Gas Tariff. The Southern Connecticut Gas Company. As Filed With. Public Utilities Regulatory Authority

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1 Gas Tariff Of The Southern Connecticut Gas Company As Filed With Public Utilities Regulatory Authority Modifications: Table of Contents 1/1/2014 Definitions 1/1/2014 RSG 4/1/2017 RSH 4/1/2017 RSH-SE 1/1/2014 RMDS 11/1/2017 RMDS-SE 11/1/2017 SGS 11/1/2017 SGS-SE 11/1/2017 GS 11/1/2017 GS-SE 11/1/2017 LGS 11/1/2017 LGS-SE 11/1/2017 RIDER MFG 9/1/2010 RIDER ED 11/1/2008 RIDER MED 11/1/2008 RIDER SC 11/1/2008 IS 8/12/2011 NGV 8/12/2011 TRS 1/1/2014 BAL 8/12/2011 CR 8/12/2011 PK 8/12/2011 STB 1/1/2014 STO 8/12/2011 AS-AVAIL 8/12/2011 LH 8/12/2011 RIDER DG 1/1/2014 Rules and Regulations 8/12/2011 EFFECTIVE: 11/1/2017 SUPERCEDES: 4/1/2017

2 TABLE OF CONTENTS DEFINITIONS PAGE NO. TYPES OF CUSTOMER CHARGES 1 COMPANY TERMS 1 INDUSTRY TERMS 2 RATE SCHEDULES RATE RSG (RESIDENTIAL SERVICE GENERAL) 4 RATE RSH (RESIDENTIAL SERVICE HEATING) 6 RATE RSH-SE (RESIDENTIAL SERVICE HEATING SYSTEM EXPANSION) 8 RATE RMDS (RESIDENTIAL MULTI-DWELLING SERVICE) 10 RATE RMDS-SE (RESIDENTIAL MULTI-DWELLING SERVICE SYSTEM EXPANSION) 16 RATE SGS (SMALL GENERAL SERVICE) 22 RATE SGS-SE (SMALL GENERAL SERVICE SYSTEM EXPANSION) 28 RATE GS (GENERAL SERVICE) 34 RATE GS-SE (GENERAL SERVICE SYSTEM EXPANSION) 41 RATE LGS (LARGE GENERAL SERVICE) 49 RATE LGS-SE (LARGE GENERAL SERVICE SYSTEM EXPANSION) 55 RIDER MFG (MANUFACTURERS GROSS RECEIPTS TAX CREDIT) 62 RIDER ED (ECONOMIC DEVELOPMENT) 63 RIDER MED (MANUFACTURING ECONOMIC DEVELOPMENT) 64 RIDER SC (SPECIAL CONTRACT) 66 RATE IS (MANUAL INTERRUPTIBLE GAS SERVICE) 67 RATE NGV (NATURAL GAS VEHICLES) 79 RATE TRS (TRANSPORTATION RECEIPT SERVICE) 83 RATE TRS (TRANSPORTATION RECEIPT SERVICE TERMS AND CONDITIONS) 86 RATE TRS (TRS OPERATOR AGREEMENT) 100 RATE TRS APPENDIX A 101 RATE BAL (BALANCING SERVICE RIDER) 104 RATE CR (CAPACITY RELEASE SERVICE) 110 RATE PK (PEAKING SERVICE RATE) 115 EFFECTIVE: 11/1/2017 SUPERCEDES: 4/1/2017

3 RATE STB (STANDBY SERVICE) 121 RATE STO (STORAGE SERVICE RATE) 125 RATE AS-AVAIL (AS-AVAILABLE GAS SUPPLY SERVICE) 131 RATE LH (OPTIONAL LONG-HAUL SERVICE RIDER) 133 RIDER DG (DISTRIBUTED GENERATION REBATE RIDER) 139 RULES AND REGULATIONS 147 APPENDIX A TO RULES AND REGULATIONS 155 APPENDIX B TO RULES AND REGULATIONS 159 APPENDIX C TO RULES AND REGULATIONS 161 EFFECTIVE: 11/1/2017 SUPERCEDES: 4/1/2017

4 1) Types of Customer Charges DEFINITIONS a) Customer Charge A fixed monthly charge designed to recover the Company s basic administrative expenses associated with maintaining a customer account such as the cost of producing a bill, reading a meter, phone inquiries and the fixed charges for the minimum investment required to serve a customer. b) Daily Demand Metering Charge A fixed monthly charge for the cost of a meter sending information about daily usage to the Company. The Company retains ownership of the Daily Demand Metering devices, as it does with all other meter and regulating equipment. c) Delivery Rate A charge for moving natural gas across the Company s distribution system to a customer s home or business. d) Peak Day Rate A charge for providing pipeline space to accommodate the customer s highest daily usage. See individual tariffs for applicability and calculation methodology. e) Purchased Gas Adjustment (PGA) A charge per hundred cubic feet (ccf) of gas consumed that reflects the actual cost of gas. Established monthly in accordance with and pursuant to the Purchased Gas Adjustment Clause as approved by the Public Utilities Regulatory Authority (the Authority ). f) Sales Services Charge (SSC) A charge that is designed to recover unique costs specific for those customers that receive their gas supply directly from the Company. g) System Expansion Reconciliation (SER) mechanism - This rate applies to existing customers to further collect expenses not covered by System Expansion (SE) rates (RSH-SE, RMDS-SE, SGS-SE, MGS-SE, LGS-SE) related to expanding the natural gas system and converting customers to natural gas. This factor will be established annually including prior year true-up and is approved by the Authority. h) TSC Shifted Cost A transportation services charge that is designed to recover SOLR costs for those customers that receive their gas supply from a third-party supplier. i) TSC On-Site Demand Cost A transportation services charge that is designed to recover unique administrative costs specific for those customers that receive their gas supply from a third-party supplier. j) Conservation Adjustment Mechanism (CAM) - A charge on firm customer s bills that is a ratemaking tool that either refunds or collects the difference between actual and allowed conservation expenses compared to that allowed in base rates. This factor is established each October as part of the Company s annual PGA proceeding and is approved by the Authority. 2) Company Terms a) The term Company means The Southern Connecticut Gas Company (SCG) or successors, assigns or divisions thereof. b) The term Delivery Service means the physical act of moving natural gas across the Company s distribution system to a customer s facility. c) The term "Hurdle Rate Model" refers to the Company's internal financial model that determines whether the expected revenues from a new customer will result in the return of the Company's initial investment, plus its allowed rate of return. Certain information from this model may be utilized in establishing a New Customer Peak Day MDQ. d) The term Supply Service is defined as the activities associated with the supply of the natural gas supply only. e) The term Third-Party Supplier means an approved marketer that serves the Company s region that RMDS and commercial/industrial customers have the option of purchasing their natural gas from rather than SCG. SCG will continue to deliver the gas. f) The term Supplier of Last Resort (SOLR ) refers to the total fixed cost of the Company s gas portfolio that supports uninterrupted gas deliveries each day of the year. EFFECTIVE: 1/1/ SUPERCEDES: 8/12/2011

