) (Less) Long-Term Portion of Derivative Instrument Assests - Hedges (176) TOTAL Current and Accrued Assets (Total of lines 32 thru 63) 101,748, ,955, DEFERRED DEBITS 66 Unamortized Debt Expense (181) 632, , Extraordinary Property Losses (182.1) Unrecovered Plant and Regulatory Study Costs (182.2) Other Regulatory Assets (182.3) Preliminary Survey and Investigation Charges (Electric)(183) Preliminary Survey and Investigation Charges (Gas)( and 183.2) Clearing Accounts (184) Temporary Facilities (185) Miscellaneous Deferred Debits (186) ,915, ,691, Deferred Losses from Disposition of Utility Plant (187) Research, Development, and Demonstration Expend. (188) Unamortized Loss on Reacquired Debt (189) Accumulated Deferred Income Taxes (190) ,956, ,990, Unrecovered Purchased Gas Costs (191) TOTAL Deferred Debits (Total of lines 66 thru 79) 235,504, ,407, TOTAL Assets and Other Debits (Total of lines ,30,64,and 80) 797,611, ,460,217 FERC FORM NO. 2 (REV 06-04) Page 111

25 Name of Respondent This Re ort Is: Date of Report Year/Period of Report Connecticut Natural (Mo, Da, Yr) Gas Corporation End of 20151Q4 Comparative Balance Sheet (Liabilities and Other Credits) Line Title of Account Reference Current Year Prior Year No. Page Number End of End Balance Quarter/Year 12/31 (a) (b) Balance (d) 1 PROPRIETARY CAPITAL 2 Common Stock Issued (201) ,232,800 33,232,800 3 Preferred Stock Issued (204) , ,706 4 Capital Stock Subscribed (202, 205) Stock Liability for Conversion (203, 206) Premium on Capital Stock (207) Other Paid-In Capital ( ) ,304, ,304,115 8 Installments Received on Capital Stock (212) (Less) Discount on Capital Stock (213) (Less) Capital Stock Expense (214) Retained Eamings (215, 215.1, 216) ( 3,673,331) 4,832, Unappropriated Undistributed Subsidiary Earnings (216.1) (Less) Reacquired Capital Stock (217) AccumulatedOtherComprehensivelncome(219) ,357 ( 26,513) 15 TOTAL Proprietary Capital (Total of lines 2 thru 14) 345,304, ,682, LONGTERM DEBT 17 Bonds (221) (Less) Reacquired Bonds (222) Advances from Associated Companies (223) Other Long-Term Debt (224) ,000, ,000, Unamortized Premium on Long-Term Debt (225) ,773,000 3,389, (Less) Unamortized Discount on Long-Term Debt-Dr (226) (Less) Current Portion of Long-Term Debt 246,000 1,616, TOTAL Long-Term Debt (Total of lines 17 thru 23) 141,527, ,773, OTHER NONCURRENT LIABILITIES 26 Obligations Under Capital Leases-Noncurrent (227) Accumulated Provision for Property Insurance (228.1) Accumulated Provision for Injuries and Damages (228.2) 341, , Accumulated Provision for Pensions and Benefits (228.3) 67,360,211 72,631, Accumulated Miscellaneous Operating Provisions (228.4) ( 14,008,737) ( 13,636,854) 31 Accumulated Provision for Rate Refunds (229) 0 0 FERC FORM NO. 2 (REV 06-04) Page 112

26 Name of Respondent This Report Is: Date of Report Year/Period of Report Connecticut Natural Da, Yr) Gas Corporation End of 20151Q4 Comparative Balance Sheet (Liabilities and Other Credits)(continued) Line Title of Account Reference Current Year Prior Year No. Page Number End of End Balance Quarter/Year 12/31 (a) (b) Balance (d) 32 Long-Term Portion of Derivative Instrument Liabilities Long-Term Portion of Derivative Instrument Liabilities - Hedges Asset Retirement Obligations (230) 6,737,313 6,847, TOTAL Other Noncurrent Liabilities (Total of lines 26 thru 34) 60,430,046 66,024, CURRENT AND ACCRUED LIABILITIES 37 Current Portion of Long-Term Debt 246,000 1,616, Notes Payable (231) 8,000, Accounts Payable (232) 33,300,523 52,799, Notes Payable to Associated Companies (233) Accounts Payable to Associated Companies (234) 7,519,804 6,279, Customer Deposits (235) 2,660,849 2,508, Taxes Accrued (236) ,595,464 2,110, Interest Accrued (237) 2, ,092, Dividends Declared (238) Matured Long-Term Debt (239) Matured Interest (240) Tax Collections Payable (241) 355, , Miscellaneous Current and Accrued Liabilities (242) 268 9,710,555 9,355, Obligations Under Capital Leases-Current (243) Derivative Instrument Liabilities (244) (Less) Long-Term Portion of Derivative Instrument Liabilities Derivative Instrument Liabilities - Hedges (245) (Less) Long-Term Portion of Derivative Instrument Liabilities - Hedges TOTAL Current and Accrued Liabilities (Total of lines 37 thw 54) 71,453,660 76,955, DEFERRED CREDITS 57 Customer Advances for Construction (252) Accumulated Deferred Investment Tax Credits (255) Deferred Gains from Disposition of Utility Plant (256) Other Deferred Credits (253) 269 1,189,732 2,125, Other Regulatory Liabilities (254) ,134,177 31,675, Unamortized Gain on Reacquired Debt (257) Accumulated Deferred Income Taxes - Accelerated Amortization (281) Accumulated Deferred Income Taxes - Other Property (282) 57,266,464 50,654, Accumulated Deferred Income Taxes - Other (283) 67,305,492 67,568, TOTAL Deferred Credits (Total of lines 57 thru 65) 178,895, ,023, TOTAL Liabilities and Other Credits (Total of lines 15,24,35,55,and 66) 797,611, ,460,217 0 FERC FORM NO. 2 (REV 06-04) Page 113

27 Name of Respondent This Re ort Is: Date of Report Year/Period of Report (Mo, Da, Connecticut Yr) Natural Gas Corporation (2) End of 2015/Q4 Statement of Income Quarterly 1. Enter in column (d) the balance for the reporting quarter and in column (e) the balance for the same three month period for the prior year. 2. Report in column (t) the quarter to date amounts for electric utility function; in column (h) the quarter to date amounts for gas utility, and in (j) the quarter to date amounts for other utility function for the current year quarter. 3. Report in column (g) the quarter to date amounts for electric utility function; in column (i) the quarter to date amounts for gas utility, and in (k) the quarter to date amounts for other utility function for the prior year quarter. 4. If additional columns are needed place them in a footnote. Annual or Quarterly, if applicable 5. Do not report fourth quarter data in columns (e) and (f) 6. Report amounts for accounts 412 and 413, Revenues and Expenses from Utility Plant Leased to Others, in another utility columnin a similar manner to a utility department. Spread the amount(s) over lines 2 thru 26 as appropriate. Include these amounts in columns (c) and (d) totals. 7. Report amounts in account 414, Other Utility Operating Income, in the same manner as accounts 412 and 413 above. 8. Report data for lines 8, 10 and 11 for Natural Gas companies using accounts 404.1, 404.2, 404.3, and Use page 122 for important notes regarding the statement of income for any account thereof. 10. Give concise explanations concerning unsettled rate proceedings where a contingency exists such that refunds of a material amount may need to be made to the utility s customers or which may result in material refund to the utility with respect to power or gas purchases. State for each year effected the gross revenues or costs to which the contingency relates and the tax effects together with an explanation of the major factors which affect the rights of the utility to retain such revenues or recover amounts paid with respect to power or gas purchases. 11 Give concise explanations concerning significant amounts of any refunds made or received during the year resulting from settlement of any rate proceeding affecting revenues received or costs incurred for power or gas purches, and a summary of the adjustments made to balance sheet, income, and expense accounts. 12. If any notes appearing in the report to stokholders are applicable to the Statement of Income, such notes may be included at page Enter on page 122 a concise explanation of only those changes in accounting mehods made during the year which had an effect on net income, including the basis of allocations and apportionments from those used in the preceding year. Also, give the appropriate dollar effect of such changes. 14. Explain in a footnote if the previous year s/quarters figures are different from that reported in prior reports. 15. If the columns are insufficient for reporting additional utility departments, supply the appropriate account titles report the information in a footnote to this schedule. Quarter Title of Account Reference Total Totai Current Three Prior Three Page Current Ye to Prior Yea to Date Months Ended Months Ended Number Date Balance Balance Quarterly Only Qualedy Only. for QuarterPfear for Quarter/Year No Fourth Quarter Line (a) No Fourth (b) (c) (d) (e) (I) 1 UTILITY OPERATING INCOME 2 Gas Operating Revenues (400) ,845, ,921, Operating Expenses 4 Operation Expenses (401) ,005, ,487, Maintenance Expenses (402) ,889,932 10,184, Depreciation Expense (403) ,738,365 26,863, Depreciation Expense for Asset Retirement Costs (403.1) AmortizationandDepletionofUtuityPlant( ) ,081,96 710, Amortization of Utility Plant Acu. Adjustment (406) Amort. of Prop. Losses, Unrecovered Plant and Reg, Study Costs (407.1) Amortization of Conversion Expenses (407.2) Regulatory Debits (407.3) (Less) Regulatory Credits (407.4) Taxes Other than Income Taxes (408.1) ,714,217 22,572, IncorneTaxes-Federal (409.1) ,839, , lncometaxes-other(409.1) ( 113,828) 2,002, Provision of Deferred Income Taxes (410.1) ,529,537 37,844, (Less) Provision for Deferred Income Taxes-Credit (411.1) ,106,134 29,149, Investment Tax Credit Adjustment-Net (411.4) (1 20 (Less) Gains from Disposition of Utility Plant (411.6) Losses from Disposition of Utility Plant (411.7) (Less) Gains from Disposition of Allowances (411.8) Losses from Disposition of Allowances (411.9) Accretion Expense (411.10) TOTAL Utility Operating Expenses (Total of linen 4 thru 24) 289,579, ,982, Net Utility Operating Income (Total of lines 2 less 25) (Carry forward to page 116, ine27) 17,266,629 30,939, FERC FORM NO. 2 (REV 06-04) Page 114

28 Name of Respondent I This Report Is: Date of Report I Year/Period of Report (1) Original I (Mo, Da, Yr) (2) Resubmission / End of 2015/Q4 I An fla Statement of Income Elec. Utility Elec. Utility Gas Utility Gas Utility Other Utility Other Utility Current Previous Current Previous Current Previous Year to Date Year to Date Year to Date Year to Date Year to Date Year to Date Line (in dollars) (in dollars) (in dollars) (in dollars) (in dollars) No. (g) (h) (i) (in dollars) (k) (I) ,845, ,921, i , ,487, ,889,932 10,184, ,738,365 26,863, ,081, , o i L!_ : :i._ ,714,217 22,572, ,839, , ( 113,828) 2,002, ,529,537 37,844, ,106,134 29,149, !_ p_ a!_ v ,579, ,982, ,266,629 30,939, a) FERC FORM NO. 2 (REV 06-04) Page 115

29 Name of Respondent This Re ort Is: Date of Report Year/Period of Report (Mo, Da, Yr) End of 2015/Q4 Statement of Income(continued) TWeofAccount Reference Total Total CurrentThree PriorThree Page CurrentYearto Prior Year to Date Months Ended Months Ended Number Date Balance Balance Quarterly Only Quarterly Only. Line (a) No. (b) for QuanteriYear (c) for Quarter(Year (d) No Fourth Quarter (e) No Fourth Quarter (f) 27 Net Utility Operating Income (Carried forward from page 114) ,939, OTHER INCOME AND DEDUCTIONS 29 Other Income 30 Nonutility Operating Income 31 Revenues faire Merchandising, Jobbing and Contract Work (415) (Less) Costs and Expense of Merchandising, Job & Contract Work (416) Revenues from Nonutility Operations (417) (Less) Expenses of Nonutiuity Operations (417.1) Nonoperating Rental Income (418) Equity in Earnings of Subsidiary Companies (418.1) Interest and Dividend Income (419) 2,648 ( 453) Allowance for Other Funds Used During Construction (419.1) 909, , Miscellaneous Nonoperating Income (421) 746, , Gain on Disposition of Property (421,1) TOTAL Other Income (Total of lines 31 thru 40) 1,658, , Other Income Deductions 43 Loss on Disposition of Property (421.2) Miscellaneous Amortization (425) Donations (426.1) , , Life Insurance (426.2) Penalties (426.3) 227, , Expenditures for Certain Civic, Political and Related Activities (426.4) 3,461 3, OtherDeductions(426.5) 109, , TOTAL Other Income Deductions (Total of lines 43 thru 49) , , Taxes Applic. to Other Income and Deductions 52 Taxes Other than Income Taxes (408.2) Income Taxes-Federal (409.2) ( 276,524) ( 466,252) IncomeTaxes-Other(409.2) ( 78,139) ( 131,751) Provision for Deferred Income Taxes (410.2) , , (Less) Provision for Deferred Income Taxes-Credit (411.2) Investment Tax Credit Adjustments-Net (411.5) (Less) Investment Tax Credits (420) TOTAL Taxes on Other Income and Deductions (Total of lines 52-58) 252,604 96, Net Other Income and Deductions (Total of lines 41, 50, 59) 976,430 77, NTEREST CHARGES 62 lnterestonlong-termdebt(427) 8,741,000 9,294, Amortization of Debt Disc, and Expense (428) , , Amortization of Loss on Reacquired Debt (428.1) (Less) Amortization of Premium on Debt-Credit (429) (Less) Amortization of Gals on Reacquired Debt-Credit (429.1) Interest on Debt to Associated Companies (430) OtherlnterestExpense(431) , , (Less) Allowance for Borrowed Funds Used During Construction-Credit (432) 249, , Net Interest Charges (Total of lines 62 thru 69) 9,249,110 10,031, Income Before Extraordinary Items (Total of lines 27,60 and 70) 8,993,949 20,984, EXTRAORDINARY ITEMS 73 Extraordinary Income (434) I (Less) Extraordinary Deductions (435) Net Extraordinary Items (Total of line 73 less line 74) Income Taxes-Federal and Other (409.3) Extraordinary Items after Taxes (Total of line 75 less line 76) Net Income (Total of lines 71 and 77) 8,993,949 20,984, FERC FORM NO.2 (REV 06-04) Paae 116

30 Name of Respondent This Report Is: Date of Report Year/Period of Report Da, Yr) End of 2015/Q4 ission Statement of Accumulated Comprehensive Income and Hedging Activities 1. Report ri columns (b) (C) and (e) the amounts of accumulated other comprehensive income items, on a net-of-tax basis, where appropriate. 2. Report in columns (f) and (g) the amounts of other categories of other cash flow hedges. 3. For each category of hedges that have been accounted for as fair value hedges, report the accounts affected and the related amounts in a footnote. Unrealized Gains Minimum Pension Foreign Currency Other Line and Losses on liabililty Adjustment Hedges Adjustments No. Item available-for-sale (net amount) secudties (a) (b) (c) (d) (e) 1 Balance of Account 219 at Beginning of Preceding Year Preceding QuarterlYear to Date Reclassifications from Account 219 to Net Income 3 Preceding Quarter/Year to Date Changes in Fair Value ( 241,764) 4 Total (lines 2 and 3) ( 241,764) 5 Balance of Account 219 at End of Preceding Quarter/Year ( 26,513) 6 Balance of Account 219 at Beginning of Current Year ( 26,513) 7 Current Quarter/Year to Date Reclassifications from Account 219 to Net Income 8 Current Quarter/Year to Date Changes in Fair Value 127,870 9 Total (lines 7 and 8) 127, Balance of Account 219 at End of Current Quarter/Year 101,357 FERC FORM NO. 2 (NEW 06-02) Page 117

31 Name of Respondent I This Reoort Is: Date of Report I Year/Period of Report (1) Original I (Mo, Da, Yr) End of 2015/Q4 An (2) Resubmission I I Statement of Accumulated Comprehensive Income and Hedging Activities(continued) Line Other Cash Flow Hedges Other Cash Flow Hedges Totals for each Net Income I Total Interest Rate Swaps (Insert Category) category of (Carried Forward I Comprehensive items recorded No. in from Page 116, I (t) (g) Account 219 Line 78) Income (h) (j) 1 215, ( 241,764) 4 ( 241,764) 5 ( 26,513) 6 ( 26,513) , , ,357 FERC FORM NO. 2 (NEW 06-02) Page 117a

32 Name of Respondent This Re ort Is: Date of Report Year/Period of Report Original (Mo, Da, Yr) End of 201 5/Q4 An Statement of Retained Earnings 1. Report all changes in appropriated retained earnings, unappropriated retained earnings, and unappropriated undistributed subsidiary earnings for the year. 2. Each credit and debit during the year should be identified as to the retained earnings account in which recorded (Accounts 433, inclusive). Show the contra primary account affected in column (b). 3. State the purpose and amount for each reservation or appropriation of retained earnings. 4. List first Account 439, Adjustments to Retained Earnings, reflecting adjustments to the opening balance of retained earnings. Follow by credit, then debit items, in that order. 5. Show dividends for each class and series of capital stock. Contra Primary Current Quarter Previous Quarter Line Item Account Affected Year to Date Year to Date No. Balance Balance (a) (c) (d) UNAPPROPRIATED RETAINED EARNINGS 1 Balance-Beginning of Period 2 Changes (Identify by prescribed retained earnings accounts) 3 Adjustments to Retained Earnings (Account 439) 4 TOTAL Credits to Retained Earnings (Account 439) (footnote details) 5 TOTAL Debits to Retained Earnings (Account 439) (footnote details) 6 Balance Transferred from Income (Acct 433 less Acct 418.1) 8,993,949 20,984,073 7 Appropriations of Retained Earnings (Account 436) 8 TOTAL Appropriations of Retained Earnings (Account 436) (footnote details) 9 Dividends Declared-Preferred Stock (Account 437) 10 TOTAL DMdends Declared-Preferred Stock (Account 437) (footnote details) 774, Dividends Declared-Common Stock (Account 438) 12 TOTAL Dividends Declared-Common Stock (Account 438) (footnote details) 17,500, Transfers from Account 216.1, Unappropriated Undistributed Subsidiary Earnings 14 Balance-End of Period (Total of lines 1, 4, 5, 6, 8, 10, 12, and 13) 15 APPROPRIATED RETAINED EARNINGS (Account 215) 16 TOTAL Appropriated Retained Earnings (Account 215) (footnote details) 17 APPROPRIATED RETAINED EARNINGS-AMORTIZATION RESERVE, FEDERAL (Account 18 TOTAL Appropriated Retained Earnings-Amortization Reserve, Federal (Account 19 TOTAL Appropriated Retained Earnings (Accounts 215, 215.1) (Total of lines 20 TOTAL Retained Earnings (Accounts 215, 215.1, 216) (Total of lines 14 and 1 21 UNAPPROPRIATED UNDISTRIBUTED SUBSIDIARY EARNINGS (Account 216.1) Report only on an Annual Basis no Quarterly 22 Balance-Beginning of Year (Debit or Credit) 23 Equity in Earnings for Year (Credit) (Account 418.1) 24 (Less) Dividends Received (Debit) 25 Other Changes (Explain) 26 Balance-End of Year FERC FORM NO. 2 (REV 06-04) Page

33 Name of Respondent This Re ort Is: Date of Report Year/Period of Report Connecticut Natural (1) X An Original (Mo, Da, Yr) Gas Corporation (2) Statement of Cash Flows EA ResubmissionI I End of 2015/Q4 (1) Codes to be used:(a) Net Proceeds or Payments;(b)Bonds, debentures and other long-tern, debt; (C) Include commercial paper; and (d) Identify separately such items as investments, fixed assets, intangibles, etc. (2) Information about noncash investing and financing activities must be provided in the Notes to the Financial statements. Also provide a reconciliation between Cash and Cash Equivalents at End of Period with related amounts on the Balance Sheet. (3) Operating Activities - Other: Include gains and losses pertaining to operating activities only. Gains and losses pertaining to investing and financing activities should be reported in those activities. Show in the Notes to the Financials the amounts of interest paid (net of amount capitalized) and income taxes paid. (4) Investing Activities: Include at Other (line 25) net cash outflow to acquire other companies. Provide a reconciliation of assets acquired with liabilities assumed in the Notes to the Financial Statements. Do not include on this statement the dollar amount of leases capitalized per the USofA General Instruction 20; instead provide a reconciliation of the dollar amount of leases capitalized with the plant cost. Line Description (See Instructions for explanation of codes) Current Year Previous Year No. to Date to Date (a) Quarter/Year Quarter/Year 1 Net Cash Flow from Operating Activities 2 Net Income (Line 78(c) on page 116) 8,993,949 20,984,737 3 Noncash Charges (Credits) to Income: 4 Depreciation and Depletion 29,820,000 27,574,000 5 Amortization of (Specdy) (footnote details) 2,222,000 2,762,000 6 Deferred Income Taxes (Net) ( 3,659,000) 9,389,000 7 Investment Tax Credit Adjustments (Net) 8 Net (Increase) Decrease in Receivables 19,860,000 7,627,000 9 Net (Increase) Decrease in Inventory 10,647,000 2,422, Net (Increase) Decrease in Allowances Inventory 11 Net Increase (Decrease) in Payables and Accrued Expenses ( 13,420,000) 5,033, Net (Increase) Decrease in Other Regulatory Assets 13 Net Increase (Decrease) in Other Regulatory Liabilities 14 (Less) Allowance for Other Funds Used During Construction 909, , (Less) Undistributed Earnings from Subsidiary Companies 16 Other (footnote details): 13,645,977 4,671, Net Cash Provided by (Used in) Operating Activities 18 (Total of Lines 2 thru 16) 67,200,926 80,224, Cash Flows from Investment Activities: 21 Construction and Acquisition of Plant (including land): 22 Gross Additions to Utility Plant (less nuclear fuel) 23 Gross Additions to Nuclear Fuel 24 Gross Additions to Common Utility Plant 25 Gross Additions to Nonutility Plant 26 (Less) Allowance for Other Funds Used During Construction ( 909,000) ( 239,000) 27 Other (footnote details): 28 Cash Outflows for Plant (Total of lines 22 thru 27) ( 61,913,000) ( 54,596,000) Acquisition of Other Noncurrent Assets (d) 31 Proceeds from Disposal of Noncurrent Assets (d) Investments in and Advances to Assoc. and Subsidiary Companies 34 Contributions and Advances from Assoc. and Subsidiary Companies 35 Disposition of Investments in (and Advances to) 36 Associated and Subsidiary Companies Purchase of Investment Securities (a) 39 Proceeds from Sales of Investment Securities (a) 54,835,000) FERC FORM NO. 2 (REV 06-04) Page 120

34 Name of Respondent This Re ort Is: Date of Report Year/Period of Report (Mo, Da, Yr) End of 2015/04 Statement of Cash Flows (continued) Line Description (See Instructions for explanation of codes) Current Year Previous Year No. to Date to Date (a) Quarter/Year Quarter/Year 40 Loans Made or Purchased 4,000, Collections on Loans Net (Increase) Decrease in Receivables 44 Net (Increase) Decrease in lnventoiy 45 Net (Increase) Decrease in Allowances Held for Speculaon 46 Net Increase (Decrease) in Payables and Accwed Expenses 47 Other (footnote details): 690, Net Cash Provided by (Used in) lnvesfing Activities 49 (Total of lines 28 thru 47) ( 61,913,000) ( 49,906,000) Cash Flows from Financing Activities: 52 Proceeds from Issuance of: 53 Long-Term Debt (b) 54 Preferred Stock 55 Common Stock 56 Other (footnote details): 8,000, Net Increase in Short-term Debt (c) 58 Other (footnote details): 59 Cash Provided by Outside Sources (Total of lines 53 thru 58) 8,000, Payments for Retirement of: 62 Long-Term Debt (b) 63 Preferred Stock 64 Common Stock 65 Other (footnote details): 66 Net Decrease in Short-Term Debt (c) Dividends on Preferred Stock ( 27,000) 14, Dividends on Common Stock ( 17,500,000) ( 21,874,000) 70 Net Cash Provided by (Used in) Financing Activities 71 (Total of lines 59 thru 69) ( 9,527,000) ( 31,860,000) Net Increase (Decrease) in Cash and Cash Equivalents 74 (Total of line 18,49 and 71) ( 4,239,074) Cash and Cash Equivalents at Beginning of Petiod 77 7,074,358 ( 1,541,711) 8,616, Cash and Cash Equivalents at End of Period 2,835,284 7,074,358 FERC FORM NO. 2 (REV 06-04) Page 120a

35 Name of Respondent This Report is: Date of Report (1) An Original (Mo, Da, Yr) YearlPeriod of Report Corporation Connecticut Natural Gas (2) A Resubmission / / 201 5/Q4 Notes to Financial Statements 1. Provide important disclosures regarding the Balance Sheet, Statement of Income for the Year, Statement of Retained Earnings for the Year, and Statement of Cash Flow, or any account thereof. Classify the disclosures according to each financial statement, providing a subheading for each statement except where a disclosure is applicable to more than one statement. The disclosures must be on the same subject matters and in the same level of detail that would be required if the respondent issued general purpose financial statements to the public or shareholders. 2. Furnish details as to any significant contingent assets or liabilities existing at year end, and briefly explain any action initiated by the Internal Revenue Service involving possible assessment of additional income taxes of material amount, or a claim for refund of income taxes of a material amount initiated by the utility. Also, briefly explain any dividends in arrears on cumulative preferred stock. 3. Furnish details on the respondent s pension plans, post-retirement benefits other than pensions (PBOP) plans, and post-employment benefit plans as required by instruction no. 1 and, in addition, disclose for each individual plan the current year s cash contributions. Furnish details on the accounting for the plans and any changes in the method of accounting for them. Include details on the accounting for transition obligations or assets, gains or losses, the amounts deferred and the expected recovery periods. Also, disclose any current year s plan or trust curtailments, terminations, transfers, or reversions of assets. Entities that participate in multiemployer postretirement benefit plans (e.g. parent company sponsored pension plans) disclose in addition to the required disclosures for the consolidated plan, (1) the amount of cost recognized in the respondent s financial statements for each plan for the period presented, and (2) the basis for determining the respondent s share of the total plan costs. 4. Furnish details on the respondent s asset retirement obligations (ARO) as required by instruction no. 1 and, in addition, disclose the amounts recovered through rates to settle such obligations. Identify any mechanism or account in which recovered funds are being placed (i.e. trust funds, insurance policies, surety bonds). Furnish details on the accounting for the asset retirement obligations and any changes in the measurement or method of accounting for the obligations. Include details on the accounting for settlement of the obligations and any gains or losses expected or incurred on the settlement. 5. Provide a list of all environmental credits received during the reporting period. 6. Provide a summary of revenues and expenses for each tracked cost and special surcharge. 7. Where Account 189, Unamortized Loss on Reacquired Debt, and 257, Unamortized Gain on Reacquired Debt, are not used, give an explanation, providing the rate treatment given these item. See General Instruction 17 of the Uniform System of Accounts. 8. Explain concisely any retained earnings restrictions and state the amount of retained earnings affected by such restrictions. 9. Disclose details on any significant financial changes during the reporting year to the respondent or the respondent s consolidated group that directly affect the respondent s gas pipeline operations, including: sales, transfers or mergers of affiliates, investments in new partnerships, sales of gas pipeline facilities or the sale of ownership interests in the gas pipeline to limited partnerships, investments in related industries (i.e., production, gathering), major pipeline investments, acquisitions by the parent corporation(s), and distributions of capital. 10. Explain concisely unsettled rate proceedings where a contingency exists such that the company may need to refund a material amount to the utility s customers or that the utility may receive a material refund with respect to power or gas purchases. State for each year affected the gross revenues or costs to which the contingency relates and the tax effects and explain the major factors that affect the rights of the utility to retain such revenues or to recover amounts paid with respect to power and gas purchases. 11. Explain concisely significant amounts of any refunds made or received during the year resulting from settlement of any rate proceeding affecting revenues received or costs incurred for power or gas purchases, and summarize the adjustments made to balance sheet, income, and expense accounts. 12. Explain concisely only those significant changes in accounting methods made during the year which had an effect on net income, including the basis of allocations and apportionments from those used in the preceding year. Also give the approximate dollar effect of such changes. 13. For the 3Q disclosures, respondent must provide in the notes sufficient disclosures so as to make the interim information not misleading. Disdosures which would substantially duplicate the disclosures contained in the most recent FERC Annual Report may be omitted. 14. For the 3Q disclosures, the disclosures shall be provided where events subsequent to the end of the most recent year have occurred which have a material effect on the respondent. Respondent must include in the notes significant changes since the most recently completed year in such items as: accounting principles and practices; estimates inherent in the preparation of the financial statements; status of long-term contracts; capitalization including significant new borrowings or modifications of existing financing agreements; and changes resulting from business combinations or dispositions. However were material contingencies exist, the disclosure of such matters shall be provided even though a significant change since year end may not have occurred. 15. Finally, if the notes to the financial statements relating to the respondent appearing in the annual report to the stockholders are applicable and furnish the data required by the above instructions, such notes may be included herein. (A) STATEMENT OF ACCOUNTING POLICIES (CNG) engages in natural gas transportation, distribution and sales operations in Connecticut serving approximately 172,000 customers in service areas totaling approximately 716 square miles. The service area in Connecticut includes the greater Hartford-New Britain area and Greenwich. The population of this area is approximately 751,000, which represents approximately 21% of the population of the State. Of CNG s 2015 retail revenues, 62.9% were derived from residential sales, 29.5% from commercial sales, 4.7% from industrial sales and 3.0% from other sales. Retail revenues vary by season, with the highest revenues typically in the first quarter of the year reflecting cooler weather. In February 2015, CNG entered into an agreement with the Town of East Hampton, Connecticut to construct a large-scale gas infrastructure in the town. CNG is the principal operating utility of CTG Resources, Inc. (CTG), a wholly-owned subsidiary of UIL Holdings Corporation. CTG is a holding company whose sole business is ownership of its operating regulated gas utility. CNG is regulated by the Connecticut Public Utilities Regulatory Authority (PURA). I FERC FORM NO. 213-Q (REV 12-07) I

36 Merger New Name of Respondent This Report is: Date of Report Year/Period of Report (1) XAn Original (Mo, Da, Yr) (2) A Resubmission / I 20151Q4 Notes to Financial Statements On December 16, 2015, UIL Holdings Corporation, a Connecticut corporation (Predecessor UIL) merged with and into Green Merger Sub, Inc., after which Green Merger Sub, Inc. changed its name to UIL Holdings Corporation (UIL Holdings). Throughout this document UIL Holdings shall refer to UIL Holdings and Predecessor UIL unless the context otherwise indicates. The primary business of UIL Holdings is ownership of its operating regulated utility businesses. See Note (C) Regulatory Proceedings for further information regarding the merger. Accounting Records The accounting records of CNG are maintained in conformity with generally accepted accounting principles in the United States of America (GAAP) and in accordance with the uniform systems of accounts prescribed by the Federal Energy Regulatory Commission (FERC) and PURA. Basis of Presentation The accompanying fmancial statements have been prepared in conformity with the requirements of the Federal Energy Regulatory Commission, as set forth in its applicable Uniform System of Accounts and published accounting releases. Accordingly, as required by the Federal Energy Regulatory Commission, certain information has been presented differently or has been excluded from that which would be required by accounting principles generally accepted in the United States of America ( GAAP ). Such differences include the classification of certain expenses, the classification of long-term balances, captions used for certain accounts, the presentation of VIE s, and the presentation of cash flows, as specified by the Federal Energy Regulatory Commission. Additionally, certain disclosures required by GAAP are not adjusted to conform to the Federal Energy Regulatory Commission fmancial statements Certain amounts related to deferred tax liabilities, regulatory liabilities, operation and maintenance expense, depreciation and amortization expense, taxes other than income taxes, and other income and (deductions) that were reported as such in the Financial Statements in previous periods have been reclassified to conform to the current presentation as a result of UIL Holdings presenting such information consistent with its parent Avangrid, Inc. due to the merger. See further discussion regarding the merger in Note (A) Statement of Accounting Policies with Avangrid, Inc. and Note (C) Regulatory Proceedings. The following table summarizes (1) the impact to the prior period Financial Statements of the adjustments noted above (2) the impacts to the prior period fmancials of the adjustments made as a result of the early adoption of certain new accounting standards (See Note (A) Statement of Accounting Policies Accounting Standards ), and (3) certain immaterial amounts that have been reclassified to conform to the current presentation. I FERC FORM NO. 213-Q (REV 12-07) I

