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14 408 Chattan Way Saint Johns, FL Telephone: Facsimile: April 20, 2015 University of Central Florida ITN No: 1523NCSA Submittal Sections: (Company Profile): (A) Interconn Resources LLC is a private, independent natural gas marketing company headquartered in Birmingham, AL. Kevin Stump, President and CEO, founded Interconn in Interconn merged with Tauber Oil Company in 2012 and is majority owned by Tauber. Tauber Oil Company is a sixty year old, family-owned company headquartered in Houston, TX and is a leading marketer of oil and refined products both domestically and internationally. Interconn Resources specializes in delivering a dependable supply of clean natural gas at a competitive price. Our Federal ID Number is and our DUNS number is In addition to the Birmingham, AL office, we also have offices in Louisville, KY, Houston, TX and Saint Johns, FL. As a team, Interconn Resources focuses on providing key services including but not limited to, asset and risk management, customized invoicing, and operations management with a high emphasis on customer service. The majority of our customer base is governmental agencies, municipal and large industrial end-users. (B) The account manager/representative that would service UCF is Kerry Herbstritt, Assistant Vice President of Sales. Kerry resides in Saint Johns, FL. In 1995, she began her career in the commodity business at the Chicago Board of Trade, after graduating from Purdue University. She began in the natural gas industry in 2004 as a scheduler at BP Energy while she studied for her MBA in the evening. Her full background/resume is included on page 2. 1 P a g e

15 KERRY HERBSTRITT Assistant Vice President, Sales Interconn Resources, LLC Commodity/Natural Gas Experience (20 Years) 2014 Present: Interconn Resources, LLC, Saint Johns, FL Direct sales of natural gas within State of Florida : Rainbow Energy Marketing, Jacksonville, FL Energy Trader Power and Natural gas marketer Natural gas scheduler : Integrys Energy Services Wholesale natural gas scheduler and optimization Accounting : BP Hedge supply positions Report mark-to-market P&L : Nisource Scheduled Midwest natural gas pipelines EIA reporting : Rosenthal Collins Group Traded in the financial pits NFA registered floor broker; Badge KH EDUCATION MBA Purdue North Central University BLS Accounting and Statistics Purdue North Central University 2 P a g e

16 3 P a g e (C) See attached Appendix I (D) Interconn Resources largest current customer in Florida is Florida s Natural Growers, with an estimated annual usage of 1,122,782 MCF for (E) Interconn Resources serves 80 customers on TECO Peoples Gas Individual Transportation Service (ITS). The total annual usage for these accounts is approximately 11,218,640 MCF. (F) References: (i) Valerie Gipson, Florida s Natural Growers. Lake Wales, FL ext (ii) Sharon Cipiti, Owens Corning Sales. Toledo, OH (iii) Donald Garland Jr., Defense Logistics Agency Natural Gas. Fort Belvoir, VA (iv) Vince Hafeli, Ajax Paving Industries of Florida. Nokomis, FL (G) - Interconn Resources has had zero days of Force Majeure in Florida since we have been supplying gas (2002). We own storage and other transportation assets throughout the Southeast and have been able to utilize that gas and transportation as needed to deliver during critical periods/pipeline OFOs and supply shut-ins (Natural Gas Price Proposal for ITS account): (A) 1. Fixed Pricing: (i) 3 months at Fixed rate of $3.47/Dekatherm (ii) 6 month at Fixed rate of $3.50/Dekatherm (iii) 12 month Fixed rate of $3.47/Dekatherm Prices are indicative and based on market conditions on 4/20/16. Prices will be refreshed at time of execution of a fixed price hedge. 2. Prices listed above are quoted on an ALL-INCLUSIVE basis. This means they include all transportation, fuel and marketer delivery costs to the PGS citygate. Any volumes locked at the above fixed rate will be charged the flat fixed rate. No additional costs/charges will be invoiced. 3. See #2 above. 4. See attached Appendix II 5. UCF does not own pipeline transportation. Supplier will resolve any imbalances on pipe/ldc. (B) Additional Volumes: UCF can add additional volumes under this contract at the same terms and conditions contained in this proposal. Interconn Resources proposes to add the 2 nd co-gen volumes under contract at the same Variable price/conditions included in this supply proposal. Interconn s strategy for the potential new co-gen facility would begin with us gaining an understanding of the economic goals to be met, and then putting a plan in place that would allow UCF to achieve or exceed them. This plan would involve us working together to set fixed

