May 21, 2021 INDIANA UTILITY REGULATORY COMMISSION

STATE OF INDIANA INDIANA UTILITY REGULATORY COMMISSION

VERIFIED PETITION OF INDIANA GAS COMPANY, INC. D/B/A CENTERPOINT ENERGY INDIANA NORTH FOR (1) APPROVAL OF AN ADJUSTMENT TO ITS GAS SERVICE RATES THROUGH ITS CSIA RATE SCHEDULE, (2) AUTHORITY TO DEFER 20% OF THE APPROVED EXPENDITURES FOR RECOVERY IN PETITIONER’S NEXT GENERAL RATE CASE, AND (3) APPROVAL OF PETITIONER'S UPDATED 7-YEAR PLAN, INCLUDING ACTUAL CAPITAL EXPENDITURES AND CSIA COSTS, ALL PURSUANT TO IND. CODE CHPT. 8-1-8.4 AND 8-1-39 AND THE COMMISSION'S ORDER IN CAUSE NO. 44429

) ) ) ) ) ) ) ) ) ) ) ) )

CAUSE NO. 44430 TDSIC-14

INDIANA GAS COMPANY, INC. D/B/A CENTERPOINT ENERGY INDIANA NORTH SUBMISSION OF CORRECTED DOCUMENTS

Petitioner Indiana Gas Company, Inc. d/b/a CenterPoint Energy Indiana North (“Petitioner”

or “CEI North”), by counsel, respectfully submits to the Indiana Utility Regulatory Commission the

following corrections to reflect removal of costs within TMOD Project 3215 in Revised Attachment

SAH-4 and Revised Attachment SAH-4 (Confidential) and TDSIC Project 222 in Revised

Attachment SAH-8 and Revised Attachment SAH-8 (Confidential) to its Direct Testimony in this

Cause:

• Petitioner’s Exhibit No. 1, Revised Attachments SAH-2, SAH-3, SAH-4

(Confidential), SAH-8 (Confidential), SAH-9, SAH-12 and SAH-13

• Petitioner’s Exhibit No. 3 (Mathews), Revised Pages 5, 6, 7, 13 and 14

• Petitioner’s Exhibit No. 3, Revised Attachments JRM-1, JRM-2, JRM-3

• Petitioner’s Exhibit No. 4, Revised Attachments KJT-1 and KJT-2

Redline copies of the corrected testimony (Exhibit A) and clean copies of corrected

testimony and attachments (Exhibit B) are attached hereto. Petitioner will include clean copies in

the court reporter copies into evidence at the hearing.

THorn

New Stamp

Respectfully submitted,

Justin C. Hage Indiana Atty. No. 33785-32

CERTIFICATE OF SERVICE

The undersigned hereby certifies that a copy of the foregoing was served by electronic

mail upon the Indiana Office of Utility Consumer Counselor, PNC Center, 115 West Washington

Street, Suite 1500 South, Indianapolis, Indiana, 46204, [email protected].

Dated: May 21, 2021

Justin C. Hage

Indiana Atty. No. 33785-32

mailto:[email protected]

EXHIBIT A

Petitioner’s Exhibit No. 3 Cause No. 44430-TDSIC-14

CEI North REVISED Page 5 of 15

1

2

III. REVENUE REQUIREMENT 3

4

Q. Please generally explain how the Compliance and TDSIC Component revenue 5

requirements were calculated in this filing. 6

CEI North calculated a revenue requirement for the Compliance and TDSIC Components 7

separately for costs incurred through December 31, 2020. Petitioner’s Exhibit No. 3, 8

Attachment JRM-2 provides schedules 1-10 for the Compliance Component and Petitioner’s 9

Exhibit No. 3, Attachment JRM-3 provides schedules 1-9 for the TDSIC Component, with both 10

summarized on Petitioner’s Exhibit No. 3, Attachment JRM-1 as the total CSIA revenue 11

requirement. The revenue requirement for both the Compliance and TDSIC Components, 12

shown on Schedule 1, includes the return on new capital investments, incremental property 13

tax and depreciation expenses, as well as recovery of the regulatory assets recorded through 14

the deferral of O&M expense, the interim deferral of depreciation expense, and PISCC. CEI 15

North then multiplied the total annual revenue requirement by 80% to achieve the recoverable 16

portion of the revenue requirement on Schedule 4, line 17, for TDSIC-14. The total 17

recoverable amounts are utilized to derive semi-annual CSIA rates based on annualized 18

billing determinants, as described by Witness Tieken. 19

20

Q. Please describe Petitioner’s Exhibit No. 3, Attachment JRM-1, Schedule 1. 21

Petitioner’s Exhibit No. 3, Attachment JRM-1, Schedule 1 includes the combined CSIA 22

revenue requirement. Schedule 1 includes the total, 20% deferred, and 80% recoverable 23

revenue requirement for each of the Compliance and TDSIC Components, as calculated on 24

Schedule 1 of Petitioner’s Exhibit No. 3, Attachments JRM-2 and JRM-3, respectively. The 25

components are added together to derive a CSIA revenue requirement subtotal. For TDSIC-26

14, the total revenue requirement, prior to the inclusion of past variances, is $98,412,452 of 27

which $78,729,962 (80%) will be included for recovery in the CSIA, and $19,682,490 (20%) 28

will be deferred for recovery in CEI North’s pending base rate case, Cause No. 45468. 29

30

The total on line 3, column C of Schedule 1 is used to derive CSIA rates and charges. 31

32

Q. Are there any variances in this TDSIC-14 filing? 33

Deleted: 98,427,39234

Deleted: 78,741,91435 Deleted: 19,685,47836

A.

A.