37 Name of Respondent This Report is: Date of Report (1) XAri Original (Mo, Da, Yr) Year/Period of Reporti (2) A Resubmission / / 20151Q4 Notes to Financial Statements December 31, 2014 (in thousands) As previously filed Reclassifications As currently reported Consolidated Statement of Income Operation and maintenance $ 75,320 $ 2,895 $ 78,215 Depreciation and amortization 30,336 (2,762) 27,574 Taxes-otherthanincometaxes 23,171 (133) 23,038 Other income Other income and (deductions) 589 (982) (393) Consolidated Statement of Cash Flows Depreciation and amortization 30,444 (2,762) 27,682 Other regulatory activity, net 7,934 2,762 10,696 Consolidated Balance Sheet Deferred income taxes (current) 2,267 (2,267) - Total Current Assets 152,355 (2,267) 150,088 Unamortized debt issuance expenses 725 (476) 249 Total deferred charges and other assets 80,066 (476) 79,590 Total assets 850,204 (2,743) 847,461 Deferred income taxes 18,589 (2,267) 16,322 Long-term debt 141,773 (476) 141,297 Total capitalization 495,456 (476) 494,980 Total liabilities and capitalization 850,204 (2,743) 847,461 CNG has evaluated subsequent events through the date its fmancial statements were available to be issued, May 5, Allowance for Funds Used During Construction In accordance with the uniform systems of accounts, CNG capitalizes allowance for funds used during construction (AFUDC), which represents the approximate cost of debt and equity capital devoted to plant under construction. The portion of the allowance applicable to borrowed funds is presented as other interest and the portion of the allowance applicable to equity funds is presented as other income in the Consolidated Statement of Income. Although the allowance does not represent current cash income, it has historically been recoverable under the ratemaking process over the service lives of the related properties. Weighted-average AFUDC rates for 2015 and 2014 were 7.8 1% and 4.67%, respectively. Asset Retirement Obligations The fair value of the liability for an asset retirement obligation (ARO) and/or a conditional ARO is recorded in the period in which it is incurred and the cost is capitalized by increasing the carrying amount of the related long-lived asset. The liability is adjusted to its present value periodically over time, and the capitalized cost is depreciated over the useful life of the related asset. Upon settlement, the obligation is settled either at its recorded amount or a gain or a loss is incurred. Any timing differences between rate recovery and depreciation expense are deferred as either a regulatory asset or a regulatory liability. The term conditional ARO refers to an entity s legal obligation to perform an asset retirement activity in which the timing and/or method of settlement are conditional on a future event that may or may not be within the control of the entity. If an entity has sufficient information to reasonably estimate the fair value of the liability for a conditional ARO, it must recognize that liability at the time the liability is incurred. CNG s ARO, including estimated conditional AROs, consist primarily of obligations related to the removal or retirement of asbestos, polychlorinated biphenyl contaminated equipment, gas pipeline and cast iron gas mains. The long-lived assets associated with the FERC FORM NO. 213-Q (REV 12-07) 122.3

38 Name of Respondent This Report is: Date of Report Year/Period of Report (1)XAn Original (Mo, Da, Yr) (2) A Resubmission / i 20151Q4 Notes to Financial Statements AROs are gas storage property, distribution property and other property. long-term liabilities. CNG s ARO is carried on the balance sheet as other ARO activity for 2015 and 2014 is as follows: (In Thousands) $ 6,847 $ 6,841 Balance as of January 1 Liabilities settled during the year (466) (353) Accretion $ 6,737 S 6,847 Balance as of December 31 Cash and Temporary Cash Investments CNG considers all of its highly liquid debt instruments with an original maturity of three months or less at the date of purchase to be cash and temporary cash investments. Depreciation Provisions for depreciation on utility plant for book purposes are computed on a straight-line basis, using estimated service lives. For utility plant other than software, service lives are determined by independent engineers and subject to review and approval by PURA. Software service life is based upon management s estimate of useful life. The aggregate annual provisions for depreciation for the years 2015 and 2014 were approximately 3.9% of the original cost of depreciable property. Goodwill CNG may be required to recognize an impairment of goodwill in the future due to market conditions or other factors related to its results of operations and performance. Those market events could include a decline in the forecasted results in the company business plan, significant adverse rate case results, changes in capital investment budgets or changes in interest rates that could impair the fair value of a reporting unit. Recognition of impairments of a significant portion of goodwill would negatively affect reported results of operations and total capitalization, the effect of which could be material and could make it more difficult to maintain credit ratings, secure financing on attractive terms, maintain compliance with debt covenants and meet expectations of regulators. A goodwill impairment test is performed each year and the test will be updated between annual tests if events or circumstances occur that may reduce the fair value of a reporting unit below its carrying value. The annual analysis of the potential impairment of goodwill is a two-step process. Step one of the impairment test consists of comparing the fair values of reporting units with their aggregate carrying values, including goodwill. The estimated fair values for the reporting units are determined by using the income approach and the market approach methodologies. The income approach is based on discounted cash flows which are derived from internal forecasts and economic expectations. Key assumptions used to determine fair value under the income approach include the cash flow period, terminal values based on a terminal growth rate, and the discount rate. The discount rate represents the estimated cost of debt and equity fmancing weighted by the percentage of debt and equity in a company s target capital structure. The market approach utilizes the guideline company method, which calculates valuation multiples based on operating and valuation metrics from publicly traded guideline companies in the regulated natural gas distribution industry. Multiples derived from the guideline companies provide an indication of how much a knowledgeable investor in the marketplace would be willing to pay for an investment in a similar company. These multiples are then applied to the appropriate operating metric to determine indications of fair value. If the carrying amount of a reporting unit exceeds the reporting unit s fair value, step two must be performed to determine the amount, I FERC FORM NO. 2!3-Q (REV 12-07)

39 Name of Respondent This Report is: Date of Report YearlPeriod of Reporj Original (Mo, Da, Yr) (2) A Resubmission I / 201 5/04 (1)An Notes to Financial Statements if any, of the goodwill impairment loss. performed. If the carrying amount is less than fair value, further testing of goodwill impairment is not Step two of the goodwill impairment test consists of comparing the implied fair value of the reporting unit s goodwill against the carrying value of the goodwill. Determining the implied fair value of goodwill requires the valuation of a reporting unit s identifiable tangible and intangible assets and liabilities as if the reporting unit had been acquired in a business combination on the testing date. The difference between the fair value of the entire reporting unit as determined in step one and the net fair value of all identifiable assets and liabilities represents the implied fair value of goodwill. A goodwill impairment charge, if any, would be the difference between the carrying amount of goodwill and the implied fair value of goodwill upon the completion of step two. As of October 1, 2015, the fair value of CNG exceeded its carrying value and therefore Step two was not performed and no impairment was recognized. No events or circumstances occurred subsequent to October 1, 2015 that would make it more likely than not that the fair value fell below the carrying value. Impairment of Long-Lived Assets and Investments Accounting Standards Codification (ASC) 360 Property, Plant, and Equipment requires the recognition of impairment losses on long-lived assets when the book value of an asset exceeds the sum of the expected future undiscounted cash flows that result from the use of the asset and its eventual disposition. If impairment arises, then the amount of any impairment is measured based on discounted cash flows or estimated fair value. ASC 360 also requires that rate-regulated companies recognize an impairment loss when a regulator excludes all or part of a cost from rates, even if the regulator allows the company to earn a return on the remaining costs allowed. Under this standard, the probability of recovery and the recognition of regulatory assets under the criteria of ASC 980 must be assessed on an ongoing basis. As discussed in the description of ASC 980 in this Note (A) under Regulatory Accounting, determination that certain regulatory assets no longer qualif for accounting as such could have a material impact on the fmancial condition CNG. At December 31, 2015, CNG did not have any assets that were impaired under this standard. Income Taxes In accordance with ASC 740 Income Taxes, CNG has provided deferred taxes for all temporary book-tax differences using the liability method. The liability method requires that deferred tax balances be adjusted to reflect enacted future tax rates that are anticipated to be in effect when the temporary differences reverse. In accordance with generally accepted accounting principles for regulated industries, CNG has established a regulatory asset for the net revenue requirements to be recovered from customers for the related future tax expense associated with certain of these temporary differences. For ratemaking purposes, CNG normalizes all investment tax credits related to recoverable plant investments. There were no accumulated investment tax credits as of December 31, 2015 and Under ASC 740, CNG may recognize the tax benefit of an uncertain tax position only if management believes it is more likely than not that the tax position will be sustained on examination by the taxing authority based upon the technical merits of the position. The tax benefits recognized in the fmancial statements from such a position should be measured based upon the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. CNG s policy is to recognize interest accrued and penalties associated with uncertain tax positions as a component of operating expense. See Note (E), Income Taxes for additional information. FERC FORM NO. 213-Q (REV 12-07) I

40 Notes to Financial Statements (2) A Resubmission I / 20151Q4 I FERC FORM NO. 213-Q (REV 12-07) I (1) X An Original (Mo, Da, Yr) Name of Respondent This Report is: Date of Report Year/Period of Reporti

41 Name of Respondent This is: (1) An Original (2) A Report Resubmission Notes to Financial Statements Date of Report Year/Period of Report (Mo, Da, Yr) / I 201 5/04 Pension and Other Postretirement Benefits CNG accounts for pension plan costs and other postretirement benefits, consisting principally insurance, in accordance with the provisions Retirement Benefits. See Note (F), Pension and Other Benefits. of ASC 715 Compensation - of health care, prescription drugs and life Property, Plant and Equipment The cost renewals and betterments are capitalized. Costs consist labor, materials, services and certain indirect construction costs, including AFUDC. The costs and minor replacements are charged to appropriate operating expense accounts as incurred. The original cost and equipment retired or otherwise disposed of and the cost removal, less salvage, are charged to the accumulated provision for depreciation. of additions to property, plant and equipment and the cost of of of current repairs, major maintenance projects of of utility property, CNG accrues for estimated costs removal for certain their plant-in-service. Such removal costs are included in the approved rates used to depreciate these assets. At the end of the service life the applicable assets, the accumulated depreciation in excess the historical cost the asset provides for the estimated cost removal. In accordance with ASC 980 Regulated Operations, the accrued costs of of of of of of removal have been recorded as a regulatory liability. CNG s property, plant and equipment as of December 31, 2015 and 2014 were comprised as follows: (In Thousands) Gas distribution plant $ 721,769 $ 672,327 Software 4,720 4,737 Land 1,618 1,618 Building and improvements 29,570 21,577 Other plant 37,103 36,601 Total property, plant & equipment 794, ,860 Less accumulated depreciation 265, , , ,710 Construction work in progress 19,286 16,587 Net property, plant & equipment $ 548,308 $ 501,297 plant of Regulatory Accounting Generally accepted accounting principles for regulated entities in the United States America allow CNG to give accounting recognition to the actions regulatory authorities in accordance with the provisions ASC 980 Regulated Operations. In accordance with ASC 980, CNG has deferred recognition costs (a regulatory asset) or has recognized obligations (a regulatory liability) it is probable that such costs will be recovered or obligations relieved in the future through the ratemaking process. CNG is allowed to recover all such deferred costs through its regulated rates. See Note (C) Regulatory Proceedings, for a discussion the recovery the regulatory decisions that provide for such recovery. if of of certain deferred costs, as well as a discussion of of of of of If CNG, or a portion of of of of of ASC 980). CNG expects to continue to meet the criteria for application of ASC its assets or operations, were to cease meeting the criteria for application these accounting rules, accounting standards for businesses in general would become applicable and immediate recognition any previously deferred costs would be required in the year in which such criteria are no longer met such deferred costs are not recoverable in the portion the business that continues to meet the criteria for application 980 for the foreseeable future. and retained earnings in that year and could also have a material adverse effect on CNG s ongoing fmancial condition. (if If a change in accounting were to occur, it could have a material adverse effect on the CNG s earnings Unless otherwise stated below, all 31, 2015 and 2014 included the following: of CNG s regulatory assets earn a return. CNG s regulatory assets and liabilities as of December FERC FORM NO. 2!3-Q (REV 12-07> I

42 Name of Respondent (2) This is: of Report Year/Period of Report (1) X An Original (Mo, Da, Yr) A Resubmission Report Notes to Financial Statements Date / / 201 5/Q4 Regulatory Assets: Pension and other post-retirement benefit plans Hardship programs Debt premium Unfunded future income taxes Deferred purchased gas Other Total regulatory assets Less current portion Regulatory Assets, Net of regulatory assets Remaining Period (a) $ 96,601 (b) 8,761 2 to 23 years 1,773 (c) 10,175 (f) 3,099 (d) 4, ,605 17,090 S December 31, December 31, (In Thousands) S 102,184 6,812 3,389 12, , ,691 13,761 $ 115,930 Regulatory Liabilities: Pension and other post-retirement benefit plans Asset removal costs Asset retirement obligation Rate credits Non-firm margin sharing credits Decoupling Other Total regulatory liabilities Less current portion Regulatory Liabilities, Net of regulatory liabilities (a) (d) (e) ito l2years 10 years (g) (d) $ 5, ,574 7,702 18,225 4,696 15,010 5, ,538 18,764 $ 192,774 $ 3, ,322 7,248 4,538 11,099 5, ,942 4,346 S 171,596 (a) Life is dependent upon timing fmal pension plan distribution; balance, which is fully offset by a corresponding asset/liability, is recalculated each year in accordance with ASC 715 Compensation-Retirement Benefits. See Note (F) Pension and Other Benefits for additional information. of (b) Hardship customer accounts deferred for future recovery to the extent they exceed the amount in rates. (c) The balance will be extinguished when the asset, which is fully offset by a corresponding liability, or liability has been realized or settled, respectively. (d) Amortization period and/or balance vary depending on the nature, cost of removal and/or remaining life assets/liabilities; asset amount includes certain amounts that are not currently earning a return. (e) The liability will be extinguished simultaneous with the retirement retirement obligation. (f) Deferred purchase gas costs balances at the end (g) The current portion is being returned to customers in The return proceeding with PURA. of of of the underlying the assets and settlement of the corresponding asset the rate year are normally recorded / returned in the next year. of the long-term portion will be determined in a future FERC FORM NO. 213-Q (REV 12-07) 122.8

43 Basis Name of Respondent This Report is: Date of Report Year/Period of Repof] (1) An Original (Mo, Da, Yr) (2) A Resubmission I I 20151Q4 Notes to Financial Statements Revenues Regulated utility revenues are based on authorized rates applied to each customer. These retail rates are approved by regulatory bodies and can be changed only through formal proceedings. Unbilled revenues represent estimates of receivables for products and services provided but not yet billed. The estimates are determined based on various assumptions, such as current month energy load requirements, billing rates by customer classification and weather. New Accounting Standards In April 2015, the FASB issued Accounting Standards Update (ASU) , Interest Imputation of Interest: Simplifiing the Presentation of Debt Issuance Costs which requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability. ASU is effective for interim and annual reporting periods beginning after December 15, 2015 and is to be applied retrospectively. As permitted, we have early adopted the amendment as of the beginning of the fourth quarter of 2015 and have applied it retrospectively to all periods presented. In August 2015, the FASB issued Accounting Standards Update (ASU) , Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements which incorporates SEC guidance into ASC 835 Interest that allows an entity to defer and present debt issuance costs related to line of credit arrangements as an asset and subsequently amortize such costs ratably over the term of the arrangement regardless of whether there are any outstanding borrowings on the line of credit. As permitted, we have early adopted the amendment as of the beginning of the fourth quarter of 2015 and have applied it retrospectively to all periods presented. See Note (A) Statement of Accounting Policies of Presentation for a table illustrating the reclassification to the prior year Consolidated Financial Statements. In July 2015, the FASB issued Accounting Standards Update (ASU) , Inventory Simplit, ing the Measurement of Inventory which requires inventory that is measured using first-in, first-out or average cost methods to be measured using the lower of cost and net realizable value. ASU is effective for interim and annual reporting periods beginning after December 15, 2016 and is to be applied prospectively with earlier application permitted as of the beginning of an interim or annual reporting period. This is not expected to be material to CNG s financial statements. Also in August 2015, the FASB issued Accounting Standards Update (ASU) , Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements which incorporates SEC guidance into ASC 835 Interest that allows an entity to defer and present debt issuance costs related to line of credit arrangements as an asset and subsequently amortize such costs ratably over the term of the arrangement regardless of whether there are any outstanding borrowings on the line of credit. As permitted, we have early adopted the amendment as of the beginning of the fourth quarter of 2015 and have applied it retrospectively to all periods presented. In November 2015, the FASB issued Accounting Standards Update (ASU) , Balance Sheet Classification of Deferred Taxes which requires that deferred tax liabilities and assets be classified as noncurrent in a classified statement of fmancial position. This Update is applies to all entities that present a classified statement of fmancial position. For non-public entities, ASU is effective for fmancial statements issued for annual periods beginning after December 15, As permitted, we have early adopted the amendment as of the beginning of the fourth quarter of 2015 and have applied it retrospectively to all periods presented. See Note (A) Statement of Accounting Policies Basis of Presentation for a table illustrating the reclassification to the prior year Consolidated Financial Statements. In January 2016, the FASB issued Accounting Standards Update (ASU) Recognition and Measurement of Financial Assets and Financial Liabilities. The new guidance requires that all equity investments in unconsolidated entities (other than those accounted for using the equity method of accounting) to be measured at fair value through earnings. There will no longer be an available-for-sale classification (changes in fair value reported in other comprehensive income) for equity securities with readily determinable fair values. For equity investments without readily determinable fair values, the cost method is also eliminated. When the fair value option has been elected for fmancial liabilities, changes in fair value due to instrument-specific credit risk will be recognized separately in other comprehensive income. The accumulated gains and losses due to these changes will be reclassified from accumulated other comprehensive income to earnings if the financial liability is settled before maturity. The amendments exempt all entities that are not public business entities from disclosing fair value information for fmancial instruments measured at amortized cost. In addition, the I FERC FORM NO. 2!3-Q (REV 12-07) I

44 Name of Respondent This Report is: Date of Report (1) An Original (Mo, Da, Yr) Year/Period of Report (2) A Resubmission I I 20151Q4 Notes to Financial Statements new guidance requires financial assets and fmancial liabilities to be presented separately in the notes to the fmancial statements, grouped by measurement category (e.g., fair value, amortized cost, lower of cost or market) and form of fmancial asset (e.g., loans, securities). The classification and measurement guidance is effective for entities that are not public entities in fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. All entities that are not public entities may adopt the amendments earlier as of the fiscal years beginning after December 15, 2017 including interim periods within those fiscal years. An entity will record a cumulative-effect adjustment to beginning retained earnings as of the beginning of the first reporting period in which the guidance is adopted, with two exceptions. The amendments related to equity investments without readily determinable fair values (including disclosure requirements) will be effective prospectively. The requirement to use the exit price notion to measure the fair value of fmancial instruments for disclosure purposes will also be applied prospectively. We do not expect our adoption of the guidance to materially affect our results of operations, fmancial position, or cash flows. In February 2016, the FASB issued Accounting Standards Update (ASU) Leases. The guidance in this Update supersedes Topic 840, Leases and creates Topic 842, Leases. Topic 842 defmes a lease as a contract, or part of a contract, that conveys both the right to obtain substantially all economic benefits of an identified asset and the right to direct the use of the asset for a period of time in exchange for consideration. Leases are classified under this guidance as either operating or fmance. For operating and finance leases, a lessee is required to recognize a right-of-use asset and a lease liability, initially measured at the present value of the lease payments, in the statement of fmancial position. For operating leases, a lessee is required to recognize a single lease cost, which will be recognized on a straight-line basis over the lease term similar to the current model. Lessor accounting is largely unchanged from that applied under previous GAAP. However, minor changes have been made to align with certain definition changes to the lessee model and the new revenue recognition standard. Leveraged lease accounting has been eliminated under this Update. Qualitative and specific quantitative disclosures are required under this guidance to meet the objective of enabling users of fmancial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. For entities that are not public entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, Early application is permitted for all entities. We are currently evaluating the effect that adopting this new accounting guidance will have on our financial statements. B) CAPITALIZATION Common Stock CNG had 10,634,436 shares of its common stock, par value, outstanding as of December 31, 2015 and Redeemable Preferred Stock of Subsidiaries, Noncontrolling Interests The preferred stock of subsidiaries is a noncontrolling interest because it contains a feature that allows the holders to elect a majority of the subsidiary s board of directors if preferred stock dividends are in default in an amount equivalent to four full quarterly dividends. Such a potential redemption-triggering event is not solely within the control of the subsidiary. CNG has authorized 884,315 shares of its 8.00% non-callable cumulative preferred stock with a par value of $3.125 per share. As of December 31, 2015, there were 108,706 shares issued and outstanding with a value of approximately $0.3 million. I FERC FORM NO. 213-Q (REV 12-07)

45 Name of Respondent This is: of Report Year/Period of Report (1) X An Original (Mo, Da, Yr) (2) A I I 20151Q4 Report Resubmission Notes to Financial Statements Date Long-term Debt December 31, (In Unsecured Notes: 9.10% Medium Term Note, Series A, due November 15, ,000 10, % Medium Term Note, Series A, due April 3, ,000 20, % Medium Term Note, Series C, due September 15, ,000 20, % Medium Term Note, Series C, due October 28, ,000 25, % Medium Term Note, Series C, due October 15, ,000 20, % Medium Term Note, Series D, due October 25, ,000 25, % Medium Term Note, Series D, due October 25, ,000 20,000 Thousands) Long-Term Debt 140, ,000 Less: Current portion long-term debt (1) 11,527 1,616 Less: Presentation adjustment - Unamortized debt issuance costs Plus: Unamortized premium 1,773 3,389 Net Long-Term Debt $ 129,738 $ 141,297 of (1) Includes the current portion ofunamortized premium. The fair value which was estimated by CNG based on market conditions. The expenses to issue long-term debt are deferred and amortized over the life the respective debt issue. of of CNG s long-term debt was $162.0 million and $172.2 million as of December 31, 2015 and 2014, respectively, Information regarding maturities and mandatory redemptions/repayments are set forth below: & Thereafter Total (In Thousands) Maturities: $ 10,000 $ 20,000 $ $ - $ 110,000 $ 140,000 (C) REGULATORY PROCEEDINGS Merger with Avangrid, Inc. As discussed in Note A, Organization and Statement Avangrid, Inc. PURA and DPU approvals were obtained upon commitments made by UIL Holdings and Avangrid, Inc. that included $18.2 million in rate credits to CNG customers included in regulatory liabilities in the accompanying balance sheet. These commitments were accrued upon completion the merger and are included in the consolidated results December 31, of of Accounting Policies, on December 16, 2015 UIL Holdings merged with of operations for the year ended In addition, the commitments include a distribution rate freeze to January 1, 2018 for CNG, accelerated capital investment in gas distribution system replacement cast iron and bare steel. UIL Holdings and Avangrid, Inc. further committed to no change in the day-to-day management and operation UIL Holdings Connecticut and Massachusetts utilities, to hiring 150 employees or contractors within the State Connecticut over the next three years, to maintain CNG s high levels gas leak response, and to improve certain customer service metrics in Connecticut over the next three years. of of of The commitments also included comprehensive ring fencing provisions to protect the Connecticut and Massachusetts utilities from I FERC FORM NO (REV 12-07) I of

46 Name of Respondent (2) This is: (1) XAn Original A Resubmission Report Notes to Financial Statements Date of Report Year/Period of Report (Mo, Da, Yr) / / 2015/Q4 involuntary bankruptcy associated with potential future adverse changes in fmancial circumstances provisions include the creation a special purpose entity with at least one independent director, dividend limitations on Connecticut utilities where the investment grade credit rating is in jeopardy or a minimum common equity ratio is not maintained, commitments to maintain separate books and records and a prohibition on commingling funds. Rates of if of of Avangrid, Inc. affiliates. These Utilities are entitled by Connecticut statute to charge rates that are sufficient to allow them an opportunity to cover their reasonable operating and capital costs, to attract needed capital and to maintain their financial integrity, while also protecting relevant public interests. CNG s rates are established by PURA. The allowed return on equity established by PURA is 9.18%. Additionally, CNG has a purchased gas adjustment clause, approved by PURA, which enables them to pass their reasonably incurred cost gas purchases through to customers. This clause allows CNG to recover costs associated with changes in the market price substantially eliminating exposure to natural gas price risk. the of of purchased natural gas, CNG has a gas adjustment clause, approved by PURA and DPU, respectively, which enable them to pass their reasonably incurred cost gas purchases through to customers. These clauses allow utilities to recover costs associated with changes in the market price purchased natural gas, substantially eliminating exposure to natural gas price risk. of of of 9.18%, a decoupling mechanism, and two separate ratemaking mechanisms that reconcile On January 22, 2014, PURA approved new base delivery rates for CNG, with an effective date January 10, 2014, which, among other things, approved an allowed ROE actual revenue requirements related to CNG s cast iron and bare steel replacement program and system expansion. Additionally, the final decision requires the establishment an earnings sharing mechanism by which CNG and customers share on a 50/50 basis all earnings above the allowed ROE in a calendar year. The decision also allows CNG, on a provisional basis, to reflect the increased rate base resulting from the accumulated deferred income tax (ADIT) impacts the election the Internal Revenue Code upon its acquisition by UIL Holdings. The decision requires CNG to seek a private letter ruling from the Internal Revenue Service with regard to the specific question an ADIT balance, a directive by a public utility commission to institute a ratemaking mechanism to reflect a credit to ratepayers election would result in a normalization violation. The decision states that in the event stating that imposing such a ratemaking mechanism would not create a normalization violation, PURA would adjust rates to offset the ratemaking impacts the 338(h)(lO) election on rate base. We estimate the impact to be an approximate $2.5 to $3.5 million decrease in annual revenue requirements. of of of of Section 338(h)(10) of whether, after extinguishment of of ADIT benefits lost through a Section of of 338(h)(l0) of a ruling from the Internal Revenue Service During the first quarter 2014, the appealed PURA s decision to the Connecticut Superior Court with regard to the establishment an adjustment mechanism for incremental cast iron and bare steel replacement as well as PURA s directive to seek a private letter ruling with respect to the extinguishment ratemaking effect the merger and Avangrid, Inc., the proceeding would be terminated. of of 0CC of extinguishing the ADITs Upon the resolution Under the settlement agreement entered into in connection with PURA s approval CNG agreed not to request new distribution rates effective prior to January 1, of ADITs rather than ordering a rate credit to hold customers harmless from the of all appeals of of UIL Holdings of PURA s approval of the merger of UIL Holdings with Avangrid, Inc., Other Proceedings On June 11, 2014, PURA reopened the Expansion Plan Proceedings to modii, the assignment with new statutory requirements that change the manner in which non-firm margin credits are allocated between existing customers and proposed gas expansion projects, and to consider a request made by CNG and The Southern Connecticut Gas Company (SCG) concerning the aggregating potential customers when determining possible gas expansion projects. SCG, CNG, Yankee Gas Services Company, the and the Bureau 0CC of FERC FORM NO. 213-Q (REV 12-07) of non-firm margin credits to comport of Energy & Technology Policy entered into a settlement agreement on these issues that

47 Name of Respondent This Report is: Date of Report Year/Period of Report (1) XAn Original (Mo, Da, Yr) (2) A Resubmission / / 201 5/Q4 Notes to Financial Statements were approved by PURA on January 14, The settlement agreement specifically states how non-firm margin credits are to be allocated between existing customers and proposed gas expansion projects, streamlines reporting requirements for gas expansion projects, and among other issues, defmes the methodology to be used for aggregating potential gas customers into possible gas expansion projects. Gas Supply Arrangements CNG satisfies its natural gas supply requirements through purchases from various producer/suppliers, withdrawals from natural gas storage capacity contracts and winter peaking supplies and resources. CNG operates diverse portfolios of gas supply, firm transportation capacity, gas storage and peaking resources. Actual reasonable gas costs incurred by CNG are passed through to customers through state regulated purchased gas adjustment mechanisms, subject to regulatory review. CNG purchases the majority of their natural gas supply at market prices under seasonal, monthly or mid-term supply contracts and the remainder is acquired on the spot market. CNG diversifies its sources of supply by amount purchased and location and primarily acquires gas at various locations in the US Gulf of Mexico region, in the Appalachia region and in Canada. CNG acquires firm transportation capacity on interstate pipelines under long-term contracts and utilizes that capacity to transport both natural gas supply purchased and natural gas withdrawn from storage to the local distribution system. Tennessee Gas Pipeline, Algonquin Gas Transmission and Iroquois Gas Transmission interconnect with CNG s distribution system and the other pipelines provide indirect services upstream of the city gates. The prices and terms and conditions of the long-term contracts for firm transportation capacity are regulated by the FERC. The actual reasonable cost of such contracts is passed through to customers through state regulated purchased gas adjustment mechanisms. The future obligations under these contracts as of December 31, 2015 are as follows: (In Thousands) 2016 $ 51, , , , , after 166,452 $ 366,258 CNG acquires firm underground natural gas storage capacity using long-term contracts and fills the storage facilities with gas in the summer months for subsequent withdrawal in the winter months. The storage facilities are located in Pennsylvania, New York, West Virginia and Michigan. CNG owns 100% of the Liquefied Natural Gas (LNG) stored in a LNG facility which is directly attached to its distribution system. CNG uses the LNG capacity as a winter peaking resource. I FERC FORM NO. 213-Q (REV 12-07) I

48 Name of Respondent This Report is: Date of Report Year/Period of Reporti (1) X An Original (Mo, Da, Yr) (2) A Resubmission / / 201 5/Q4 Notes to Financial Statements (D) SHORT-TERM CREDIT ARRANGEMENTS UIL Holdings and its regulated subsidiaries, including CNG, are parties to a revolving credit agreement with a group of banks that will expire on November 30, 2016 (the UIL Holdings Credit Facility). The aggregate borrowing limit under the UIL Holdings Credit Facility is $400 million, of which $150 million is available to CNG. The UIL Holdings Credit Facility permits borrowings at fluctuating interest rates and also permits borrowings for fixed periods of time specified by each borrower at fixed interest rates determined by the Eurodollar interbank market in London (LIBOR). The UTL Holdings Credit Facility also permits the issuance of letters of credit of up to $50 million. As of December 31, 2015, CNG did not have any borrowings outstanding under the Credit Facility. Available credit under the UIL Holdings Credit Facility at December 31, 2015 totaled $232.6 million for UIL Holdings and its subsidiaries in the aggregate. UIL Holdings records borrowings under the UIL Holdings Credit Facility as short-term debt, but the UIL Holdings Credit Facility provides for longer term commitments from banks allowing UIL Holdings to borrow and reborrow funds, at its option, until the facility s expiration, thus affording us flexibility in managing our working capital requirements. On April 5, 2016, Avangrid, Inc. entered into a new credit facility agreement which replaced the UIL Holdings Credit Facility. (E) INCOME TAXES Income tax expense consists of: Income tax provisions (benefits): Current Deferred Federal State Total current Federal State Total deferred Year Ended Year Ended December 31, December 31, (In Thousands) $ 5, ,061 (591) (3,068) (3,659) $ 1,871 1,871 11,306 (1,917) 9,389 Total income tax expense $ 2,402 $ 11,260 Total income taxes differ from the amounts computed by applying the federal statutory tax rate to income before taxes. The reasons for the differences are as follows: Year Ended Year Ended December 31, December 31, (In Thousands) Book income before income taxes $ $ Computed tax at federal statutory rate Increases (reductions) resulting from: Removal costs $ 3,998 $ 11,282 FERC FORM NO. 213-Q (REV 12-07) I