5 DEFINITIONS g) The term off-main shall mean that the Customer is one, who as of December 31, 2013, requires an addition of a main in the street to connect, and who becomes a company customer on or after January 1, h) The term on-main shall mean that the customer is one, who as of December 31, 2013, has an existing main that is directly in front of the customer s premises, and who becomes a company customer on or after January 1, ) Industry Terms a) Actual Reading A reading obtained by the Company from either the meter or a remote registration device attached thereto. b) Actual Delivered Volumes The amount of Customer Owned Gas transported to the Company s Delivery Point(s) by or on behalf of Customers to one or more distribution points. c) Authority shall mean the Public Utilities Regulatory Authority (the Authority ) of the State of Connecticut which has jurisdiction over the rates and other terms and conditions of the Company s jurisdictional services. d) Base Load That portion of a customer s load which is not affected by temperature. e) British Thermal Unit (BTU) - The amount of heat required to raise the temperature of one pound of water one degree Fahrenheit at sixty (60) degrees Fahrenheit. f) Business Day Monday through Friday, excluding Federal Banking Holidays for transactions in the United States. g) CCF 100 cubic feet of gas at a pressure of psia and at a temperature of sixty (60) degrees Fahrenheit. h) Customer Use Pattern The Base Load and Heat Factor assigned to the Customer. i) Delivery Points The interconnection between the Company s facilities and the Customer s facilities. j) Distribution Point(s) The location(s) where the Company s gas distribution facilities interconnect with the transportation customer s facilities and where the Company and the Customer have agreed that transported gas shall be delivered. Such Distribution Point(s) shall be specified in the Service Agreement between the Company and the Customer. k) Federal Energy Regulatory Commission (FERC) - An agency of the government of the United States created by an Act of Congress, the Department of Energy Organization Act, in This Act transferred to the FERC most of the former Federal Power Commission's interstate regulatory functions over the electric power and natural gas industries. The Act also transferred from the Interstate Commerce Commission the authority to set oil pipeline transportation rates and to set the value of oil pipelines for ratemaking purposes. In 1978, Congress passed the Natural Energy Act, broadening the FERC's jurisdiction and regulatory functions. The FERC now also regulates producer sales of natural gas in intrastate commerce. The FERC establishes uniform ceiling prices for each of several categories of natural gas, and these prices apply to all sales on a nationwide basis. l) Firm Transportation Service (FTS) - Transportation services for which facilities have been designed, installed, and dedicated to a certified quantity. Firm transportation service takes priority over interruptible service. m) Gas Day A period of twenty-four (24) consecutive hours, consistent with applicable industry standards. n) Gate Station(s) see Delivery Point(s). o) Heat Factor When multiplied by Heating Degree Day (HDD), represents the portion of the Customer s load which is affected by temperature. EFFECTIVE: 1/1/ SUPERCEDES: 8/12/2011

6 DEFINITIONS p) Heating Degree Day The number of degrees Fahrenheit on any one day that the average temperature is less than 65 F. q) Interruptible Service - Low priority service offered to customers under schedules or contracts which anticipate and permit interruption on short notice, generally in peak-load seasons, by reason of the claim of firm service customers and higher priority users. Gas is available at any time of the year if the supply is sufficient and the delivery system is adequate. r) MCF - The quantity of natural gas occupying a volume of one thousand cubic feet at a temperature of sixty degrees Fahrenheit and at a pressure of pounds per square inch absolute. s) MDQ The maximum daily quantity which the Company agrees to deliver to the Customer s Distribution Point(s) on a daily basis, as specified in the Service Agreement. MMBtu - A thermal unit of energy equal to 1,000,000 Btus, that is, the equivalent of 1,000 cubic feet of gas having a heating content of 1,000 Btus per cubic foot, as provided by contract measurement terms. t) PURA shall mean the Public Utilities Regulatory Authority (the Authority ) of the State of Connecticut which has jurisdiction over the rates and other terms and conditions of the Company s jurisdictional services. u) Service Agreement Agreement between the Company and the Customer (and Third-Party Marketer as applicable) that establishes terms and conditions relative to receiving service under the applicable rate. v) Therm An amount of gas having a thermal content of 100,000 Btus. w) Transportation or Transportation Service Transportation of Customer Owned Gas by the Company for or on behalf of a Customer in accordance with the Company s Rates and Terms and Conditions. x) Unaccounted for Percentage The difference between the sum of all input quantities of gas received into the Company s system and the sum of all output quantities of gas delivered from the Company s system as determined from time to time by the Connecticut Public Utilities Regulatory Authority (the Authority ). See Also Rate TRS definitions, which are specific to Gas Marketers/Operators on the Company s system. EFFECTIVE: 1/1/ SUPERCEDES: 8/12/2011