Yes. The reconciliation period for TDSIC-14 is July through December 2020 (TDSIC-12). 1

Petitioner’s Exhibit No. 3, Attachment JRM-1, Schedule 2 reflects the calculation of variances 2

for this period. The total under-recovery variance included for recovery in TDSIC-14 is 3

$3,906,462. 4

5


Page 1 of Schedule 2 calculates the over or under-recovery variance by comparing actual 7

recoveries, exclusive of Indiana Utility Receipts Tax (“IURT”), to the approved recoveries from 8

TDSIC-12 for the same time period. Actual recoveries represent billed CSIA revenues from 9

the Company’s customer billing system by month and by Rate Schedule for this period. For 10

TDSIC-14, the reconciliation and approved recovery period is July through December 2020, 11

as indicated Petitioner’s Exhibit No. 4 in TDSIC-121. The over or under-recovery variance is 12

determined by month and by Rate Schedule. The specific identification of the variance by 13

Rate Schedule ensures that customers are paying for only the costs allocated to and approved 14

for recovery from that Rate Schedule. Specifically, for Rate 210 (Residential Sales Service), 15

which has a fixed CSIA charge per month as approved in the 44429 Order, the variance 16

attributed to non-residential Rate Schedules due to fluctuations in sales should not be the 17

responsibility of Residential customers. 18

19

As explained in greater detail by Witness Tieken, the specific variance by Rate Schedule will 20

be included in the rate derivation for each Rate Schedule and recovered over the six-month 21

period July through December 2021. 22

23

Q. How were the approved recoveries calculated for the TDSIC-14 reconciliation period 24

(July 2020 through December 2020)? 25

A. As reflected on page 2 of Schedule 2, the approved recoveries for July through December 26

2020 represent the TDSIC-12 approved amounts as noted in TDSIC-12 Attachment JCS-4, 27

Schedule 3. 28

29


A. Schedule 4 shows the cumulative revenue requirement calculation used for the CSIA, 31

1 Cause No. 44430-TDSIC-12, Petitioner’s Exhibit No. 4, Attachment JCS-4, Schedule 3, Page 1

Deleted: over32

Deleted: (33 Deleted: )34

A.

-------------::====================~ ------<::::_ :----------------:

A.



summing the Compliance Component from Attachment JRM-2, Schedule 1 and the TDSIC 1

Component on Attachment JRM-3, Schedule 1. This schedule captures how the $78,729,962 2

proposed for recovery in the CSIA will be prioritized, with the first dollar representing the full 3

return (line 8) and the remaining amounts covering a portion of the incremental expenses (line 4

14). 5

6

Q. Why is the Company including Attachment JRM-1, Schedule 4 with its exhibits? 7

As explained in the Company’s TDSIC-1 rebuttal testimony, this schedule is being included to 8

explain the accounting that will result with the implementation of the CSIA rates and charges, 9

which is required to ensure the Company receives the return on its investments as granted by 10

the applicable Compliance and TDSIC Statutes in accordance with Financial Accounting 11

Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 980. This exhibit 12

has been a recurring schedule in each of the Company’s future TDSIC filings. 13

14

Q. Does the accounting prioritization presented on this schedule impact the amount 15

recoverable in the Company’s CSIA or the amount deferred for future base rate 16

recovery? 17

No. The amounts included for recovery in the CSIA are and will continue to represent an 18

amount equal to 80% of the total annual revenue requirement. The remaining amount equal 19

to 20% of the total annual revenue requirement is the amount deferred for recovery in the 20

pending base rate case, Cause No. 45468. The manner of recovery set forth in the schedule 21

is required by accounting rules to recognize the full return on investment. 22

23

Q. Please describe Schedule 1 (Revenue Requirement) of Petitioner’s Exhibit No. 3, 24

Attachments JRM-2 and JRM-3. 25

This schedule is the calculation of the proposed revenue requirement CEI North seeks to 26

recover in this TDSIC-14 filing. The revenue requirement calculation is divided on this 27

schedule between the “Return on New Capital Investment”, which calculates the pre-tax return 28

on total net new investment (lines 1 through 8), the “Incremental Expenses”, which calculates 29

the recoverable expenses, both projected and amortized from previously deferred balances 30

(lines 9 through 14), and the netting of margins from former Snow and Ogden customers (line 31

15), as discussed later in my testimony. All items on this schedule are supported by the 32

following schedules and are recoverable as eligible costs under the Order. 33

Deleted: 78,741,91434

A.

A.

A.



North will defer $7,299,719 for the Compliance Component and $1,917,188 for the TDSIC 1

Component during the semi-annual period (July through December 2021), as reflected on line 2

14 of Schedule 7. 3

4

Q. What is the balance of the 20% Deferred Revenue Requirement recorded through 5

December 31, 2020? 6

As noted on Schedule 7, lines 1 through 12, the total deferred revenue requirement through 7

December 31, 2020 is $47,828,361 for the Compliance Component and $15,452,556 for the 8

TDSIC Component, with an additional $7,714,986 (line 13) for the Compliance Component 9

and $2,207,396 (line 13) for the TDSIC Component to be recorded for January through June 10

2021 (TDSIC-13 Rate Effective Period), and an additional $7,299,719 (line 14) for the 11

Compliance Component and $1,917,188 (line 14) for the TDSIC Component to be recorded 12

for July through December 2021 (TDSIC-14 Rate Effective Period). 13

14

Q. Please describe Schedule 8 (Amortization of Deferred Incremental O&M Expense) of 15

Petitioner’s Exhibit No. 3, Attachment JRM-2. 16

This schedule calculates the amortization of deferred O&M expense included for recovery in 17

the Compliance Component revenue requirement. As approved in the Order, the deferred 18

O&M expense balance represents the cumulative expenses incurred through December 31, 19