49 Name of Respondent This Report is: Date of Report Year/Period of Report7 (1) XAn Original (Mo, Da, Yr) (2) A Resubmission / / 201 5/Q4 Notes to Financial Statements State income taxes, net of federal income tax benefits Other items, net (1,444) (152) (30) 8 Total income tax expense $ 2,402 $ 11,260 Effective income tax rates 21.0% 34.9% The significant portion of CNG s income tax expense, including deferred taxes, is recovered through its regulated utility rates. CNG s annual income tax expense and associated effective tax rate is impacted by differences between the timing of deferred tax temporary difference activity and deferred tax recovery. CNG s effective tax rate is also impacted by permanent differences between the book and tax treatment of certain costs. CNG is subject to the United States federal income tax statutes administered by the IRS. For tax years ending with the December 16, 2015 change of control, CNG filed or will file with its parent, UIL Holdings, a consolidated federal income tax return. Effective for tax periods beginning with the December 16, 2015 change in control, CNG and its parent, UIL Holdings, will file a consolidated federal tax return with Avangrid, Inc. CNG is also subject to certain state income tax statutes and as a result will file for the tax year ending December 31, 2015, combined Connecticut and Massachusetts unitary income tax returns. Beginning in 2016, CNG and its UIL Holdings affiliates, will file state unitary tax returns with Avangrid, Inc. and its subsidiaries. In conjunction with these changes, CNG became a party to Avangrid, Inc. s tax allocation agreement under which taxable subsidiaries do not pay any more taxes than they would have otherwise paid had they filed a separate company tax return, and subsidiaries generating tax losses, if any, are paid for their losses when utilized. During 2015, the Internal Revenue Service completed its examination of UIL s income tax returns for the years 2011 and The closing of this audit did not have a significant impact on CNG s 2015 income tax expense, net balance sheet position or cash flows. The following table summarizes CNG s tax years that remain subject to examination as of December 31, 2015: Jurisdiction Federal Connecticut Tax years The following table summarizes CNG s deferred tax assets and liabilities as of December 31, 2015 and 2014: Deferred income tax assets: Post-retirement benefits Merger settlement agreement Accrued removal obligation Other (In Thousands) $ 25,232 7,267 65,106 15,402 $ 113,007 $ 27,716 57,548 6,713 $ 91,977 Deferred income tax liabilities: Plant basis and accelerated depreciation timing differences Regulatory deferrals - pension and other post-retirement benefits Other regulatory deferrals Other $ 74,964 34,211 12,166 2,371 $ 123,712 $ 59,772 37,257 8,540 2,730 $ 108,299 Net deferred income tax assets (liabilities) $ (10,705) $ (16,322) As of December 31, 2015, CNG had a state tax credit carry forward of $1.2 million that will begin to expire in I FERC FORM NO. 213-Q (REV 12-07) I

50 Name of Respondent This Report is: Date of Report YearlPeriod of Report (1) X An Original (Mo, Da, Yr) (2) A Resubmission / / 201 5/Q4 Notes to Financial Statements As of December 31, 2014, CNG had a state tax credit carry forward of $2.2 million that will begin to expire in 2018 and a federal net operating loss carry forward of $12.8 million that will begin to expire in (F) PENSION AND OTHER BENEFITS Disclosures pertaining to CNG s pension and other postretirement benefit plans (the Plans) are in accordance with ASC 715 Compensation-Retirement Benefits. CNG, through its parent UIL Holdings, has an investment policy addressing the oversight and management of pension assets and procedures for monitoring and control. UIL Holdings has engaged State Street Bank as the trustee and investment manager to assist in areas of asset allocation and rebalancing, portfolio strategy implementation, and performance monitoring and evaluation. The goals of the asset investment strategy are to: Achieve long-term capital growth while maintaining sufficient liquidity to provide for current benefit payments and pension plan operating expenses. Provide a total return that, over the long term, provides sufficient assets to fund pension plan liabilities subject to an appropriate level of risk, contributions and pension expense. Optimize the return on assets, over the long term, by investing primarily in a diversified portfolio of equities and additional asset classes with differing rates of return, volatility and correlation. Diversify investments within asset classes to maximize preservation of principal and minimize over-exposure to any one investment, thereby minimizing the impact of losses in single investments. The Plans comply with the Employee Retirement Income Security Act of 1974 (ERISA) as amended, and any applicable regulations and laws. Prior to the merger with Avangrid, Inc., the Retirement Benefits Plans Investment Committee of the UIL Holdings Board of Directors oversaw the investment of the Plans assets in conjunction with management and conducted a review of the investment strategies and policies of the Plans. This review included an analysis of the strategic asset allocation, including the relationship of Plan assets to Plan liabilities, and portfolio structure. The 2016 target asset allocations are approximately as follows: 60% equity securities and 40% debt securities. In the event that the relationship of Plan assets to Plan liabilities changes, CNG will consider changes to the investment allocations. The other postretirement employee benefit fund assets are invested in a balanced mutual fund and, accordingly, the asset allocation mix of the balanced mutual fund may differ from the target asset allocation mix from time to time. The funding policy for the Plans is to make annual contributions that satisfy the minimum funding requirements of ERISA but that do not exceed the maximum deductible limits of the Internal Revenue Code. These amounts are determined each year as a result of an actuarial valuation of the Plans. CNG currently expects to make pension contributions of approximately $3.9 million in Such contribution levels will be adjusted, if necessary, based on actuarial calculations. CNG applies consistent estimation techniques regarding its actuarial assumptions, where appropriate, across its pension and postretirement plans. The estimation technique utilized to develop the discount rate for its pension and postretirement benefit plans is based upon the yield of a portfolio of high quality corporate bonds that could be purchased as of December 31, 2015 to produce cash flows matching the expected plan disbursements within reasonable tolerances. The expected return is based upon a combination of historical performance and anticipated future returns for a portfolio reflecting the mix of equity, debt and other investments included in plan assets. Average wage increases are determined from projected annual pay increases, which are used to determine the wage base used to project employees pension benefits at retirement. The health care cost trend rate is derived from projections of expected increases in health care costs. CNG is utilizing a discount rate of 4.95% as of December 31, 2015 for all of its qualified pension plans, compared to 4.30% in The increase in the discount rate, which was due to changes in long-term interest rates, resulted in a decrease to the projected benefit obligation of approximately $23 million from 2014 to The discount rate for non-qualified pension plans as of December 31, 2015 was 4.90% compared to 4.20% in The discount rate for CNG s postretirement benefits plans reflects the plan requirements and expected future cash flows. For the CNG postretirement plan, the discount rate at December 31, 2015 was 4.90% as compared to a rate of 4.20% in I FERC FORM NO (REV 12-07) I

51 Name of Respondent This Report is: Date of Report Year/Period of Repor[ (1) An Original (Mo, Da, Yr) (2) A Resubmission / / 201 5/Q4 Notes to Financial Statements The pension and other postretirement benefits plans assumptions may be revised over time as economic and market conditions change. Changes in those assumptions could have a material impact on pension and other postretirement expenses. For example, if there had been a 0.25% change in the discount rate assumed for the pension plans, the 2015 pension expense would have increased or decreased inversely by $0.7 million. If there had been a 1% change in the expected return on assets assumed for the pension plans, the 2015 pension expense would have increased or decreased inversely by $1.9 million. If there had been a 0.25% change in the discount rate assumed for the other postretirement benefits plans, the 2015 other postretirement benefits plan expenses would have increased or decreased inversely by $0.1 million. If there had been a 1% change in the expected return on assets assumed for the other postretirement benefits plans, the 2015 other postretirement benefits plan expenses would have increased or decreased inversely by $0.1 million. Pension Plans CNG has multiple qualified pension plans covering substantially all of their union and management employees. CNG also has non-qualified supplemental pension plans for certain employees. The qualified pension plans are traditional defmed benefit plans or, for those hired on or after specified dates, cash balance plans. In some cases, neither of these plans is offered to new employees and has been replaced with enhanced 401(k) plans for those hired on or after specified dates. In addition, regarding the non-qualified plans, CNG has Rabbi Trusts which were established to provide a supplemental retirement benefit for certain officers and directors of CNG. Other Postretirement Benefits Plans CNG provides other postretirement benefits for substantially all of their employees. These benefits consist primarily of health care, prescription drug and life insurance benefits, for retired employees and their dependents. The eligibility for these benefits is determined by the employee s date of hire, number of years of service, age and whether the employee belongs to a certain group, such as a union. Dependents are also eligible at the employee s date of retirement provided the retired participant pays the necessary contribution. These plans are contributory with the level of participant s contributions evaluated annually. Benefits payments under these plans include annual caps for CNG participants hired after Union employees hired after December 1, 2009 are not eligible for these benefits. As such, CNG OPEB liabilities are not especially sensitive to increases in the healthcare trend rate. These plans are funded through a combination of 401(h) accounts and Voluntary Employee Benefit Association Trust accounts. CNG did not make any contributions to these plans in 2015, nor does it currently plan to make a contribution in Other Accounting Matters ASC 715 requires an employer that sponsors one or more defmed benefit pension or other postretirement plans to recognize an asset or liability for the overfunded or underfunded status of the plan. For a pension plan, the asset or liability is the difference between the fair value of the plan s assets and the projected benefit obligation. For any other postretirement benefit plan, the asset or liability is the difference between the fair value of the plan s assets and the accumulated postretirement benefit obligation. CNG reflects all unrecognized prior service costs and credits and unrecognized actuarial gains and losses as regulatory assets rather than in accumulated other comprehensive income, as management believes it is probable that such items will be recoverable through the ratemaking process. As of December31, 2015 CNG has recorded regulatory assets of $15.5 million and as of December 31, 2014 CNG has recorded regulatory liabilities of $18.1 million, respectively. In accordance with ASC 715, CNG utilizes an alternative method to amortize prior service costs and unrecognized gains and losses. CNG amortizes prior service costs for both the pension and other postretirement benefits plans on a straight-line basis over the average remaining service period of participants expected to receive benefits. CNG utilizes an alternative method to amortize unrecognized actuarial gains and losses related to the pension and other postretirement benefits plans over the lesser of the average remaining service period or 10 years. For ASC 715 purposes, CNG does not recognize gains or losses until there is a variance in an amount equal to at least 5% of the greater of the projected benefit obligation or the market-related value of assets. There is no such allowance for a variance in capturing the amortization of other postretirement benefits unrecognized gains and losses. The following table represents the change in benefit obligation, change in plan assets and the respective funded status of CNG s pension and other postretirement plans as of December 31, 2015 and Plan assets and obligations have been measured as of December 31,2015 and I FERC FORM NO. 213-Q (REV 12-07) I

52 f Name of Respondent This Report s: Date of Report I (1) X An Original (Mo, Da, Yr) YearlPeriod of Report Lcnecticut Natural Gas Corporation (2) A Resubmission / I 201 5/Q4 Notes to Financial Statements I Pension Benefits Other Post-Retirement Benefits Change in Benefit Obligation: Benefit obligation at beginning of year Service cost Interest cost Participant contributions Actuarial (gain) loss Benefits paid (including expenses) Benefit obligation at end of year Year Ended December 31, 2015 $ 253,965 4,136 10,876 (20,733) (10,269) $ 237,975 $ Year Ended December 31, ,271 (9,729) $ 253,965 (In Thousands) 217,738 $ 3,450 11,235 Year Ended December 31, , (1,124) (1,553) $ 21,779 Year Ended December 31, 2014 $ 25, , (215) (4,230) $ 22,970 Change in Plan Assets: Fair value of plan assets at beginning of year Actual return on plan assets Employer contributions Participant contributions Benefits paid (including expenses) Fair value of plan assets at end of year $ 192,941 (4,064) 3,000 (10,270) $ 181,607 S 183,816 15,854 3,000 (9,729) S 192,941 $ 9,580 (156) 314 (20) $ 9,718 $ 9, (123) $ 9,580 Funded Status at December 31: Projected benefits (less than) greater than plan assets $ 56,368 $ 61,024 $ 12,061 $ 13,390 Amounts Recognized in the Consolidated Balance Sheet consist of: Non-current liabilities $ 56,368 S 61,024 $ 12,061 $ 13,390 Amounts Recognized as a Regulatory Asset (Liability) consist of: Prior service cost Net (gain) loss Total recognized as a regulatory asset (liability) $ 65 16,412 $ 16,477 $ 91 18,518 S 18,609 $ 1,306 (2,318) $ (1,012) $ 407 (927) $ (520) Information on Pension Plans with an Accumulated Benefit Obligation in excess of Plan Assets: Projected benefit obligation $ 237,976 $ 253,966 Accumulated benefit obligation $ 216,449 $ 229,710 Fair value of plan assets $ 181,607 $ 192,941 N/A N/A N/A N/A N/A N/A The following weighted average actuarial assumptions were used in calculating the benefit obligations at December 31: Discount rate (Qualified Plans) 4.95% 4.30% N/A Discount rate (Non-Qualified Plans) 4.90% 4.20% N/A Discount rate (Other Post-Retirement Benefits) N/A N/A 4.90% Average wage increase 3.50% 3.50% N/A Health care trend rate (current year) N/A N/A 7.00% Health care trend rate ( forward) N/A N/A 5.00% N/A N/A 4.20% N/A 7.00% 5.00% N/A not applicable FERC FORM NO (REV 12-07) I

53 Name of Respondent (2) This is: of Report Year/Period of Report (1) An Original (Mo, Da, Yr) A Resubmission Report Notes to Financial Statements Date / / 201 5/Q4 The components of net periodic benefit cost are: Pension Benefits Other Post-Retirement Beneflts Components of net periodic benefit cost: Service cost Interest cost Expected return on plan assets Amortization of prior service costs Amortization of actuarial (gain) loss Net periodic benefit cost Year Ended December 31, 2015 $ 4,136 10,876 (15,161) $ 477 Year Ended Year Ended December 31, December 31, (In Thousands) $ 3,450 11,235 (14,434) 26 (311) $ (34) $ 233 $ 939 (486) 104 (93) $ 697 Year Ended December 31, ,218 (460) 104 (91) $ 1,115 Other Changes in Plan Assets and Benefit Obligations Recognized as a Regulatory Asset (Liability): Net (gain) loss $ (1,507) $ 29,853 $ Amortization of current year prior service costs - - Amortization of prior service costs Amortization of actuarial (gain) loss Total recognized as regulatory asset (liability) (26) (600) $ (2,133) (26) 311 S 30,138 (1,485) 1,003 (104) 93 $ (493) $ (2,709) (104) 91 $ (2,722) Total recognized in net periodic benefit costs and regulatory asset (liability) $ (1,656) $ 30,104 $ 204 $ (1,607) Estimated Amortizations from Regulatory Assets (Liabilities) into Net Periodic Benefit Cost for the next 12 month period: Amortization of prior service cost $ 23 $ 26 $ (232) $ 104 Amortization of net (gain) loss (93) Total estimated amortizations $ 596 $ 626 $ 15 $ 11 The following Discount rate 4.20%-4.30% % Average wage increase 3.50% 3.50% Return on plan assets 8.00% 8.00% Health care trend rate (current year) N/A N/A Health care trend rate (2019 forward) N/A N/A actuarial weighted average assumptions were used in calculating net periodic benefit cost: 4.20% N/A 5.56% 7.00% 5.00% 4.85% N/A 5.56% 7.00% 5.00% N/A not applicable A one percentage point change in the assumed health care cost trend rate would have the following effects: Aggregate service and interest cost components Accumulated post-retirement benefit obligation $ $ 1% Increase 1% Decrease (In (5) $ 5 (58) $ 51 Thousands) Estimated Future Benefit Payments I FERC FORM NO. 213-Q (REV 12-07) I

54 Name of Respondent This Report is: Date of Report YearlPeriod of Report (1) An Original (Mo, Da, Yr) (2) A Resubmission / I 2015/Q4 Notes to Financial Statements The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid: Other Post-Retirement Year Pension Benefits Benefits (In Thousands) 2016 $ 10,476 $ 1, $ 10,902 $ 1, $ 11,211 $ 1, $ 11,686 $ 1, $ 12,195 $ 1, $ 69,315 $ 7,227 Defmed Contribution Retirement Plans/40 1(k) CNG non-union employees are eligible to participate in UIL Holdings Employee Stock Ownership Plan and union employees are eligible to participate in the Union Employee 401(k) Plan. Employees may defer a portion of the compensation and invest in various investment alternatives. Matching contributions are made in the form of cash which is subsequently invested according to the specific provisions of each of the plans. The matching expense for 2015 and 2014 was $1.1 million, and $1.0 million, respectively. (G) RELATED PARTY TRANSACTIONS Inter-company Transactions CNG receives various administrative and management services from and enters into certain inter-company transactions with UIL Holdings and its subsidiaries. For the year ended December 31, 2015, CNG recorded inter-company expenses of $12.4 million. Costs of the services that are allocated amongst CNG and other of UIL Holdings regulated subsidiaries are settled periodically by way of inter-company billings and wire transfers. At December 31, 2015 and 2014, the Balance Sheet reflects inter-company receivables, included in accounts receivable of $1.7 million and $1.4 million, respectively, and inter-company payables, included in accounts payable of $7.5 million and $6.3 million, respectively. Dividends/Capital Contributions For the year ended December 31, 2015 and December 31, 2014, CNG accrued dividends to CTG of $17.5 million and $0.8 million, respectively. (H) LEASE OBLIGATIONS Operating leases, which are charged to operating expense, consist principally of leases for office space and facilities. minimum lease payments under these operating leases are estimated to be as follows: The future (In Thousands) 2016 $ after 265 $ 2,711 (I) COMMITMENTS AND CONTINGENCIES I FERC FORM NO. 2I3-Q (REV 12-07) I

55 Name of Respondent This Report is: Date of Report Year/Period of Repo] (1) An Original (Mo, Da, Yr) (2) A Resubmission i / 20151Q4 Notes to Financial Statements In the ordinary course of business, CNG is involved in various proceedings, including legal, tax, regulatory and environmental matters, which require management s assessment to determine the probability of whether a loss will occur and, if probable, an estimate of probable loss. When assessments indicate that it is probable that a liability has been incurred and an amount can be reasonably estimated, CNG accrues a reserve and discloses the reserve and related matter. CNG discloses material matters when losses are probable but for which an estimate cannot be reasonably estimated or when losses are not probable but are reasonably possible. Subsequent analysis is performed on a periodic basis to assess the impact of any changes in events or circumstances and any resulting need to adjust existing reserves or record additional reserves. However, given the inherent unpredictability of these legal and regulatory proceedings, CNG cannot assure you that its assessment of such proceedings will reflect the ultimate outcome, and an adverse outcome in certain matters could have a material adverse effect on its results of operations or cash flows. Environmental Matters In complying with existing environmental statutes and regulations and further developments in areas of environmental concern, including legislation and studies in the fields of water quality, hazardous waste handling and disposal, toxic substances, climate change and electric and magnetic fields, CNG may incur substantial capital expenditures for equipment modifications and additions, monitoring equipment and recording devices, as well as additional operating expenses. The total amount of these expenditures is not now determinable. Significant environmental issues known to CNG at this time are described below. Site Decontamination, Demolition and Remediation Costs CNG owns or has previously owned properties where Manufactured Gas Plants (MGPs) had historically operated. MGP operations have led to contamination of soil and groundwater with petroleum hydrocarbons, benzene and metals, among other things, at these properties, the regulation and cleanup of which is regulated by the federal Resource Conservation and Recovery Act as well as other federal and state statutes and regulations. CNG has or had an ownership interest in one or more such properties contaminated as a result of MGP-related activities. Under the existing regulations, the cleanup of such sites requires state and at times, federal, regulators involvement and approval before cleanup can commence. In certain cases, such contamination has been evaluated, characterized and remediated. In other cases, the sites have been evaluated and characterized, but not yet remediated. Finally, at some of these sites, the scope of the contamination has not yet been fully characterized; no liability was recorded in respect of these sites as of December 31, 2014 and no amount of loss, if any, can be reasonably estimated at this time. In the past, CNG has received approval for the recovery of MGP-related remediation expenses from customers through rates and will seek recovery in rates for ongoing MGP-related remediation expenses for all of their MGP sites. CNG owns a property located on Columbus Boulevard in Hartford which is a former MGP site. Costs associated with the remediation of the site could be significant and will be subject to a review by PURA as to whether these costs are recoverable in rates. As of December 31, 2015, CNG has determined that remediation of the property in Hartford is not probable and therefore not reserved. (J) FAIR VALUE MEASUREMENTS As required by ASC 820, fmancial assets and liabilities are classified in their entirety, based on the lowest level of input that is significant to the fair value measurement. CNG s assessment of the significance of a particular input to the fair value measurement requires judgment, and may affect the valuation of the fair value of assets and liabilities and their placement within the fair value hierarchy levels. The following tables set forth the fair value CNG s financial assets and liabilities, other than pension benefits and OPEB, as of December31, 2015 and December31, December 31, 2015 Assets: Fair Value Measurements Using Quoted Prices in Active Markets for Significant Other Significant Identical Assets (Level 1) (In Thousands) I FERC FORM NO. 213-Q (REV 12-07) I Total

56 Name of Respondent (2) This is: Original A Resubmission (1)XAn Report Notes to Financial Statements Date of Report Year/Period (Mo, Da, Yr) / / 20151Q4 of Report 1 Noncurrent investments $ 1,527 $ $ $ 1,527 Liabilities: Long-term debt 161, ,956 Net fair value assets/(liabilities), December 31, $ 1,527 S (161,956) $ - (160,429) December 31, 2014 Assets: Noncurrent investments $ 556 S $ $ 556 Liabilities: Long-term debt 172, ,203 Net fair value assets/(liabilities), December 31, $ 556 S (172,203) $ $ (171,647) The following tables set forth the fair values of CNG s pension and OPEB assets as of December31, 2015 and December 31, 2015 Quoted Prices in Active Markets for Identical Assets (Level 1) Fair Value Measurements Using Significant Other Significant (In Thousands) Total Pension assets Mutual funds Hedge fund OPEB assets Mutual funds S 2,560 S 181,607 $ - $ 181, , ,60; 7,158 9,718 Fair value of plan assets, December 3 1, 2015 $ 2,560 $ 188,765 $ $ 191,325 December 31, 2014 Pension assets OPEB assets Cash and cash equivalents Mutual funds Hedge fund Quoted Prices in Active Markets for Identical Assets (Level 1) $ Fair Value Measurements Using Significant Other (In Thousands) Mutual funds 2,569 7,011 FERC FORM NO. 213-Q (REV 12-07) Significant $ 183,699 $ - - 9, ,699 9,242 Total $ 183,699 9, ,941 9,580

57 Retirement Name of Respondent This is: of Report Year/Period of Report (1) An Original (Mo, Da, Yr) (2) A Report Resubmission Notes to Financial Statements Date I / Q4 Fair value of plan assets, December 31, 2014 _.. 2,569 $ 190,710 $ 9,242 $ 202,521 The determination fair values the Level 2 co-mingled mutual funds were based on the Net Asset Value (NAV) provided by the managers the underlying fund investments and the unrealized gains and losses. The NAV provided by the managers typically the fair value each underlying fund investment. Changes in the fair value pension benefits and OPEB are accounted for in accordance with ASC 715 Compensation Benefits as discussed in Note (F) Pension and Other Benefits. of of of of The following tables set forth a reconciliation changes in the fair value of the assets above that are classified as Level 3 in the fair value hierarchy for the twelve month periods ended December 31, 2015 and of of reflect Pension assets-level 3, December 31, 2014 Unrealized/Realized gains and (losses), net Year Ended December 31, 2015 (In $ 9,242 Thousands) Settlements Pension assets-level 3, December 31, 2015 $ (9,242) Pension assets-level 3, December 31, 2013 Unrealized/Realized gains and (losses), net Pension assets-level 3, December 31, 2014 Year Ended December 31, 2014 (In $ 9,273 Thousands) (31) S 9,242 FERC FORM NO. 2/3-Q (REV 12-07)

58 Name of Respondent This Re ort Is: Date of Report Year/Period of Rep&[ (Mo, Da, Yr) End of 2015/04 Summary of Utility Plant and Accumulated Provisions for Depreciation, Amortization and Depletion Line Item Total Company No. (a) For the Current Quarter/Year 1 UTILITY PLANT 2 In Service 3 Plant in Service (Classified) 4 Property Under Capital Leases 5 Plant Purchased or Sold 6 Completed Construction not Classified 78,733,750 7 Experimental Plant Unclassified 8 TOTAL Utility Plant (Total of lines 3 thru 7) 794,779,518 9 Leased to Others 10 Held for Future Use 11 Construction Work in Progress 19,285, Acquisition Adjustments 79,341, TOTAL Utility Plant (Total of lines 8 thru 12) 893,406, Accumulated Provisions for Depreciation, Amortization, & Depletion 434,340, Net Utility Plant (Total of lines 13 and 14) DETAIL OF ACCUMULATED PROVISIONS FOR DEPRECIATION, AMORTIZATION AND DEPLETION 17 In Service: 18 Depreciation 19 Amortization_and_Depletion_of_Producing_Natural_Gas Land and_land_rights 20 Amortization_of_Underground_Storage_Land_and_Land_Rights 21 Amortization of Other Utility Plant 3,142, TOTAL In Service (Total of lines 18 thru 21) 434, Leased to Others 24 Depreciation 25 Amortization and Depletion 26 TOTAL Leased to Others (Total of lines 24 and 25) 27 Held for Future Use 28 Depreciation 29 Amortization 30 TOTAL Held for Future Use (Total of lines 28 and 29) 31 Abandonment of Leases (Natural Gas) 32 Amortization of Plant Acquisition Adjustment 33 TOTAL Accum. Provisions (Should agree with line 14 above)(total of lines 22, 26, 30, 31, and 32) 434, FERC FORM NO. 2 (12-96) Page 200

59 Name of Respondent I This Report Is: I Date of Report I Year/Period of Report I (1) An Original (Mo, Da, Yr) (2) EA Resubmission / / End of 20151Q4 Summary of Utility Plant and Accumulated Provisions for Depreciation, Amortization and Depletion (continued) Line Electric 1 Gas 1 Other (specify) I Common No. (C) (d) (e) (f) ,045, ,733, ,779, ,285, ,341, ,406, ,340, ,066, ,142, ,340, ,340,731 FERC FORM NO. 2 (12-96) Page 201

60 Name of Respondent This Re ort Is: Date of Report Year/Period of Report (1) X An Original (Mo, Da, Yr) (2) EA Resubmission / / End of 2015/Q4 Gas Plant in Service (Accounts 101, 102, 103, and 106) 1. Report below the original cost of gas plant in service according to the prescribed accounts. 2. In addition to Account 101, Gas Plant in Service (Classified), this page and the next include Account 102, Gas Plant Purchased or Sold, Account 103, Experimental Gas Plant Unclassified, and Account 106, Completed Construction Not Classified-Gas. 3. Include in column (c) and (d), as appropriate corrections of additions and retirements for the current or preceding year. 4. Enclose in parenthesis credit adjustments of plant accounts to indicate the negative effect of such accounts. 5. Classify Account 106 according to prescribed accounts, on an estimated basis if necessary, and include the entries in column (c).also to be included in column (c) are entries for reversals of tentative distributions of prior year reported in column (b). Likewise, if the respondent has a significant amount of plant retirements which have not been classified to primary accounts at the end of the year, include in column (d) a tentative distribution of such retirements, on an estimated basis, with appropriate contra entry to the account for accumulated depreciation provision. Include also in column (d) reversals of tentative distributions of prior years unclassified retirements. Attach supplemental statement showing the account distributions of these tentative classifications in columns (c) and (d), Line No 1 INTANGIBLE PLANT Account Balance at Additions Beginning of Year (a) (b) (c) Organization 490, Franchises and Consents Miscellaneous Intangible Plant 4,736,813 ( 17,164) 5 TOTAL Intangible Plant (Enter Total of lines 2 thru 4) 5,227,118 ( 17,164) 6 PRODUCTION PLANT 7 Natural Gas Production and Gathering Plant Producing Lands Producing Leaseholds Gas Rights Rights-of-way Other Land and Land Rights Gas well Structures Field Compressor Station Structures Field Measuring and Regulating Station Equipment Other Structures Producing Gas wells-well Construction Producing Gas Wells-Well Equipment Field Lines Field Compressor Station Equipment Field Measuring and Regulating Station Equipment Drilling and Cleaning Equipment Purification Equipment Other Equipment Unsuccessful Exploration and Development Costs Asset Retirement Costs for Natural Gas Production and 27 TOTAL Production and Gathering Plant (Enter Total of lines 8 28 PRODUCTS EXTRACTION PLANT Land and Land Rights Structures and Improvements Extraction and Refining Equipment Pipe Lines Extracted Products Storage Equipment FERC FORM NO.2(12-96) Page 204

61 Name of Respondent This Re ort Is: Date of Report Year/Period of Report Connecticut (1) X An Original (Mo, Natural Da, Yr) Gas Corporation (2) fla Resubmission / / End of 20151Q4 Gas Plant in Service (Accounts 101, 102, 103, and 106) (continued) including the reversals of the prior years tentative account distributions of these amounts. Careful observance of the above instructions and the texts of Account 101 and 106 will avoid serious omissions of respondent s reported amount for plant actually in service at end of year. 6. Show in column (f) reclassifications or transfers within utility plant accounts. Include also in column (f) the additions or reductions of primary account classifications arising from distribution of amounts initially recorded in Account 102. In showing the clearance of Account 102, include in column (e) the amounts with respect to accumulated provision for depreciation, acquisition adjustments, etc., and show in column (f) only the offset to the debits or credits to primary account classifications. 7. For Account 399, state the nature and use of plant included in this account and if substantial in amount submit a supplementary statement showing subaccount classification of such plant conforming to the requirements of these pages. 8. For each amount comprising the reported balance and changes in Account 102, state the property purchased or sold, name of vendor or purchaser, and date of transaction. If proposed journal entries have been filed with the Commission as required by the Uniform System of Accounts, give date of such filing. i.ine Retirements Adjustments Transfers Balance at No. End of Year (d) (e) (f) (g) : 3 490, ::i ,719,649 FERC FORM NO. 2 (12-96) Page 205

62 Name of Respondent This Re ort Is: Date of Report Year/Period of RepF (1) (Mo, Da, Yr) End of 2015/Q4 Gas Plant in Service (Accounts , 103, and 106) (continued). Account Line Balance at Additions No Beginning of Year. (a) (b) (c) Compressor Equipment Gas Measuring and Regulating Equipment Other Equipment Asset Retirement Costs for Products Extraction Plant 38 TOTAL Products Extraction Plant (Enter Total of lines 29 thru 37) 39 TOTAL Natural Gas Production Plant (Enter Total of lines 27 and 40 Manufactured Gas Production Plant (Submit Supplementary 41 TOTAL Production Plant (Enter Total of lines 39 and 40) 42 NATURAL GAS STORAGE AND PROCESSING PLANT 43 Underground Storage Plant Land Rights-of-Way Structures and Improvements Wells Storage Leaseholds and Rights Reservoirs Non-recoverable Natural Gas Lines Compressor Station Equipment Other Equipment Purification Equipment Other Equipment Asset Retirement Costs for Underground Storage Plant 57 TOTAL Underground Storage Plant (Enter Total of lines 44 thru 58 Other Storage Plant Land and Land Rights 90, Structures and Improvements 1,413,762 1,424, Gas Holders 3,697, Purification Equipment 192, Liquefaction Equipment 1,470, Vaporizing Equipment 2,855, Compressor Equipment 3,896, , Measuring and Regulating Equipment 461, Other Equipment 2,282,796 53, Asset Retirement Costs for Other Storage Plant 69 TOTAL Other Storage Plant (Enter Total of lines 58 thru 68) 16,359, , Base Load Liquefied Natural Gas Terminaling and Processing Plant Land and Land Rights Structures and Improvements LNG Processing Terminal Equipment LNG Transportation Equipment Measuring and Regulating Equipment Compressor Station Equipment Communications Equipment Other Equipment Asset Retirement Costs for Base Load Liquefied Natural Gas 80 TOTAL Base Load Liquefied Nat l Gas, Terrninaling and FERC FORM NO. 2 (12-96 PnA 2flR