17 trigger prices that will allow UCF to recognize the savings goal. When we worked through this process with you last time we worked hand-in-hand to model out the costs for the co-gen fueling, and then worked back to a price needed on the delivered supply to achieve the desired target spend. As the market approaches the triggers set we would make sure to communicate with you before executing, to ensure the intended goals are still being met. We also could explore the option of layering in trigger prices over a period of time, or remaining on a variable price to protect UCF from possible escalating prices and allowing you benefit from downturns in the marketplace. Lastly, to protect UCF from severe moves to the upside we could also work with you to put price caps in place. (C) Variable Pricing: 1. See attached Appendix III 2. NYMEX Last Day Settlement price each month plus $0.60/Dekatherm, ALL- INCLUSIVE for ITS account. 3. Prices listed above are quoted on an ALL-INCLUSIVE basis. This means they include all transportation, fuel and marketer delivery costs to the PGS citygate. Any volumes locked at the above variable rate will be charged the NYMEX LDS plus the fixed adder above. No additional costs/charges will be invoiced. 4. See attached Appendix IV 5. UCF does not own pipeline transportation. Interconn Resources will absorb any imbalances on pipe/ldc. UCF will only be billed the Variable Price for volumes consumed. Full requirements pricing (Natural Gas Price Proposal for NCTS accounts): (B) - NYMEX Last Day Settlement price each month plus $0.83/Dekatherm, ALL- INCLUSIVE for NCTS accounts. Prices listed above are quoted on an ALL-INCLUSIVE basis. This means they include all transportation, fuel and marketer delivery costs to the PGS citygate. Any volumes locked at the above variable rate will be charged the NYMEX LDS plus the fixed adder above. No additional costs/charges will be invoiced. Interconn Resources will resolve any imbalances. UCF will only be billed the Variable Price for volumes consumed. Full requirements pricing. Interconn will allow UCF to add additional NCTS accounts to this Contract at any time during the term of the agreement at the same NCTS price as quoted in this proposal. This will eliminate any discrepancies between pricing, and provide increased budget certainty during planning/construction of new facilities that may receive their gas under NCTS rate. (F) See attached Appendix V 4 P a g e

18 Ancillary Services/Value Add Interconn Resources has had the distinct pleasure of serving UCF over the past 5 years (since 2011). We very much understand the critical nature of natural gas for your business and in running the CHP. We also understand that forecasting the CHP usage can be difficult and unplanned outages occur beyond the control of UCF. We view ourselves as an extension of UCF, as its partner. Due to the nature of our business, we have the ability to help UCF manage the market/operational risk of unplanned outages and work to develop a strategy to mitigate any financial impact to the University. For example, during an unplanned outage beginning in December 2014 and ending in early-february 2015, UCF had hedges in place for approximately 75% of the ITS account s usage. Although UCF s volume fell well short of the contracted fixed price during that term, Interconn ensured that no balancing or operational penalties were incurred, and did not require UCF liquidate the unused hedged portion. Due to market circumstances, liquidation of the short-fall volumes would have been costly to the University. Interconn forecasts an approximate savings of $13,000 to UCF during the months of December 2014 and January Additionally, in late June 2015, UCF experienced a major failure with the CHP s generator that required an unplanned outage for almost four months with volumes down to nearly zero for that period. Again, UCF had hedges in place for approximately 75% of the ITS account s usage. Interconn worked with UCF to mitigate the financial impact by strategically selling back gas as needed during the month in the most economical way possible while managing pipeline and LDC regulations on balancing. Interconn ensured that UCF did not incur any balancing costs, and also limited financial impact of liquidation to UCF. Additional Offer for UCF s consideration: It is extremely important to us to continue our partnership with UCF in the years to come. As such, we d like to offer the contractual incentive as follows. Currently we serve UCF s accounts at the following pricing ITS Account: NYMEX plus $0.625/Dekatherm, all-inclusive NCTS Accounts: NYMEX plus $0.875/Dekatherm, all-inclusive We propose that if awarded this contract, we will revise the current pricing (through the end of the current agreement, October 31, 2016) to the lower rates proposed in this RFP. UCF will have the benefit of receiving the lower priced variable rates at the time of award. Based on historic volumes, and assuming UCF awards this contract by or before June 1 st, this represents a savings of $6,000 over the 5 month period ending October 31, See Appendix VI for Savings Analysis 5 P a g e