2020 but not yet recovered or approved to be recovered in the CSIA. The deferred balance, 20

less amounts directly amortized for recovery in prior CSIA filings, will be amortized and 21

recovered over twelve (12) months. 22

23

Line 1 reflects the balance of deferred incremental O&M expenses from prior TDSIC filings2. 24

Line 2 supports the deferred incremental O&M expenses for the current TDSIC period of July 25

through December 2020 (from Petitioner’s Exhibit No. 2, Attachment SJV-2). Line 3 reflects 26

the calculated ending deferred balance as of December 31, 2020, before the inclusion of the 27

expected recoveries from TDSIC-13. Line 4 reflects the expected recoveries minus the 28

variance from TDSIC-13 for the period January through June 2021. This schedule, specifically 29

2 As approved in Cause No. 44429, any remaining over or under recovery variance from the Pipeline Safety Adjustment (once discontinued) would be recoverable in the Compliance Component of the CSIA (Cause No. 44430, Petitioner’s Exhibit No. SEA-1). The total deferred balance includes this adjustment, effective with TDSIC-7.

Deleted: 7,300,10130 Deleted: 1,918,19631

Deleted: 7,300,10132

Deleted: 1,918,19633

A.

-------------:====================='.

A.



the total on line 5, supports line 11 of the revenue requirement calculation on Schedule 1. 1

2

Q. Please describe Schedule 8 (2% TDSIC Annual Retail Revenue Cap Test) of Petitioner’s 3

Exhibit No. 3, Attachment JRM-3. 4

Schedule 8 compares the increase in the TDSIC Component revenue requirement to the prior 5

12-month retail revenues for CEI North, to ensure that the amounts included for recovery in 6

the CSIA adhere to the statutory requirements. As defined in the TDSIC Statute, “the 7

commission may not approve a TDSIC that would result in an average aggregate increase in 8

a public utility’s total retail revenues of more than two percent (2%) in a twelve (12) month 9

period.” (Ind. Code § 8-1-39-14(a)). The increase in the TDSIC Component revenue 10

requirement is calculated by taking the recoverable TDSIC Component revenue requirement 11

(line 17 of Attachment JRM-3, Schedule 1) in the current CSIA, less the prior recoverable 12

portion of the TDSIC Component revenue requirement in the prior CSIA. This amount is 13

compared to 2% of the retail revenues from the prior 12-month period. "Retail revenues" used 14

in this calculation are calculated consistent with CEI North’s Operating Revenues, inclusive of 15

CSIA revenues, from the GCA NOI earnings test. The TDSIC Component revenue 16

requirement reflected on Schedule 8 does not exceed 2% of retail revenues during the 17

previous 12 months. 18

19

Q. Please describe Schedule 9 (NOI Adjusted for GCA Earnings Test) of Petitioner’s 20

Exhibit No. 3, Attachments JRM-2 and JRM-3. 21

In accordance with the Order, CEI North will adjust its statutory NOI earnings test by 22

increasing its authorized NOI by incremental earnings from approved CSIA filings. This 23

calculates the after-tax return on investment that will be added to the authorized NOI by 24

multiplying the net new capital investment from line 6 of Attachments JRM-2 and JRM-3, 25

Schedule 1 by the after-tax WACC on line 5 of Schedule 4, Page 1. Effective with the 26

approved rates in this Cause, CEI North will adjust its authorized NOI by $33,406,805 for the 27

Compliance Component and $10,428,373 for the TDSIC Component, as denoted on line 3 of 28

Schedule 9 of Petitioner’s Exhibit No. 3, Attachments JRM-2 and JRM-3, respectively. 29

30

Q. CEI North filed a petition on November 7, 2014 in Cause No. 44563 requesting a CPCN 31

to provide service to the area previously served by Snow & Ogden, and recovery of the 32

project costs within the CSIA mechanism. Please summarize the Commission’s order. 33

Deleted: JSC34

Deleted: 33,409,05935

Deleted: 10,433,56936

A.

A.

..__-------- ~--------~

--------------:==================='.

EXHIBIT B



1

2

III. REVENUE REQUIREMENT 3

4

Q. Please generally explain how the Compliance and TDSIC Component revenue 5

requirements were calculated in this filing. 6

CEI North calculated a revenue requirement for the Compliance and TDSIC Components 7

separately for costs incurred through December 31, 2020. Petitioner’s Exhibit No. 3, 8

Attachment JRM-2 provides schedules 1-10 for the Compliance Component and Petitioner’s 9

Exhibit No. 3, Attachment JRM-3 provides schedules 1-9 for the TDSIC Component, with both 10

summarized on Petitioner’s Exhibit No. 3, Attachment JRM-1 as the total CSIA revenue 11

requirement. The revenue requirement for both the Compliance and TDSIC Components, 12

shown on Schedule 1, includes the return on new capital investments, incremental property 13

tax and depreciation expenses, as well as recovery of the regulatory assets recorded through 14

the deferral of O&M expense, the interim deferral of depreciation expense, and PISCC. CEI 15

North then multiplied the total annual revenue requirement by 80% to achieve the recoverable 16

portion of the revenue requirement on Schedule 4, line 17, for TDSIC-14. The total 17

recoverable amounts are utilized to derive semi-annual CSIA rates based on annualized 18

billing determinants, as described by Witness Tieken. 19

20


Petitioner’s Exhibit No. 3, Attachment JRM-1, Schedule 1 includes the combined CSIA 22

revenue requirement. Schedule 1 includes the total, 20% deferred, and 80% recoverable 23

revenue requirement for each of the Compliance and TDSIC Components, as calculated on 24

Schedule 1 of Petitioner’s Exhibit No. 3, Attachments JRM-2 and JRM-3, respectively. The 25

components are added together to derive a CSIA revenue requirement subtotal. For TDSIC-26