7 RATE RSG (RESIDENTIAL SERVICE GENERAL) 1. AVAILABILITY: Available every day of the year to residential Customers for all uses other than space heating where the number of dwelling units supplied through one meter is five or less. Residential customers where the number of dwelling units supplied through one meter does not exceed six and use natural gas for space heating will be served under the Company s Residential Heating Service Rate RSH. 2. DEFINITIONS: (a) The term Company shall mean Southern Connecticut Gas Company successors, assigns, or divisions thereof. (b) The term Delivery Service shall mean the physical act of moving natural gas across the Company s distribution system to a Customer s facility. (c) The term Supply Service is defined as the activities associated with providing of the natural gas supply only. 3. RATE PER MONTH: (Ccf 100 cubic feet) (a) Delivery Service: Customer Charge: $17.00 Delivery Charge: SER Charge: $ Per Ccf $ Per Ccf Subject to the Conservation Adjustment Mechanism (CAM) as approved by the Public Utilities Regulatory Authority (the Authority ) of the State of Connecticut. (b) Supply Service: Supply Charge: Established monthly in accordance with and pursuant to the Purchased Gas Adjustment Clause as approved by the Authority. Sales Services Charge: $ Per Ccf 4. MINIMUM MONTHLY CHARGE: $17.00 Per Month EFFECTIVE: 4/1/ SUPERCEDES: 4/1/2016

8 RATE RSG (RESIDENTIAL SERVICE GENERAL) 5. PAYMENT TERMS: Bills are rendered monthly and are due and payable on presentation. A 1% penalty per month charge will be added to all bills not paid (payment received by the Company) within 28 days of the billing date for all Customers other than the State of Connecticut or any political subdivision thereof and 60 days for the State of Connecticut or any political subdivision thereof. 6. GENERAL TERMS AND CONDITIONS: The Company s rules and regulations are made a part of this rate schedule. Bills less than 28 days or more than 34 days will be prorated. 7. RATE FILINGS: Nothing contained herein shall be construed in any way as affecting the Company s right to make a unilateral application to the Authority for a change in rates under the laws of the State of Connecticut and the regulations promulgated by the Authority. EFFECTIVE: 4/1/ SUPERCEDES: 4/1/2016

9 RATE RSH (RESIDENTIAL SERVICE HEATING) 1. AVAILABILITY: Available every day of the year to residential Customers who use natural gas for space heating purposes and the number of dwelling units supplied through one meter is five or less. Equal payment plan available on request. 2. DEFINITIONS: (a) The term Company shall mean Southern Connecticut Gas Company successors, assigns, or divisions thereof. (b) The term Delivery Service shall mean the physical act of moving natural gas across the Company s distribution system to a Customer s facility. (c) The term Supply Service is defined as the activities associated with providing of the natural gas supply only. 3. RATE PER MONTH: (Ccf 100 cubic feet) (a) Delivery Service: Customer Charge: $14.00 Delivery Charge: First 30 Ccf : $ Per Ccf Over 30 Ccf : $ Per Ccf SER Charge: $ Per Ccf Subject to the Conservation Adjustment Mechanism (CAM) as approved by the Public Utilities Regulatory Authority (the Authority ) of the State of Connecticut. (b) Supply Service: Supply Charge: Established monthly in accordance with and pursuant to the Purchased Gas Adjustment Clause as approved by the Authority. Sales Services Charge: $ Per Ccf 4. MINIMUM MONTHLY CHARGE: $14.00 Per Month EFFECTIVE: 4/1/ SUPERCEDES: 4/1/2016

10 5. PAYMENT TERMS: RATE RSH (RESIDENTIAL SERVICE HEATING) Bills are rendered monthly and are due and payable on presentation. A 1% penalty per month charge will be added to all bills not paid (payment received by the Company) within 28 days of the billing date for all Customers other than the State of Connecticut or any political subdivision thereof and 60 days for the State of Connecticut or any political subdivision thereof. 6. GENERAL TERMS AND CONDITIONS: The Company s rules and regulations are made a part of this rate schedule. Bills less than 28 days or more than 34 days will be prorated. 7. RATE FILINGS: Nothing contained herein shall be construed in any way as affecting the Company s right to make a unilateral application to the Authority for a change in rates under the laws of the State of Connecticut and the regulations promulgated by the Authority. EFFECTIVE: 4/1/ SUPERCEDES: 4/1/2016

11 RATE RSH-SE (RESIDENTIAL SERVICE HEATING SYSTEM EXPANSION) 1. AVAILABILITY: For all new, on-main and off-main single-family residential customers and all multi-family residential customers where the number of dwelling units is five (5) or less, and use natural gas for space heating. This rate applies to any new premise attached to the Company s distribution system on or after January 1, Equal payment plan available on request. 2. DEFINITIONS: (a) The term Company shall mean Southern Connecticut Gas Company successors, assigns, or divisions thereof. (b) The term Delivery Service shall mean the physical act of moving natural gas across the Company s distribution system to a Customer s facility. (c) The term Supply Service is defined as the activities associated with providing of the natural gas supply only. (d) The term off-main shall mean that the Customer is one, who as of December 31, 2013, requires an addition of a main in the street to connect, and who becomes a company customer on or after January 1, (e) The term on-main shall mean that the customer is one, who as of December 31, 2013, has an existing main that is directly in front of the customer s premises, and who becomes a company customer on or after January 1, RATE PER MONTH: (Ccf 100 cubic feet) On-Main Off-Main (a) Delivery Service: Customer Charge: $15.40 $18.20 Delivery Charge: First 30 Ccf : $ $ Per Ccf Over 30 Ccf : $ $ Per Ccf Subject to the Conservation Adjustment Mechanism (CAM) as approved by the Public Utilities Regulatory Authority (the Authority ) of the State of Connecticut. (b) Supply Service: Supply Charge: Established monthly in accordance with and pursuant to the Purchased Gas Adjustment Clause as approved by the Authority. Sales Services Charge: $ $ Per Ccf 4. MINIMUM MONTHLY CHARGE: EFFECTIVE: 1/1/ SUPERCEDES: NEW $15.40 $18.20 Per Month