63 Name of Respondent I This Report Is: I Date of Report I Year/Period of RepdW j (2) fla Resubmission I (1) An Original (MO, Da, Yr) I Gas Plant in Service (Accounts 101, 102, 103, and 106) (continued),1 / End of 2015/Q4 Line No Retirements Adjustments Transfers Balance at End of Year (d) (e) (f) (9) w ,007 2,838,685 3,697, ,315 1,470,191 2,855, ,060, , ,883 2,000, ,883 p I FERC FORM NO. 2 (12-96) Pane 207

64 Name of Respondent This Re ort Is: Date of Report Year/Period of Report Connecticut (Mo, Da, Yr) Natural Gas Corporation End of 2015/Q4 ssion Gas Plant in Service (Accounts 101, 102, 103, and 106) (continued). Account Line Balance at Additions No Beginning of Year (a) (b) (C) 81 TOTAL Nat I Gas Storage and Processing Plant (Total of lines 57, 16,359, , TRANSMISSION PLAN Land and Land Rights Rights-of-Way Structures and Improvements Mains Compressor Station Equipment Measuring and Regulating Station Equipment Communication Equipment Other Equipment Asset Retirement Costs for Transmission Plant 92 TOTAL Transmission Plant (Enter Totals of lines 83 thru 91) 93 DISTRIBUTION PLANT Land and Land Rights 42, Structures and Improvements 448, , Mains 293,649,201 19,589, Compressor Station Equipment Measuring and Regulating Station Equipment-General 11,824,153 6,051, Measuring and Regulating Station Equipment-City Gate 5,940,290 26, Services 262,321,162 17,933, Meters 50,254,523 6,478, Meter Installations 41,297, House Regulators 4,277,691 1,318, House Regulator Installations 1,646, Industrial Measuring and Regulating Station Equipment 664, Other Property on Customers Premises Other Equipment 452,040 19, Asset Retirement Costs for Distribution Plant 1,084, TOTAL Distribution Plant (Enter Total of lines 94 thru 108) 673,902,668 52,106, GENERAL PLANT Land and Land Rights 1,485, Stwctures and Improvements 19,927,526 5,668, Office Fumiture and Equipment 4,830, , Transportation Equipment 6,754,928 1,016, Stores Equipment 46, Tools, Shop, and Garage Equipment 2,620, , Laboratory Equipment 168,736 38, Power Operated Equipment 1,427, , Communication Equipment 4,088,829 12, Miscellaneous Equipment 19, Subtotal (EnterTotal of lines 111 thru 120) 41,370,526 7,651, Other Tangible Property Asset Retirement Costs for General Plant 124 TOTAL General Plant (Enter Total of lines 121, 122 and 123) 41,370,526 7,651, TOTAL (Accounts 101 and 106) 736,860,251 61,382, Gas Plant Purchased (See Instruction 8) 127 (Less) Gas Plant Sold (See Instruction 8) 128 Experimental Gas Plant Unclassified 129 TOTAL Gas Plant In Service (Enter Total of lines 125 thru 128) 736,860,251 61,382,698 FERC FORM NO. 2 (12-96) Page 208

65 Name of Respondent This Rport Is: Date of Report Year/Period of Report (1) LJAn Original (Mo, Da, Yr) (2) fla Resubmission / / End of 2015/Q4 Gas Plant in Service (Accounts 101, 102, 103, and 106) (continued) Line Retirements Adjustments Transfers Balance at No. End of Year (d) (e) (f) (g) ,883 17,666, , ,136, , ,810, ,404 17,754, ,407 5,962, ,091, ,163, ,149 56,401, ,297, ,596, ,646, ,146 1_ , ,032 1,053, ,008, ,000, ,485, ,595, ,143 5,412, ,579 7,586, ,209 8, ,413 2,757, , ,541, ,130 3,287, , ,119,474 47,902, ,119,474 47,902, ,463, ,779, ,463, ,779,517 FERC FORM NO. 2 (12-96) Page 209

66 Name of Respondent This Re ort Is: Date of Report Year/Period of Repo,i (1) X An Original (Mo, Da, Connecticut Natural Yr) Gas Corporation (2) EA Resubmission / / End of 2015/Q4 Gas Property and Capacity Leased from Others 1. Report below the information called for concerning gas property and capacity leased from others for gas operations. 2. For all leases in which the average annual lease payment over the initial term of the lease exceeds $500,000, describe in column (C), if applicable: the property or capacity leased. Designate associated companies with an asterisk in column (b). * Name of Lessor Description of Lease Lease Payments for Line Current Year No. (a) (b) (c) (d) 1 Vanous leases each under $500, , Total 55,765 FERC FORM NO. 2 (12-96) Paqe 212

67 Name of Respondent This Report Is: Date of Report Year/Period of Reit (Mo, Connecticut Da, Yr) Natural Gas Corporation End of 201 5/Q4 Gas Property and Capacity Leased to Others 1. For al leases in which the average lease income over the initial term of the lease $500,000 provide in column (c), a description of each facility or capacity that is classified plant in service, and is leased to others for operations. 2. In column (d) provide the payments received from others. 3. Designate associated companies with an asterisk in column (b). leased lease as gas exceeds * Name of Lessor Description of Lease Lease Payments for Line Current Year No. (a) (b) (C) (d) 1 Not Applicable gas 45 Total FERC FORM NO. 2 (12-96) Page 213

68 Name of Respondent This Re ort Is: Date of Report Year/Period of Reporl (Mo, Connecticut Da, Natural Yr) Gas Corporation End of 20151Q4 ission Gas Plant Held for Future Use (Account 105) 1. Report separately each property held for future use at end of the year having an original cost of $1,000,000 or more. Group other items of property held for future use. 2. For property having an original cost of $1,000,000 or more previously used in utility operations, now held for future use, give in column (a), in addition to other required information, the date that utility use of such property was discontinued, and the date the original cost was transferred to Account 105. Descption and Location Date Originally Included Date Expected to be Used Balance at Line of Property in this Account in Utility Service End of Year No. (a) (b) (c) (d) 1 Not Applicable Total FERC FORM NO. 2 (12-96) Page 214

69 Name of Respondent This Re ort Is: Date of Report Year/Period of Report (Mo, Da, Yr) End of 201 5/Q4 Construction Work in Progress-Gas (Account 107) 1. Report below descriptions and balances at end of year of projects in process of construction (Account 107). 2. Show items relating to research, development, and demonstration projects last, under a caption Research, Development, and Demonstration (see Account 107 of the Uniform System of Accounts). 3. Minor projects (less than $1,000,000) may be grouped. Construction Work in Estimated Additional Line Description of Project Progress-Gas Cost of Project No. (Account 107) (a) (b) (C) 1 Various projects each under $ ,802,353 2 Glastonbury Gate Station 1,196,899 3 LNG Vaporizers Replacement 11,286, Total 19,285,985 FERC FORM NO. 2 (12-96) Page 216

70 Name of Respondent This Re ort Is: Date of Report Year/Period of Report Connecticut (Mo, Da, Yr) Natural Gas Corporation EjAResubmission End of 2015/Q4 Non-Traditional Rate Treatment Afforded New Projects 1. The Commission s CertifIcate Policy Statement provides a threshold requirement for existing pipelines proposing new projects is that the pipeline must be prepared to financially support the project without relying on subsidization from its existing customers. See Certification of New Interstate Natural Gas Pipeline Facilities, 88 FERC P61,227(1999); order clarifying policy, 90 FERC P61,128 (2000); order clarifying policy, 92 FERC P61,094(2000) (Policy Statement). In column a, list the name of the facility granted non-traditional rate treatment 2. In column b, list the CP Docket Number where the Commission authorized the facility. 3. In column c, indicate the type of rate treatment approved by the Commission (e.g. incremental, at risk) 4. In column d, list the amount in Account 101, Gas Plant in Service, associated with the facility. 5. In column e, list the amount in Account 108, Accumulated Provision for Depreciation of Gas Utility Plant, associated with the facility. Line No. Name of Facility CP Type of Gas Plant Doclet No. Rate in Service Treatment (a) (b) (c) (d) 1 Not Applicable Total 0 FERC FORM NO. 2 (NEW 12-07) Page 217

71 Accelerated Name of Respondent This Re ort Is: Date of Report Year/Period of Report (Mo, Da, Yr) (2) End of 2015/Q4 Non-Traditional Rate Treatment Afforded New Projects (continued) 6. In column 1, list the amount in Account 190, Accumulated Deferred Income Tax; Account 281 Accumulated Deferred Income Taxes Amortization Property; Account 282, Accumulated Deferred Income Taxes Other Property; Account 283, Accumulated Deferred Income Taxes Other, associated with the facility. 7. In column g, report the total amount included in the gas operations expense accounts during the year related to the facility (Account 401, Operation Expense). 8. In column h, report the total amount included in the gas maintenance expense accounts during the year related to the facility. 9. In column i, report the amount of depreciation expense accrued on the facility during the year. 10. In column j, list any other expenses(including taxes) allocated to the facility. 11. In column k, report the incremental revenues associated with the facility. 12. Identify the volumes received and used for any incremental project that has a separate fuel rate for that project 13. Provide the total amounts for each column.. Depreciation Line No. Accumulated Accumulated Operating Maintenance Depredation Other Incremental Deferred Expense Expense Expense Expenses Revenues Income (including Taxes taxes) (e) (0 (g) (h) (I) U) (k) FERC FORM NO. 2 (NEW 12-07) Page 217a

72 General General Name of Respondent This Report is: Date of Report (1) XAri Original (Mo, Da, Yr) Year/Period of Repo1 Corporation Connecticut Natural Gas (2) A Resubmission / / 20151Q4 General Description of Construction Overhead Procedure 1. For each construction overhead explain: (a) the nature and extent of work, etc., the overhead charges are intended to cover, (b) the general procedure for determining the amount capitalized, (C) the method of distribution to construction jobs, (d) whether different rates are applied to different types of construction, (e) basis of differentiation in rates for different types of construction, and (f) whether the overhead is directly or indirectly assigned. 2. Show below the computation of allowance for funds used during construction rates, in accordance with the provisions of Gas Plant Instructions 3 (17) of the Uniform System of Accounts. 3. Where a net-of-tax rate for borrowed funds is used, show the appropriate tax effect adjustment to the computations below in a manner that clearly indicates the amount of reduction in the gross rate for tax effects. General Construction Overhead The General Construction overhead costs (labor, material, etc.) are accumulated in the following Internal Orders: 99A Capital Clearing 99A Capital Clearing Construction Distribution Gas Construction Other Gas Monthly the costs collected in these Internal Orders are allocated to gas related capital work orders based upon total costs charged to the applicable work orders. Computation of Allowance for Funds Used During Construction Rates The Respondent capitalized interest based on the prior weighted average cost of capital, as filed in the Respondent s monthly rate of return calculation, divided by 12, times the current monthly qualifying construction charges to date, excluding capitalized interest. FERC FORM NO. 2 (REV 12-07) I

73 Name of Respondent This Re ort Is: Date of Report Year/Period of Report (Mo, Connecticut Da, Yr) Natural Gas Corporation End of 2015/Q4 General Description of Construction Overhead Procedure (continued) COMPUTATION OF ALLOWANCE FOR FUNDS USED DURING CONSTRUCTION RATES 1 For line (5), column (d) below, enter the rate granted in the last rate proceeding. If not available, use the average rate earned duting the preceding 3 years. 2. Identify, in a footnote, the specific entity used as the source for the capital structure figures. 3. Indicate, in a footnote, if the reported rate of return is one that has been approved in a rate case, black-box settlement rate, or an actual three-year average rate. 1.Components of Formula (Derived from actual book balances and actual cost rates): Title Amount Capitalization Cost Rate Line Ration (percent) Percentage No. (a) (b) (c) (d) (1) Average Short-Term Debt S (2) Short-Term Interest (3) Long-Term Debt 140,000,C, 2 d 6.34 (4) Preferred Stock P 339,706 C p 8.00 (5) Common Equity C 353,369, c 9.18 (6) Total Capitalization 493,709,341 (7) Average Construction Work In Progress Balance W 15,843,41E 2. Gross Rate for Borrowed Funds s(siw) + d[(d/(d+p+c)) (1-(SIW))] 3. Rate for Other Funds [1-(S/W)] [p(p/(d+p C)) + c(c/(d+p+c))] Weighted Average Rate Actually Used for the Year. a. Rate for - Borrowed Funds 1.57 b. Rate for Other Funds FERC FORM NO.2 (REV 12-07) Page 218a

74 Name of Respondent This Re ort Is: Date of Report Year/Period of Rept (1) X An Original (Mo, Connecticut Natural Da, Yr) Gas Corporation (2) EIA Resubmission / / End of 2015/Q4 Accumulated Provision for Depreciation of Gas Utility Plant (Account 108) 1. Explain in a footnote any important adjustments during year. 2. Explain in a footnote any difference between the amount for book cost of plant retired, line 10, column (c), and that reported for gas plant in service, page , column (d), excluding retirements of nondepreciable property. 3. The provisions of Account 108 in the Uniform System of Accounts require that retirements of depreciable plant be recorded when such plant is removed from service. If the respondent has a significant amount of plant retired at year end which has not been recorded and/or classified to the various reserve functional classifications, make preliminary closing entries to tentatively functionalize the book cost of the plant retired. In addition, include all costs included in retirement work in progress at year end in the appropriate functional classifications. 4. Show separately interest credits under a sinking fund or similar method of depreciation accounting. 5. At lines 7 and 14, add rows as necessary to report all data. Additional rows should be numbered in sequence, e.g., 7.01, 7.02, etc. Line No Item Total Gas Plant in Gas Plant Held Gas Plant Leased (c+d+e) Service for Future Use to Others (a) (b) Section A. BALANCES AND CHANGES DURING YEAR 1 Balance Beginning of Year 2 Depredation Provisions for Year, Charged to 3 (403) Depredation Expense 4 (403.1) Depreciation Expense for Asset Retirement Costs 5 (413) Expense of Gas Plant Leased to Others 6 Transportation Expenses - Clearing 7 Other Clearing Accounts 8 Other Clearing (Specify) (footnote details): 9 10 TOTAL Deprec. Prov. for Year (Total of lines 3 thru 8) 29,555,012 29,555, Net Charges for Plant Retired: 12 Book Cost of Plant Retired 3,463,432 3,463, Cost of Removal 2,427,999 2,427, Salvage (Credit) 75,710 75, TOTALNetChrgsforPlantRet. (Totalof lines l2thru 14) 5,815,721 5,815, Other Debit or Credit Items (Describe) (footnote details): 18,022 18, Book Cost of Asset Retirement Costs 19 Balance End of Year (Total of lines 1,10,15,16 and 18) 442,829, ,829,752 Section B. BALANCES AT END OF YEAR ACCORDING TO FUNCTIONAL CLASSIFICATIONS 21 Productions-Manufactured Gas 22 Production and Gathering-Natural Gas ( 147,688) ( 147,688) 23 Products Extraction-Natural Gas 24 Underground Gas Storage 25 Other Storage Plant 12,604,214 12,604, Base Load LNG Terminaling and Processing Plant 27 Transmission 28 Distribution 398,814, ,814, General 19,927,599 19,927, TOTAL (Total of lines 21 thru29) 431,198, ,198,311 FERC FORM NO. 2 (12-96) Pacie 219

75 Name of Respondent This Re ort Is: Date of Report Year/Period of Report Connecticut Natural M0, Da, Gas Corporation Yr) End of 2015/Q4 ssion Gas Stored (Accounts 117.1, 117.2, 117.3, 117.4, 164.1, 164.2, and 164.3) 1. If during the year adjustments were made to the stored gas inventory reported in columns (d), (f), (g), and (h) (such as to correct cumulative inaccuracies of gas measurements), explain in a footnote the reason for the adjustments, the Dth and dollar amount of adjustment, and account charged or credited. 2. Report in column (e) all encroachments during the year upon the volumes designated as base gas, column (b), and system balancing gas, column (c), and gas property recordable in the plant accounts. 3. State in a footnote the basis of segregation of inventory between current and noncurrent portions. Also, state in a footnote the method used to report storage (i.e., fixed asset method or inventory method). Un Description Noncurrent Current LNG LNG No (Account (Account (Account (Account (Account (Account (Account Total 117.1) 117.2) 117.3) 117.4) 164.1) 164.2) 164.3) (a) (b) (c) (d) (e) (f) (g) (h) (i) 1 Balance at Beginning of 31615, ,89 39,626,787 2 Gas Delivered to Storage 33,127, ,61 36,349,002 3 Gas Withdrawn from 43,393,95 3,745,30 47,139,266 4 Other Debits and Credits 5 Balance at End of Year 21,349,31 7,487,20 26,836,523 6 Dth 11,217,071 1,109,15 12, Amount Per Dth FERC FORM NO. 2 (REV 04-04) Page 220

76 Name of Respondent This Re ort Is: Date of Report Year/Period of Repà C Cf t N t I G C t. (1) X An Original (Mo, Da, Yr) onne icu a ura as orpora ion (2) EA Resubmission / / End of 20151Q4 Investments (Account 123, 124, and 136) 1. Report below investments in Accounts 123, Investments in Associated Companies, 124, Other Investments, and 136, Temporary Cash Investments. 2. Provide a subheading for each account and list thereunder the information called for: (a) Investment in Securities-List and describe each security owned, giving name of issuer, date acquired and date of maturity. For bonds, also give principal amount, date of issue, maturity, and interest rate. For capital stock (including capital stock of respondent reacquired under a definite plan for resale pursuant to authorization by the Board of Directors, and included in Account 124, Other Investments) state number of shares, class, and series of stock. Minor investments may be grouped by classes. Investments included in Account 136, Temporary Cash Investments, also may be grouped by classes. (b) Investment Advances-Report separately for each person or company the amounts of loans or investment advances that are properiy includable in Account 123. Include advances subject to current repayment in Account 145 and 146. With respect to each advance, show whether the advance is a note or open account. Description of Investment Book Cost at Beginning of Year Purchases or. (If book cost is different from Additions Line * cost to respondent, give cost to During the Year 0. respondent in a footnote and explain difference) (a) (b) (c) (d) 1 Account 124- Other Investments 2 Deferred Compensation Plans 248,563 ( 153,102) FERC FORM NO. 2 (12-96) Paae 222

77 Name of Respondent This Re ort Is: Date of Report Year/Period of Report (Mo, Da, Yr) End of 2015/Q4 Investments (Account 123, 124, and 136) (continued) List each note, giving date of issuance, maturity date, and specifying whether note is a renewal. Designate any advances due from officers, directors, stockholders, or employees. 3. Designate with an asterisk in column (b) any securities, notes or accounts that were pledged, and in a footnote state the name of pledges and purpose of the pledge. 4. If Commission approval was required for any advance made or security acquired, designate such fact in a footnote and cite Commission, date of authorization, and case or docket number. 5. Report in column (h) interest and dividend revenues from investments including such revenues from securities disposed of during the year. 6. In column (i) report for each investment disposed of during the year the gain or loss represented by the difference between cost of the investment (or the other amount at which carried in the books of account if different from cost) and the selling price thereof, not including any dividend or interest adjustment includible in column (h).. Dispositions Line No. Sales or Other Principal Amount or Book Cost at End of Year Revenues for Gain or Loss from No. of Shares at (If book cost is different from cost Year Investment During Year End of Year to respondent give cost to Disposed of respondent in a footnote and explain difference) (e) (U (g) (h) (I) 2 95, FERC FORM NO. 2 (12-96) Paae 223

78 Name of Respondent This Re ort Is: Date of Report Year/Period of Report (1) X An Original (Mo, Da, Yr) (2) Resubmission / / End of 2015/Q4 A Investments in Subsidiary Companies (Account 123.1) 1. Report below investments in Account 123.1, Investments in Subsidiary Companies. 2. Provide a subheading for each company and list thereunder the information called for below. Sub-total by company and give a total in columns (e), (O (9) and (h). (a) Investment in Securities-List and describe each security owned. For bonds give also principal amount, date of issue, maturity, and interest rate. (b) Investment Advances - Report separately the amounts of loans or investment advances which are subject to repayment, but which are not subject to current settlement With respect to each advance show whether the advance is a note or open account List each note giving date of issuance, maturity date, and specifying whether note is a renewal. 3. Report separately the equity in undistiibuted subsidiary earnings since acquisition. The total in column (e) should equal the amount entered for Account Description of Investment Date Date of Amount of. Acquired Maturity Investment at Line Beginning of Year. (a) (b) (c) (d) 1 None TOTAL Cost of Account $ TOTAL FERC FORM NO. 2 (12-96) Page 224

79 Name of Respondent This Re ort Is: Date of Report Year/Period of Report (Mo, Da, Yr) (2) EAResubmission End of 201 5/Q4 Investments in Subsidiary Companies (Account 123.1) (continued) 4. Designate in a footnote, any securities, notes, or accounts that were pledged, and state the name of pledgee and purpose of the pledge. 5. If Commission approval was required for any advance made or security acquired, designate such fact in a footnote and give name of Commission, date of authorization, and case or docket number. 6. Report in column (f) interest and dividend revenues from investments, including such revenues from securities disposed of during the year. 7. In column (h) report for each investment disposed of during the year, the gain or loss represented by the difference between cost of the investment (or the other amount at which carried in the books of account if different from cost), and the selling price thereof, not including interest adjustments includible in column (f). 8. Report on Line 40, column (a) the total cost of Account Earnings Line No. Equity in Subsidiary Revenues for Year Amount of Investment Gain or Loss from for Year at End of Year Investment Disposed of (e) (f) (g) (h) FERC FORM NO. 2 (12-96) Pane 225

80 Name of Respondent This Re ort Is: Date of Report Year/Period of Report (Mo, Da, Yr) End of 2015/Q4 Prepayments (Acct 165), Extraordinary Property Losses (Acct 182.1), Unrecovered Plant and Regulatory Study Costs (Acct 182.2) 1. Report below the_particulars_(details) on each_prepayment. PREPAYMENTS (ACCOUNT 165) Nature of Payment Balance at End Line of Year No. (in dollars) (a) (b) 1 Prepaid Insurance 2 Prepaid Rents 3 Prepaid Taxes 841,628 4 Prepaid Interest 5 Miscellaneous Prepayments 121,731 6 TOTAL 963,359 FERC FORM NO. 2 (12-96) Page 230a

81 Name of Respondent This Re ort Is: Date of Report Year/Period of Report (1) X An Original (Mo Da, Yr) (2) fla Resubmission / / End of 2015/04 Prepayments (Acct 165), Extraordinary Property Losses (Acct 182.1), Unrecovered Plant and Regulatory Study Costs (Acct 182.2) (continued) EXTRAORDINARY PROPERTY LOSSES (ACCOUNT 182.1) Description of Extraordinary Loss [include the Balance at Total Losses Written off Written off Balance at date of loss, the date of Commission Beginning Amount Recognized During Year During Year End of Year Line authorization to use Account and period of of Year of Loss During Year O 7 None Total amortization (mo, yr, to mo, yr)] Add rows as Account Amount necessary to report all data. Charged (a) (b) (C) (d) (e) (0 (g) FERC FORM NO. 2 (12-96) Page 230b

82 Name of Respondent I This Reoort Is: I Date of Report I Year/Period of Report I (1) An Original I (Mo, Da, Yr) I (2) EA Resubmission / / End of 2015/Q4 Prepayments (Acct 165), Extraordinary Property Losses (Acct 182.1), Unrecovered Plant and Regulatory Study Costs (Acct 162.2) (continued) UNRECOVERED PLANT AND REGULATORY STUDY COSTS (ACCOUNT 182.2) Description of Unrecovered Plant and Regulatory Balance at Total Costs Written off Written off Balance at Study Costs [Include in the description of costs, Beginning Amount Recognized During Year During Year End of Year the date of Commission authorization to use of Year of Charges During Year L ne Account and period of amortization (mo, yr, to mo, yr)] Add rows as necessary to report Account Amount all data. Number rows in sequence beginning Charged with the next row number after the last row number used for extraordinary property losses. (a) (b) (c) (d) (e) (U (g) 16 None Total FERC FORM NO. 2 (12-96) Page 230c

83 Name of Respondent This Re ort Is: Date of Report Year/Period of Report (Mo, Da, Yr) End of 2015/04 Other Regulatory Assets (Account 182.3) 1. Report below the details called for conceming other regulatory assets which are created through the ratemaking actions of regulatory agencies (and not includable in other accounts). 2. For regulatory assets being amortized, show period of amortization in column (a). 3. Minor items (5% of the Balance at End of Year for Account or amounts less than $250,000, whichever is less) may be grouped by classes. 4. Report separately any Deferred Regulatory Commission Expenses that are also reported on pages , Regulatory Commission Expenses. 5. Provide in a footnote, for each line item, the regulatory citation where authorization for the regulatory asset has been granted (e.g. Commission Order, state commission order, court decision). Line Description and Purpose of Balance at Debits Written off Dung Written off Written off Balance at End of No. Other Regulatory Assets Beginning QuarterlYear During Period During Period Current Current Account Amount Recovered Amount Deemed Quarter[Year QuarterNear Charged Unrecoverable (a) (b) (c) (d) (e) (0 (9) 1 None Total FERC FORM NO. 213Q (REV 12.07) Page 232

84 - of Name of Respondent This Re ort Is: Date of Report Year/Period of Report Connecticut (Mo, Natural Da, Gas Corporation Yr) End of 2015/Q4 ssion Miscellaneous Deferred Debits (Account 186) 1. Report below the details called for concerning miscellaneous deferred debits. 2. For any deferred debit being amortized, show period of amortization in column (a). 3. Minor items (less than $250,000) may be grouped by classes. Line No. 1 Deferred Gas Cost - PGA & Description of Miscellaneous Balance at Debits Credits Credits Balance at Deferred Debits Beginning End of Year Year Account. Amount Charged (a) (b) (c) (d) (e) (I) - Docket Nos. ( 3,523,561) 9,908,982 3,286,949 3,098,472 5 Hardship Arrearage Forgiveness - Docket 6,811,611 6,856,331 4,907,443 8,760,499 6 No Recoverable CES Other O&M 20, , ,779 ( 5,886) Dc SFAS no 106- Other Post Retirement 3,983, ,166 3,011, Benefits (amortization period ending 13 Febwary 2019)- Docket No SERP - Supplemental Executive 202,306 83, , Retirement Plan (amortization period 17 ending May 2017) Docket No FAS No Pension Docket No. 18,619,657 1,345,394 17,274, Air Conditioner Rebates - Docket No. 523, , , (amortization period ending 24 May2017) System Expansion Rate ( ) 521, , Preliminary Engineering 229, , OPEB Fair Market Value ( 2,963,669) 41,726 ( 2,921,943) SERP Fair Market Value 545,630 15, , Revolver Fees 340, , , Unamortized Debt 10/13 Midterm Notes 180, , Miscellaneous Work in Progress FERC FORM NO. 2 (12-96) Page 233

85 Name of Respondent This Re ort Is: Date of Report Year/Period of Report (Mo, Da, Yr) ission End of 20151Q4 Miscellaneous Deferred Debits (Account 186) (continued) 1. Report below the details called for concerning miscellaneous deferred debits. 2. For any deferred debit being amortized, show period of amortization in column (a). 3. Minor items (less than $250,000) may be grouped by classes. Descriphon of Miscellaneous Line Balance at Debits Credits Credits Balance at No Deferred Debits Beginning End of Year. of Year Account Amount Charged (a) (b) (c) (d) (e) (U I Debt Premium - Fair Market Value 3389,000 1,616,000 1,773, William St. Environmental Site 24,441 22,913 47,354 4 Docket No Pension Fair Market Value 81,999,421 6,214,191 75,785, Regulatory Commission Proceeding 1,105, , ,346 9 Expenses Security Costs - Docket No ( 8,926) ( 8,926) Adjusted Deferred Income Tax ,113,000 4,113, Purchased Gas Adjustment ,835,426 3,835, Tennessee Gas Pipeline Refund ( 8,898) 1,027 ( 7,871) Miscellaneous 1,718, ,038 1,095,602 1,576, FAS 109 Unfunded Future Fed Inc Tax 8,783,605 1,391,681 10,175, Miscellaneous Work in Progress 40 Total 20,213, ,915,536 FERC FORM NO.2(12-96) Page 233.1

86 Name of Respondent This Report Is: Date of Report Year/Period of Report (Mo, Da, Yr) End of 20151Q4 Accumulated Deferred Income Taxes (Account 190) 1. Report the information called for below concerning the respondenfs accounting for deferred income taxes. 2. At Other (Specify), include deferrals relating to other income and deductions. 3. Provide in a footnote a summary of the type and amount of deferred income taxes reported in the beginning-of-year and end-of-year balances for deferred income taxes that the respondent estimates could be included in the development of jurisdictional recourse rates.. Beginning Line No. I Account Electric Account Subdivisions Balance at Changes During Changes During Year Year of Year Amounts Debited Amounts Credited toaccount4l0.1 toaccount4ll.1 (a) (b) (c) (d) 3 Gas 101,990,574 10,202,998 17,393,322 4 Other (Define) (footnote details) 5 Totalftotaloflines2thw4) 101,990,574 10,202,998 17,393,322 6 Other (Specify) (footnote details) 7 TOTAL Account 190 (Total of lines 5 thru 6) 101,990,574 10,202,998 17,393,322 8 Classification of TOTAL 9 Federal Income Tax 81,938,764 8,505,800 14,207, State Income Tax 20,051,810 1,697,198 3,186, Local Income Tax FERC FORM NO. 2 (REV 12-07) Page 234

87 Name of Respondent This Report Is: Date of Report Year/Period of Report I (1) Original I (MO, Da, Yr) I (2) fla Resubmission / / End of 2015/Q4 Accumulated Deferred Income Taxes (Account 190) (continued) An Line No. T 2 Changes During Changes Dung Adjustments Adjustments Adjustments Adjustments Balance at Year Year End of Year Debits Debits Credits Credits Amounts Debited Amounts Credited toaccount4l0.2 toaccount4ll.2 AccountNo. Amount AccountNo. Amount (e) (f) (g) (h) (i) (j) (k) 3 ( 203,000) 754,352 5,327, ,956, ( 203,000) 754,352 5,327, ,956, ( 203,000) 754,352 5,327, ,956, ( 203,000) 616,498 6,326,246 93, ,854 ( 999,099) 20,403, FERC FORM NO. 2 (REV 12-07) Page 235

88 Name of Respondent This Re ort Is: Date of Report Year/Period of Report (Moe Da, Yr) End of 2015/Q4 Capital Stock (Accounts 201 and 204) 1. Report below the details called for concerning common and preferred stock at end of year, distinguishing separate series of any general class. Show separate totals for common and preferred stock. 2. Entries in column (b) should represent the number of shares authorized by the articles of incorporation as amended to end of year. 3. Give details concerning shares of any class and series of stock authorized to be issued by a regulatory commission which have not yet been issued. Line No. Class and Series of Stock and Number of Shares Par or Stated Value Call Price at Name of Stock Exchange Authorized by Charter per Share End of Year (a) (b) (c) (d) 1 Common Stock (Account 201) 20,000, Preferred Stock (Account 204) 4 Cumulative Preferred Stock 5 8% Senes, Non Callable 884, % Series B (1) 9,999, FERC FORM NO. 2 (12-96) Page 250