14, the total revenue requirement, prior to the inclusion of past variances, is $98,412,452 of 27

which $78,729,962 (80%) will be included for recovery in the CSIA, and $19,682,490 (20%) 28

will be deferred for recovery in CEI North’s pending base rate case, Cause No. 45468. 29

30

The total on line 3, column C of Schedule 1 is used to derive CSIA rates and charges. 31

32

Q. Are there any variances in this TDSIC-14 filing? 33



Yes. The reconciliation period for TDSIC-14 is July through December 2020 (TDSIC-12). 1

Petitioner’s Exhibit No. 3, Attachment JRM-1, Schedule 2 reflects the calculation of variances 2

for this period. The total under-recovery variance included for recovery in TDSIC-14 is 3

$3,906,462. 4

5


Page 1 of Schedule 2 calculates the over or under-recovery variance by comparing actual 7

recoveries, exclusive of Indiana Utility Receipts Tax (“IURT”), to the approved recoveries from 8

TDSIC-12 for the same time period. Actual recoveries represent billed CSIA revenues from 9

the Company’s customer billing system by month and by Rate Schedule for this period. For 10

TDSIC-14, the reconciliation and approved recovery period is July through December 2020, 11

as indicated Petitioner’s Exhibit No. 4 in TDSIC-121. The over or under-recovery variance is 12

determined by month and by Rate Schedule. The specific identification of the variance by 13

Rate Schedule ensures that customers are paying for only the costs allocated to and approved 14

for recovery from that Rate Schedule. Specifically, for Rate 210 (Residential Sales Service), 15

which has a fixed CSIA charge per month as approved in the 44429 Order, the variance 16

attributed to non-residential Rate Schedules due to fluctuations in sales should not be the 17

responsibility of Residential customers. 18

19

As explained in greater detail by Witness Tieken, the specific variance by Rate Schedule will 20

be included in the rate derivation for each Rate Schedule and recovered over the six-month 21

period July through December 2021. 22

23

Q. How were the approved recoveries calculated for the TDSIC-14 reconciliation period 24

(July 2020 through December 2020)? 25

A. As reflected on page 2 of Schedule 2, the approved recoveries for July through December 26

2020 represent the TDSIC-12 approved amounts as noted in TDSIC-12 Attachment JCS-4, 27

Schedule 3. 28

29


A. Schedule 4 shows the cumulative revenue requirement calculation used for the CSIA, 31

1 Cause No. 44430-TDSIC-12, Petitioner’s Exhibit No. 4, Attachment JCS-4, Schedule 3, Page 1



summing the Compliance Component from Attachment JRM-2, Schedule 1 and the TDSIC 1

Component on Attachment JRM-3, Schedule 1. This schedule captures how the $78,729,962 2

proposed for recovery in the CSIA will be prioritized, with the first dollar representing the full 3

return (line 8) and the remaining amounts covering a portion of the incremental expenses (line 4

14). 5

6

Q. Why is the Company including Attachment JRM-1, Schedule 4 with its exhibits? 7

As explained in the Company’s TDSIC-1 rebuttal testimony, this schedule is being included to 8

explain the accounting that will result with the implementation of the CSIA rates and charges, 9

which is required to ensure the Company receives the return on its investments as granted by 10

the applicable Compliance and TDSIC Statutes in accordance with Financial Accounting 11

Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 980. This exhibit 12

has been a recurring schedule in each of the Company’s future TDSIC filings. 13

14

Q. Does the accounting prioritization presented on this schedule impact the amount 15

recoverable in the Company’s CSIA or the amount deferred for future base rate 16

recovery? 17

No. The amounts included for recovery in the CSIA are and will continue to represent an 18

amount equal to 80% of the total annual revenue requirement. The remaining amount equal 19

to 20% of the total annual revenue requirement is the amount deferred for recovery in the 20

pending base rate case, Cause No. 45468. The manner of recovery set forth in the schedule 21

is required by accounting rules to recognize the full return on investment. 22

23

Q. Please describe Schedule 1 (Revenue Requirement) of Petitioner’s Exhibit No. 3, 24

Attachments JRM-2 and JRM-3. 25

This schedule is the calculation of the proposed revenue requirement CEI North seeks to 26

recover in this TDSIC-14 filing. The revenue requirement calculation is divided on this 27

schedule between the “Return on New Capital Investment”, which calculates the pre-tax return 28

on total net new investment (lines 1 through 8), the “Incremental Expenses”, which calculates 29

the recoverable expenses, both projected and amortized from previously deferred balances 30

(lines 9 through 14), and the netting of margins from former Snow and Ogden customers (line 31

15), as discussed later in my testimony. All items on this schedule are supported by the 32

following schedules and are recoverable as eligible costs under the Order. 33



North will defer $7,299,719 for the Compliance Component and $1,917,188 for the TDSIC 1

Component during the semi-annual period (July through December 2021), as reflected on line 2

14 of Schedule 7. 3

4

Q. What is the balance of the 20% Deferred Revenue Requirement recorded through 5

December 31, 2020? 6

As noted on Schedule 7, lines 1 through 12, the total deferred revenue requirement through 7

December 31, 2020 is $47,828,361 for the Compliance Component and $15,452,556 for the 8

TDSIC Component, with an additional $7,714,986 (line 13) for the Compliance Component 9

and $2,207,396 (line 13) for the TDSIC Component to be recorded for January through June 10

2021 (TDSIC-13 Rate Effective Period), and an additional $7,299,719 (line 14) for the 11

Compliance Component and $1,917,188 (line 14) for the TDSIC Component to be recorded 12

for July through December 2021 (TDSIC-14 Rate Effective Period). 13

14

Q. Please describe Schedule 8 (Amortization of Deferred Incremental O&M Expense) of 15

Petitioner’s Exhibit No. 3, Attachment JRM-2. 16

This schedule calculates the amortization of deferred O&M expense included for recovery in 17

the Compliance Component revenue requirement. As approved in the Order, the deferred 18

