North East Heat & Light Co West Main Road North East, Pa

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North East Heat & Light Co 10700 West Main Road North East, Pa. 16428 Phone 814-725-4302 Fax 814-725-8427 October?, 2014 Pennsylvania Public Utility Commission P. O. Box 3265 Harrisburg, PA 17120 p. OCT.? ATTN. Ms. Rosemary Chiavetta, Secretary ^ny 's ^P^Mix, Dear Ms. Chivetta: Enclosed please find six (6) copies of pages to GAS Pa P.U.C. No.12 Supplement No. 135 to become effective on November 1 st, 2014. This tariff decreases rates submitted to the Commission in it annual gas cost rate filing at Docket # M-2014-2446325. Please direct these copies to the appropriate bureaus. Any questions on this filing may be directed to myself at (814) 725-5331.. Very truly yours. John O. Graham, General Manager Enclosures: 6 copies Gas Pa. P.U.C. No.12 Supplement No. 135.

Supplement No. 135 to Gas-PA P.U.C. No. 12 NORTH EAST HEAT & LIGHT COMPANY RATES AND RULES GOVERNING THE DISTRIBUTION OF NATURAL GAS IN NORTH EAST, PA. This tariff Changes rates to all customers as prescribed by Rule IV of this tariff. Issued October 7th, 2014 Effective for all bills rendered on or after November V 1,2014

NORTH EAST HEAT AND LIGHT COMPANY North East. PA. Supplement No. 135 to Gas-PA P. U. C. No. 12 Ninety-eighth Revised Page No. 2 Ninety-Seventh Page No. 2 LIST OF CHANGES MADE BY TfflS TARIFF Changes: This Tariff Supplement changes rates to Residential, Commercial, Large Commercial, Industrial and Large Industrial rate classes, in accordance with rule TV, Gas Cost Rate. The Company's Gas Cost Rate calculations were filed with the Commission on October 2 Ild, 2014 at Docket # M-2014-2446325. These rates were amended to reduce over collections and reflect a lower purchased cost of gas. Issued October 7th, 2014 Effective for all bills rendered on or after November l s i,2014

NORTH EAST HEAT AND LIGHT COMPANY North East PA. Supplement No. 135 to Gas-PA P. U. C. No. 12 Ninety-eighth Revised Page No. 3 Ninety-Seventh Page No. 3 TABLE OF CONTENTS 1 Supplement 135 2 Ninety-Eighth Revised 3 Ninety-Eighth Revised 4 Eightieth Revised 4-A Sixty-Ninth Revised 4-B Seventh Revised 4-C Ninth Revised 4-D Fifth Revised 4-E Tenth Revised 4-E (1) Third Revised 4-F Third Revised 4-G First Revised 4-H First Revised 4-H-(l) Original 4-1 First Revised 4-J Original RULES AND REGULATIONS 5-Athru5-F Original! 6 Sixth Revised 6 Sixth Revised IV Gas Cost Rate 7 Nineteenth Revised 8 Forty-Ninth Revised 9 Fourth Revised 10 thru 12 Canceled V Conservation Requirement, New Customers. 13 Original 14 Original 15 Original 16 Fifth Revised Issued October 7th, 2014 Effective for all bills rendered on or after November 1