89 Name of Respondent This Re ort Is: Date of Report Year/Period of Report (1) X An Original (Mo, Da, Yr) (2) A Resubmission / End of 2015/Q4 Capital Stock (Accounts 201 and 204) 4. The identification of each class of preferred stock should show the dividend rate and whether the dividends are cumulative or noncumulative. 5. State in a footnote if any capital stock that has been nominally issued is nominally outstanding at end of year. 6. Give particulars (details) in column (a) of any nominally issued capital stock, reacquired stock, or stock in sinking and other funds which is pledged, stating name of pledgee and purpose of pledge. Outstanding per Bal. Sheet Outstanding per Bal. Held by Held by Held by Held by (total amt outstanding Sheet Respondent Respondent Respondent Respondent Line without reduction for amts As Reacquired As Reacquired In Sinking and In Sinking and No. held by respondent) Stock (Acct 217) Stock (Acct 217) Other Funds Other Funds Shares (e) Amount Shares Cost Shares Amount (I) (g) (h) (i) a) 1 10,634,436 33,232, , , FERC FORM NO. 2 (12-96) Page 251

90 Name of Respondent This Re ort Is: Date of Report Year/Period of Reporl C t N I G C t (1) X An Original (Mo, Da, Yr) onnec cu a ura as orpora Ion (2) fla Resubmission / / End of 2015/Q4 Capital Stock: Subscribed, Liability for Conversion, Premium on, and Installments Recieved on (Accts 202, 203, 205, 206, 207, and 212) 1. Show for each of the above accounts the amounts applying to each class and series of capital stock. 2. For Account 202, Common Stock Subscribed, and Account 205, Preferred Stock Subscribed, show the subscription price and the balance due on each class at the end of year. 3. Describe in a footnote the agreement and transactions under which a conversion liability existed under Account 203, Common Stock Liability for Conversion, or Account 206, Preferred Stock Liability for Conversion, at the end of year. 4. For Premium on Account 207, Capital Stock, designate with an asterisk in column (b), any amounts representing the excess of consideration received over stated values of stocks without par value. Name of Account and * Number Amount Line Description of Item of Shares No. (a) (b) (c) (d) 1 None Total 0 0 FERC FORM NO. 2 (12-96) Page 252

91 Name of Respondent This Re ort Is: Date of Report Year/Period of Report (1) (Mo, Da, Yr) End of 2015/Q4 Other Paid-In Capital (Accounts ) 1. Report below the balance at the end of the year and the information specified below for the respective other paid-in capital accounts. Provide a subheading for each account and show a total for the account, as well as a total of all accounts for reconciliation with the balance sheet, page 112. Explain changes made in any account during the year and give the accounting entries effecting such change. (a) Donations Received from Stockholders (Account 208) - State amount and briefly explain the origin and purpose of each donation. (b) Reduction in Par or Stated Value of Capital Stock (Account 209) - State amount and briefly explain the capital changes that gave rise to amounts reported under this caption including identification with the class and series of stock to which related. (c) Gain or Resale or Cancellation of Reacquired Capital Stock (Account 210) - Report balance at beginning of year, credits, debits, and balance at end of year with a designation of the nature of each credit and debit identified by the class and series of stock to which related. (d) Miscellaneous Paid-In Capital (Account 211) - Classify amounts included in this account according to captions that, together with brief explanations, disclose the general nature of the transactions that gave rise to the reported amounts.. Item Amount (a) (b) 1 Miscellaneous Paid-in-Capital (Account 211) 2 3 Balance at beginning of year 315,304,115 4 No change to PlC in Total 315,304,115 FERC FORM NO. 2 (12-96) Page 253

92 Name of Respondent I This Report Is: I Date of Report I Year/Period of Report DISCOUNT ON CAPITAL STOCK (ACCOUNT 213) (1) An Original (Mo, Da, Yr) I (2) EA Resubmission / / End of 2015/Q4 1. Report the balance at end of year of discount on capital stock for each class and series of capital stock. Use as many rows as necessary to report all data. 2. If any change occurred during the year in the balance with respect to any class or series of stock, attach a statement giving details of the change. State the reason for any charge-off during the year and specify the account charged. Class and Series of Stock Balance at Line End of Year No. (a) (b) 1 None TOTAL CAPITAL STOCK EXPENSE (ACCOUNT 214) 1. Report the balance at end of year of capital stock expenses for each class and series of capital stock. Use as many rows as necessary to report all data. Number the rows in sequence starting from the last row number used for Discount on Capital Stock above. 2. If any change occurred during the year in the balance with respect to any class or series of stock, attach a statement giving details of the change. State the reason for any charge-off of capital stock expense and specify the account charged. Class and Series of Stock Balance at Line End of Year No. (a) (b) 16 None TOTAL FERC FORM NO. 2 (12-96) Page 254

93 Name of Respondent This Report is: Date of Report Year/Period of Repor[ (1) X An Original (Mo, Da, Yr) (2) A Resubmission I / 20151Q4 Securities Issued or Assumed and Securities Refunded or Retired During the Year 1. Furnish a supplemental statement briefly describing security financing and refinancing transactions during the year and the accounting for the securities, discounts, premiums, expenses, and related gains or losses. Identify as to Commission authorization numbers and dates. 2. Provide details showing the full accounting for the total principal amount, par value, or stated value of each class and series of security issued, assumed, retired, or refunded and the accounting for premiums, discounts, expenses, and gains or losses relating to the securities. Set forth the facts of the accounting clearly with regard to redemption premiums, unamortized discounts, expenses, and gain or losses relating to securities retired or refunded, including the accounting for such amounts carried in the respondents accounts at the date of the refunding or refinancing transactions with respect to securities previously refunded or retired. 3. Include in the identification of each class and series of security, as appropriate, the interest or dividend rate, nominal date of issuance, maturity date, aggregate principal amount, par value or stated value, and number of shares. Give also the issuance of redemption price and name of the principal underwriting firm through which the security transactions were consummated. 4. Where the accounting for amounts relating to securities refunded or retired is other than that specified in General Instruction 17 of the Uniform System of Accounts, cite the Commission authorization for the different accounting and state the accounting method. 5. For securities assumed, give the name of the company for which the liability on the securities was assumed as well as details of the transactions whereby the respondent undertook to pay obligations of another company. If any unamortized discount, premiums, expenses, and gains or losses were taken over onto the respondent s books, furnish details of these amounts with amounts relating to refunded securities clearly earmarked. I FERC FORM NO. 2 (12-96) I

94 Name of Respondent This Re ort Is: Date of Report Year/Period of Report (1) (Mo, Da, Yr) End of 2015/Q4 Long-Term Debt (Accounts 221, 222, 223, and 224) 1. Report by Balance Sheet Account the details concerning long-term debt included in Account 221, Bonds, 222, Reacquired Bonds, 223, Advances from Associated Companies, and 224, Other Long-Term Debt 2. For bonds assumed by the respondent, include in column (a) the name of the issuing company as well as a description of the bonds. 3. For Advances from Associated Companies, report separately advances on notes and advances on open accounts. Designate demand notes as such. Include in column (a) names of associated companies from which advances were received. 4. For receivers certificates, show in column (a) the name of the court and date of court order under which such certificates were issued.. Class and Series of Obligation and Nominal Date Date of Outstanding. Line Name of Stoch Exchange of Issue Maturity (Total amount outstanding without reduction for amts held by respondent) (a) (b) (c) (d) 1 Medium Term Notes - Series A % 11/19/ /15/ ,000,000 2 Medium Term Notes - Series A % 04/01/ /03/ ,000,000 3 Medium Term Notes - Series B % 09/20/ /15/ ,000,000 4 Medium Term Notes - Series B % 10/28/ /28/ ,000,000 5 Medium Term Notes - Series D % 10/25/ /25/ ,000,000 6 Medium Term Notes - Series D % 10/25/ /26/ ,000, Senior Unsecured Notes (2) Private Placement % 10/09/ /15/ ,000, TOTAL 140,000,000 FERC FORM NO. 2 (12-96) Page 256

95 Name of Respondent This Re ort Is: Date of Report Year/Period of Report (Mo, Da, Yr) End of 2015/Q4 Long-Term Debt (Accounts 221, 222, 223, and 224) 5. In a supplemental statement, give explanatory details for Accounts 223 and 224 of net changes during the year. With respect to long-term advances, show for each company: (a) principal advanced during year (b) interest added to principal amount, and (c) principal repaid during year. Give Commission authorization numbers and dates. 6. If the respondent has pledged any of its long-term debt securities, give particulars (details) in a footnote, including name of the pledgee and purpose of the pledge. 7. If the respondent has any long-term securities that have been nominally issued and are nominally outstanding at end of year, describe such securities in a footnote. 8. If interest expense was incurred during the year on any obligations retired or reacquired before end of year, indude such interest expense in column (f). Explain in a footnote any difference between the total of column (f) and the total Account 427, Interest on Long-Term Debt and Account 430, Interest on Debt to Associated Companies. 9. Give details concerning any Iong-terrn debt authorized by a regulatory commission but not yet issued.. Year Line No. Interest for Interest for Held by Held by Redemption Price Year Respondent Respondent per $100 at End of Year Rate Amount Reacquired Bonds Sinking and (in %) (Acct 222) Other Funds (e) (f) (g) (h) (i) , ,792, ,126, ,460, ,075, ,046, ,332, ,741,000 FERC FORM NO. 2 (12-96) Page 257

96 Name of Respondent This Re ort Is: Date of Report Year/Period of Report (Mo Connecticut Da, Yr) Natural Gas Corporation End of 2015/Q4 Unamortized Debt Expense, Premium and Discount on Long-Term Debt (Accounts 181, 225, 226) 1 Report under separate subheadings for Unamortized Debt Expense, Unamortized Premium on Long-Term Debt and Unamortized Discount on Long-Term Debt details of expense, premium or discount applicable to each class and series of long-term debt 2. Show premium amounts by enclosing the figures in parentheses. 3. In column (b) show the principal amount of bonds or other long-term debt originally issued. 4. In column (c) show the expense, premium or discount with respect to the amount of bonds or other long-term debt originally issued. Designation of Principal Amount Total Expense Amortization Amortization. Long-Term Debt of Debt Issued Premium or Period Period Line Discount No. Date From DateTo (a) (b) (c) (d) (e) 1 Medium Term Notes - Series A % 10,000,000 96,279 11/19/ MediumTermNotes-SeriesA-8.96% 20,000,000 1,503,120 04/01/ /03/ Medium Term Notes - 4 Medium Term Notes - 5 Medium Term Notes - 6 Medium Term Notes Senior Unsecured Notes Debt Premium Series B % 20,000, ,464 09/20I Series B % 25,000, ,483 10/ /28/2035 Series D % 25,000,000 10/25/ /25/2028 Series D % 20,000,000 10/25/ /26/2043 4(2) Private Placement % 20,000, ,151 10/09/ /15/2037 Purchase Accounting Adjustment 14,288,000 11/17/ /15/2037 FERC FORM NO. 2 (12-96) Page 258

97 Name of Respondent This Re ort Is: Date of Report Year/Period of Report (Mo, Da, Yr) End of 201 5/Q4 Unamortized Debt Expense, Premium and Discount on Long-Term Debt (Accounts 181, 225, 226) 5. Furnish in a footnote details regarding the treatment of unamortized debt expense, premium or discount associated with issues redeemed during the year. Also, give in a footnote the date of the Commissions authorization of treatment other than as specified by the Uniform System of Accounts. 6. Identify separately undisposed amounts applicable to issues which were redeemed in prior years. 7. Explain any debits and credits other than amortization debited to Account 428, Amortization of Debt Discount and Expense, or credited to Account 429, Amortization of Premium on Debt-Credit. Balance at Debits During Credits During Balance at. Beginning Year Year End of Year Line of Year No. (f) (g) (h) (i) 1 7,382 3,851 3, ,465 60,732 60, ,217 9, , ,726 10, , ,092 7, , ( 3,389,000) 1,616,000 ( 1,773,000) ,113,882 1,708,520 2,405,362 FERC FORM NO. 2 (12-96) Page 259

98 Name of Respondent This Re ort Is: Date of Report Year/Period of Report (1) X An Original (Mo, Da, Yr) (2) fla Resubmission / / End of 2015/Q4 Unamortized Loss and Gain on Reacquired Debt (Accounts 189, 257) 1. Report under separate subheadings for Unamortized Loss and Unamortized Gain on Reacquired Debt, details of gain and loss, including maturity date, on reacquisition applicable to each class and series of long-term debt. If gain or loss resulted from a refunding transaction, include also the maturity date of the new issue. 2. In column (c) show the principal amount of bonds or other long-term debt reacquired. 3. In column (d) show the net gain or net loss realized on each debt reacquisition as computed in accordance with General Instruction 17 of the Uniform Systems of Accounts. 4. Show loss amounts by enclosing the figures in parentheses. 5. Explain in a footnote any debits and credits other than amortization debited to Account 428.1, Amortization of Loss on Reacquired Debt, or credited to Account 429.1, Amortization of Gain on Reacquired Debt-Credit. Line No. Reacquired 1 None Designation of Date Principal Net Gain or Balance at Balance at Long-Term Debt Reacquired of Debt Loss Beginning End of Year of Year (a) (b) (C) (d) (e) (f) FERC FORM NO. 2 (12-96) Page 260

99 Name of Respondent This Report Is: Date of Report Year/Period of Report I (1) Original I (Mo, Da, Yr) I (2) EA Resubmission / / End of 2015/Q4 Reconciliation of Reported Net Income with Taxable Income for Feder Income Taxes 1. Report the reconciliation of reported net income for the year with taxable income used in computing Federal Income Tax accwals and show computation of such tax accruals. Include in the reconciliation, as far as practicable, the same detail as furnished on Schedule M-1 of the tax return for the year. Submit a reconciliation even though there is no taxable income for the year. Indicate clearly the nature of each reconciling amount. 2. If the utility is a member of a group that files consolidated Federal tax return, reconcile reported net income with taxable net income as if a separate return were to be filed, indicating, however, intercompany amounts to be eliminated in such a consolidated return. State names of group members, tax assigned to each group member, and basis of allocation, assignments, or sharing of the consolidated tax among the group members. An Line No. 1 Net Income for the Year (Page 116) 2 Reconciling Items for the Year 3 4 Taxable Income Not Reported on Books TOTAL 9 Deductions Recorded on Books Not Deducted for Return TOTAL 14 Income Recorded on Books Not Included in Return Details (a) Amount (b) TOTAL 19 Deductions on Return Not Charged Against Book Income TOTAL 27 Federal Tax Net Income 28 Show Computation of Tax: FERC FORM NO. 2(12-96) Page 261

100 FED federal Reconciliation of Reported Net Income with Taxable Income for Federal Income Taxes Details (a) Net Income for the Year (page 116) 8,993,949 Reconciling Items for the Year Federal Income Tax Provision - Current and Deferred Federal Income Tax 4,623,276 State Income Tax Provision - Current and Deferred State Income Tax (2,221600) Subtotal 2,401,676 Taxable Income Not Reported on Books Capitalized Interest 249,326 Contributions in Aid of Construction (CIAC) 235,451 SALVAGE 75,710 Subtotal 560,487 Deductions Recorded on Books Not Deducted for Return Book Depreciation - 29,544,484 Book over Tax Amortization 1,172,710 Post Retirment Regulatory Deferrals (872,690) Other Regulatory Deferrals 371,883 Conservation Adj Mech 2,259,953 Merger Customer Rate Credits 18,224,832 Decoupling 3,910,390 SERIDIMP adj 524,439 Other 1,396,656 Subtotal 56,532,657 Income Recorded on Books Not Included in Return Allowance for Funds Used During Construction (1,158,480) Subtotal (1,158,480) Deductions on Return Not Charged Against Book Income Tax Depreciation (51,670,916) COR (2,427,999) Goodwill Amortization (1,741,728) Deferred Gas Costs (10,649,811) Post Retirement Benefits 172,020 Hardship Program and Bad Debt Costs (3,360,052) Retired Non-Mass Asset Property and Property Tax Net (1,672,935) Other (11,080) Subtotal (71,362,501) Federal Taxable Net Income (4,032,213) Current State Tax Benefit 886,557 Federal Taxable Income (Loss) Total (3,145,656) Show Computation of Tax: Tax 35% (1,100,980) Adjustments for Prior Years Taxes 2,275,329 Credit CF Reclass - FIT Impact (21,427) Net Operating Loss Reclass 410,311 Net Federal Income Tax Provision Total current - only 1,563,233 Less: Non-Operating (276,524) Total Current Federal Income Tax - Operating 1,839,757 Page 261a

101 Name of Respondent This Re ort Is: Date of Report Year/Period of Report (1) X An Original (Mo, Da, Yr) (2) Taxes Accrued, Prepaid and Charged During Year, Distribution of Taxes Charged (Show utility dept where applicable and acct charged) EA Resubmission/ / End of 2015/Q4 1. Give details of the combined prepaid and accrued tax accounts and show the total taxes charged to operations and other accounts during the year. Do not include gasoline and other sales taxes which have been charged to the accounts to which the taxed material was charged. If the actual or estimated amounts of such taxes are known, show the amounts in a footnote and designate whether estimated or actual amounts. 2. Include on this page, taxes paid during the year and charged direct to final accounts, (not charged to prepaid or accrued taxes). Enter the amounts in both columns (d) and (e). The balancing of this page is not affected by the inclusion of these taxes. 3. Include in column (d) taxes charged during the year, taxes charged to operations and other accounts through (a) accruals credited to taxes accrued, (b) amounts credited to the portion of prepaid taxes charged to current year. and (c) taxes paid and charged direct to operations or accounts other than accrued and prepaid tax accounts. 4. LIst the aggregate of each kind of tax in such manner that the total tax for each State and subdivision can readily be ascertained. Line No Balance at Balance at Kind of Tax Beg. of Year Beg. of Year (See Instruction 5). Taxes Accrued Prepaid Taxes (a) (b) (c) 1 Federal: 2 Income Taxes ( 933,860) 3 FlCAiMedicare ( 5,559) 4 Unemployment ( 7,396) 5 Excise Tax 6 Other 7 8 State: 9 Connecticut Corporation Business Tax ( ) 10 Pennsylvania FranchiselCorp. Income Tax 10, Mississippi Corporate Income & Franchise ( 1,593) 12 NewYork 13 Unemployement 14 Gross Earnings Tax 3,408, Use Tax 202, Fuels Tax 17 Local: 46, Property Tax 749, TOTAL 2,110, ,190 FERC FORM NO. 2 (REV 12-07) Page 262a

102 Name of Respondent This Re oft Is: Date of Report Year/Period of Report (Mo, Da, Yr) End of 201 5/Q4 EAResubmission 1 Taxes Accrued, Prepaid and Charged During Year, Distribution of Taxes Charged (Show utility dept where applicable and acct charged) (continued) 5. If any tax (exclude Federal and State income taxes) covers more than one year, show the required information separately for each tax year, identifying the year in column (a). 6. Enter all adjustments of the accrued and prepaid tax accounts in column (t) and explain each adjustment in a footnote. Designate debt adjustments by parentheses. 7. Do not include on this page entries with respect to deferred income taxes or taxes collected through payroll deductions or otherwise pending transmittal of such taxes to the taxing authority. 8. Show in columns (i) thru (p) how the taxes accounts were distributed. Show both the utility department and number of account charged. For taxes charged to utility plant, show the number of the appropriate balance sheet plant account or subaccount. 9. For any tax apportioned to more than one utility department or account, state in a footnote the basis (necessity) of apportioning such tax. 10. Items under $250,000 may be grouped. 11. Report in column (q) the applicable effective state income tax rate. Balance at Balance at Line Taxes Charged Taxes Paid End of Year End of Year No During Year During Year Adjustments Taxes Accrued Prepaid Taxes. (Account 236) (Included in Acct 165) (d) (e) (0 (g) (h) 2 1,563,233 ( 1,000,000) ( 3,047,762) 4,677, ,429,000 2,400,621 22, , ,786 6, , ( 191,966) 725,000 ( 1,095,090) ( 384,715).i 10,000 H ( 1,593) ,319,721 12,798,464 2,929, ,095,541 1,095,541 ( 142,381) 345, , , ,607,841 7,654,279 ( 46,438) 795, TOTAL 25,111,625 23,957,886 ( 4331,671) 7,595, ,628 FERC FORM NO. 2 (REV 12-07) Paqe 263a

103 Name of Respondent This Re ort Is: Date of Report Year/Period of Report (Mo, Da, Yr) End of 201 5/Q4 Taxes Accrued, Prepaid and Charged During Year, Distribution of Taxes Charged (Show utility dept where applicable and acct charged) 1. Give details of the combined prepaid and accrued tax accounts and show the total taxes charged to operations and other accounts during the year. Do not include gasoline and other sales taxes which have been charged to the accounts to which the taxed material was charged. lithe actual or estimated amounts of such taxes are known, show the amounts in a footnote and designate whether estimated or actual amounts. 2. Include on this page, taxes paid during the year and charged direct to final accounts, (not charged to prepaid or accrued taxes). Enter the amounts in both columns (d) and (e). The balancing of this page is not affected by the inclusion of these taxes. 3. Include in column (d) taxes charged during the year, taxes charged to operations and other accounts through (a) accruals credited to taxes accrued, (b) amounts credited to the portion of prepaid taxes charged to current year, and (c) taxes paid and charged direct to operations or accounts other than accrued and prepaid tax accounts. 4. List the aggregate of each kind of tax in such manner that the total tax for each State and subdivision can readily be ascertained. DISTRIBUTION OF TAXES CHARGED (Show utility department where applicable and account charged.) Electric Gas Other Utility Dept Other Income and. (Account4o8.1, (Account4o8.1, (Account4o8.1, Deductions 4091) 409.1) 409.1) (Account4o8.2, 409.2) (i) (j) (k) (I) 2 1,839,757 ( 276,524) 3 1,702, , ( 113,827) ( 78,139) , ,319, , ,607, TOTAL 23,584,435 ( 354,663) FERC FORM NO. 2 (REV 12-07) Paae 262b

104 Name of Respondent This Re ort Is: Date of Report Year/Period of Report (1) (Mo, Da, Yr) End of 201 5/Q4 Taxes Accrued, Prepaid and Charged During Year, Distribution of Taxes Charged (Show utility dept where applicable and acct charged) (continued) 5. If any tax (exclude Federal and State income taxes) covers more than one year, show the required information separately for each tax year, identifying the year in column (a). 6. Enter all adjustments of the accrued and prepaid tax accounts in column (f) and explain each adjustment in a footnote. Designate debt adjustments by parentheses. 7. Do not include on this page entries with respect to deferred income taxes or taxes collected through payroll deductions or otherwise pending transmittal of such taxes to the taxing authority. 8. Show in columns (i) thru (p) how the taxes accounts were distributed. Show both the utility department and number of account charged. For taxes charged to ulity plant, show the number of the appropriate balance sheet plant account or subaccount. 9. For any tax apportioned to more than one utility department or account state in a footnote the basis (necessity) of apportioning such tax. 10. Items under $250,000 may be grouped. 11. Report in column (q) the applicable effective state income tax rate. DISTRIBUTION OF TAXES CHARGED (Show utility department where applicable and account charged.) Line No. Extraordinary Items Other Utility Opn. Adjustment to Ret State/Local (Account 409.3) Income Earnings Other Income Tax (Account 408.1, (Account 439) Rate 409.1) (m) (n) (0) (p) (q) 2 5, , ,615 5 ( 144,288) , TOTAL 604,590 FERC FORM NO. 2 (REV 12-07) Paqe 263b

105 Name of Respondent This Report Is: Date of Report Year/Period of Report (Mo, Da, Yr) End of 2015/Q4 Accumulated Deferred Income Taxes-Other Property (Account 282) 1. Report the information called for below concerning the respondent s accounting for deferred income taxes relating to property not subject to accelerated amortization. 2. At Other (Specify), include deferrals relating to other income and deductions.. Balance Line No. 1 Account Electiic at Amounts Amounts Account Subdivisions Beginning Debited to Credited to of Year Account Account (a) (b) (c) (d) 3 Gas 50,654,970 20,992,659 13,789,868 4 Other (Define) (footnote details) 5 Total (Enter Total of lines 2 thru 4) 50,654,970 20,992,659 13,789,868 6 Other (Specify) (footnote details) 7 TOTAL Account 282 (Enter Total of lines 5 thr 50,654,970 20,992,659 13,789,868 8 Classification of TOTAL 9 Federal Income Tax 45,102,253 20,575,383 12,487, State Income Tax 5,552, ,886 1,302, Local Income Tax FERC FORM NO. 2 (REV 12-O7 Pn 27

106 Name of Respondent This Re ort Is: Date of Report Year/Period of Report Connecticut Natural Gas (1) (Mo, Da, Yr) Corporation End of 20151Q4 Accumulated Deferred Income Taxes-Other Property (Account 282) (continued) 3. Provide in a footnote a summary of the type and amount of deferred income taxes reported in the beginning-of-year and end-of-year balances for deferred income taxes that the respondent estimates could be included in the development of jurisdictional recourse rates. Line No. Changes during Changes during Adjustments Adjustments Adjustments Adjustments Year Year Balance at Amounts Debited Amounts Credited Debits Debits Credits Credits End of Year toaccount4l0.2 toaccount4ll.2 Acct. No. Amount AccountNo. Amount (e) (f) (g) (h) (i) U) (k) 2 3 5,486,529 6,077,436 57,266, ,486,529 6,077,436 57,266, ,486,529 6,077,436 57,266, ,755,302 3,773,030 51,172, ,731,227 2,304,406 6,094, FERC FORM N0 2 IRFV Pn,7ç

107 Name of Respondent This Re ort Is: Date of Report Year/Period of Report (Mo, Da, Yr) (2) flaresubmission End of 201 5/Q4 Accumulated Deferred Income Taxes-Other (Account 283) 1. Report the information called for below concerning the respondenrs accounting for deferred income taxes relating to amounts recorded in Account At Other (Specify), include deferrals relating to other income and deductions.. Balance Line No. 1 Account Electric Changes Dung Year Changes Dung Year at Amounts Amounts Account Subdivisions Beginning Debited to Credited to of Year Account Account (a) (b) (c) (d) 3 Gas 67,568,238 9,334,271 8,922,944 4 Other (Define) (footnote details) 5 Total (Total of lines 2 thru 4) 67,568,238 9,334,271 8,922,944 6 Other (Specify) (footnote details) 7 TOTAL Account 283 (Total of lines 5 thru 67,568,238 9,334,271 8,922,944 8 Classification of TOTAL 9 Federal Income Tax 56,149,458 7,578,609 7,276, State IncomeTax 11,418,940 1,755,662 1,646, Local Income Tax FP FARM Mfl 912fl IPFV 19fl71 )7

108 Name of Respondent This Re ort Is: Date of Report Year/Period of Report (Mo, Da, Yr) ssion End of 2015/Q4 Accumulated Deferred Income Taxes-Other (Account 283) (continued) 3. Provide in a footnote a summary of the type and amount of deferred income taxes reported in the beginning-of-year and end-of-year balances for deferred income taxes that the respondent estimates could be included in the development of jurisdictional recourse rates. Changes during Changes during Adjustments Adjustments Adjustments Adjustments Year Year Balance at Line Amounts Debited Amounts Credited Debits Debits Credits Credits End of Year No. toaccount4l0.2 toaccount4ll.2 Acct No. Amount AccountNo. Amount (e) (f) (g) (h) (i) (j) (k) ,267 2,360,762 3,845,100 67,305, ,267 2,360,762 3,845,100 67,305, ,267 2,360,762 3,845,100 67,305, ,865 1,919,125 3,406,329 55,419, , , ,771 11,683, FERC FORM NO (REV I Pn 277

109 Name of Respondent This Re ort Is: Date of Report Year/Period of Report (1) (Mo, Da, Yr) End of 2015/Q4 Other Regulatory Liabilities (Account 254) 1. Report below the details called for concerning other regulatory liabilities which are created through the ratemaking actions of regulatory agencies (and not includable in other amounts). 2. For regulatory liabilities being amortized, show period of amortization in column (a). 3. Minor items (5% of the Balance at End of Year for Account 254 or amounts less than $250,000, whichever is less) may be grouped by classes. 4. Provide in a footnote, for each line item, the regulatory citation where the respondent was directed to refund the regulatory liability (e.g. Commission Order, state commission order, court decision). Line Balance at Written off during Written off Written off Balance at Descnption and Purpose of Beginning of Quarter/Period During Period During Period Credits End of Current No Other Regulatory Liabilities Current Account Amount Amount Deemed Quarter/Year 1 Not Applicable (a) Quarter/Year Credited Refunded Non-Refundable (f) (g) (b) (c) (d) (e) 45 Total FERC FORM NO. 213Q (REV 12-07) Page 278

110 Name of Respondent This Re ort Is: Date of Report Year/Period of Report (Mo, Da, Yr) End of 201 5/Q4 ssion Monthly Quantity & Revenue Data by Rate Schedule 1. Reference to account numbers in the US0fA is provided in parentheses beside applicable data. Quantities must not be adjusted for discounts. 2. Total Quantities and Revenues in whole numbers 3. Report revenues and quantities of gas by rate schedule. Where transportation services are bundled with storage services, reflect only transportation Dth. When reporting storage, report Dth of gas withdrawn from storage and revenues by rate schedule. 4. Revenues in Column (c) include transition costs from upstream pipelines. Revenue (Other) in Column (e) includes reservation charges received by the pipeline plus usage charges, less revenues reflected in Columns (c) and (d). Include in Column (e), revenue for Accounts Enter footnotes as appropñate. Item Month 1 Month 1 Month 1 Month 1 Month 1 Quantity Revenue Costs Revenue Revenue Revenue Line and (GRI & ACA) (Other) (Total) No. Take-or-Pay (a) (b) (c) (d) (e) ( 1 otal Sales ( ) 2,595,364 23,112,608 2 Transportation of Gas for Others (489.2 and 489.3) 3 283, , FERC FORM NO. 213Q (NEW 12-08) Page 299

111 Name of Respondent This Re ort Is: Date of Report Year/Period of Report (Mo, Da, Yr) R ssion End of 201 5/Q4 Monthly Quantity & Revenue Data by Rate Schedule 1. Reference to account numbers in the lisofa is provided in parentheses beside applicable data. Quantities must not be adjusted for discounts. 2. Total Quantities and Revenues in whole numbers 3. Report revenues and quantities of gas by rate schedule. Where transportation services are bundled with storage services, reflect only transportation Dth. When reporting storage, report Dth of gas withdrawn from storage and revenues by rate schedule. 4. Revenues in Column (c) include transition costs from upstream pipelines. Revenue (Other) in Column (e) includes reservation charges received by the pipeline plus usage charges, less revenues reflected in Columns (c) and (d). Include in Column (e), revenue for Accounts Enter footnotes as appropriate. Month 2 Month 2 Month 2 Month 2 Month 2 Month 3 Month 3 Month 3 Month 3 Month 3 Quantity Revenue Costs Revenue Revenue Revenue Quantity Revenue Costs Revenue Revenue Revenue Line and (GRI &ACA) (Other) (Total) and (GRI &ACA) (Other) (Total) No. Take-or-Pay Take-or-Pay (g) (h) (i) (j) (k) (I) (m) (n) (o) (p) ,639 25,540,844 3,648,588 30,268, , , , , FERC FORM NO. 213Q (NEW 12-08) Page 299a