O&M expense balance represents the cumulative expenses incurred through December 31, 19

2020 but not yet recovered or approved to be recovered in the CSIA. The deferred balance, 20

less amounts directly amortized for recovery in prior CSIA filings, will be amortized and 21

recovered over twelve (12) months. 22

23

Line 1 reflects the balance of deferred incremental O&M expenses from prior TDSIC filings2. 24

Line 2 supports the deferred incremental O&M expenses for the current TDSIC period of July 25

through December 2020 (from Petitioner’s Exhibit No. 2, Attachment SJV-2). Line 3 reflects 26

the calculated ending deferred balance as of December 31, 2020, before the inclusion of the 27

expected recoveries from TDSIC-13. Line 4 reflects the expected recoveries minus the 28

variance from TDSIC-13 for the period January through June 2021. This schedule, specifically 29

2 As approved in Cause No. 44429, any remaining over or under recovery variance from the Pipeline Safety Adjustment (once discontinued) would be recoverable in the Compliance Component of the CSIA (Cause No. 44430, Petitioner’s Exhibit No. SEA-1). The total deferred balance includes this adjustment, effective with TDSIC-7.



the total on line 5, supports line 11 of the revenue requirement calculation on Schedule 1. 1

2

Q. Please describe Schedule 8 (2% TDSIC Annual Retail Revenue Cap Test) of Petitioner’s 3

Exhibit No. 3, Attachment JRM-3. 4

Schedule 8 compares the increase in the TDSIC Component revenue requirement to the prior 5

12-month retail revenues for CEI North, to ensure that the amounts included for recovery in 6

the CSIA adhere to the statutory requirements. As defined in the TDSIC Statute, “the 7

commission may not approve a TDSIC that would result in an average aggregate increase in 8

a public utility’s total retail revenues of more than two percent (2%) in a twelve (12) month 9

period.” (Ind. Code § 8-1-39-14(a)). The increase in the TDSIC Component revenue 10

requirement is calculated by taking the recoverable TDSIC Component revenue requirement 11

(line 17 of Attachment JRM-3, Schedule 1) in the current CSIA, less the prior recoverable 12

portion of the TDSIC Component revenue requirement in the prior CSIA. This amount is 13

compared to 2% of the retail revenues from the prior 12-month period. "Retail revenues" used 14

in this calculation are calculated consistent with CEI North’s Operating Revenues, inclusive of 15

CSIA revenues, from the GCA NOI earnings test. The TDSIC Component revenue 16

requirement reflected on Schedule 8 does not exceed 2% of retail revenues during the 17

previous 12 months. 18

19

Q. Please describe Schedule 9 (NOI Adjusted for GCA Earnings Test) of Petitioner’s 20

Exhibit No. 3, Attachments JRM-2 and JRM-3. 21

In accordance with the Order, CEI North will adjust its statutory NOI earnings test by 22

increasing its authorized NOI by incremental earnings from approved CSIA filings. This 23

calculates the after-tax return on investment that will be added to the authorized NOI by 24

multiplying the net new capital investment from line 6 of Attachments JRM-2 and JRM-3, 25

Schedule 1 by the after-tax WACC on line 5 of Schedule 4, Page 1. Effective with the 26

approved rates in this Cause, CEI North will adjust its authorized NOI by $33,406,805 for the 27

Compliance Component and $10,428,373 for the TDSIC Component, as denoted on line 3 of 28

Schedule 9 of Petitioner’s Exhibit No. 3, Attachments JRM-2 and JRM-3, respectively. 29

30

Q. CEI North filed a petition on November 7, 2014 in Cause No. 44563 requesting a CPCN 31

to provide service to the area previously served by Snow & Ogden, and recovery of the 32

project costs within the CSIA mechanism. Please summarize the Commission’s order. 33

Petitioner's Exhibit No. 1

Revised Attachment SAH-2

Cause No. 44430-TDSIC-14

CEI North

Page 1 of 1

January 1, 2020-

June 30, 2020

July 1, 2020 -

December 31, 2020 2020 Annual

Compliance Investment Bare Steel and Cast Iron Actual Spend $21,231,359 $21,795,025 $43,026,384

Transmission Modernization Actual Spend $8,191,403 $13,006,592 $21,197,995

Distribution Modernization Actual Spend $4,385,370 $7,819,691 $12,205,061

Storage Modernization Actual Spend $559,577 $665,457 $1,225,035

Actual spend - Total $34,367,709 $43,286,766 $77,654,475

Bare Steel and Cast Iron Planned Spend $43,477,265

Transmission Modernization Planned Spend $24,780,792

Distribution Modernization Planned Spend $10,582,537

Storage Modernization Planned Spend $1,851,206

Planned spend as filed 10/1/20 - Total $80,691,799

Variance: Under/(Over) Plan $3,037,324

CEI North

2020 Compliance Plan Investment Summary




CEI North

Page 1 of 1

Funding Category January 1, 2020 -

June 30, 2020

July 1, 2020 -

December 31, 2020 2020 Annual

Transmission $8,191,403 $13,006,592 $21,197,995

Regulator Station $0 $0 $0

Pressure Test $221,827 ($28,157) $193,670

Priority Pipe $346,231 $1,447,593 $1,793,825

Odorizers $0 $0 $0

Casings $1,584 $0 $1,584

ILI Retrofits $5,887,879 $9,700,862 $15,588,741

Valves / Operators / Remote Cntrl $2,265 $0 $2,265

Pressure Monitoring / SCADA / RTU $0 $0 $0

Exposures $0 $0 $0

Obsolete Equipment $162,813 $4,847 $167,660

Shallow Pipe $0 $0 $0

Gas Quality / Conditioning $1,562,449 $1,854,614 $3,417,063

Miscellaneous $6,354 $26,833 $33,187

Distribution $25,616,729 $29,614,716 $55,231,445BS/CI Replacements $21,231,359 $21,795,025 $43,026,384