12 RATE RSH-SE (RESIDENTIAL SERVICE HEATING SYSTEM EXPANSION) 5. PAYMENT TERMS: Bills are rendered monthly and are due and payable on presentation. A 1% penalty per month charge will be added to all bills not paid (payment received by the Company) within 28 days of the billing date for all Customers other than the State of Connecticut or any political subdivision thereof and 60 days for the State of Connecticut or any political subdivision thereof. 6. GENERAL TERMS AND CONDITIONS: The Company s rules and regulations are made a part of this rate schedule. Bills less than 28 days or more than 34 days will be prorated. 7. RATE FILINGS: Nothing contained herein shall be construed in any way as affecting the Company s right to make a unilateral application to the Authority for a change in rates under the laws of the State of Connecticut and the regulations promulgated by the Authority. 8. TERM OF SERVICE: The service as defined begins 10 years from date of initial service at Customer s service location. This term remains with the premise regardless of account ownership until the 10 year term is completed. Thereafter, Customer will be served under Rate RSH or other applicable rate. EFFECTIVE: 1/1/ SUPERCEDES: NEW

13 1. AVAILABILITY: RATE RMDS (RESIDENTIAL MULTI-DWELLING SERVICE) Available every day of the year to residential dwelling units for heating and non-heating where the number of units supplied through one meter is six or greater. Customers may elect to receive either Third-Party Supply or Company Supply Service as defined in Section 5 below. To be eligible for the Third-Party Supplier Option, a Customer s Operator or Aggregator must hold a clear and marketable title to gas that is made available for delivery to the Customer s facility on the Company s gas system. Customers not selecting a Third-Party Supplier must sign a Transportation Receipt Service/Aggregation Agreement and indicate that they wish to serve as their own Operator. All Operators are subject to the Transportation Receipt Services Terms and Conditions. All Third-Party Supply Customers must sign and comply with the terms and conditions of the Third-Party Supply Agreement. 2. FACILITIES REQUIREMENT: Applicable to customers with a normalized annual consumption greater than 5000 Ccf. Customers must grant access to the Company s meter to permit installation of a daily demand meter. Once a functioning daily demand meter has been installed on the Customer s premise, the Customer will be subject to a daily demand metering charge as set forth in Section 7 (a). 3. DEFINITIONS: (a) The term Company shall mean Southern Connecticut Gas Company successors, assigns, or divisions thereof. (b) The term Delivery Service shall mean the physical act of moving natural gas across the Company s distribution system to a Customer s facility. (c) The term Supply Service is defined as the activities associated with providing of the natural gas supply only. (d) The term Peak Day is defined as a Customer s Maximum Daily Quantity (MDQ) of gas consumed on any individual day during the most recent 5-month winter period of November through March (subject to minimum MDQ criteria). (e) The term Average Daily Usage is defined by dividing the total monthly billed consumption by the number of days a customer has received service during that billing month. (f) The term Third-Party Supplier shall mean a third-party gas supply agent (e.g., gas marketer, broker or producer) responsible for procuring gas on the customer s behalf and making that gas available for delivery to the customer s facility. (g) The term Transfer Customer is defined as a customer moving into a premise with established gas service. (h) The term New Customer is defined as a customer moving into a premise without established gas service, or an existing customer adding a new service and meter. EFFECTIVE: 11/1/ SUPERCEDES: 4/1/2017

14 RATE RMDS (RESIDENTIAL MULTI-DWELLING SERVICE) (i) The term "Hurdle Rate Model" refers to the Company's internal financial model that determines whether the expected revenues from a new customer will result in the return of the Company's initial investment, plus its allowed rate of return. Certain information from this model may be utilized in establishing a New Customer Peak Day MDQ. (j) The term " 3MBU refers to average daily base use calculated using customer-specific actual average usage for the 3-month billing period of July, August and September. (k) The term "HUDD refers to the heat factor per degree day, calculated using customer-specific actual average usage for the 5-month winter billing period of November through March. (l) The term "DDM refers to a daily demand meter. (m) The Term Payment Default Supplier Drop Form refers to a form sent from a Third-Party Supplier notifying the Company of its Customer s payment default and requests that the Customer be returned to the Company Sales Service Option for gas commodity. (n) The term Payment Default Notice refers to the Company s communication to the Customer regarding their payment default with their Third-Party Supplier, and the service and payment options available to the customer. 4. MONTHLY DEMAND CHARGE: i. Existing Customers For existing customers with an installed daily demand meter who have received service for greater than one year, the Maximum Daily Quantity (MDQ) will be determined based upon the customer s highest actual daily usage for the most recent 5-month winter-period (November through March). If daily demand metering data is not available or a daily demand meter is not installed, the MDQ will equal the 3MBU plus the HUDD times the heating degree days [Peak load demand MDQ = 3MBU + (HUDD* degree days)]. ii. Transfer Customers For a transfer customer that intends to operate similar to the past occupant, the initial MDQ will be based on the historical profile of the past occupant. For DDM equipped customers, the initial MDQ will continue to be used for billing until it is surpassed by an actual, winter-period (November March) DDM read or becomes more than 12-months old. Actual, not normalized, DDM reads will be used for demand billing. If a DDM read is unavailable during a winter-period month, that month s MDQ will be calculated using the same base-thermal formula applicable to non-ddm customers. For customers that do not require DDM equipment, the initial MDQ will continue to be used for billing until surpassed by a winter-period calculated MDQ or becomes more than 12-months old. Each winter month billing MDQ calculation will multiply the customer s 5-month average HUDD times actual HDDs for the month and add the 3MBU. EFFECTIVE: 11/1/ SUPERCEDES: 4/1/2017