112 Name of Respondent This Re ort Is: Date of Report Year/Period of Report Connecticut Natural (1) (Mo, Da, Yr) Gas Corporation End of 2015/Q4 Monthly Quantity & Revenue Data by Rate Schedule (continued) Item Month 1 Month 1 Month 1 Month I Month 1 Quantity Revenue Costs Revenue Revenue Revenue Line and (GRI & ACA) (Other) (Total) No. Take-or-Pay (a) (b) (c) (d) (e) ( Total Transportation (Other than Gathering) 283, , Storage (489.4) Total Storage 91 Gathering (489.1) 92 Gathering-Firm 93 Gathering-Interruptible 94 Total Gathering (489.1) 95 Additional Revenues 96 Products Sales and Extraction ( ) 97 Rents ( ) 8, Other Gas Revenues (495) ( 1,920,686) 99 (Less) Provision for Rate Refunds 100 Total Additional Revenues ( 1,912,299) 101 Total Operating Revenues (Total of Lines 1,63,90,94 & 100) 2,878,974 21,981,789 FERC FORM NO. 213Q (NEW 12-08) Page 299.1

113 Name of Respondent This Re ort Is: Date of Report Year/Period of Report (Mo, Da, Yr) Con necticut Natural Gas Corporation gission End of 201 5/Q4 Monthly Quantity & Revenue Data by Rate Schedule (continued) Month 2 Month 2 Month 2 Month 2 Month 2 Month 3 Month 3 Month 3 Month 3 Month 3 Quantity Revenue Costs Revenue Revenue Revenue Quantity Revenue Costs Revenue Revenue Revenue Line and (GRI & ACA) (Other) (Total) and (GRI & ACA) (Other) (Total) No. Take-or-Pay Take-or-Pay (g) (h) (i) ) (k) (I) (m) (n) (o) (p) , , , , ,387 8, ( 154,610) ( 13,980,142) ( 146,223) ( 13,971,755) 101 3,174,58 26,147,607 4,068,167 16,660,259 FERC FORM NO. 213Q (NEW 12-08) Paae 299a.1

114 Name of Respondent This Re ort Is: Date of Report Year/Period of Report (Mo, Da, Yr) (2) End of Q4 Gas Operating Revenues 1 Report below natural gas operating revenues for each prescribed account total. The amounts must be consistent with the detailed data on succeeding pages. 2. Revenues in columns (b) and (c) include transition costs from upstream pipelines. 3. Other Revenues in columns (f) and (g) include reservation charges received by the pipeline plus usage charges, less revenues reflected in columns (b) through (e). Include in columns (f) and (g) revenues for Accounts Revenues for Revenues for Revenues for Revenues for Transition Transition GRI and ACA GRI and ACA Costs and Costs and Line Take-or-Pay Take-or-Pay No Residential Sales Commercial and Industrial Sales Other Sales to Public Authorities Sales for Resale Interdepartmental Sales Intracompany Transfers Forfeited Discounts Miscellaneous Service Revenues Title of Account Amount for Amount for Amount for Amount for Current Year Previous Year Current Year Previous Year (a) (b) (c) (d) (e) Revenues from Transportation of Gas of Others Through Gathering FacilWes Revenues from Transportation of Gas of Others Through Transmission Facilities Revenues from Transportation of Gas of Others Through Distribution Facilities Revenues from Storing Gas of Others Sales of Prod. Ext. from Natural Gas Revenues from Natural Gas Proc. by Others Incidental Gasoline and Oil Sales Rent from Gas Property Interdepartmental Rents Other Gas Revenues 19 Subtotal: (Less) Provision for Rate Refunds 21 TOTAL: FERC FORM N0 2 (REV Pn fla

115 Name of Respondent This Re ort Is: Date of Report Year/Period of Report (1) (Mo, Da, Yr) End of 2015/04 Gas Operating Revenues 4. If increases or decreases from previous year are not derived from previously reported figures, explain any inconsistencies in a footnote. 5. On Page 108, include information on major changes during the year, new service, and important rate increases or decreases. 6. Report the revenue from transportation services that are bundled with storage services as transportation service revenue. Line No. Other Other Total Total Dekatherm of Dekatherm of Revenues Revenues Operating Operating Natural Gas Natural Gas Revenues Revenues Amount for Amount for Amount for Amount for Amount for Amount for Current Year Previous Year Current Year Previous Year Current Year Previous Year (f) (g) (h) (i) (j) (k) 1 186,456, ,478, ,456, ,478,805 17,958,009 18,078, ,101, ,536, ,101, ,536,689 14,994,124 13,834, ,820,661 42,203,949 30,820,661 42,203, ,309,996 2,041,215 2,309,996 2,041, , , , , ,314 1, ,509,584 16,022,463 10,509,584 16,022,463 38,443,926 6,453, , , , , ( 24,836,497) ( 29,213,340) ( 25,333,497) ( 29,213,340) ,342, ,921, ,845, ,921, ,342, ,921, ,845, ,921,374 FERC FORM NO. 2 (REV Pieip A1

116 Dec 31, 2015 ACTUAL, NORMALIZED AND UNBILLED SALES IN DOLLARS ACTUAL CURRENT YEAR ACTUAL PREVIOUS YEAR ACTUAL INCREASE/(DECREASE) OVER PREVIOUS YEAR RESIDENTIAL COMMERCIAL - FIRM INDUSTRIAL - FIRM FIRM CONTRACT INTERRUPTIBLE TRANSPORTATION INTERDEPARTMENTAL TOTAL SALES TO ULTIMATE CONSUMERS $185,264,546 $223,245,287 ($37,980,741) 74,160,818 81,030,927 (6,870,109) 13,371,554 14,234,057 (862,503) 1,429,727 1,435,111 (5,384) 13,253,481 19,215,892 (5,962,410) 9,832,628 13,851,892 (4,019,264) $297,312,754 $353,013,166 ($55,700,412) ($0) $0 UNBILLED SALES UNBILLED SALES UNBILLED SALES INCLUDED IN ACTUAL INCLUDED IN ACTUAL INCREASE/(DECREASE) CURRENT YEAR PREVIOUS YEAR OVER PREVIOUS YEAR RESI DENTIAL COMMERCIAL - FIRM INDUSTRIAL - FIRM FIRM CONTRACT INTERRUPTIBLE TRANSPORTATION INTERDEPARTMENTAL TOTAL SALES TO ULTIMATE CONSUMERS ($4,303,774) $345,634 ($4,649,408) (1,289,658) 1,094,229 (2,383,887) (76,626) (80,813) 4,187 ($5,670,058) $1,359,050 ($7,029,107) $0 $0 301 a

117 Dec31, 2015 ACTUAL, NORMALIZED AND UNBILLED SALES IN DEKATHERMS ACTUAL CURRENT YEAR ACTUAL PREVIOUS YEAR ACTUAL INCREASE/(DECREASE) OVER PREVIOUS YEAR RESIDENTIAL COMMERCIAL - FIRM INDUSTRIAL - FIRM FIRM CONTRACT INTERRUPTIBLE TRANSPORTATION INTERDEPARTMENTAL TOTAL SALES TO ULTIMATE CONSUMERS 18,226,046 18,045, ,953 10,878,400 9,181,204 1,697,196 2,320,796 1,898, , , ,495 (37,595) 1,897,521 2,679,196 (781,675) 4,677,895 5,689,000 (1,011,105) 38,835,558 38,365, ,197 UNBILLED SALES UNBILLED SALES UNBILLED SALES INCLUDED IN ACTUAL INCLUDED IN ACTUAL INCREASE/(DECREASE) CURRENT YEAR PREVIOUS YEAR OVER PREVIOUS YEAR RESIDENTIAL COMMERCIAL - FIRM INDUSTRIAL - FIRM FIRM CONTRACT INTERRUPTIBLE TRANSPORTATION INTERDEPARTMENTAL TOTAL SALES TO ULTIMATE CONSUMERS (268,045) 33,941 (301,986) (36,325) 156,489 (192,814) (22,316) (108,370) 86,054 (326,686) 82,059 (408,746) NORMALIZED NORMALIZED NORMALIZED SALES SALES SALES INCREASE/(DECREASE) CURRENT YEAR PREVIOUS YEAR OVER PREVIOUS YEAR RESIDENTIAL COMMERCIAL - FIRM INDUSTRIAL - FIRM FIRM CONTRACT INTERRUPTIBLE TRANSPORTATION INTERDEPARTMENTAL TOTAL SALES TO ULTIMATE CONSUMERS 17,787,353 17,653, ,283 10,685,429 9,046,659 1,638,770 2,272,285 1,880, , , ,495 (37,595) 1,926,802 2,722,926 (796,123) 4,642,015 5,632,286 (990,272) 38,148,784 37,807, ,829 Average RESIDENTIAL COMMERCIAL - FIRM INDUSTRIAL - FIRM FIRM CONTRACT INTERRUPTIBLE TRANSPORTATION INTERDEPARTMENTAL TOTAL SALES TO ULTIMATE CONSUMERS CURRENT YEAR PREVIOUS YEAR CUSTOMERS CALENDAR CALENDAR INCREASEI(DECREASE) CUSTOMERS CUSTOMERS OVER PREVIOUS YEAR 155, ,033 2,563 12,930 12, ,260 1,322 (62) (0) 1,095 1,704 (609) 170, ,263 2, b

118 Name of Respondent This Re ort Is: Date of Report Year/Period of Report (1) X An Original (Mo, Da, Yr) (2) EIA Resubmission / / End of 2015/Q4 Revenues from Transporation of Gas of Others Through Gathering Facilities (Account 489.1) 1. Report revenues and Dth of gas delivered through gathering facilities by zone of receipt (i.e. state in which gas enters respondents system). 2. Revenues for penalties including penalties for unauthorized overruns must be reported on page 308. Revenues for Revenues for Revenues for Revenues for Transition Transaction GRI and ACA GRI and ACA. Costs and Costs and Line No Take-or-Pay Take-or-Pay. Rate Schedule and Zone of Receipt Amount for Amount for Amount for Amountfor CurrentYear PreviousYear CurrentYear CurrentYear (a) (b) (c) (d) (d) 1 None FERC FORM N qRl Pn A2

119 Name of Respondent This Re ort Is: Date of Report Year/Period of Report. (1) X An Original (Mo, Da, Yr) (2) A Resubmission / / End of 2015/Q4 Revenues from Transporation of Gas of Others Through Gathering Facilities (Account 489.1) 3. Other Revenues in columns (f) and (g) include reservation charges received by the pipeline plus usage charges, less revenues reflected in columns (b) through (e). 4. Delivered Dth of gas must not be adjusted for discounting. Line No. Other Other Total Total Dekatherm of Dekatherni of Revenues Revenues Operating Operating Natural Gas Natural Gas Revenues Revenues Amount for Amount for Amount for Amount for Amount for Amount for Current Year Previous Year Current Year Previous Year Current Year Previous Year (t) (g) (h) (i) U) (k) FERC FORM NO. 2 (12-96) Paae 303

120 Name of Respondent This Re ort Is: Date of Report Year/Period of Report (Mo, Da, Yr) (2) End of 2015/Q4 Revenues from Transportation of Gas of Others Through Transmission Facilities (Account 489.2) 1. Report revenues and Dth of gas delivered by Zone of Delivery by Rate Schedule. Total by Zone of Delivery and for all zones. If respondent does not have separate zones, provide totals by rate schedule. 2. Revenues for penalties including penalties for unauthodzed overruns must be reported on page Other Revenues in columns (t) and (g) include reservation charges received by the pipeline plus usage charges for transportation and hub services, less revenues reflected in columns (b) through (e). Revenues for Revenues for Revenues for Revenues for Transition Transition GRI and ACA GRI and ACA. Costs and Costs and Line No Take-or-Pay Take-or-Pay. Zone of Delivery, Rate Schedule Amount for Amount for Amount for Amount for Current Year Previous Year Current Year Previous Year (a) (b) (c) (d) (e) 1 None FERC FORM NO. 2 (12-96) Pacie 304

121 Name of Respondent I This Reoort Is: Date of Report I Year/Period of Report I (1) An Original I (MO, Da, Yr) (2) EA Resubmission / / End of 2015/Q4 Revenues from Transportation of Gas of Others Through Transmission Facilities (Account 489.2) 4. Delivered Dth of gas must not be adjusted for discounting. 5. Each incremental rate schedule and each individually certificated rate schedule must be separately reported. 6. Where transportation services are bundled with storage services, report total revenues but only transportation Dth. Line No. Total Dekatherm of Dekatherm of Revenues Revenues Operating Operating Natural Gas Natural Gas Revenues Revenues Amount for Amount for Amount for Amount for Amount for Amount for Current Year Previous Year Current Year Previous Year Current Year Previous Year (f) (g) (h) (i) (j) (k) FERC FORM NO. 2 (12-96) Paae 305

122 Name of Respondent I This Report Is: I Date of Report I Year/Period of Report (1) An Original I (MO, Da, Yr) I (2) EA Resubmission / / End of 2015/Q4 Revenues from Storing Gas of Others (Account 489.4) 1. Report revenues and Dth of gas withdrawn from storage by Rate Schedule and in total. 2. Revenues for penalties including penalties for unauthoiized overruns must be reported on page Other revenues in columns ( and (g) include reservation charges, deliverability charges, injection and withdrawal charges, less revenues reflected in columns (b) through (e). Line No. I None Rate Schedule (a) Revenues for Transition Costs and Take-or-Pay Amount for Current Year Revenues for Transaction Costs and Take-or-Pay Amount for Previous Year Revenues for GRI and ACA Amount for Current Year Revenues for GRI and ACA Amount for Previous Year II FERC FORM NO. 2 (12-96) Paqe 306

123 Name of Respondent This Re ort Is: Date of Report Year/Period of Report (1) X An Original (Mo, Da, Yr) (2) fla Resubmission / / End of 2015/Q4 Revenues from Storing Gas of Others (Account 489.4) 4. Dth of gas withdrawn from storage must not be adjusted for discounting. 5. Where transportation services are bundled with storage services, report only Dth withdrawn fram storage.. Revenues Line No. Other Other Total Total Dekatherm of Dekatherm of Revenues Revenues Operating Operating Natural Gas Natural Gas Revenues Amount for Amount for Amount for Amount for Amount for Amount for Current Year Previous Year Current Year Previous Year Current Year Previous Year (f) (g) (h) (i) (k) FERC FORM NO. 2 (12-96) Page 307

124 Name of Respondent This Report Is: Date of Report Year/Period of Reporl I (1) Original I (Mo, Da, Yr) I (2) fla Resubmission / / End of 2015/Q4 An Other Gas Revenues (Account 495) Report below transactions of $250,000 or more included in Account 495, Other Gas Revenues. Group all transactions below $250,000 in one amount and provide the number of items. Lrne No. (a) 1 Commissions on Sale or Distribution of Gas of Others 2 Compensation for Minor or Incidental Services Provided for Others 3 Profit or Loss on Sale of Material and Supplies not Ordinarily Purchased for Resale 4 Sales of Stream,_Water, or_electricity,_including_sales or Transfers to Other Departments 5 Miscellaneous Royalties Description of Transaction Amount (in dollars) (b) 6 Revenues from Dehydration and Other Processing of Gas of Others except as provided for in the Instructions to Account Revenues for Right and/or Benefits Received from Others which are Realized Through Research, Development, and Demonstration Ventures 8 Gains on Settlements of Imbalance Receivables and Payables 9 Revenues from Penalties earned Pursuant to Tariff Provisions, including Penalties Associated with Cash-out Settlements 10 Revenues from Shipper Supplied Gas 11 Other revenues (Specify): On January 22, 2014, PURA approved new base delivery rates for CNG, with an effective date 14 of January 10, 2014, which, among other things, approved a decoupling mechanism and two 15 separate ratemaking mechanisms that reconcile actual revenue requirements related to CNG s 16 cast iron and bare steel replacement program and system expansion. Additionally, the final 17 decision requires the establishment of an earnings sharing mechanism by 18 which CNG and customers share on a basis all earnings above the allowed ROE 19 in a calendar year. 20 The following are offsets to revenue: 21 Decoupling ( 3,910,390) 22 System Expansion Rate Adjustment 521, NonFirm 50/50 Earnings Sharing ( 4,068,906) 24 MiscPGAifems/other ( 17,875,392) Total ( 25,333,497) FERC FORM NO. 2 ( Paae 308

125 Name of Respondent This Re ort Is: Date of Report Year/Period of Report.. (1) X An Original (Mo, Da, Yr) (2) EA Resubmission, / End of 201 5/Q4 I In column b, report the revenues from discounted rate services. 2. In column c, report the volumes of discounted rate services. 3. In column d, report the revenues from negotiated rate services. 4. In column e, report the volumes of negotiated rate services. Discounted Rate Services and Negotiated Rate Services Line No. Discounted Discounted Negotiated Negotiated Account Rate Services Rate Services Rate Services Rate Services 1 Account 489.1, Revenues from transportation of gas of others through gathering facilities. 2 Account 489.2, Revenues from transportation of gas of others through transmission facilities. 3 Account 489.4, Revenues from storing gas of others. 4 Account 495, Other gas revenues Total Revenue Volumes Revenue Volumes (a) (b) (c) (d) (e) FERC FORM NO. 2 (NEW 12-07) Page 313

126 Name of Respondent This Re ort Is: Date of Report Year/Period of Report (Mo, Da, Yr) End of 201 5/Q4 Line No. Account (a) Gas Operation and Maintenance Expenses Amount for Current Year (b) Amount for Previous Year (c) 1 1. PRODUCTION EXPENSES 2 A. Manufactured Gas Production 3 Manufactured Gas Production (Submit Supplemental Statement) 4 B. Natural Gas Production 5 Bi. Natural Gas Production and Gathering 6 Operation Operation Supervision and Engineering Production Maps and Records Gas Well Expenses Field Lines Expenses Field Compressor Station Expenses Field Compressor Station Fuel and Power Field Measuring and Regulating Station Expenses Purification Expenses Gas Well Royalties Other Expenses Rents 18 TOTAL Operation (Total of lines 7 thru 17) 19 Maintenance Maintenance Supervision and Engineering Maintenance of Structures and Improvements Maintenance of Producing Gas Wells Maintenance of Field Lines Maintenance of Field Compressor Station Equipment Maintenance of Field Measuring and Regulating Station Equipment Maintenance of Purification Equipment Maintenance of Drilling and Cleaning Equipment Maintenance of Other Equipment 29 TOTAL Maintenance (Total of lines 20 thru 28) 30 TOTAL Natural Gas Production and Gathering (Total of lines 18 and 29) FERC FORM NO. 2(12-96) Page 317

127 Name of Respondent This Report Is: I Date of Report Year/Period of Report I (1) Original (Mo, Da, Yr) I (2) fla Resubmission / / End of 2015/Q4 An Gas Operation and Maintenance Expenses(continued) Line Account Amount for Amount for No. Current Year Previous Year (a) (b) (C) 31 B2. Products Extraction 32 Operation Operation Supervision and Engineering Operation Labor Gas Shrinkage Fuel Power Materials Operation Supplies and Expenses Gas Processed by Others Royalties on Products Extracted Marketing Expenses Products Purchased for Resale Variation in Products Inventory (Less) 782 Extracted Products Used by the Utility-Credit Rents TOTAL Operation (Total of lines 33 thru 46) Maintenance Maintenance Supervision and Engineering Maintenance of Structures and Improvements Maintenance of Extraction and Refining Equipment Maintenance of Pipe Lines Maintenance of Extracted Products Storage Equipment Maintenance of Compressor Equipment Maintenance of Gas Measuring and Regulating Equipment Maintenance of Other Equipment TOTAL Maintenance (Total of lines 49 thru 56) TOTAL Products Extraction (Total of lines 47 and 57) 0 0 FERC FORM NO.2(12-96) Page 318

128 Name of Respondent I This Reoort Is: I Date of Report I Year/Period of Report I (1) An Original I (MO, Da, Yr) I (2) EA Resubmission / End of 2015/Q4 Gas Operation and Maintenance Expenses(continued) Line Account Amount for Amount for No. Current Year Previous Year (a) (b) (C) 59 C. Exploration and Development 60 Operation Delay Rentals Nonproductive Well Drilling Abandoned Leases Other Exploration TOTAL Exploration and Development (Total of lines 61 thru 64) D. Other Gas Supply Expenses 67 Operation Natural Gas Well Head Purchases Natural Gas Well Head Purchases, Intracompany Transfers Natural Gas Field Line Purchases Natural Gas Gasoline Plant Outlet Purchases Natural Gas Transmission Line Purchases Natural Gas City Gate Purchases 140,413, ,968, Liquefied Natural Gas Purchases Other Gas Purchases (Less) Purchases Gas Cost Adjustments TOTAL Purchased Gas (Total of lines 68 thru 76) 140,413, ,968, Exchange Gas Purchased Gas Expenses Well Expense-Purchased Gas Operation of Purchased Gas Measuring Stations Maintenance of Purchased Gas Measuring Stations Purchased Gas Calculations Expenses Other Purchased Gas Expenses TOTAL Purchased Gas Expenses (Total of lines 80 thru 84) 0 0 FERC FORM NO. 2 ( Prn 1q

129 Name of Respondent This Report Is: Date of Report Year/Period of Report (Mo, Da, Yr) (2) End of 2015/Q4 Gas Operation and Maintenance Expenses(continued) Line Account Amount for Amount for No. Current Year Previous Year (a) (b) (C) Gas Withdrawn from Storage-Debit 27,487,219 28,667, (Less) Gas Delivered to Storage-Credit 17,196,728 27,600, Withdrawals of Liquefied Natural Gas for Processing-Debit 3,745,307 2,886, (Less) Deliveries of Natural Gas for Processing-Credit 3,221,615 2,613, Gas used in Utility Operation-Credit Gas Used for Compressor Station Fuel-Credit Gas Used for Products Extraction-Credit Gas Used for Other Utility Operations-Credit 171, , TOTAL Gas Used in Utility Operations-Credit (Total of lines 91 thru 93) 171, , Other Gas Supply Expenses TOTAL Other Gas Supply Exp. (Total of lines 77,78,85,86 thru 89,94,95) 151,055, ,096, TOTAL Production Expenses (Total of lines 3, 30, 58, 65, and 96) 151,143, ,223, NATURAL GAS STORAGE, TERMINALING AND PROCESSING EXPENSES 99 A. Underground Storage Expenses 100 Operation Operation Supervision and Engineering Maps and Records Wells Expenses Lines Expense Compressor Station Expenses Compressor Station Fuel and Power Measuring and Regulating Station Expenses Purification Expenses Exploration and Development Gas Losses Other Expenses Storage Well Royalties Rents TOTAL Operation (Total of lines of 101 thru 113) 0 0 FERC FORM NO.2(12-96) Paae 320

130 Name of Respondent This Re ort Is: Date of Report Year/Period of Report (Mo, Da, Yr) (2) flaresubmission End of 2015/Q4 Gas Operation and Maintenance Expenses(continued) Line Account Amount for Amount for No. Current Year Previous Year (a) (b) (C) 1 15 Maintenance Maintenance Supervision and Engineering Maintenance of Structures and Improvements Maintenance of Reservoirs and Wells Maintenance of Lines Maintenance of Compressor Station Equipment Maintenance of Measuring and Regulating Station Equipment Maintenance of Purification Equipment Maintenance of Other Equipment TOTAL Maintenance (Total of lines 116 thru 123) TOTAL Underground Storage Expenses (Total of lines 114 and 124) B. Other Storage Expenses 127 Operation Operation Supervision and Engineering , Operation Labor and Expenses 729, , Rents Fuel Power Gas Losses TOTAL Operation (Total of lines 128 thru 133) 1321,896 1,199, Maintenance Maintenance Supervision and Engineering 799 2, Maintenance of Structures 77,334 51, Maintenance of Gas Holders 52,796 89, Maintenance of Purification Equipment 0 62, Maintenance of Liquefaction Equipment , Maintenance of Vaporizing Equipment 89,485 80, Maintenance of Compressor Equipment 50,215 23, Maintenance of Measuring and Regulating Equipment 6,984 7, Maintenance of Other Equipment 565, , TOTAL Maintenance (Total of lines 136 thru 144) 843, , TOTAL Other Storage Expenses (Total of lines 134 and 145) 2,165,114 2,038,513 FERC FORM NO. 2 (12-96) Page 321

131 Name of Respondent This Re ort Is: Date of Report Year/Period of Report (1) (Mo, Da, Yr) End of 201 5/Q4 Gas Operation and Maintenance Expenses(continued) Line Account Amount for Amount for No. Current Year Previous Year (a) (b) (c) 147 C. Liquefied Natural Gas Terminaling and Processing Expenses 148 Operation Operation Supervision and Engineering LNG Processing Terminal Labor and Expenses Liquefaction Processing Labor and Expenses Liquefaction Transportation Labor and Expenses Measuring and Regulating Labor and Expenses Compressor Station Labor and Expenses Communication System Expenses System Control and Load Dispatching Fuel Power Rents Demurrage Charges (less) Wharfage Receipts-Credit Processing Liquefied or Vaporized Gas by Others Gas Losses Other Expenses TOTAL Operation (Total of lines 149 thru 164) Maintenance Maintenance Supervision and Engineering Maintenance of Structures and Improvements Maintenance of LNG Processing Terminal Equipment Maintenance of LNG Transportation Equipment Maintenance of Measuring and Regulating Equipment Maintenance of Compressor Station Equipment Maintenance of Communication Equipment Maintenance of Other Equipment TOTAL Maintenance (Total of lines 167 thru 174) TOTAL Liquefied Nat Gas Terminaling and Proc Exp (Total of lines 165 and 175) TOTALNaturalGasStorage(Totaloflines 125, 146, and 176) 2,165,114 2,038,513 FERC FORM NO. 2 (12-96) Paae 322

132 Name of Respondent This Re ort Is: Date of Report Year/Period of Report (Mo, Da, Yr) End of 2015/04 Gas Operation and Maintenance Expenses(continued) Line Account Amount for Amount for No. Current Year Previous Year (a) (b) (c) TRANSMISSION EXPENSES 179 Operation Operation Supervision and Engineering System Control and Load Dispatching Communication System Expenses Compressor Station Labor and Expenses Gas for Compressor Station Fuel Other Fuel and Power for Compressor Stations Mains Expenses Measuring and Regulating Station Expenses Transmission and Compression of Gas by Others Other Expenses Rents TOTAL Operation (Total of lines 180 thru 190) Maintenance Maintenance Supervision and Engineering Maintenance of Structures and Improvements Maintenanceof Mains Maintenance of Compressor Station Equipment Maintenance of Measuring and Regulating Station Equipment Maintenance of Communication Equipment Maintenance of Other Equipment TOTAL Maintenance (Total of lines 193 thru 199) TOTAL Transmission Expenses (Total of lines 191 and 200) DISTRIBUTION EXPENSES 203 Operation Operation Supervision and Engineering 1,907,169 1,842, Distribution Load Dispatching 872, , Compressor Station Labor and Expenses Compressor Station Fuel and Power 0 0 FERC FORM NO. 2 (12-96) Page 323

133 Name of Respondent This Re ort Is: Date of Report Year/Period of Report (Mo, Da, Yr) End of 2015/04 ArOii Gas Operation and Maintenance Expenses(continued) Line Account Amount for Amount for No. Current Year Previous Year. (a) (b) (c) Mains and Services Expenses 2,419,667 1,839, Measuring and Regulating Station Expenses-General 570, , Measuring and Regulating Station Expenses-Industrial Measuring and Regulating Station Expenses-City Gas Check Station 140, , Meter and House Regulator Expenses 9,281,357 6, Customer Installations Expenses ( 2,161,161) ( 2,560,950) Other Expenses 1,349,644 1,372, Rents 3, TOTAL Operation (Total of lines 204 thru 215) 14,384,061 10,099, Maintenance Maintenance Supervision and Engineering 1,686,511 2,537, Maintenance of Structures and Improvements 78,833 43, Maintenance of Mains 4,331,834 2,518, Maintenance of Compressor Station Equipment Maintenance of Measuring and Regulating Station Equipment-General 79, , Maintenance of Meas. and Reg. Station Equipment-Industrial Maintenance of Meas. and Reg. Station Equip-City Gate Check Station 369, , Maintenance of Services 2,025,533 1,756, Maintenance of Meters and House Regulators 1,052,742 1,452, Maintenance of Other Equipment TOTAL Maintenance (Total of lines 218 thru 227) 9,624,400 8,889, TOTAL Distribution Expenses (Total of lines 216 and 228) 24,008,461 18,989, CuSTOMER ACCOUNTS EXPENSES 231 Operation Supervision 314, , Meter Reading Expenses 448, , Customer Records and Collection Expenses 9,016,827 8,972,672 FERC FORM NO. 2 (12-96) Paqe 324

134 Name of Respondent This Re ort Is: Date of Report Year/Period of Report (Mo, Da, Yr) End of 20151Q4 Gas Operation and Maintenance Expenses(continued) Line Account Amount for Amount for No. Current Year Previous Year (a) (b) (c) Uncollectible Accounts 8,370,968 9,448, Miscellaneous Customer Accounts Expenses 0 ( 8,533) 237 TOTAL Customer Accounts Expenses (Total of lines 232 thru 236) 18,151,238 19,147, CUSTOMER SERVICE AND INFORMATIONAL EXPENSES 239 Operation Supervision Customer Assistance Expenses 13,018,760 12,798, Informational and Instructional Expenses Miscellaneous Customer Service and Informational Expenses TOTAL Customer Service and Information Expenses (Total of lines 240 thru 243) 13,018,760 12,798, SALES EXPENSES 246 Operation Supervision Demonstrating and Selling Expenses ( 110,344) 98, Advertising Expenses Miscellaneous Sales Expenses TOTAL Sales Expenses (Total of lines 247 thru 250) ( 110,344) 98, ADMINISTRATIVE AND GENERAL EXPENSES 253 Operation Administrative and General Salaries 1243,746 1,985, Office Supplies and Expenses ( 317,305) ( ) 256 (Less) 922 Administrative Expenses Transferred-Credit 1,815,530 1,816, Outside Services Employed 26,256,370 24,095, Property Insurance 73,250 68, Injuries and Damages 860, , Employee Pensions and Benefits ( 1,289,596) ( 1,290,132) Franchise Requirements Regulatory Commission Expenses 450, , (Less) 929 Duplicate Charges-Credit lGeneral Advertising Expenses Miscellaneous General Expenses 1,635, , Rents TOTAL Operation (Total of lines 254 thru 266) 27,096,571 24,918, Maintenance Maintenance of General Plant 422, , TOTAL Administrative and General Expenses (Total of lines 267 and 269) 27,518,885 25,375, TOTAL Gas O&M Expenses (Total of lines 97,177,201,229,237,244,251, and 270) 235,895, ,671,867 FERC FORM NO. 2 (12-96) Pace 325

135 Name of Respondent This Re ort Is: Date of Report Year/Period of Report () (Mo, Da, Yr) I:lAResubmission End of Exchange and Imbalance Transactions 1. Report below details by zone and rate schedule concerning the gas quantities and related dollar amount of imbalances associated with system balancing and no-notice service. Also, report certificated natural gas exchange transactions during the year. Provide subtotals for imbalance and no-notice quantities for exchanges. If respondent does not have separate zones, provide totals by rate schedule. Minor exchange transactions (less than 100,000 Dth) may be grouped.. Gas Line. ZonelRate Schedule Received Gas Received Gas Delivered Gas Delivered from Others from Others to Others to Others Amount Dth Amount Dth (a) (b) (c) (d) (e) 1 AGT 134,677 54,676 1,443, ,396 2 TGP 155,792 74, , ,947 3 Other Total 290, ,558 2,043, ,343 FERC FORM NO. 2 (12-96) Page 328