Inside Meters $0 $0 $0

Casings $1,283,106 $695,543 $1,978,650

Exposures $669,036 $1,885,748 $2,554,785

Ineffectively Coated Steel $1,660,364 $3,989,031 $5,649,395

Vintage Plastic $0 $0 $0

Encroachments $0 $0 $0

Regulator Station $151,854 $391,734 $543,588

Pressure Monitoring / SCADA / RTU $0 $11,107 $11,107

Priority Pipe $241,439 $407,015 $648,453

Non-Commercially Available Pipe Size $20,867 ($112) $20,755

Shallow Pipe $0 $87,530 $87,530

Bridge Crossings $164,278 $87,921 $252,199

Obsolete Equipment $194,425 $264,174 $458,599

Storage $559,577 $665,457 $1,225,035Emergency Response $0 $0 $0

Equipment $524,139 $232,655 $756,793

Pressure Monitoring / SCADA / RTU ($169,967) $52,182 ($117,786)

Well Construction / Remediation $205,406 $380,621 $586,027

Grand Total $34,367,709 $43,286,766 $77,654,475

2020 Compliance Plan Investment Summary by Category

CEI North




CEI North

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Database

Project

Number

Oracle Project Number Project Category Division OC City Project Short Description

Previous

Planned

Year

(10/1/20)

Current

Planned

Year

Previous

Estimate

(10/1/20)

Current

Estimate

Estimate

Variance

($)

Estimate

Variance

(%)

Timing Variance Commentary Estimate Variance Commentary

Current Period

Actual Spend

(7/1/20 -

12/31/2020)

Annual Actual

Spend (1/1/20 -

12/31/2020)

Inception to Date

Actual Spend

(1/1/14 - 12/31/20)

Actual Spend

Variance

($)

Actual Spend

Variance

(%)

In-service?

(Y or N)

Actual Spend Variance Commentary

4291 18202802054012 Valves / Operators / Remote Cntrl

SE Columbus Columbus Grandview 6" Valve Replmt 2018 2018 Y

A number of utilities were not identified until construction began and required an additional week of work by the contractor, inspector, etc. to work around. The utilities identified when construction started, were private electric and fiber facilities, which are not located via one call/911. These utilities were also not identified on available historical records. CEI North became aware of and located the private facilities while on-site for the start of construction and spot holing for other activities.

3890 17202802054024 Priority Pipe NW Lafayette Lafayette8" NW3109 Linden Line Segment 1, 2, and 4 - Replace 12.15 miles of previously reconditioned 1942 and 1947 pipe and replace rectifier

2018 2018 Y

Crawfordsville to Lafayette 12” main: This project’s actual cost exceeded the previous estimate primarily due to encountering rock that was not expected. Soil borings were performed along the route, but the rock was encountered at isolated locations where soil borings were not performed. Field investigation determined the need to replace some of the regulator station inlet piping at multiple locations due to unknown material specification and rebuild two stations where the new line supplies the de-rated existing main. Some costs were incurred due to delays caused by vendor supply issues (e.g. stopple fitting availability). Minimal trailing charges in TDSIC-14 period.

4175 18202802054213 Priority Pipe NW Lafayette RomneyDistribution support project for Linden replacement - Derate parallel Linden 8" transmission pipeline to 60 psig

2018 2018 Y

The project was to support the derate of one 8” HP transmission gas line from high pressure to medium pressure and replacement of a second 8” HP transmission gas line with 12” HP transmission gas line. Additional services were found to be connected to the main to be retired during the field investigation and required extending the medium pressure plastic gas main extension to support the transmission projects. An additional 1700’ of 2” and 4” medium pressure plastic main and 41 services were added to the original scope of work due to the removal of farms taps tied onto the two - 8” HP transmission gas lines.

3078 17202802054022 ILI Retrofits SE Bloomington Bloomington10"/16" Dolan to Needmore - ILI retrofit 24.97 miles of pipeline, pressure test 12.36 miles of pipeline, and two proving tool runs

2018 2018 Y

A new pipeline heater and additional electrical work was required at Needmore Station. The 10" line leaked during hydrotest and a section was required to be replaced. The 10" line and 16" were very dirty and required additional cleaning beyond normal. It was necessary to split the pressure test into 2 segments on the 10" pipeline due to weather concerns which increased construction and inspection labor.

3098 17202802054019 Priority Pipe SE Clarksville Sellersburg12" Holman to Airport Valve Cluster (NS5015) - Replace 1.00 miles of 8" pipeline with 12" pipe due to needed pressure test

2018 2018 YProject was completed on an accelerated schedule to ensure line was back in service for heating season resulting in additional labor charges. Also, portions of project were completed on Time & Material basis (hourly rates) due to work being performed in a heavy industrial area with significant heavy traffic.

3286 17202802054025 ILI Retrofits NW Danville Crawfordsville 16" Mt Tabor to Risner - ILI retrofit 3.76 miles of pipeline, heater replacement, and proving tool run 2018 2018 Y

The existing heater failed over the winter prior to construction start and was not included in the original scope of work. During construction it was determined the filter would need to be replaced due to non-compliance with current codes. Two existing valves failed during startup and were required to be replaced.

4151 18202802054011 Casings SE Martinsville Martinsville Replace 10" pipeline with shorted casing under SR 39 2018 2018 Y

3083 18202802054021 Gas Quality / Conditioning SE Clarksville Crestwood Install filter separator and odorizer at Crestwood PP 2019 2019 Y

Engineering costs exceeded estimate due to complexity of project (more engineering hours were required). Costs for temporary odorizer exceeded the estimate due to extended duration of the project caused by the additional utility conflicts. Other utilities' below ground assets not reflected on station drawings were identified during construction increasing costs for locating and caused some changes to design. Station site is shared by multiple pipelines. As communicated in TDSIC-11, this project was projected to be 30% over estimate for the reasons described.