15 iii. New Customers RATE RMDS (RESIDENTIAL MULTI-DWELLING SERVICE) For new customers, the initial estimated MDQ will be based on the Hurdle Rate model s calculated 3MBU and HUDD. The resulting MDQ will be calculated by multiplying the HUDD by design day HDDs and adding the 3MBU. The Hurdle Rate HUDD and 3MBU will be used for all billing requirements, such as bill estimation and cancel and re-bill, until updated by actual consumption. For DDM equipped customers, the Hurdle Rate MDQ will continue to be used for billing until it is surpassed by an actual, winter-period (November March) DDM read or becomes more than 12-months old. Actual, not normalized, DDM reads will be used for demand billing. If a DDM read is unavailable during a winter-period month, that month s MDQ will be calculated using the same base-thermal formula applicable to non-ddm customers. For customers that do not require DDM equipment, the Hurdle Rate MDQ will continue to be used for billing until surpassed by a winter-period calculated MDQ or becomes more than 12-months old. Each winter month billing MDQ calculation will multiply the customer s 5-month average HUDD times actual HDDs for the month and add the 3MBU. iv. Minimum MDQ In no instance shall any customer s MDQ be less than the Average Annual Daily usage, calculated monthly, for the most recent 12-month period or less than 1 ccf. v. Winter Period Ratchets All MDQ values, for all customer types (i.e., existing, new and transfer), are subject to increases based on actual usage data (either actual DDM data or monthly base/thermal formula estimated MDQs) during the five winter period months of November through March. vi. Normalization MDQs will not be normalized. 5. DELIVERY SERVICE: All Customers served under this tariff are deemed to be Company delivery Customers. All deliveryrelated charges in Section 7 (a) are applicable. 6. SUPPLY SERVICE: a) Third-Party Supplier Service Option Customers served under this tariff schedule have the option of selecting a third-party gas supplier. If such an election is made, the Customer must: EFFECTIVE: 11/1/ SUPERCEDES: 4/1/2017

16 RATE RMDS (RESIDENTIAL MULTI-DWELLING SERVICE) i. Arrange for and maintain service with a third-party gas supplier under the Company s Rate TRS (Transportation Receipt Service) to receive natural gas for the customer s use and, ii. Submit a signed Third-Party Supply Agreement to the Company at least 30 days before the intended effective start date. Customers who meet this requirement shall normally receive service at the start of the next calendar month. An application received less than 30 days prior to the start of the next calendar month may not receive service until the start of the following calendar month. The Company shall notify the customer s Operator of the actual start date. iii. Remains a Third-Party Supply Customer for at least 12 months, unless Customer s Third-Party Supplier submits a valid Payment Default Supplier Drop Form to the Company to return the Customer to the Company Sales Service Option. Anytime thereafter, a customer may discontinue this service only upon not less than one month s prior written notice to the Company. Gas delivery provided under this Rate shall be on a firm basis and shall not be subject to reduction or interruption except as permitted under the Company s Rules and Regulations. 7. RATE PER MONTH: (Ccf = 100 cubic feet) b) Company Supply Service Option Customers served under this tariff schedule that do not elect a Third-Party Supplier or indicate that they wish to act as their own operator are deemed to be Firm Company Supply customers. All optional supply-related charges in Section 6 (b) are applicable in addition to charges otherwise applicable hereunder. (a) Delivery Service (Applicable to All Customers): Customer Charge: $45.00 Per Month Daily Demand Metering Charge: $6.91 (Applicable to All Customers with an Installed Daily Demand Meter which is reporting a minimum of 23 hourly reads per day every day in the customer s billing cycle) Demand Charge: Delivery Charge: First 400 Ccf: Over 400 Ccf: $ Per Ccf of Maximum Daily Demand $ Per Ccf $ Per Ccf SER Charge: $ Per Ccf of Maximum Daily Demand Subject to the Conservation Adjustment Mechanism (CAM) as approved by the Public Utilities Regulatory Authority (the Authority ) of the State of Connecticut. EFFECTIVE: 11/1/ SUPERCEDES: 4/1/2017

17 RATE RMDS (RESIDENTIAL MULTI-DWELLING SERVICE) (b) Supply Service Options: 1) Company Supply Service Option: Supply Charge: Established monthly in accordance with and pursuant to the Purchased Gas Adjustment Clause as approved by the Authority. Sales Services Charge: $ Per Ccf 2) Third-Party Supplier Service Option: Transportation Services Charge: TSC Shifted Cost: TSC On-Site Cost: $ Per Ccf $ Per Ccf 8. MINIMUM MONTHLY CHARGE: Customer Charge, Daily Demand Metering Charge, Demand Charge and System Expansion Reconciliation (SER) mechanism as presented in Section 7(a) above. 9. APPROVED THIRD-PARTY SUPPLIER LIST: The Company shall maintain a list of qualified Third-Party Suppliers from which Customers can choose. Such lists shall include Third-Party Suppliers who sign a Transportation Receipt Service/Aggregation Agreement in which they agree to participate in and abide by the Company s requirements for its Transportation Receipt Service (TRS). This list shall be available to Customers upon request. 10. SERVICE OBLIGATION: The Company s service obligation for those customers electing the Third-Party Supplier Service Option under this Rate RMDS shall be limited solely to redelivering supplies and services purchased and received under Rate TRS (Transportation Receipt Service). The Customer acknowledges that it is paying solely for the costs associated with such limited service and that no ancillary services (other than those provided under Rate TRS) are being provided. The Company shall have no obligation to service the Customer with natural gas at any time where the volumes and services purchased and received under Rate TRS are sufficient to meet the Customer s gas requirements. The Company may suspend or terminate service to the Customer when the Customer fails to maintain gas service under Rate TRS and continues to consume gas at the delivery point. Any supply gas used under such circumstances shall be deemed delivered in accordance with the Company s As-Available Gas Service, subject to interruption and billed per the Rates and Charges section in the rate As- Available. EFFECTIVE: 11/1/ SUPERCEDES: 4/1/2017