136 Name of Respondent This Report Is: I Date of Report Year/Period of Report I (1) Original (Mo, Da, Yr) I (2) EIA Resubmission / / End of 2015/04 An Gas Used in Utility Operations 1. Report below details of credits during the year to Accounts 810,811, and If any natural gas was used by the respondent for which a charge was not made to the appropriate operating expense or other account, list separately in column (C) the Dth of gas used, omitting entries in column (d). Natural Gas Natural Gas Natural Gas Natural Gas. Purpose for Which Gas Line Was Used Account Amount of Amount of Amount of No. Charged Gas Used Credit Credit Credit Dth (in dollars) (in dollars) (in dollars) (a) (b) (C) (d) (d) (d) Gas Used for Compressor Station Fuel - Credit Gas Used for Products Extraction - Credit 3 Gas Shrinkage and Other Usage in Respondent s Own Processing 4 Gas Shrinkage, etc. for Respondenfs Gas Processed by Others Gas Used for Other Utility Operations - Credit (Report separately for each principal use. Group minoruses.) 55, , Total 55, ,810 FERC FORM NO. 2 (12-96) Pacie 331

137 Name of Respondent This Re ort Is: Date of Report Year/Period of Report (1) (Mo, Da, Yr) End of 2015/Q4 Transmission and Compression of Gas by Others (Account 858) 1. Report below details concerning gas transported or compressed for respondent by others equalling more than 1,000,000 Dth and amounts of payments for such services dunng the year. Minor items (less than 1,000,000) Dth may be grouped. Also, include in column (c) amounts paid as transition costs to an upstream pipeline. 2. In column (a) give name of companies, points of delivery and receipt of gas. Designate points of delivery and receipt so that they can be identified readily on a map of respondents pipeline system. 3. Designate associated companies with an asterisk in column (b). Amount of Dth of Gas Line Name of Company and Description of Service Performed * Payment Delivered No. (in dollars) (a) (b) (c) (d) 1 None Total FERC FORM NO. 2 (12-96) Paqe 332

138 Name of Respondent This Re ort Is: Date of Report Year/Period of Report (Mo, Da, Yr) End of 2015/04 Other Gas Supply Expenses (Account 813) 1. Report other gas supply expenses by descriptive titles that clearly indicate the nature of such expenses. Show maintenance expenses, revaluation of monthly encroachments recorded in Account 117.4, and losses on settlements of imbalances and gas losses not associated with storage separately. Indicate the functional classification and purpose of property to which any expenses relate. List separately items of $250,000 or more. Amount Line (in dollars) No. (a) (b) 1 None Total FERC FORM NO. 2 (12-96) Page 334

139 Name of Respondent I This Report Is: I Date of Report Year/Period of Report (1) Original (Mo, Da, Yr) (2) fla Resubmission / 1 End of 2015/04 I Miscellaneous General Expenses (Account 930.2) 1. Provide the informaben requested below on miscellaneous general expenses. 2. For Other Expenses, show the (a) purpose, (b) recipient and (c) amount of such items. List separately amounts of $250,000 or more however, amounts less than $250,000 may be grouped if the number of items of so grouped is shown. An Desciipben Amount Line (in dollars) No. (a) (b) 1 Industry association dues. 2 Experimental and general research expenses. a. Gas Research Institute (GRI) b. Other 3 Publishing and distributing information and reports to stockholders, trustee, registrar, and transfer agent fees and expenses, and other expenses of servicing outstanding securities of the respondent 4 Other expenses 5 6 Memberships & Subscriptions 129, Bank Service Fees/Amortization 342,361 9 Amortization of Deferred Regulatory Assets - 3Way Plans & Hardships 349, Contractors/Environmental Services 7, Annual adjustment of benefit, fleet and stores loaders 13 ( 153,910) 14 Other 960, Total 1,635,440 FERC FORM NO. 2 (12-96) Paae 335

140 Name of Respondent This Re ort Is: Date of Report Year/Period of Rep (Mo, Da, Yr) End of 2015/Q4 Depreciation, Depletion and Amortization of Gas Plant (Accts 403, 404.1, 404.2, 404.3, 405) (Except Amortization of Acquisition Adjustments) 1 Report in Section A the amounts of depreciation expense, depletion and amortization for the accounts indicated and classified according to the plant functional groups shown. 2. Report in Section B, column (b) all depreciable or amortizable plant balances to which rates are applied and show a composite total. (If more desirable, report by plant account, subaccount or functional classifications other than those pre-printed in column (a). Indicate in a footnote the manner in which column (b) balances are Section A. Summary of Depreciation, Depletion, and Amortization Charges Amortization Amortization and Amortization of Expense for Depletion of Underground Storage Line Depreciation Asset Producing Natural Land and Land No. Functional Classification Expense Retirement Gas Land and Land Rights (Account 403) Costs Rights (Account 404.2) (Account (Account 404.1) (a) (b) 403.1)(c) (d) (e) 1 Intangible plant 2 Production plant, manufactured gas 3 Production and gathering plant, natural gas 54,132 4 Products extraction plant 5 Underground gas storage plant 6 Otherstorage plant 178,425 7 Base load LNG terminaling and processing plant 8 Transmission plant 9 Distribution plant 27,215, General plant 1,290, Common plant-gas 12 TOTAL 28,738,365 FERC FORM NO. 2 (12-96) Paae 336

141 Name of Respondent This Re ort Is: Date of Report Year/Period of Report (Mo, Da, Yr) End of 2015/04 ssion Depreciation, Depletion and Amortization of Gas Plant (Accts 403, 404.1, 404.2, 404.3, 405) (Except Amortization of Acquisition Adjustments) (continued) obtained. If average balances are used, state the method of averaging used. For column (c) report available information for each plant functional classification listed in column (a). If composite depreciation accounting is used, report available information called for in columns (b) and (c) on this basis. Where the unit-of-production method is used to determine depreciation charges, show in a footnote any revisions made to estimated gas reserves. 3. II provisions for depreciation were made during the year in addition to depreciation provided by application of reported rates, state in a footnote the amounts and nature of the provisions and the plant items to which related. Section A. Summary of Depreciation, Depletion, and Amortization Charges Amortization of Amortization of Other Limited-term Other Gas Plant Total Line Gas Plant (Account 405) (b tog) No. (Account 404.3) Functional Classification (t) (g) (h) (a) 1 822, ,042 Intangible plant 2 Production plant, manufactured gas 3 54,132 Production and gathering plant natural gas 4 Products extraction plant 5 Underground gas storage plant 6 178,425 Other storage plant 7 Base load LNG terminaling and processing plant 8 Transmission plant 9 258,253 27,473,731 Distribution plant 10 1,668 1,291,998 General plant 11 Common plant-gas 12 1,081,963 29,820,328 TOTAL FERC FORM NO. 2 (12-96) Page 337

142 Name of Respondent This Report Is: Date of Report Year/Period of Report Da, Yr) End of 2015/Q4 Depreciation, Depletion and Amortization of Gas Plant (Accts 403, 404.1, 404.2, 404.3, 405) (Except Amortization of Acquisition Adjustments) (continued) 4. Add rows as necessary to completely report all data. Number the additional rows in sequence as 2.01, 2.02, 3.01, 3.02, etc. Section B. Factors Used in Estimating Depreciation Charges Applied Depreciation. Line Plant Bases or Amortization Rates Functional Classification (in thousands) (percent) 1 Production and Gathering Plant 2 Offshore (footnote details) 3 Onshore (footnote details) 4 Underground Gas Storage Plant (footnote details) 5 Transmission Plant 6 Offshore (footnote details) 7 Onshore (footnote details) 8 General Plant (footnote details) 9 10 (a) (b) (c) FERC FORM NO. 2 (12-96) Page 338

143 Attachment to FERC Form No. 2, Page 338 For Calendar Year 2015 Plant Bases Applied Depr. Line No. Account No. Account Description Plant Bases (in thousands) Rate Structures & Improvements % Structures & Improvements 1,244, , % Structures & Improvements - LNG 880, % Gas Holders 3,697, % Purification Equipment 192, % Liquification Equipment 1,470, , % Vaporizing Equipment 2,855, , % Compressor Equipment 3,978, , % M&R Equipment 461, % Other Equipment 2,120, , % Structures & Improvements 22,432, , % Structures & Improvements - Leasehold 28, % Office Furniture and Equipment 4,266, , % Computer Equipment 785, % Transportation Equipment 7,181, , % Stores Equipment 27, % Tool, Shop and Garage Equipment 2,675, , % Laboratory Equipment 178, % Power Operated Equipment 1,474, , % Communication Equipment 3,684, , % Miscellaneous Equipment 19, % Intangible Plant Miscellaneous Software 4,728, , % Intangible Plant CIS/DCIS Software % Land Rights 42, % Structures & Improvements 675, % Structures & Improvements 117, % Mains-Steel 113,680, , % Mains - Other 9,437, , % Mains - Plastic 178,937, , % Mains - Valves >4 817, % Measuring & Regulating Station Equipment - General 14,423, , % City Gate Stations 5,951, , % Services - Steel 45,294, , % Services - Other 2,406, , % Services - Plastic 222,825, , % Meters 40,377, , % AMR Equipment 12,759, , % Meter Installations 41,297, , % House Regulators 4,926, , % House Regulator Installations 1,646, , % Industrial Measuring & Regulating Station Equipment 664, % Conversion Burners % Other Equipment - Distribution 461, % Page 338a

144 Name of Respondent This Re ort Is: Date of Report Year/Period of Report (1) X An Original (MO, Da, Yr) onnecticut Natural Gas Corporation (2) EA Resubmission i / End of 2015/Q4 Particulars Concerning Certain Income Deductions and Interest Charges Accounts Report the information specified below, in the order given, for the respective income deduction and interest charges accounts. (a) Miscellaneous Amortization (Account 425)-Describe the nature of items included in this account, the contra account charged, the total of amortization charges for the year, and the period of amortization. (b) Miscellaneous Income Deductions-Report the nature, payee, and amount of other income deductions for the year as required by Accounts 426.1, Donations; 426.2, Life Insurance; 4263, Penalties; 426.4, Expenditures for Certain Civic, Political and Related Activities; and 426.5, Other Deductions, of the Uniform System of Accounts. Amounts of less than $250,000 may be grouped by classes within the above accounts. (c) Interest on Debt to Associated Companies (Account 430)-For each associated company that incurred interest on debt during the year, indicate the amount and interest rate respectively for (a) advances on notes, (b) advances on open account, (c) notes payable, (d) accounts payable, and (e) other debt, and total interest Explain the nature of other debt on which interest was incurred during the year. (d) Other Interest Expense (Account 431)- Report details including the amount and interest rate for other interest charges incurred during the year. Line No. Item (a) Amount (b) 1 Other Income Deductions 2 Account Donations 88, Account Penalties 227, Account Expenditures for certain civic, political and related activities 3, Account Other Deductions 109, Customer Rebates Account 431 Other Interest Expense 664, Carrying costs 540, Revolver fees 124, Misc FERC FORM NO. 2 (12-96) Page 340

145 Name of Respondent I This Report Is: I Date of Report I Year/Period of Report I (1) An Original I (Mo, Da, Yr) (2) A Resubmission / End of 2015/Q4 Regulatory Commission Expenses (Account 928) 1 Report below details of regulatory commission expenses incurred during the current year (or in previous years, if being amortized) relafing to formal cases before a regulatory body, or cases in which such a body was a party. 2. In column (b) and (c), indicate whether the expenses were assessed by a regulatory body or were otherwise incurred by the utility. Line No Description Deferred in (Furnish name of regulatory commission Assessed by Expenses Total Account or body, the docket number, and a Regulatory of Expenses at Beginning desctiption of the case.) Commission Utility to Date of Year 1 Rate Case (a) (b) (c) (d) (e) 411, Rate Case Incremental Expenses Total 1,105,774 FERC FORM NO. 2 (12-96) Page 350

146 Name of Respondent This Re ort Is: Date of Report Year/Period of Report. (1) X An Original (Mo, Da, Yr) (2) fla Resubmission / / End of 2015/Q4 Regulatory Commission Expenses (Account 928) 3. Show in column (k) any expenses incurred in prior years that are being amortized. List in column (a) the period of amortization. 4. Identify separately all annual charge adjustments (ACA). 5. List in column (f), (g), and (h) expenses incurred during year which were charges currently to income, plant, or other accounts. 6. Minor items (less than $250,000) may be grouped. Line No Expenses Expenses Expenses Expenses Amortized Amortized Incurred Incurred Incurred Incurred During Year During Year During Year During Year During Year During Year Deferred in Charged Charged Charged Account Currently To Currently To Currently To Deferred to Contra Amount End of Year Account Account Department Account No. Amount (f) (g) (h) (i) 0) (k) (0 219, , , , , ,346 FERC FORM NO. 2 (12-96) Page 351

147 Name of Respondent This Re ort Is: Date of Report Year/Period of Report (Mo, Da, Yr) ssion End of 2015/Q4 Employee Pensions and Benefits (Account 926) 1. Report below the items contained in Account 926, Employee Pensions and Benefits. Line No. Expense (a) Amount (b) 1 Pensions 2 Pensions other defined benefit plans 3 Post-retirement benefits other than pensions (PBOP) 88,308 4 Post- employment benefit plans 5 Other (Specify) 6 Amortization of Deferred Post Retirement Costs ( 1,457,309) 7 Administration 79, Total ( 1,289,596) FERC FORM N0 2 (NEW 12-fl71 Pew

148 Manufactured Natural Name of Respondent This Re ort Is: Date of Report Year/Period of Report (Mo, Da, Yr) End of 201 5/Q4 Distribution of Salaries and Wages Report below the distribution of total salaries and wages for the year. Segregate amounts originally charged to clearing accounts to Utility Departments, Construction, Plant Removals and Other Accounts, and enter such amounts in the appropriate lines and columns provided. Salaries and wages billed to the Respondent by an affiliated company must be assigned to the particular operating function(s) relating to the expenses. In determining this segregation of salaries and wages originally charged to clearing accounts, a method of approximation giving substantially correct results may be used. When reporting detail of other accounts, enter as many rows as necessary numbered sequentially starting with , etc. Payroll Billed Allocation of Line Classification Direct Payroll by Affiliated Payroll Charged Total No. Distribution Companies for Clearing Accounts (a) 1 Electric 2 Operation 3 Production 4 Transmission S Distribution 6 Customer Accounts 7 Customer Service and Informational 8 Sales 9 Administrative and General 10 TOTAL Operation (Total of lines 3 thw 9) 11 Maintenance 12 Production 13 Transmission 14 Distribution 15 Administrative and General 16 TOTAL Maintenance (Total of lines 12 thru 15) 17 Total Operation and Maintenance 18 Production (Total of lines 3 and 12) 19 Transmission (Total of lines 4 and 13) 20 Distribution (Total of lines 5 and 14) 21 Customer Accounts (line 6) 22 Customer Service and Informational (line 7) 23 Sales (line 8) 24 Administrative and General (Total of lines 9 and 15) 25 TOTAL Operation and Maintenance (Total of lines 18 thru 24) 26 Gas 27 Operation 28 Production - Gas 29 Production - Gas(Including Exploration and Development) 30 Other Gas Supply 31 Storage, LNG Terminaling and Processing ( 22,186) 17, , Transmission 33 Distribution 10,835,421 ( 410,313) 310,395 10,735, CustomerAccounts 5,060,392 ( ) 128,620 4,448, Customer Service and Informational 36 Sales ( 73,310) ( 2,183) ( 75,493) 37 Administrative and General 7,159,355 ( 6,315,826) 25, , TOTAL Operation (Total of lines 28 thru 37) 23,641,162 ( 7,488,821) Maintenance 40 Production - Manufactured Gas 41 Production - Natural Gas(lncluding Exploration and Development) 42 Other Gas Supply 43 Storage, LNG Terminaling and Processing 363,964 10, , Transmission 45 Distribution 3,483,907 ( 1,942) 103,671 3,585,636 FERC FORM NO.2 (REVISED) Paae 354

149 7,376,023 Name of Respondent This Re ort Is: Date of Report Year/Period of Report (Mo, Da, Yr) End of 20151Q4 Distribution of Salaries and Wages (continued) Payroll Billed Allocation of Line Classification Direct Payroll by Affiliated Payroll Charged Total No. Distribution Companies for Clearing Accounts (a) (b) (c) (d) (e) 46 Administrative and General 216, , TOTAL Maintenance (Total of lines 40 thru 46) 48 Gas (Continued) 49 Total Operation and Maintenance 50 Production - Manufactured Gas (Total of lines 28 and 40) 51 Production - Natural Gas (Including ExpI. and Dev.)(lI. 29 and 41) 52 Other Gas Supply (Total of lines 30 and 42) 53 Storage, LNG Terminaling and Processing (Total of II. 31 and 43) 981,075 ( 22,186) , Transmission (Total of lines 32 and 44) 55 Distribution (Total of lines 33 and 45) 14,319,328 ( 412,255) 414,066 14,321, Customer Accounts (Total of line 34) 5,060,392 ( 740,496) 128,620 4,448, Customer Service and Informational (Total of line 35) 58 Sales (Total of line 36) ( 73,310) ( 2183) ( 75,493). 59 Administrative and General (Total of lines 37 and 46) ( 6,315,826) Total Operation and Maintenance (Total of lines 50 thru 59) 27,705,701 ( 7,490,763) 601,875 20,816, Other Utility Departments 62 Operation and Maintenance 63 TOTAL ALL Utility Dept (Total of lines 25, 60, and 62) 64 Utility Plant 65 Construction (By Utility Departments) 66 Electric Plant 67 Gas Plant 7,965,546 ( 514,546) 221,845 7,672, Other 69 TOTAL Construction (Total of lines 66 thru 68) 7,965,546 ( 514,546) 221,845 7,672, Plant Removal (By Utility Departments) 71 Electric Plant 72 Gas Plant 73 Other 74 TOTAL Plant Removal (Total of lines 71 thru 73) 75 Other Accounts (Specify) (footnote details) 4,030,122 ( 46,493) 118,608 4,102, TOTAL OtherAccounts 4,030,122 ( 46,493) 118,608 4,102, TOTALSALARIESANDWAGES 39,701,369 ( 8,051,802) 942,328 32,591,895 FERC FORM NO.2 (REVISED) Pacie 355

150 Name of Respondent This Re ort Is: Date of Report Year/Period of Report (Mo, Da, Yr) End of Q4 Charges for Outside Professional and Other Consultative Services 1 Report the information specified below for all charges made during the year included in any account (including plant accounts) for outside consultative and other professional services. These services include rate, management, construction, engineering, research, financial, valuation, legal, accounting, purchasing, advertising,labor relations, and public relations, rendered for the respondent under written or oral arrangement, for which aggregate payments were made during the year to any corporation partnership, organization of any kind, or indmdual (other than for services as an employee or for payments made for medical and related services) amounting to more than $250,000, including payments for legislative services, except those which should be reported in Account Expenditures for Certain Civic, Political and Related Activities. (a) Name of person or organization rendering services. (b) Total charges for the year. 2. Sum under a description uother all of the aforementioned services amounting to $250,000 or less. 3. Total under a description Total, the total of all of the aforementioned services. 4. Charges for outside professional and other consultative services provided by associated (affiliated) companies should be excluded from this schedule and be reported on Page 358, according to the instructions for that schedule. Description Amount Line (in dollars) No. (a) (b) 1 CHI ENGINEERING SERVICES INC 7,872,365 2 R H WHITE CONSTRUCTION CO INC 6,338,521 3 WSM CONSTRUCTION INC 4,611,060 4 BARBER UTILITIES LLC 4,314,256 5 BURNS CONSTRUCTION CO INC 2,741,687 6 HENKELS & MCCOY INC 2,399,315 7 BCI INC 2,276,812 8 LAYDON INDUSTRIES LLC 2,063,388 9 D & G CONTRACTORS INC 1,488, NEWFIELD CONSTRUCTION INC 1,481, UNDERGROUND CONSTRUCTION 1,246, ITRON INC 1,185, SARGIS ASSOCIATES INC 1,116, YANKEE FIBER CONTROL 1,058, CITY OF NEW BRITAIN. 998, NPL CONSTRUCTION CO 946, CITY OF HARTFORD 900, CAPITOL SAND & CINDER CO INC 885, PRECISION PIPELINE SOLUTIONS LLC 710, MCALLEN BUILDERS & REMODELING INC 587, AG EQUIPMENT CO 511, INDEPENDENT WELDING INC 464, ALL AMERICAN COMPANIES LLC 432, TOWN OF WEST HARTFORD 407, NEW ENGLAND FLAGGER SERVICES 394, TOWN OF MANCHESTER 308, HDR ENGINEERING INC 258, LINEAL INDUSTRIES 256, FERC FORM NO. 2 IREVISED1 Prip

151 Name of Respondent This Re ort Is: Date of Report Year/Period of Report (Mo, Da, Yr) End of 2015/04 Transactions with Associated (Affiliated) Companies 1. Report below the information called for concerning all goods or services received from or provided to associated (affiliated) companies amounting to more than $250, Sum under a description Other, all of the aforementioned goods and services amounting to $250,000 or less. 3. Total under a description Total, the total of all of the aforementioned goods and services. 4. Where amounts billed to or received from the associated (affiliated) company are based on an allocation process, explain in a footnote the basis of the allocation. Account(s) Amount Line Description of the Good or Service Name of Associated/Affiliated Company Charged or Charged or No. Credited Credited (a) (b) (c) (d) 1 Goods or Services Provided by Affiliated Company 2 Salaries, Wages and Associated Overheads UIL 8,939,706 3 Salaries, Wages and Associated Overheads The Southern Connecticut Gas Company 286,126 4 Salaries, Wages and Associated Overheads The Berkshire Gas Company Salaries, Wages and Associated Overheads URI Salaries, Wages and Associated Overheads United Illuminating 943, Goods or Services Provided for Affiliated Company 21 Salaries, Wages and Associated Overheads UIL 4,390, Salaries, Wages and Associated Overheads The Southern Connecticut Gas Company 321, Salaries, Wages and Associated Overheads The Berkshire Gas Company 40, Salaries, Wages and Associated Overheads URI 261, Salaries, Wages and Associated Overheads United Illuminating 3,017, FERC FORM NO. 2 (NEW 12-07) Paae 358

152 Name of Respondent This Re ort Is: Date of Report Year/Period of Report (Mo, Da, Yr) End of 201 5/Q4 Compressor Stations 1 Report below details concerning compressor stations. Use the following subheadings: field compressor stations, products extraction compressor stations, underground storage compressor stations, transmission compressor stations, distribution compressor stations, and other compressor stations. 2. For column (a), indicate the production areas where such stations are used. Group relatively small field compressor stations by production areas. Show the number of stations grouped. Identify any station held under a title other than full ownership. State in a footnote the name of owner or co-owner, the nature of respondents title, and percent of ownership if jointly owned. Number of Certificated Line Name of Station and Location Units at Horsepower for Plant Cost No. Station Each Station 1 None (a) (b) (c) (d) FERC FORM NO. 2 (REV 12-07) Page 508

153 Name of Respondent This Re ort Is: Date of Report Year/Period of Report (Mo, Da, Yr) End of 201 5/Q4 Compressor Stations Designate any station that was not operated during the past year. State in a footnote whether the book cost of such station has been retired in the books of account or what disposition of the station and its book cost are contemplated. Designate any compressor units in transmission compressor stations installed and put into operation during the year and show in a footnote each unlfs size and the date the unit was placed in operation. 3. For column (e), include the type of fuel or power, if other than natural gas. If two types of fuel or power are used, show separate entries for natural gas and the other fuel or power. Expenses (except Expenses (except Expenses (except Operational Data Operational Data depreciation and depreciation and depreciation and Gas for Electricity for Number of Date of Line taxes) taxes) taxes) Compressor Compressor Total Compressor Compressors Station No. Fuel in Dth Station in Hours of Operation Operated at Time Peak Fuel Power Other kwh During Year of Station Peak (e) (f) (g) (h) (i) ) (k) (I) FERC FORM NO. 2 (REV 12-07) Page 509

154 Name of Respondent This Re ort Is: Date of Report Year/Period of Report (Mo, Da, Yr) End of 2015/04 Gas Storage Projects 1 Report injections and withdrawals of gas for all storage projects used by respondent, Gas Gas Total Line Item Belonging to Belonging to No. Respondent Others (Dth) (Dth) (a) (b) STORAGE OPERATIONS (in Dth) 1 Gas Delivered to Storage 2 January 7,670 3 February March 5 April 894, ,577 6 May 2,171,651 2,171,651 7 June 2,723,812 2,723,812 8 July 2,811,081 2,811,081 9 August 2,728,685 2,728, September 2,668,861 2,668, October 2,133,911 2,133, November 918, , December 308, , TOTAL (Total of lines 2 thw 13) 17,367,444 17,367, Gas Withdrawn from Storage 16 January 2,521,501 2,521, Febwary 2,524,119 2,524, March 1,854,169 1,854, April 191, , May 895, , June 1,277,888 1,277, July 1,447,848 1,447, August 1,365,727 1,365, September 1,365,979 1,365, October 1,320,435 1,320, November 907, , December 856, , TOTAL (Total of lines 16 thru 27) 16,528,194 16,528,194 FERC FORM NO.2(12-96) Paae 512

155 Name of Respondent This Re ort Is: Date of Report Year/Period of Report (Mo, Da, Yr) End of 2015/Q4 Gas Storage Projects 1. On line 4, enter the total storage capacity certificated by FERC. 2. Report total amount in Dth or other unit, as applicable on lines 2, 3,4, 7. If quantity is converted from Mcf to Dth, provide conversion factor in a footnote.. Item Line No. Total Amount (a) (b) STORAGE OPERATIONS 1 Top or Working Gas End of Year 1,106,482 2 Cushion Gas (Including Native Gas) 66,348 3 Total Gas in Reservoir (Total of line 1 and 2) 1,172,830 4 Certificated Storage Capacity 1,241,823 5 Number of Injection - Withdrawal Wells 6 Number of Observation Wells 7 Maximum Days Withdrawal from Storage 38,461 8 Date of Maximum Days Withdrawal 02/14/ LNG Terminal Companies (in Dth) 10 Numberof Tanks 1 11 Capacity of Tanks 1,241, LNG Volume 13 Received at Ship Rail 14 TransferredtoTanks 512, Withdrawn from Tanks 307, Boil Off Vaporization Loss 225,303 FERC FORM NO. 2 (12-96) Paa

156 Name of Respondent This Re ort Is: Date of Report Year/Period of Report (Mo, Da, Yr) End of 2015/Q4 Transmission Lines 1. Report below, by state, the total miles of transmission lines of each transmission system operated by respondent at end of year. 2. Report separately any lines held under a title other than full ownership. Designate such lines with an asterisk, in column (b) and in a footnote state the name of owner, or co-owner, nature of respondenfs title, and percent ownership if jointly owned. 3. Report separately any line that was not operated during the past year. Enter in a footnote the details and state whether the book cost of such a line, or any portion thereof, has been retired in the books of account, or what disposition of the line and its book costs are contemplated. 4. Report the number of miles of pipe to one decimal point Designation (Identification) * Total Miles Line of Line or Group of Lines of Pipe No. (a) (b) (c) 1 None FERC FORM NO. 2 (12-96) Page 514

157 Name of Respondent This Re oft Is: Date of Report Year/Period of Report (Mo, Da, Connecticut Yr) Natural Gas Corporation End of 20151Q4 ssion Transmission System Peak Deliveries 1. Report below the total transmission system deliveries of gas (in Dth), excluding deliveries to storage, for the period of system peak deliveries indicated below, during the 12 months embracing the heating season overiapping the years end for which this report is submitted. The seasons peak normally will be reached before the due date of this report, April 30, which permits inclusion of the peak information required on this page. Add rows as necessary to report all data. Number additional rows 6.01, 6.02, etc. Dth of Gas Dth of Gas Total Line Description Delivered to Delivered to No. Interstate Pipelines Others (b) (c) SECTION A: SINGLE DAY PEAK DELIVERIES 1 Date: 2 Volumes of Gas Transported 3 No-Notice Transportation 4 Other Firm Transportation 271, Interruptible Transportation 6 Other (Describe) (footnote details) 7 TOTAL 271, ,405 8 Volumes of gas Withdrawn form Storage under Storage Contract 9 No-Notice Storage 10 Other Firm Storage 105, , Interruptible Storage 12 Other (Describe) (footnote details) 13 TOTAL 105, Other Operational Activities 15 Gas Withdrawn from Storage for System Operations 16 Reduction in Line Pack 17 Other (Describe) (footnote details) 39,615 39, TOTAL 39,615 39, SECTION B: CONSECUTIVE THREE-DAY PEAK DELIVERIES 20 Dates: 21 Volumes of Gas Transported 22 No-Notice Transportation 23 OtherFirmTransportation 771, , Interruptible Transportation 25 Other (Describe) (footnote details) 26 TOTAL 771, , Volumes of Gas Withdrawn from Storage under Storage Contract I 28 No-Notice Storage 29 Other Firm Storage 280, , Interruptible Storage 31 Other (Describe) (footnote details) 32 TOTAL 280, , Other Operational Activities 34 Gas Withdrawn from Storage for System Operations 35 Reduction in Line Pack 36 Other (Describe) (footnote details) 109, , TOTAL 109, ,709 FERC FORM NO. 2 (12-96) Pane 518

158 Name of Respondent This Re ort Is: Date of Report Year/Period of Report (Mo, Da, Yr) End of 2015/Q4 ArOir Auxiliary Peaking Facilities 1. Report below auxiliary facilities of the respondent for meeting seasonal peak demands on the respondents system, such as underground storage projects, liquefied petroleum gas installations, gas liquefaction plants, oil gas sets, etc. 2. For column (c), for underground storage projects, report the delivery capacity on February 1 of the heating season overlapping the year-end for which this report is submitted. For other facilities, report the rated maximum daily delivery capacities. 3. For column (d), include or exclude (as appropriate) the cost of any plant used jointly with another facility on the basis of predominant use, unless the auxiliary peaking facility is a separate plant as contemplated by general instruction 12 of the Uniform System of Accounts. Maximum Daily Cost of Was Facility Location of Type of Delivery Capacity Facility Operated on Day Line Facility Facility of Facility (in dollars) of Highest No. Dth Transmission Peak (a) (b) (c) (d) Delivery? 2 Rocky Hill LNG 90,000 17,666,040 Yes FERC FORM NO. 2 (12-96) Paae 519

