Ms. Ingrid Ferrell, Director Executive Secretary Division West Virginia Public Service Commission 201 Brooks Street Charleston, WV 25301

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1 LLC 500 LEE STREET EAST SUITE I600 PO BOX 553 CHARLESTON. WEST VlRGlNVt TELEPHONE * TELECOPIER I30 wwwjacksonkelfy corn DIRECT DIAL: FACSIMILE: ccallas@,iacksonkellv.com State Bar No March 18,2019 Ms. Ingrid Ferrell, Director Executive Secretary Division West Virginia Public Service Commission 201 Brooks Street Charleston, WV Re: PEOPLES GAS WV LLC AQUA AMERICA, INC. Case No G-PC Dear Ms. Ferrell: Enclosed please find one copy of Equitrans L.P.'s responses to the CAD first data request. Copies have been served on counsel of record. Thank you for your assistance. Sincerely, CLC/mv Enclosure e: Wendy Braswell, Esq. Tom White, Esq. Todd M. Swanson, Esq. Robert R. Rodecker, Esq. George Patterson, Esq. Christopher L. Callas ~1 6ridgep~w.W Charleston,W Marunsburg.WV Mor@ncawn,WV Whee1ing.W Denver, CO Evansville. IN - Lexington, KY *Akron. OH Pktsburgh. PA Warhblgron. DC

2 CAD DATA REQUESTS TO EQUITRANS CASE NO P REOUEST NO. CAD 1-1: Please refer to the direct testimony of Equitrans John Quinn, p. 10, line 6. Please state what is the amount of nominal consideration mentioned here that Equitrans would request for the proposed gathering transaction. Please state what, if any effect that would have on rates and provide any workpapers in Excel. Please also state whether Aqua has agreed to this cost. RESPONSE NO CAD 1-1 : The net book value of Equitrans gathering system assets are approximately $86 million. Equitrans has not received any bids to-date to acquire the Gathering System but is willing to consider an economically viable bid for all or a portion of the gathering assets. Equitrans has not prepared an analysis of future gathering rates based on the transfer of the Gathering System. Equitrans has not discussed a price for the Gathering System with Aqua. John M. Quinn Vice President, Rates DATE: March 18,20 19

3 CAD DATA REQUESTS TO EQUITRANS CASE NO G-P REQUEST NO. CAD 1-2: Please refer to the direct testimony of Equitrans Justin Macken at p. 5, footnote 1. Please state and explain what agreements Equitrans has reached with Dominion Energy, Mountaineer and Bazzle Gas with regard to this proposed transaction. Please state and explain whether this proposed transaction contemplates that Aqua will serve these customers as well and under what conditions? RESPONSE NO CAD 1-2: Equitrans has not reached agreements with Dominion Energy West Virginia, Mountaineer Gas Company, or Bazzle Gas Company with regard to any future transaction. Equitrans transfer of the Gathering System to PCWV, or some other affiliated entity, contemplates that a future agreement would be struck to maintain service to the above entities under conditions agreed to by the parties. DATE: John M. Quinn Vice President, Rates March 18,2019

4 CAD DATA FEQUESTS TO EQUITRANS CASE NO G-P REQUEST NO. CAD 1-3: Please refer to the direct testimony of Equitrans Justin Macken at p. 5, line 5 which mentions that the Equitrans Gathering System is 70 years old on average. Please explain what depreciation rate(s) Equitrans is currently applying to this asset. Please also state what the remaining life is. RESPONSE NO CAD 1-31 Refer to Attachment 1-3 for the depreciation rates applied to Natural Gas Production & Gathering Plant. The remaining life of Equitrans Gathering System was determined to be a 15-year economic life based on the last depreciation study prepared in John M. Quinn Vice President, Rates DATE: March 18,2019