18 11. CONSUMPTION MEASUREMENT: RATE RMDS (RESIDENTIAL MULTI-DWELLING SERVICE) Third-Party Supply Option Customers must agree to the use of a Company developed Consumption Algorithm in determining daily amounts to be delivered to the Company by the Operator on the Customer s behalf. 12. PAYMENT TERMS: Bills are rendered monthly and are due and payable on presentation. A 1% penalty charge per month will be added to all bills not paid (payment received by the Company) within 28 days of the billing date for all Customers other than the State of Connecticut or any political subdivision thereof. 13. GENERAL TERMS AND CONDITIONS: The Company s rules and regulations are incorporated therein and made a part of this rate schedule. Bills less than 28 days or more than 34 days will be prorated. 14. RATE FILINGS: Nothing contained herein shall be construed in any way as affecting the Company s right to make a unilateral application to the Authority for a change in rates under the laws of the State of Connecticut and the regulations promulgated by the Authority. 15. TERM OF SERVICE: A Customer electing service under this Rate Schedule must remain subject to this rate for at least 12 months and thereafter, may discontinue service under this rate only upon not less than one month s prior written notice to the Company. The Customer s Supply Service election (as defined in Section 5 above) will remain in effect for at least 12 months regardless if the election is for Third-Party Supplier Service or Company Supply Service. a) Return to Sales Service Payment Default: A customer that is currently receiving service under the Third-Party Supplier Option may return to the Company s Sales Service Option prior to completion of the initial twelve month term requirement if: i) Customer s Third-Party Supplier submits to the Company a valid Payment Default Supplier Drop Form. Upon receipt of this form by the Company, the Company will issue a Payment Default Notice to the Customer explaining their payment, billing and service options. Customer s return to the Company Sales Service Option will be predicated upon payment of security requirements described in Section 7, Billing and Payment of the Company s Rules and Regulations. A new Customer may select the Third-Party Supplier Service Option or Company Supply Service Option anytime within the first three months of establishing service. However, a new Customer may not switch service options during the period beginning November 1, and ending March 31, inclusive. Once the new Customer s three month window in which the Customer may select services expires, the Customer must continue service under the selected service for 12 months. EFFECTIVE: 11/1/ SUPERCEDES: 4/1/2017

19 RATE RMDS-SE (RESIDENTIAL MULTI-DWELLING SERVICE SYSTEM EXPANSION) 1. AVAILABILITY: For all new, on-main and off-main multi-family residential customers where the number of dwelling units is six (6) or more. This rate applies to any new premise attached to the Company s distribution system on or after January 1, Customers may elect to receive either Third-Party Supply or Company Supply Service as defined in Section 5 below. To be eligible for the Third-Party Supplier Option, a Customer s Operator or Aggregator must hold a clear and marketable title to gas that is made available for delivery to the Customer s facility on the Company s gas system. Customers not selecting a Third-Party Supplier must sign a Transportation Receipt Service/Aggregation Agreement and indicate that they wish to serve as their own Operator. All Operators are subject to the Transportation Receipt Services Terms and Conditions. All Third-Party Supply Customers must sign and comply with the terms and conditions of the Third-Party Supply Agreement. 2. FACILITIES REQUIREMENT: Applicable to customers with a normalized annual consumption greater than 5000 Ccf. Customers must grant access to the Company s meter to permit installation of a daily demand meter. Once a functioning daily demand meter has been installed on the Customer s premise, the Customer will be subject to a daily demand metering charge as set forth in Section 7 (a). 3. DEFINITIONS: (a) The term Company shall mean Southern Connecticut Gas Company successors, assigns, or divisions thereof. (b) The term Delivery Service shall mean the physical act of moving natural gas across the Company s distribution system to a Customer s facility. (c) The term Supply Service is defined as the activities associated with providing of the natural gas supply only. (d) The term Peak Day is defined as a Customer s Maximum Daily Quantity (MDQ) of gas consumed on any individual day during the most recent 5-month winter period of November through March (subject to minimum MDQ criteria). (e) The term Average Daily Usage is defined by dividing the total monthly billed consumption by the number of days a customer has received service during that billing month. (f) The term Third-Party Supplier shall mean a third-party gas supply agent (e.g., gas marketer, broker or producer) responsible for procuring gas on the customer s behalf and making that gas available for delivery to the customer s facility. (g) The term Transfer Customer is defined as a customer moving into a premise with established gas service. (h) The term New Customer is defined as a customer moving into a premise without established gas service, or an existing customer adding a new service and meter. EFFECTIVE: 11/1/ SUPERCEDES: 11/1/2016

20 RATE RMDS-SE (RESIDENTIAL MULTI-DWELLING SERVICE SYSTEM EXPANSION) (i) The term "Hurdle Rate Model" refers to the Company's internal financial model that determines whether the expected revenues from a new customer will result in the return of the Company's initial investment, plus its allowed rate of return. Certain information from this model may be utilized in establishing a New Customer Peak Day MDQ. (j) The term " 3MBU refers to average daily base use calculated using customer-specific actual average usage for the 3-month billing period of July, August and September. (k) The term "HUDD refers to the heat factor per degree day, calculated using customer-specific actual average usage for the 5-month winter billing period of November through March. (l) The term "DDM refers to a daily demand meter. (m) The Term Payment Default Supplier Drop Form refers to a form sent from a Third-Party Supplier notifying the Company of its Customer s payment default and requests that the Customer be returned to the Company Sales Service Option for gas commodity. (n) The term Payment Default Notice refers to the Company s communication to the Customer regarding their payment default with their Third-Party Supplier, and the service and payment options available to the customer. (o) The term off-main shall mean that the Customer is one, who as of December 31, 2013, requires an addition of a main in the street to connect, and who becomes a company customer on or after January 1, (p) The term on-main shall mean that the customer is one, who as of December 31, 2013, has an existing main that is directly in front of the customer s premises, and who becomes a company customer on or after January 1, MONTHLY DEMAND CHARGE: i. Existing Customers For existing customers with an installed daily demand meter who have received service for greater than one year, the Maximum Daily Quantity (MDQ) will be determined based upon the customer s highest actual daily usage for the most recent 5-month winter-period (November through March). If daily demand metering data is not available or a daily demand meter is not installed, the MDQ will equal the 3MBU plus the HUDD times the heating degree days [Peak load demand MDQ = 3MBU + (HUDD* degree days)]. ii. Transfer Customers For a transfer customer that intends to operate similar to the past occupant, the initial MDQ will be based on the historical profile of the past occupant. For DDM equipped customers, the initial MDQ will continue to be used for billing until it is surpassed by an actual, winter-period (November March) DDM read or becomes more than 12-months old. EFFECTIVE: 11/1/ SUPERCEDES: 11/1/2016