19 Appendix I

20 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 $ per Dekatherm $ per Dekatherm $ per Dekatherm Appendix II 3 Month Fixed Delivered Cost 6 month Fixed Delivered Cost $4.00 $3.50 $3.00 $2.50 $2.00 $1.50 $1.00 $0.50 Fixed Delivered Cost $4.00 $3.50 $3.00 $2.50 $2.00 $1.50 $1.00 $0.50 $- Fixed Delivered Cost $- Nov-16 Dec-16 Jan month Fixed Delivered Cost $4.00 $3.50 $3.00 $2.50 $2.00 $1.50 $1.00 Fixed Delivered Cost $0.50 $-

21 Appendix III Month Usage (Dth) NYMEX LDS (S/Dth) Adder ($/Dth) Total Unit Cost ($/Dth) Total UCF Cost ($) May-15 40,470 $ $ 0.60 $ 3.12 $ 126, Jun-15 40,734 $ $ 0.60 $ 3.42 $ 139, Jul-15 41,703 $ $ 0.60 $ 3.37 $ 140, Aug-15 38,241 $ $ 0.60 $ 3.49 $ 133, Sep-15 39,300 $ $ 0.60 $ 3.24 $ 127, Oct-15 43,255 $ $ 0.60 $ 3.16 $ 136, Nov-15 37,884 $ $ 0.60 $ 2.63 $ 99, Dec-15 11,188 $ $ 0.60 $ 2.81 $ 31, Jan-16 17,405 $ $ 0.60 $ 2.97 $ 51, Feb-16 41,882 $ $ 0.60 $ 2.79 $ 116, Mar-16 35,040 $ $ 0.60 $ 2.31 $ 80, Apr-16 38,040 $ $ 0.60 $ 2.50 $ 95,214.12

22 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 $/Dekatherm Appendix IV $4.000 $3.500 $3.000 $2.500 $2.000 $1.500 $1.000 $0.500 $- Variable Pricing ITS NYMEX LDS (S/Dth) Total Unit Cost ($/Dth)

23 Appendix V Month Usage (Dth) NYMEX LDS (S/Dth) Adder ($/Dth) Total Unit Cost ($/Dth) Total UCF Cost ($) May-15 3,992 $ $ 0.83 $ 3.35 $ 13, Jun-15 3,483 $ $ 0.83 $ 3.65 $ 12, Jul-15 3,820 $ $ 0.83 $ 3.60 $ 13, Aug-15 3,676 $ $ 0.83 $ 3.72 $ 13, Sep-15 4,216 $ $ 0.83 $ 3.47 $ 14, Oct-15 4,200 $ $ 0.83 $ 3.39 $ 14, Nov-15 4,783 $ $ 0.83 $ 2.86 $ 13, Dec-15 4,638 $ $ 0.83 $ 3.04 $ 14, Jan-16 5,025 $ $ 0.83 $ 3.20 $ 16, Feb-16 5,357 $ $ 0.83 $ 3.02 $ 16, Mar-16 4,810 $ $ 0.83 $ 2.54 $ 12, Apr-16 4,510 $ $ 0.83 $ 2.73 $ 12,325.83

24 Appendix VI Month ITS Volume (Dth) NCTS Volume Current ITS Proposed ITS Current NCTS Proposed NCTS (Dth) Adder Adder Adder Adder Savings Jun-16 40,734 4,039 $ $ $ $ $ 1, Jul-16 41,703 3,539 $ $ $ $ $ 1, Aug-16 38,241 3,625 $ $ $ $ $ 1, Sep-16 39,300 3,871 $ $ $ $ $ 1, Oct-16 43,255 4,265 $ $ $ $ $ 1, Total $ 5,