159 Name of Respondent This Re ort Is: Date of Report Year/Period of Report Original (Mo, Da, Yr) End of 2015/Q4 An Gas Account - Natural Gas 1. The purpose of this schedule is to account for the quantity of natural gas received and delivered by the respondent. 2. Natural gas means either natural gas unmixed or any mixture of natural and manufactured gas. 3. Enter in column (c) the year to date Dth as reported in the schedules indicated for the items of receipts and deliveries. 4. Enter in column (d) the respective quarter s Dth as reported in the schedules indicated for the items of receipts arid deliveries. 5. Indicate in a footnote the quantities of bundled sales and transportation gas and specify the line on which such quantities are listed. 6. If the respondent operates two or more systems which are not interconnected, submit separate pages for this purpose. 7. Indicate by footnote the quantities of gas not subject to Commission regulation which did not incur FERC regulatory costs by showing (1) the local distribution volumes another jurisdictional pipeline delivered to the local distribution company portion of the reporting pipeline (2) the quantities that the reporting pipeline transported or sold through its local distribution facilities or intrastate facilities and which the reporting pipeline received through gathering facilities or intrastate facilities, but not through any of the interstate portion of the reporting pipeline, and (3) the gathering line quantities that were not destined for interstate market or that were not transported through any interstate portion of the reporting pipeline. 8. Indicate in a footnote the specific gas purchase expense account(s) and related to which the aggregate volumes reported on line No. 3 relate. 9. Indicate in a footnote (1) the system supply quantities of gas that are stored by the reporting pipeline, during the reporting year and also reported as sales,transportation and compression volumes by the reporting pipeline during the same reporting year, (2) the system supply quantities of gas that are stored by the reporting pipeline during the reporting year which the reporting pipeline intends to sell or transport in a future reporting year, and (3) contract storage quantities. 10. Also indicate the volumes of pipeline production field sales that are included in both the company s total sales figure and the company s total transportation figure. Add additional information as necessary to the footnotes. Ref. Page No. of Total Amount Current Three Line Item (FERC Form Nos. of Dth Months No. 212-A) Year to Date Ended Amount of Dth (a) (b) (c) Quarterly Only 01 Name of System: 2 GAS RECEIVED 3 Gas Purchases (Accounts ) 33,747,963 8,157,927 4 Gas of Others Received for Gathenng (Account 489.1) Gas of Others Received for Transmission (Account 489.2) 305 Gas of Others Received for Distribution (Account 489.3) 301 5,490, ,766 7 Gas of Others Received for Contract Storage (Account 489.4) Gas of Others Received for Production/Extraction/Processing (Account 490 and 491) 9 Exchanged Gas Received from Others (Account 806) Gas Received as Imbalances (Account 806) ,343 63, Receipts of Respondenrs Gas Transported by Others (Account 858) Other Gas Withdrawn from Storage (Explain) 8,490, , Gas Received from Shippers as Compressor Station Fuel 14 Gas Received from Shippers as Lost and Unaccounted for 15 Other Receipts (Specify) (footnote details) 16 Total Receipts (Total of lines 3 thw 15) 48,239,689 9,619, GAS DELIVERED 18 Gas Sales (Accounts ) 32,953,447 3,618, Deliveries of Gas Gathered for Others (Account 489.1) Deliveries of Gas Transported for Others (Account 489.2) Deliveries of Gas Distributed for Others (Account 489.3) 301 5,490, , Deliveries of Contract Storage Gas (Account 489.4) Gas of Others Delivered for Production/Extraction/Processing (Account 490 and 491) 24 Exchange Gas Delivered to Others (Account 806) Gas Delivered as Imbalances (Account 806) ,558 42, Deliveries of Gas to Others for Transportation (Account 858) Other Gas Delivered to Storage (Explain) 9,301,881 1,252, Gas Used for Compressor Station Fuel 509 1,144, , Other Deliveries and Gas Used for Other Operations 61,452 11, Total Deliveries (Total of lines 18 thru 29) 49,081,006 5,592, GAS LOSSES AND GAS UNACCOUNTED FOR 32 Gas Losses and Gas Unaccounted For 33 TOTALS ( 507,450 ( 1,166,913) 34 Total Deliveries, Gas Losses & Unaccounted For (Total of lines 30 and 32) 48,573,556 4,425,783 6_ FERC FORM NO. 2 (REV 01-11) Page 520

160 Name of Respondent This Re ort Is: Date of Report Year/Period of Report (1) X An Original (Mo, Da, Yr) (2) Shipper Supplied Gas for the Current Quarter fla Resubmission/ / End of 201 5/Q4 1. Report monthly (1) shipper supplied gas for the current quarter and gas consumed in pipeline operations, (2) the disposition of any excess, the accounting recognition given to such disposition and the specific account(s) charged or credited, and (3) the source of gas used to meet any deficiency, the accounting recognition given to the gas used to meet the deficiency, including the accounting basis of the gas and the specific account(s) charged or credited. 2. On lines 7, 14,22 and 30 report only the dekathemnis of gas provided by shippers under tariff terms and conditions for gathering production/extraction/processing, transmission, distribution arid storage service and the use of that gas for compressor fuel, other operational purposes and lost and unaccounted for. The dekatherms must be broken out by functional categories on Lines 2-6, 9-13, and The dekatherms must be reported in column (d) unless the company has discounted or negotiated rates which should be reported in columns (b) and (c). 3. On lines 7, 14, 22 and 30 report only the dollar amounts of gas provided by shippers under tariff terms and conditions for gathering, production) extraction/processing, transmission, distribution and storage service and the use of that gas for compressor fuel, other operational purposes and lost and unaccounted for. The dollar amounts must be broken out by functional categories on Lines 2-6, 9-13, and The dollar amounts must be reported in column (h) unless the company has discounted or negotiated rates which should be reported in columns (f) and (g). The accounting should disclose the account(s) debited and credited in columns (m) and (n). 4. Indicate in a footnote the basis for valuing the gas reported in Columns (I), (g) and (h). 5. Report in columns 5), (k) and (I) the amount of fuel waived, discounted or reduced as part of a negotiated rate agreement 6. On lines report the delcatherms and dollar velue of the excess or deficiency in shipper supplied gas broken out by functionel category and whether recourse rate, discounted or negotiated rats. 7. On lines 39 through 51 report the dekatherms, the dollar amount and the account(s) credited in Column (o) for the dispositions of gas listed in column (a). 8. On lines 53 through 65 report the dekathemis, the dollar amount and the account(s) debited in Column (n) for the sources of gas reported in column (a). 9. On lines 66 and 67, report forwardhaul and backhaul volume in Oths of Throughput. 10. Where appropriate, provide a full explanation of the location process used in reported numbers in a footnote. Line Month 1 Month 1 Month 1 Month 1 No. Item Discounted rate Negotiated Rate Recourse Rate Total (a) Dth (b) 0th (C) 0th (d) 0th (e) 1 SHIPPER SUPPLIED GAS (LINES 13 AND 14, PAGE 520) 2 Gathering 3 Production/Extraction/Processing 4 Transmission 5 Distribution 6 Storage 7 Total Shipper Supplied Gas 8 LESS GAS USED FOR COMPRESSOR STATION FUEL (LINE 28, PAGE 520) 9 Gathering 10 ProductionlExtractionlProcessing 11 ransmission 12 Distribution 73,664 73, Storage 14 Total gas used in compressors 73,664 73, LESS GAS USED FOR OTHER DELIVERIES AND GAS USED FOR OTHER OPERATIONS (LINE 29, PAGE 520) (Footnote) 16 Gathering 17 Production/Extraction/Processing 18 Transmission 19 Distribution 2,488 2, Storage 21 Other Deliveries (specify) (footnote details) 22 Total Gas Used For Other Deliveries And Gas Used For Other Operations 2,488 2, LESS GAS LOST AND UNACCOUNTED FOR (LINE 32, PAGE 520) 24 Gathering 25 Production/Extraction/Processing 26 ransmission 27 Distribution ( 613,584) ( 613,584) 28 Storage 29 Other Losses (specify) (footnote details) 30 Total Gas Lost And Unaccounted For ( 613,584) ( 613,584) FERC FORM NO. 2 I 3Q (REVISED 02-11) Page 521a-M1

161 Name of Respondent This Re ort Is: Date of Report Year/Period of Report (1) X An Original (Mo Da Connecticut Natural Yr) Gas Corporation (2) EA Resubmission / / End of 201 5/Q4 Shipper Supplied Gas for the Current Quarter (continued) Line Month 1 Month 1 Month 1 Month 1 No. Item Discounted rate Negotiated Rate Recourse Rate Total (a) Dth (b) Dth (c) Dth (d) Dth (e) NET EXCESS OR (DEFICIENCY) 31 Other Losses 32 Gathering 33 Production/Extraction 34 Transmission 35 Distribution 36 Storage 37 Total Net Excess Or (Deficiency) 38 DISPOSITION OF EXCESS GAS: 39 Gas sold to others 40 Gas used to meet imbalances 41 Gas added to system gas 42 Gas returned to shippers 43 Other (list) Total Disposition Of Excess Gas 52 GAS ACQUIRED TO MEET DEFICIENCY: 53 System gas 54 Purchased gas 55 Other (list) Total Gas Acquired To Meet Deficiency SEPARATION OF FORWARDHAUL AND BACKHAUL THROUGHPUT 66 Forwardhaul Volume in Dths for the Quarter 67 Backhaul Volume in Dths for the Quarter 68 TOTAL (Lines 66 and 67) FERC FORM NO. 2 I 3Q (REVISED 02-11) Page 521b-M1

162 I14 Name of Respondent I This Report Is: I Date of Report Year/Period of Report (1) Original (Mo, Da, Yr) I (2) Resubmission End of 201 5/Q4 I Shipper Supplied Gas for the Current Quarter (continued) jjan A Amount Collected (Dollars) Volume (in Dth) Not cted Month 1 Month 1 Line Month 1 Month I Month 1 Month 1 Month I Month 1 Month 1 Month 1 Account(s) Account(s) No. Discounted Rate Negotiated Rate Recourse rate Total Waived Discounted Negotiated Total Debited (n) Credited (0) Amount (f) Amount (g) Amount (h) Amount (I) Dth (j) Dth (k) Dth (I) Dth (m) FERC FORM NO.2 I 3Q (REVISED O2-11 Paae 521c-M1

163 Name of Respondent I This Report Is: Date of Report Year/Period of Report (1) Original I (Mo, Da, Yr) (2) Resubmission ( / / End of 201 5/Q4 An A Shipper Supplied Gas for the Current Quarter (continued) Amount Collected (Dollars) Volume (in Dth) Not Collected Month 1 Month 1 Line Month I Month 1 Month 1 Month 1 Month 1 Month 1 Month 1 Month 1 Account(s) Account(s) No. Discounted Rate Negotiated Rate Recourse rate Total Waived Discounted Negotiated Total Debited (n) Credited (0) Amount (t) Amount (g) Amount (h) Amount (i) Dth (i) Dth (k) Dth (I) Dth (m) FERC FORM NO. 2 I 3Q (REVISED 02-11) Paae 521d-M1

164 Name of Respondent This Re ort Is: Date of Report Year/Period of Report (1) X An Original (Mo, Da, Yr) (2) Resubmission / j End of 201 5/Q4 fla Shipper Supplied Gas for the Current Quarter 1. Report monthly (1) shipper supplied gas for the current quarter and gas consumed in pipeline operations, (2) the disposition of any excess, the accounting recognition given to such disposition and the specific account(s) charged or credited, and (3) the source of gas used to meet any deficiency, the accounting recognihon given to the gas used to meet the deficiency, including the accounting basis of the gas and the specific account(s) charged or credited, 2. On lines 7, 14,22 and 30 report only the dekatherms of gas provided by shippers under tariff terms and conditions for gathering, pnoduction/extractlonlprocessing, transmission, distribution and storage service and the use of that gas for compressor fuel, other operational purposes and lost and unaccounted for. The dekatherms must be broken out by functional categories on Lines 2-6, 9-13, and The dekatherms must be reported in column (d) unless the company has discounted or negotiated rates which should be reported in columns (b) and (c). 3. On lines 7, 14, 22 and 30 report only the dollar amounts of gas provided by shippers under tariff terms and condihons for gathering, production! extraction/processing, transmission, distribution and storage service and the use of that gas for compressor fuel, other operational purposes and lost and unaccounted for. The dollar amounts must be broken out by functional categories on Lines 2-6, 9-13, and The dollar amounts must be reported in column (h) unless the company has discounted or negotiated rates which should be reported in columns (t and (g). The accounting should disclose the account(s) debited and credited in columns (m) and (n). 4. Indicate in a footnote the basis for valuing the gas reported in Columns (, (g) and (h). 5. Report in columns ), (k) and (I) the amount of fuel wved, discounted or reduced as part of a negotiated rate agreement. 6. On lines report the dekatherms and dollar vakie of the excess or deficiency in shipper supplied gas broken out by functions category and whether recourse rate, discounted or negotiated rate. 7. On lines 39 through 51 report the dekatherms, the dollar amount and the account(s) credited in Column (o) for the dispositions of gas listed in column (a). 8. On lines 53 through 65 report the dekatherms, the dollar a nount and the account(s) debited in Column (n) for the sources of gas reported in column (a). 9. On lines 66 and 67, report forwardhaul and backhaul volume in Dths of throughput 10. Where appropriate, provide a full explanation of the allocation process used in reported numbers in a footnote. Line Month 2 Month 2 Month 2 Month 2 No. Item Discounted rate Negotiated Rate Recourse Rate Total (a) Dth (p) Dth (q) Dth (r) DTh (s) 1 SHIPPER SUPPLIED GAS (LINES 13 AND 14, PAGE 520) 2 Gathering 3 Production/ExbactioniProcessing 4 Transmission 5 Distribution 6 Storage 7 Total Shipper Supplied Gas 8 LESS GAS USED FOR COMPRESSOR STATION FUEL (LINE 28, PAGE 520) 9 Gathering 10 Production/ExtractionlProcessing 11 ransmission 12 Distribution 65,742 65, Storage 14 Total gas used in compressors 65,742 65, LESS GAS USED FOR OTHER DELIVERIES AND GAS USED FOR OTHER OPERATIONS (LINE 29, PAGE 520) (Footnote) 16 Gathering 17 Production/Extraction/Processing 18 ransmission 19 Distribution 2,429 2, Storage 21 Other Deliveries (specify) (footnote details) 22 Total Gas Used For Other Deliveries And Gas Used For Other Operat)ons 2,429 2, LESS GAS LOST AND UNACCOUNTED FOR (LINE 32, PAGE 520) 24 Gathering 25 Production/Extraction/Processing 26 Transmission 27 Distribution ( 124,952) ( 124,952) 28 Storage 29 Other Losses (specify) (footnote details) 30 Total Gas Lost And Unaccounted For ( 124,952) ( 124,952) FERC FORM NO. 2 I 3Q (REVISED 02-11) Page 521a-M2

165 Name of Respondent This Report Is: Date of Report Year/Period of Report (Mo, Da, Yr) End of 201 5/Q4 Shipper Supplied Gas for the Current Quarter (continued) Line Month 2 Month 2 Month 2 Month 2 No. Item Discounted rate Negofated Rate Recourse Rate Total (a) Dth (p) Dth (q) Dth (r) Dth (s) NET EXCESS OR (DEFICIENCY) 31 Other Losses 32 Gathering 33 Production/Extraction 34 Transmission 35 Distribution 36 Storage 37 Total Net Excess Or (Deficiency) 38 DISPOSITION OF EXCESS GAS: 39 Gas sold to others 40 Gas used to meet imbalances 41 Gas added to system gas 42 Gas returned to shippers 43 Other (list) Total Disposition Of Excess Gas 52 GAS ACQUIRED TO MEET DEFICIENCY: 53 System gas 54 Purchased gas 55 Other (list) Total Gas Acquired To Meet Deficiency FERC FORM NO (REVISED 02-11) Page 521b-M2

166 Name of Respondent I This Report Is: I Date of Report Year/Period of Report (1) Original (Mo, Da, Yr) I (2) An Shipper Supplied Gas for the Current Quarter (continued) A Resubmission/ / End of 20151Q4 Amount Collected (Dollars) Volume (in Dth) Not Collected Month 2 Month 2 Line Month 2 Month 2 Month 2 Month 2 Month 2 Month 2 Month 2 Month 2 Account(s) Account(s) No. Discounted Rate Negotiated Rate Recourse rate Total Waived Discounted Negotiated Total Debited (bb) Credited (cc) Amount (t) Amount (u) Amount (v) Amount (w) Dth (x) Dth (y) Dth (z) Dth (aa) I FERC FORM NO. 2 I 30 (REVISED O2-11 Pcie c2lrt-m2

167 Name of Respondent I This Report Is: Date of Report I Year/Period of Report (1) Original I (Mo, Da, Yr) (2) Resubmission / / End of 20151Q4 An A Shipper Supplied Gas for the Current Quarter (continued) Amount Collected (Dollars) Volume (in Dth) Not Collected Month 2 Month 2 Line Month 2 Month 2 Month 2 Month 2 Month 2 Month 2 Month 2 Month 2 Account(s) Account(s) No. Discounted Rate Negotiated Rate Recourse rate Total Waived Discounted Negotiated Total Debited (bb) Credited (cc) Amount (t) Amount (u) Amount (v) Amount (w) Dth (x) Dth (y) Dth (z) Dth (aa) FERC FORM NO. 2 I 30 IREVISFD Picip c2lei-m2

168 Name of Respondent This Report Is: Date of Report Year/Period of Report (Mo, Da, Yr) (2) End of 201 5/Q4 Shipper Supplied Gas for the Current Quarter 1. Report monthly (1) shipper supplied gas for the current quarter and gas consumed in pipeline operations, (2) the disposition of any excess, the accounting recognition given to such disposition and the specific account(s) charged or credited, and (3) the source of gas used to meet any deficiency, the accounting recognition given to the gas used to meet the deficiency, including the accounting basis of the gas and the specific account(s) charged or credited. 2. On lines 7, 14, 22 and 30 report only the dekatherms of gas provided by shippers under tariff terms and conditions for gathering production? extraction/processing, transmission, distribution and storage service and the use of that gas for compressor fuel, other operational purposes and lost and unaccounted for. The dekatherms must be broken out by functional categories on Lines 2-6, 9-13, and The dekatherms must be reported in column (d) unless the company has discounted or negotiated rates which should be reported in columns (b) and (c). 3. On lines 7, 14, 22 and 30 report only the dollar amounts of gas provided by shippers under tariff terms and conditions for gathering, production? extraction/processing, transmission, distdbution and storage service and the use of that gas for compressor fuel, other operational purposes and lost and unaccounted for. The dollar amounts must be broken out by functional categories on Lines 2-6, 9-13, and The dollar amounts must be reported in column (h) unless the company has discounted or negotiated rates which should be reported in columns (f) and (g). The accounting should disclose the account(s) debited and credited in columns (m) and (n). 4. Indicate in a footnote the basis fo valuing the gas reported in Columns (f), )g) and (h). 5. Report in columns ), (k) and (I) the amount of fuel waved, discounted or reduced us part of a negotiated rate agreement 6. On lines report the dekatherms and dollar vatue of the excess or deficiency in shipper supplied gas broken out by functionat category and whether recourse rate, discounted or negotiated rate. 7. On lines 39 through 51 report the dekatherms, the dollar amount and the account(s) credited in Column (o) for the dispositions of gas listed in column (a). 8. On lines 53 through 65 report the dekatherms, the dollar amount and the account(s) debited in Column (n) for the sources of gas reported in column (a). 9. On lines 66 and 67, reportforwardhaul and backhaul volume in Dths of throughput, 10. Where approphate, provide a full explanation of the atlocation process used in reported numbers in a footnote. Line Month 3 Month 3 Month 3 Month 3 No. Item Discounted rate Negotiated Rate Recourse Rate Total (a) Dli, (dd) Dth (ee) Dth (if) Dth (gg) 1 SHIPPER SUPPLIED GAS (LINES 13 AND 14, PAGE 520) 2 Gathering 3 Production/Extraction/Processing 4 rransmisson 5 Distribution 6 Storage 7 Total Shipper Supplied Gas 8 LESS GAS USED FOR COMPRESSOR STATION FUEL (LINE 28, PAGE 520) 9 Gathering 10 Production/Extraction/Processing 11 Transmission 12 Distribution 85,563 85, Storage 14 Total gas used in compressors 85,563 85, LESS GAS USED FOR OTHER DELIVERIES AND GAS USED FOR OTHER OPERATIONS (LINE 29, PAGE 520) (Footnote) 16 Gathering 17 Production/Extraction/Processing 18 Transmission 19 Distribution 5,859 5, Storage 21 Other Deliveries (specify) (footnote details) 22 Total Gas Used For Other Deliveries And Gas Used For Other Operations 5,859 5, LESS GAS LOST AND UNACCOUNTED FOR (LINE 32, PAGE 520) 24 Gathering 25 Production/Extraction/Processing 26 Transmission 27 Distribution ( 428,377) ( 428,377) 28 Storage 29 Other Losses (specify) (footnote details) 30 rotal Gas Lost And Unaccounted For ( 428,377) ( 428,377) FERC FORM NO. 2 I 3Q (REVISED 02-fl) Page 521 a-m3

169 Name of Respondent This Re ort Is: Date of Report Year/Period of Report (Mo, Da, Yr) End of 201 5/Q4 Shipper Supplied Gas for the Current Quarter (continued) Line Month 3 Month 3 Month 3 Month 3 No. Item Discounted rate Negotiated Rate Recourse Rate Total (a) Dth (dd) Dth (ee) Dth (if) Dth (gg) NET EXCESS OR (DEFICIENCY) 31 Other Losses 32 Gathering 33 Production/Extraction 34 Transmission 35 Distribution 36 Storage 37 Total Net Excess Or (Deficiency) 38 DISPOSITION OF EXCESS GAS: 39 Gas sold to others 40 Gas used to meet imbalances 41 Gas added to system gas 42 Gas returned to shippers 43 Other (list) Total Disposition Of Excess Gas 52 GAS ACQUIRED TO MEET DEFICIENCY: 53 System gas 54 Purchased gas 55 Other (list) Total Gas Acquired To Meet Deficiency FFP( FARM NA 9 I A IPFVlFfl fl9..ll lkiji1

170 Name of Respondent I This Report Is: I Date of Report I Year/Period of Report I (1) An Original I (MO, Da, Yr) I Shipper Supplied Gas for the Current Quarter (continued) (2) IA Resubmission / / End of 20151Q4 Amount Collected (Dollars) Volume (in Dth) Not Collected Month 3 Month 3 Line Month 3 Month 3 Month 3 Month 3 Month 3 Month 3 Month 3 Month 3 Account(s) Account(s) No. Discounted Rate Negotiated Rate Recourse rate Total Waived Discounted Negoated Total Debited (pp) Credited (qq) Amount (hh) Amount (ii) Amount (jj) Amount (kk) Dth (II) Dth (mm) Dth (nn) 0th (oo) FFR( FORM IbJO I fl IRFVIqFfl A2..lll

171 Name of Respondent I This Report Is: Date of Report I Year/Period of Report (1) Original I (Mo, Da, Yr) (2) EA Resubmission / / End of 201 5/Q4 An Shipper Supplied Gas for the Current Quarter (continued) Amount Collected (Dollars) Volume (in Dth) Not Collected Month 3 Month 3 Line Month 3 Month 3 Month 3 Month 3 Month 3 Month 3 Month 3 Month 3 Account(s) Account(s) No. Discounted Rate Negotiated Rate Recourse rate Total Waived Discounted Negotiated Total Debked (pp) Credited (qq) Amount (hh) Amount (ii) Amount (jj) Amount (kk) Dth (II) Dth (mm) Dth (nfl) Dth (oo) FERC FORM NO. 2 I 30 (REVISED Peie S21d-M3

172 Name of Respondent (2) This is: of Report Year/Period of Report (1) X An Original (Mo, Da, Yr) A Resubmission Report System Maps Date / / 2015/04 1. Furnish five copies of a system map (one with each filed copy of this report) of the facilities operated by the respondent for the production, gathering, transportation, and sale of natural gas. New maps need not be furnished if no important change has occurred in the facilities operated by the respondent since the date of the maps furnished with a previous year s annual report. If, however, maps are not furnished for this reason, reference should be made in the space below to the year s annual report with which the maps were furnished. 2. Indicate the following information on the maps: (a) Transmission lines. (b) Incremental facilities. (c) Location of gathering areas. (d) Location of zones and rate areas. (e) Location of storage fields. (f) Location of natural gas fields. (g) Location of compressor stations. (h) Normal direction of gas flow (indicated by arrows). (i) Size of pipe. (j) Location of products extraction plants, stabilization plants, purification plants, recycling areas, etc. (k) Principal communities receiving service through the respondent s pipeline. 3. In addition, show on each map: graphic scale of the map; date of the facts the map purports to show; a legend giving all symbols and abbreviations used; designations of facilities leased to or from another company, giving name of such other company. 4. Maps not larger than 24 inches square are desired. If necessary, however, submit larger maps to show essential information. Fold the maps to a size not larger then this report. Bind the maps to the report. I FERC FORM NO. 2 (REV ) 522.1

173 * Denotes no gas distribution system established in this part of franchise area. WE LONG ISLAND SOUND Connecticut Natural Gas Company t-ia 1,, = 10 miles Franchise Area Map Date: March 2016 Cp 0 GATE STATION A LI LNG FRANCHISE AREA TGP PIPELINE IGT PIPELINE AGT PIPELINE

174 Name of Respondent This Report Is: Date of Report Year of Report /x/ An Original (Mo, Day, Yr) I IA Resubmission March 11, 2016 December31, 2015 SERVICES 1. Report below the information specified. See instructions 5 and 6, Schedule 691, for definitions of services. 2. Extensions of stub services to connect to customers premises are to be treated as additions to active services and deductions from inactive services for future use. Active Inactive Line Item Services Services Total No. (a) (b) (C) (d) 1 Total first of year * 133, ,035 2 Laid during year 3,501 3, TOTAL 136, ,536 5 Retired during year TOTAL END OF YEAR 135, , Report below the information specified. METERS Line Item Total No. (a) (b) 28 Number at beginning of year See Note (1) 193, Acquired during year 5, Total 199, Retired during year 2, Numberatendofyear 196, In stock 10, Locked meters on customers premises 13, Regular meters in customers use 166, Prepayments meters in customers use 0 37 In company s use Total end of year (as above) 190,280 FERC FORM NO Page 642

175 Name of Respondent This Report Is: Date of Report Year of Report /x/ An Original (Mo, Day, Yr) / IA Resubmission March 11, 2016 December31, Report below the names of towns in which respondent supplies Gas with number of customers meters in each town. Number of Customers Line Name of Town Meters No. (a) (b) I Andover 2 2 Avon 3,737 3 Berlin/East Berlin 5,985 4 Bloomfield 4,772 5 Burlington 22 6 Canton 1,203 7 CosCob 2,197 8 East Granby 3 9 East Hampton East Hartford 12, Farmington 3, Glastonbury/S. Galstonbury/E. Glastonbury 7, Granby Greenwich 12, Hartford 34, Hebron Kensington Manchester 15, Mansfield 1, New Britain 22, Newington 8, Old Greenwich 2, Planiville 3 24 Portland Riverside 2, Rocky Hill 5, Simsbury 2, South Windsor Stamford Unionville Vernon West Hartford 17, West Simsbury Wethersfield 8, Windsor 3, In Stock 10,164 TOTAL 190,

176 important Other Other Other Index Accrued and Prepaid Taxes. 262a-263b Accumulated Comprehensive Income and Hedging Activities, Statements of a Accumulated Provision for Depreciation Gas Utility Plant 219 Utility Plant (Summary) Associated Companies Advances from Advances to Control over Respondent 102 Corporations Controlled by Respondent 103 Investment in Service Contract Charges 357 Attestation Balance Sheet, Comparative Bonds Capital Stock Discount 254 Expense 254 Premiums 252 Reacquired 251 Subscribed 252 Cash Flows, statement of l20-120a Changes during the year 108 Compressor Stations Construction Overhead Procedures, General Description of a Work in Progress Utility Departments Contracts, Service Charges 357 Control Corporations Controlled by Respondent 103 Over Respondent 102 Security Holders and Voting Power a Current and Accrued Liabilities, Miscellaneous 268 Deferred Credits, Other 269 Debits, Miscellaneous 233 Income Taxes, Accumulated Income Taxes, Accumulated Property Income Taxes Regulatory Expenses Defmitions, this report form iv Depletion Amortization and Depreciation of Gas Plant And Amortization of Producing Natural Gas Land and Land Rights Depreciation Gas Plant Gas Plant in Service 219 Discount on Capital Stock 254 Dividend Appropriations Earning, Retained Exchange and Imbalance Transactions 328 Expenses, Gas Operation and Maintenance Extraordinary Property Losses 230b Filing Requirements, this report form i-ui 1

177 Gas Gas details Gas Gas Gas Account Gas Index Natural.520 Exchanged, Natural 328 Received 328 Stored Underground 220 Used Utility Operations, Credit 331 Plant in Service Gathering Revenues General Description of Construction Overhead Procedures a General Information 101 Income Deductions , 340 Statement of, for year Installments Received on Capital Stock 252 Interest On Debt to Associated Companies 340 On Long-term from Investment, advances, etc Instructions for Filing FERC Form No. 2 Investment In Associated Companies Other Subsidiary Companies Securities Disposed of During Year Temporary Cash Law, Excerpts Applicable to this Report Form iv Legal Proceedings During the Year 108 Long-Term Debt Assumed During Year 255 Retained During Year 255 Management and Engineering Contracts 357 Map, System 522 Miscellaneous General Expenses 335 Municipalities Supplied 643 Notes Payable, Advances from Associated Companies To Balance Sheet 122 To Financial Statements 122 To Statement of Income for the Year 122 Operating Expenses Revenues Ia Other Donations Received from Stockholders 253 Gains on Resale or Cancellation of Reacquired Capital Stock 253 Miscellaneous Paid-in Capital 253 Other Gas Supply Expense 334 Paid-in Capital 253 Reduction in Par or Stated Value of Capital Stock 253 Regulatory Assets 232 Regulatory Liabilities 278 Peak Deliveries, Transmission System 518 Peaking Facilities, Auxiliary 519 Plant Gas Construction Work in Progress 216 Held for Future Use 214 Plant Property and Capacity Leased from Others 212 i-ui 2

178 Gas Accumulated Index Leased to Others.213 Plant Utility Accumulated Provisions (Summary) Leased to Others, Income From 213 Premium on Capital Stock 252 Prepaid Taxes 262a-263b Prepayments 230a Professional Services, Charges for 357 Property Losses, Extraordinary 230b Reacquired Capital Stock Long-term Debt Receiver s Certificate Reconciliation of Reported Net Income with Taxable Income from Federal Income Taxes c Regulatory Commission Expenses Regulatory Commission Expenses, Deferred 233 Retained Earnings Appropriated Statementof Unappropriated Revenues From Storing Gas of Others From Transportation of Gas Through Gathering Facilities From Transportation of Gas through Transmission Facilities Gas Operating a Salaries and Wages, Distribution of Sales b Securities Disposed of During Year Holders and Voting Powers a Investment in Associated Companies Investment, Others Issued or Assumed During Year 255 Refunded or Retired During Year 255 Registered on a National Exchange , Stock Liability for Conversion 252 Services 642 Storage Of Natural Gas, Underground Revenues Taxes Accrued and Prepaid 262a-263b Charged During the Year 262a-263b On Income, Deferred Reconciliation of Net Income for b Transmission And Compression of Gas by Others 332 Lines 514 Revenues System Peak Deliveries Unamortized 518 Debt Discount on Expense Loss and Gain on Reacquired Debt 260 Premium on Debt Underground Storage of Natural Gas, Expense, Operating Data, Plant Unrecovered Plant and Regulatory Study Costs 230c 3

179 xaptq t7

180 CONNECTICUT NATURAL GAS CORPORATION Report for the Year Ended December 31, 2015 NOTE: THIS AFFIDAVIT MUST BE NOTARIZED State of Connecticut County of Hartford We, the undersigned, Steven P. Favuzza, Controller of UIL Holdings Corporation and Robert Allesslo, President & CEO of, as agents of on our oath do severally say that the foregoing return has been prepared, under our direction, from the original books, papers and records of the respondent, that we have carefully examined the same, and declare the same to be a complete and correct statement of the business and affairs of the above-named respondent in respect to each and every matter and thing therein set forth, and we further say that the accounts and figures contained in the foregoing return embrace all of the financial operations of the respondent during the period for which said return is made to the best of our knowledge, information and belief. of U IL Hold in Co poration as agent of Connecticut Nettral Gas Corporation President & CEO of as agent of 1 fr) Subscnbed and sworn to before me thls3 day of May AD w Notary PUbLICJANN MARIE COUCHL!N My commission eiir8lic tat of Connect My Commission Expires September 30, 2017 *NOTE: Sec states in part,...such reports shall be signed and sworn to by the Chief Executive Officer, President or Vice President and Chief Financial Officer, Treasurer or Assistant Treasurer or by a majority of the trustees or receivers making the same... Reports of Municipalities must be signed and sworn to by the General Superintendent and by such other person or persons as may be delegated so to do by the municipality.