21 RATE RMDS-SE (RESIDENTIAL MULTI-DWELLING SERVICE SYSTEM EXPANSION) Actual, not normalized, DDM reads will be used for demand billing. If a DDM read is unavailable during a winter-period month, that month s MDQ will be calculated using the same base-thermal formula applicable to non-ddm customers. For customers that do not require DDM equipment, the initial MDQ will continue to be used for billing until surpassed by a winter-period calculated MDQ or becomes more than 12-months old. Each winter month billing MDQ calculation will multiply the customer s 5-month average HUDD times actual HDDs for the month and add the 3MBU. iii. New Customers For new customers, the initial estimated MDQ will be based on the Hurdle Rate model s calculated 3MBU and HUDD. The resulting MDQ will be calculated by multiplying the HUDD by design day HDDs and adding the 3MBU. The Hurdle Rate HUDD and 3MBU will be used for all billing requirements, such as bill estimation and cancel and re-bill, until updated by actual consumption. For DDM equipped customers, the Hurdle Rate MDQ will continue to be used for billing until it is surpassed by an actual, winter-period (November March) DDM read or becomes more than 12-months old. Actual, not normalized, DDM reads will be used for demand billing. If a DDM read is unavailable during a winter-period month, that month s MDQ will be calculated using the same base-thermal formula applicable to non-ddm customers. For customers that do not require DDM equipment, the Hurdle Rate MDQ will continue to be used for billing until surpassed by a winter-period calculated MDQ or becomes more than 12-months old. Each winter month billing MDQ calculation will multiply the customer s 5-month average HUDD times actual HDDs for the month and add the 3MBU. iv. Minimum MDQ In no instance shall any customer s MDQ be less than the Average Annual Daily usage, calculated monthly, for the most recent 12-month period or less than 1 ccf. v. Winter Period Ratchets All MDQ values, for all customer types (i.e., existing, new and transfer), are subject to increases based on actual usage data (either actual DDM data or monthly base/thermal formula estimated MDQs) during the five winter period months of November through March. vi. Normalization MDQs will not be normalized. 5. DELIVERY SERVICE: All Customers served under this tariff are deemed to be Company delivery Customers. All deliveryrelated charges in Section 7 (a) are applicable. EFFECTIVE: 11/1/ SUPERCEDES: 11/1/2016

22 RATE RMDS-SE (RESIDENTIAL MULTI-DWELLING SERVICE SYSTEM EXPANSION) 6. SUPPLY SERVICE: a) Third-Party Supplier Service Option Customers served under this tariff schedule have the option of selecting a third-party gas supplier. If such an election is made, the Customer must: i. Arrange for and maintain service with a third-party gas supplier under the Company s Rate TRS (Transportation Receipt Service) to receive natural gas for the customer s use and, ii. Submit a signed Third-Party Supply Agreement to the Company at least 30 days before the intended effective start date. Customers who meet this requirement shall normally receive service at the start of the next calendar month. An application received less than 30 days prior to the start of the next calendar month may not receive service until the start of the following calendar month. The Company shall notify the customer s Operator of the actual start date. iv. Remains a Third-Party Supply Customer for at least 12 months, unless Customer s Third-Party Supplier submits a valid Payment Default Supplier Drop Form to the Company to return the Customer to the Company Sales Service Option. Anytime thereafter, a customer may discontinue this service only upon not less than one month s prior written notice to the Company. Gas delivery provided under this Rate shall be on a firm basis and shall not be subject to reduction or interruption except as permitted under the Company s Rules and Regulations. b) Company Supply Service Option Customers served under this tariff schedule that do not elect a Third-Party Supplier or indicate that they wish to act as their own operator are deemed to be Firm Company Supply customers. All optional supply-related charges in Section 6 (b) are applicable in addition to charges otherwise applicable hereunder. 7. RATE PER MONTH: (Ccf = 100 cubic feet) (a) Delivery Service (Applicable to All Customers): On-Main Off-Main Customer Charge: $49.50 $58.50 Per Month Daily Demand Metering Charge: $6.91 $6.91 (Applicable to All Customers with an Installed Daily Demand Meter which is reporting a minimum of 23 hourly reads per day every day in the customer s billing cycle) Demand Charge: $ $ Per Ccf of Maximum Daily Demand Delivery Charge: First 400 Ccf: $ $ Per Ccf Over 400 Ccf: $ $ Per Ccf Subject to the Conservation Adjustment Mechanism (CAM) as approved by the Public Utilities Regulatory Authority (the Authority ) of the State of Connecticut. EFFECTIVE: 11/1/ SUPERCEDES: 11/1/2016