Supplement'No. 134 to Gas - PA P. U. C. No. 12 Eightieth Revised Page No. 4 NORTH EAST HEAT AND LIGHT COMPANY North East. PA. Seventeenth Page No. 4 1. Rate R - Residential Customers SCHEDULE OF RATES A A. Availability: This rate applies to all residential customers in North East Township. residential customer is a single family dwelling or unit using gas for domestic purposes. B. RateR The Customer Charge is $ 8.50 per month per meter AU usage is subject to the Cost of Gas Charge: $.4441 perccf (C) All usage is subject to the "E Factor" (refund) of: ($.0194) per CCF (C) All Usage is subject to the Delivery Charge of: $.1478 per CCF C. G.C.R. Service under this rate is subject to the Company's Gas Cost Rate as described in IV, this Tariff. The GCR charge is: $.0278 per CCF (C) D. The customer charge does not include any gas. 2. Rate C - Commercial Customers A. Availability: Within the Township of North East, for gas used in commercial or nonmanufacturing activities and for use in office facilities and institutions. Included are single meter services to two or more family dwelling units. B. Rate C The Customer Charge is: Small (Under 400 cu. ft./hr. Demand) $22.00 per month per meter Large (Over 400 cu. ft./hr. Demand) $44.00 per month per meter All usage is subject to the Cost of Gas Charge: $.4441 per CCF (C) All usage is subject to the "E Factor" (refund) of: ($.0194) per CCF (C) All Usage is subject to the Delivery Charge of: $.1435 per CCF C. G.C.R. Service under this rate is subject to the Company's Gas Cost Rate as described in IV, this Tariff.. The GCR charge is: $$.0278 per CCF (C) D. The customer charge does not include any gas. (C) Denotes change Issued October 7th, 2014 Effective for all bills rendered on or after November l s [,2014

NORTH EAST HEAT AND LIGHT COMPANY North East, PA. Supplement No. 135 to Gas-PAP. U. C. No. 12 Sixty-Ninth Revised Page No. 4-A Sixtv-Eighth Page No. 4-A SCHEDULE OF RATES (Continued) 3. Rate I - Industrial Customers A. Availability: This service applies within the Borough and Township of North East, for industrial use and for processes in which unfinished products or raw materials are converted into products of other forms. This includes usage for generation of electrical power. B. Rate I: The Customer Charge is: Small (Under 400 cu. ft./hr. Demand) $22.00 per month per meter Large (Over 400 cu. ft./hr. Demand) $ 117.00 per month per meter All usage is subject to the Cost of Gas Charge of: All usage is subject to the "E Factor" (refund) of: All Usage is subject to the Delivery Charge of: $.4441 per CCF (C) ($.0194) per CCF (C) $.1464 per CCF C. G.C.R. Service under this rate is subject to the Company's Gas Cost Rate as described in IV, this Tariff.. The GCR charge is: $.0278 per CCF (C) D. The customer charge does not include any gas. 4. Take or Pay Surcharge Take or Pay Surcharge is 0.00/mcf (C) Denotes Change Issued October 7th, 2014 Effective for all bills rendered on or after November 1 st,2014

Supplement No. 135 to Gas-PA. P.U.C. No. 12 Ninteenth Revised Page No. 7 NORTH EAST HEAT & LIGHT COMPANY North East. Pa. Eighteenth Revised Page No. 7 IV GAS COST RATE Provision for Gas Cost Rate The Gas Cost Rate shall be $ 0.0278 CCF (100 cubic feet) of gas supplied under Rate (C) Schedules Rate R: Residential Customers Rate C: Commercial Customers Rate I: Industrial Customers Rate IS: Industrial Customers - Large Volume Capacity Computation and Application of Gas Cost Rate The Gas Cost Rate shall be computed to the nearest one-hundredth cent (0.01 ) in accordance with the formula set forth below: GCR- (C-E ) -B x (1) (S) } (1-T) Each Gas Cost Rate so computed shall be applied to customers' bills for a one year period during the billing periods of November through October; provided, however, that such rate may be revised on an interim basis upon determination that the effective rate will result in material over or under collections if not revised. Such interim change shall become effective on one days notice. This filing of the company's preliminary annual gas cost rate effective during the billing periods of November through October shall be submitted to the Commission by September 2 of each year, 60 days prior to the November 1 effective date. The filing of the company's final filing, together with revisions to data in the preliminary filing, shall be submitted to the Commission by October 2 of each year, 30 days prior to the November 1 effective date. Definitions "GCR" - Gas Cost Rate determined to the nearest one-hundredths cent (0.010 ) to be applied to each ccf of gas supplied under Rates Schedules: Rate R: Rate C: Rate I: Rate IS: Residential Customers Commercial Customers Industrial Customers Industrial Customers - Large Volume Capacity "C" - A number of dollars determined as follows: (a) for all types of purchased gas, project the cost for each purchase (adjust for net current gas stored) for the computation year plus (b) the arithmetical sum of (1) the projected book value of noncurrent gas at the beginning of the computation year minus (2) the projected book value of non current gas at the end of the computation year. "E" - Experienced net over collection or under collection of the cost of purchased gas as of the end of the twelve month period ending with the August billing period, including interest. (C) Denotes Change Issued October 7th, 2014 Effective for all bills rendered on or after November 1 st,2014