4088 17202802054016 Miscellaneous SE Clarksville Crestwood Crestwood Station Expansion 2019 2019 Y

3112 18202802054023 Pressure Test NE Anderson Anderson 16" Anderson #2 to Layton Road - Pressure test 0.58 miles 2019 2019 Y Overheads were less than estimated and project contingency amount was not required.

3215 18202802054020 ILI Retrofits SE Clarksville Clarksville16" Applegate Ln. TBS to Holman LP - ILI retrofit 2.69 miles of pipeline, replace rectifier, and proving tool run

2019 2019 Y

3419 18202802054024 Pressure Test NE Muncie New Castle8" Muncie to New Castle - Install 1,600' of 10" pipeline under I-70 and pressure test 0.50 miles of pipeline

2019 2019 Y Material and land costs were much less than estimated. Contingency costs included in the estimate for unknown factors were not necessary.

3033 18202802054030 Gas Quality / Conditioning NW Lafayette Wolcott Install gas chromatograph at Wolcott Storage Field 2019 2019 N

The electrical installation costs for this project were underestimated. The high density of existing underground facilities at the jobsite - not well-documented in historical records and discovered as construction started - which required the use of hydrovac excavation services for a portion of this project which was not anticipated in the estimate. Rain delays also extended the construction duration of the project, increasing T&M costs for portions of the work and inspection costs. Minimal trailing charges in TDSIC-14 period for final equipment connections at the chromatograph building and start up.

3912 18202802054025 Obsolete Equipment NE Muncie New Castle 10" New Castle River Rd Station - Rebuild due to two unsupported regulators 2019 2019 Y

3916 18202802054028 ILI Retrofits SE Clarksville Prospect NS5011 12" Wallace Farms to Longview Beach - Install filter separator connection at launcher 2019 2019 Y

4075 18202802054018 Pressure Test SE Bloomington BloomingtonNS5055 8" Needmore PP to Bloomington South TBS - Pressure test 0.5 miles of pipeline and mitigate (7) pipeline exposures

2019 2019 Y

The length of the HDD and associated cost increased due to additional required depth determined necessary in the field during construction. Additional stopple (gas stopping procedure) field services were required because the sequencing of the work was changed because of delays in acquiring easement. Easement acquisition also increased in costs. Additional costs were also incurred to install an additional stopple fitting to enable removal of a segment for testing - need identified during construction activities. Credit in TDSIC-14 period associated with reimbursement from subcontractor damage to the main during excavation.

CEI NorthCompliance Plan - Transmission Modernization Projects




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Database

Project

Number


Previous

Planned

Year

(10/1/20)

Current

Planned

Year

Previous

Estimate

(10/1/20)

Current

Estimate

Estimate

Variance

($)

Estimate

Variance

(%)


Current Period

Actual Spend

(7/1/20 -

12/31/2020)

Annual Actual

Spend (1/1/20 -

12/31/2020)

Inception to Date

Actual Spend

(1/1/14 - 12/31/20)

Actual Spend

Variance

($)

Actual Spend

Variance

(%)

In-service?

(Y or N)



3508 19202802054017 ILI Retrofits NW Lafayette Lafayette 12" Taylor Pig Trap to Risner Stn. - ILI retrofit 25.83 miles of pipeline 2020 2020 Y

3923 19202802054013 ILI Retrofits NE Muncie Muncie

12" King Station (RS 274) to RS 220 (CR 400 Station) - ILI retrofit 1.69 miles of pipeline and replace 0.40 miles of 8" pipe with 12" pipe between RS 220 and ANR Muncie

2020 2020 Y

4294 18202802054029 ILI Retrofits NW Lafayette Lafayette 16" Taylor to Wolcott - ILI retrofit 28.32 miles of pipeline 2019 2019 Y

3941 19202802054012 Gas Quality / Conditioning SE Franklin Bargersville Install gas chromatograph and filter separator at Bargersville PP 2020 2020 Y Project is complete and trending under estimate, but not all charges have been incurred.

4298 19202802054016 Gas Quality / Conditioning NW Danville Brownsburg Install gas chromatograph at HCJ PP 2020 2020 N

4321 19202802054212 ILI Retrofits SE Clarksville ClarksvilleDistribution support project for Holman to Applegate retrofit - Install 1,242' of 4" PE main to create second feed

2019 2019 Y

3190 19202802054011 ILI Retrofits SE Martinsville Martinsville16" Martinsville to Hindustan - ILI retrofit, replace, and pressure test portions of 9.02 miles of pipeline and install launchers and receivers

2020 2020 Y

4860 19202802054022 Casings NE Muncie Muncie Retire 16" casing on 12" King Station to RS 220 pipeline at CR 400 E 2019 2019 Y

3471 18202802054019 Gas Quality / Conditioning SE Columbus St. Paul Install gas chromatograph at REX PP N/A N/A N

3246 18202802054017 ILI Retrofits NW Danville Lebanon

12" HCJ to Lebanon LP - Install launcher/receiver barrels at two regulator stations and install one distribution support project in preparation for ILI retrofit 11.21 miles of pipeline and proving tool run in a later year

2022 2022 N Actual charges include engineering costs only.