5 Attachment 1-3 tine t1 $ t Producing Land Produdng Lsasshdds Producing Gas Rights ~ ~ g h ~ fas - W a ~ ~ Otherland 32 OtherLandRights Gas Well StnrGhffPrs Rdd 328 FlekJ 32& othe aring System Stnrctures 330 Pmd. Gas W ~ ~ - C ~ ~ c ~ o n Purificaticn Equlpmnt Equipment 05% % 5.00% 56% % % E U ~ Sbrdge-Land e ~ ~ 3502 U n d e ~ ~ d Underground Underground Underground Underground 3501 Underground 3502 undetgnwnd Underground S~~~~~ 3512 Storage-Leasehofd Pmt 3513 Stoiage-Storags Rlghts 3514 Storage-Uatufal Gas Rights 3522 Underground S ~ g e - ~ e ~ i ~ 353 Undetpround recoverable Natural Gas 353 Underground 354 Unde~und Equipment 355 Underground StOage-Meas Reg Equipment 356 U n Stoage+urfficatlon ~ Equipment ~ ~ ~ 357 Undergmund ~ ~ g e Equipment ~ ~ e r % 1.48% 68% 200% 2 70% 22% %

6 - Attachment 1-3 continued Land Land & Land Fughts 3652 Kl~~-Way Compnrssor Station Strudwes 3665 Msaswing ng Station Shctu Equipment trng Station E q ~ ~ e n ~ ipmt 371 Other Trilnsmlssion Sptm Equipment % 3.1 E% 141% 1.98% 225% 3.15% 3.15% 4.41% B Land ~ ~ r n u n EQ ~ ~ f l C ~ Eq ~ ~ i ~ ~ ~ r n u Eq ~ ~ ~ n Communication Eq Communlcatian ~ u i ~ i ~ l M ~ ~ ~ ~ u n ~ tequlp-lest i o n Equipment 398 Mls~allaneour Equipment 399 othw ln~ngible Proparty D % 34% ~ ~ ~ 6.23% 4.02% % 3.58' % 102% 14.29% 6.40% 5.51% 4.00%

7 CAD DATA REQUESTS TO EQUITRANS CASE NO P REQUEST NO. CAD 1-41 Please refer to the direct testimony of Equitrans Justin Macken at p. 5, line 5 which mentions that the Equitrans Gathering System is 70 years old on average. Please also refer to Mr. Macken s testimony p. 9, where he indicates that Peoples has not conducted any studies for long term farm tap supply options and suggests that Peoples has been under-investing in its total capital investment ($489,000 per year since 2014). Finally, please also refer to Peoples response to CAD 1 in Case No G-GI, dated Jan. 31,2019. Please state whether and to what extent Equitrans has conducted any studies to improve supply options and/or to upgrade and adequately maintain the gathering system including any projected costs to do so and any rate effect. Please provide copies of same, including any cost calculations. RESPONSE NO CAD 1-4: Equitrans has conducted no studies designed to improve conventional natural gas supply options for domestic customers or to upgrade the Gathering System for such purpose. The growth in development of the Marcellus and Utica shale has required new gathering systems operating at higher pressures and providing significantly more capacity than the Gathering System. A single Marcellus pad will often flow more than the entire capacity of the Gathering System, which often eliminates the Gathering System as an option for the producer. Equitrans has added Marcellus wells to the Gathering System, but only on a temporary basis until larger capacity higher pressure gathering systems were built. Conventional drilling in the Appalachian Basin has slowed and there has been very little new supply projected for the Gathering System. Equitrans has marketed the Gathering System s excess capacity as a low-pressure option to Marcellus producers on numerous occasions. Despite these efforts, however, within the last five years Equitrans has received no tap requests from producers desiring to bring conventional production onto the Gathering System. Justin Macken Senior Vice President Gas Systems Planning and Engineering DATE: March 18,201 9

8 CAD DATA REQUESTS TO EQUITRANS CASE NO G-P REOUEST NO. CAD 1-5: Please refer to Mr. Quinn s testimony and Mr. Macken s testimony pp concerning the Equitrans offer to provide five transmission interconnections. Please explain how much this would cost, and whether Equitrans, Peoples, Aqua, or any combination, would seek to recover any of those costs in rates. RESPONSE NO CAD 1-5: Equitrans estimates that the cost for interconnects at the 4 proposed West Virginia locations identified in Exhibit JSM-3 are approximately $300,000 per location. The Pennsylvania location may be more than $300,000 if site work is required. As discussed on page 10 of Mr. Quinn s Direct Testimony, if the Commission were to accept Equitrans proposal to transfer the Gathering System Equitrans has offered to invest transmission capital to build the interconnects. Equitrans would seek to include the capital invested and costs to maintain the interconnects in a future FERC Section 4 base rate case. Justin S. Macken Senior Vice of Gas Systems Planning and Engineering DATE: March 18,2019