Supplement No. 135 to Gas-PA. P.U.C. No. 12 Forty-Ninth Revised Page No. 8 NORTH EAST HEAT & LIGHT COMPANY North East. Pa. Forty-Eighth Revised Page No. 8 Definitions (Continued) IV. GAS COST RATE (CONTINUED') Interest shall be computed monthly at the appropriate rate as provided for in Section 308(D) of the Public Utility Law from the month the over or under collection occurs to the effective month such over collection is refunded or such under collection is recouped. Customers shall not be liable for interest on net under collections. Additionally, supplier refunds received prior to the end of the August billing period will be included in the calculation of "E" with interest added at the annual rate of six percentum (6%) calculated in accordance with the foregoing procedure beginning with month such refund is received by the Company. "S"~Projected MCF of gas to be billed to customers during the computation year. "B"--Base cost of purchased gas of $.4247 per CCF. (C) The base cost is the portion of purchased gas costs included in the base rate charge of Rate Schedules. Rate R: Rate C: Rate I: Residential Customers Commercial Customers Industrial Customers The base cost shall be adjusted at the time of the annual gas cost rate filing to include at least ninety percent (90%) of the Company's experienced gas rates in effect as of the end of the August billing period, plus such portion of the projected gas purchase costs as the commission shall permit. "I" The State Gross Receipts tax rate, expressed as a decimal. For computation of the gas cost rate, the tax rate shall be the one in effect during the gas cost rate's application period. "Purchased Gas"--The volume of gas purchased by the Company that is delivered to the Company's customers, plus such portion of the Company-used and unaccounted for gas as the Commission permits, including, but not limited to natural gas. "Computation Year"~ThefiscalyearfromNovember to October. (C) Denotes Change Issued October 7th, 2014 Effective for all bills rendered on or after November 1 st,2014

SSB PRESS FIRMLY TO SEAL D D * M A mi u F DATE OF DELIVERY SPECIFIED^ ^p^oii 7 "^ r y USPS TRACKING INCLUDED* INSURANCE INCLUDED* ^ 1 PICKUP AVAIL g^* UNITEDSTATES POSTAL SERVICES * Domestic only USPS TRACKING # PRESS FIRMLY TO SEAL S OI IS. <D no R O ; PRIORITY MAIL UNITED STATES POSTAL SERVICE From N o r t h E a s t H e a t & L i g h t C o " 10700 West Main Road North East, PA 16428-2228 TO UNITED ST/iTSS POSTAL sen vice 1021 17120 For Domestic and International Use U.S. POSTAGE PAID NORTH EAST.PA 16428 OCT 07.'H AMOUNT $5.75 00037683-15 WHEN USED INTERNATK A CUSTOMS DECLARE LABEL MAY BE REQUI. 9114 9999 4423 8262 3980 48 O K 15 3 cn 5E Label 228, January 2008 PS000010000H EP14F July 2013 OD:12.Sx 9.5 VISIT US ATUSPS.C0M c ORDER FREE SUPPLIES ONLINE UNITEDSTATES POSTAL SERVICE.