23 (b) RATE RMDS-SE (RESIDENTIAL MULTI-DWELLING SERVICE SYSTEM EXPANSION) Supply Service Options: 1) Company Supply Service Option: Supply Charge: Established monthly in accordance with and pursuant to the Purchased Gas Adjustment Clause as approved by the Authority. On-Main Off-Main Sales Services Charge: $ $ Per Ccf 2) Third-Party Supplier Service Option: Transportation Services Charge: 8. MINIMUM MONTHLY CHARGE: TSC Shifted Cost: $ $ Per Ccf TSC On-Site Cost: $ $ Per Ccf Customer Charge, Daily Demand Metering Charge and Demand Charge as presented in Section 7(a) above. 9. APPROVED THIRD-PARTY SUPPLIER LIST: The Company shall maintain a list of qualified Third-Party Suppliers from which Customers can choose. Such lists shall include Third-Party Suppliers who sign a Transportation Receipt Service/Aggregation Agreement in which they agree to participate in and abide by the Company s requirements for its Transportation Receipt Service (TRS). This list shall be available to Customers upon request. 10. SERVICE OBLIGATION: The Company s service obligation for those customers electing the Third-Party Supplier Service Option under this Rate RMDS shall be limited solely to redelivering supplies and services purchased and received under Rate TRS (Transportation Receipt Service). The Customer acknowledges that it is paying solely for the costs associated with such limited service and that no ancillary services (other than those provided under Rate TRS) are being provided. The Company shall have no obligation to service the Customer with natural gas at any time where the volumes and services purchased and received under Rate TRS are sufficient to meet the Customer s gas requirements. The Company may suspend or terminate service to the Customer when the Customer fails to maintain gas service under Rate TRS and continues to consume gas at the delivery point. Any supply gas used under such circumstances shall be deemed delivered in accordance with the Company s As-Available Gas Service, subject to interruption and billed per the Rates and Charges section in the rate As- Available. EFFECTIVE: 11/1/ SUPERCEDES: 11/1/2016

24 RATE RMDS-SE (RESIDENTIAL MULTI-DWELLING SERVICE SYSTEM EXPANSION) 11. CONSUMPTION MEASUREMENT: Third-Party Supply Option Customers must agree to the use of a Company developed Consumption Algorithm in determining daily amounts to be delivered to the Company by the Operator on the Customer s behalf. 12. PAYMENT TERMS: Bills are rendered monthly and are due and payable on presentation. A 1% penalty charge per month will be added to all bills not paid (payment received by the Company) within 28 days of the billing date for all Customers other than the State of Connecticut or any political subdivision thereof. 13. GENERAL TERMS AND CONDITIONS: The Company s rules and regulations are incorporated therein and made a part of this rate schedule. Bills less than 28 days or more than 34 days will be prorated. 14. RATE FILINGS: Nothing contained herein shall be construed in any way as affecting the Company s right to make a unilateral application to the Authority for a change in rates under the laws of the State of Connecticut and the regulations promulgated by the Authority. 15. TERM OF SERVICE: The service as defined begins 10 years from date of initial service at Customer s service location. This term remains with the premise regardless of account ownership until the 10 year term is completed. Thereafter, Customer will be served under Rate RMDS or other applicable rate. A Customer electing service under this Rate Schedule must remain subject to this rate for at least 12 months and thereafter, may discontinue service under this rate only upon not less than one month s prior written notice to the Company. The Customer s Supply Service election (as defined in Section 5 above) will remain in effect for at least 12 months regardless if the election is for Third-Party Supplier Service or Company Supply Service. b) Return to Sales Service Payment Default: A customer that is currently receiving service under the Third-Party Supplier Option may return to the Company s Sales Service Option prior to completion of the initial twelve month term requirement if: i) Customer s Third-Party Supplier submits to the Company a valid Payment Default Supplier Drop Form. Upon receipt of this form by the Company, the Company will issue a Payment Default Notice to the Customer explaining their payment, billing and service options. Customer s return to the Company Sales Service Option will be predicated upon payment of security requirements described in Section 7, Billing and Payment of the Company s Rules and Regulations. A new Customer may select the Third-Party Supplier Service Option or Company Supply Service Option anytime within the first three months of establishing service. However, a new Customer may not switch service options during the period beginning November 1, and ending March 31, inclusive. Once the new Customer s three month window in which the Customer may select services expires, the Customer must continue service under the selected service for 12 months. EFFECTIVE: 11/1/ SUPERCEDES: 11/1/2016

25 1. AVAILABILITY: EFFECTIVE: 11/1/ SUPERCEDES: 4/1/2017 RATE SGS (SMALL GENERAL SERVICE) Available every day of the year for general commercial or industrial use with normalized annual consumption between 0 Ccf and 4,999 Ccf. All Customers served under this rate may elect to receive either Third-Party Supply or Company Supply Service as defined in Section 5 below.. To be eligible for the Third-Party Supplier Option, a Customer s Operator or Aggregator must hold a clear and marketable title to gas that is made available for delivery to the Customer s facility on the Company s gas system. Customers not selecting a Third-Party Supplier must sign a Transportation Receipt Service/Aggregation Agreement and indicate that they wish to serve as their own Operator. All Operators are subject to the Transportation Receipt Services Terms and Conditions. All Third-Party Supply Customers must sign and comply with the terms and conditions of the Third-Party Supply Agreement. 2. DEFINITIONS: (a) The term Company shall mean Southern Connecticut Gas Company successors, assigns, or divisions thereof. (b) The term Delivery Service shall mean the physical act of moving natural gas across the Company s distribution system to a Customer s facility. (c) The term Supply Service is defined as the activities associated with providing of the natural gas supply only. (d) The term Peak Day is defined as a Customer s Maximum Daily Quantity (MDQ) of gas consumed on any individual day during the most recent 5-month winter period of November through March (subject to minimum MDQ criteria). (e) The term Average Daily Usage is defined by dividing the total monthly billed consumption by the number of days a customer has received service during that billing month. (f) The term Third-Party Supplier shall mean a third-party gas supply agent (e.g., gas marketer, broker or producer) responsible for procuring gas on the customer s behalf and making that gas available for delivery to the customer s facility. (g) The term Transfer Customer is defined as a customer moving into a premise with established gas service. (h) The term New Customer is defined as a customer moving into a premise without established gas service, or an existing customer adding a new service and meter. (i) The term "Hurdle Rate Model" refers to the Company's internal financial model that determines whether the expected revenues from a new customer will result in the return of the Company's initial investment, plus its allowed rate of return. Certain information from this model may be utilized in establishing a New Customer Peak Day MDQ. (j) The term " 3MBU refers to average daily base use calculated using customer-specific actual average usage for the 3-month billing period of July, August and September.

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