3164 18202802054014 Priority Pipe NW Greencastle GreencastleAirport to US 40 - Replace 3.65 miles of 8" pipeline with 12" pipe due to needed pressure test

N/A N/AProject reprioritized beyond the current Compliance Plan ending in 2020 due to the pipeline not having HCAs

N

3424 18202802054015 Priority Pipe NW Terre Haute Terre Haute 6" Margaret #2 to Texas Gas PP - Replace 200' of pipeline due to unknown grade N/A N/A

Project reprioritized beyond the current Compliance Plan ending in 2020 due to the pipeline not having HCAs

N

3970 18202802054026 Gas Quality / Conditioning SE Franklin Shelbyville Install gas chromatograph at Shelbyville ANR PP N/A N/AProject reprioritized beyond the current Compliance Plan ending in 2020 due to the pipeline not having HCAs

N

3472 15202802054021 Priority Pipe NW Lafayette Wolcott Replace NW3811 N/A N/AProject reprioritized beyond the current Compliance Plan ending in 2020 due to the pipeline not having HCAs

Y

4962 19202802054023 Obsolete Equipment SE Columbus ColumbusReplace existing heater with new 4.0 MM BTU Line Heater at the Columbus North PP Station at 5601 N 200 W, Columbus IN.

2020 2020 Y

4963 20202802054011 Gas Quality / Conditioning NW Lafayette Wolcott Install filter/separators at Wolcott Station, McCormick Station and Purdue TBS 2020 2020 Y

4920 20202802054013 Priority Pipe NW Rockville Bloomingdale Veedersburg NW3120 HCA Replace 2020 2020 Y Construction bids were less than estimated. Engineering and materials were also under the estimate. 3233 20202802054014 Priority Pipe SE Clarksville Clarksville 8" Applegate-Clark HCA Replace 2020 2020 Y5040 19202802054020 Priority Pipe SE Bloomington Unionville 8" Exposure near Unionville 2020 2020 Y

517 19202802054221 ILI Retrofits NW Danville Crawfordsville

Distribution support project for 2021 TMOD 4876 - 12" Taylor to Risner retrofit - Install 575' of 4" PE main to supply services currently on transmission line

2020 2020 Y Construction is complete, but not all charges have been incurred

4886 19202802054222 Miscellaneous NW Lafayette RomneyDistribution support project for 2021 TMOD 12" Taylor to Risner retrofit - Install 695' of 2" PE to retire regulator station

2020 2020 Y Construction is complete, but not all charges have been incurred

4890 19202802054223 Priority Pipe SE Bloomington Martinsville

Distribution support project for TMOD 3190 16" Martinsville to Hindustan retrofit - Install 6,465' of 2" PE and retire 450' of 6" STL to supply services currently on transmission line

2020 2020 Y

3217 TBD ILI Retrofits SE Bloomington Bloomington12" Dolan to Hindustan - ILI retrofit 4.97 miles of pipeline, install launcher/receiver, and proving tool run

N/A N/A N

3031 19202802054213 Obsolete Equipment NE Muncie New CastleRetire Joyner Farms Regulator Station 1645 in pit and install approximately 250' of 2" PE main to feed services

2019 2019 N

4615 TBD ILI Retrofits SE Crawfordsville CrawfordsvilleDistribution support project for Taylor to Risner retrofit - Install 2,100' of 6" PE to replace two services to distribution system

N/A N/A N

4616 TBD ILI Retrofits NE Muncie MuncieDistribution support project for King to ANR Muncie retrofit - Install 250' of 2" PE to create second feed

N/A N/A N

4210 18202802054016/20202802054031 Miscellaneous SE Clarksville Prospect Install building over station equipment at Wallace

Farms - Wallace Farms Electric Service 2021 2021 N Building will not be constructed at the site due to permitting/zoning/adjacent property owner concerns, but electric service to controls and valves will be completed in 2021.

4173 17202802054236 ILI Retrofits NW Crawfordsville Crawfordsville Distribution support project for 16" Mt. Tabor to Risner retrofit - Install 3,000' of 4" PE 2018 2018 Y Project was completed on an accelerated schedule. Also, project was completed on T & M due to work being

performed in a heavy industrial area with significant heavy traffic.

4153 18202802054022 Obsolete Equipment NE Muncie Dunkirk Dunkirk TBS Heater Replacement 2018 2018 Y Project was estimated as a completely new heater installation including piping changes. The new heater was designed to bolt up to the existing piping reducing installation costs.

3167 17202802054020 Pressure Test SE Franklin Bargersville 16" Brooklyn TBS to Shelbyville - Pressure test 15.07 miles of pipeline 2018 2018 Y

Increased actual costs were primarily due to additional work required at Fulmer Station where historical drawings did not correctly indicate the existing piping configuration. CEI North installed a 6” filter at Grassy Creek Station in lieu of 4” that was designed and several additional cleaning/pig runs were required to remove liquids found in the pipeline.




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Project

Number


Previous

Planned

Year

(10/1/20)

Current

Planned

Year

Previous

Estimate

(10/1/20)

Current

Estimate

Estimate

Variance

($)

Estimate

Variance

(%)


Current Period

Actual Spend

(7/1/20 -

12/31/2020)

Annual Actual

Spend (1/1/20 -

12/31/2020)

Inception to Date

Actual Spend

(1/1/14 - 12/31/20)

Actual Spend

Variance

($)

Actual Spend

Variance

(%)

In-service?

(Y or N)



4174 17202802054235 Priority Pipe NW Lafayette Romney Distribution support project for Linden replacement - Install 3,500' of 2" PE 2018 2018 Y

Required relocating of a regulator station because of easement issues was not included in the original design. Installed three additional main extensions to pick up 12 services to be removed from HP main to the MP main. The additional main extensions required acquisition of easement. Existing rocky condition under the creek was not considered in the original design which required a rock cutting machine and equipment, also several of the tie-in locations were deep which required shoring. Additional traffic control was required due to congestion on US231.

3285 16202802054019 Pressure Test SE Bloomington Bloomington 8"/10" Dolan to IU Meter - Pressure test 1.80 miles of pipeline 2017 2017 Y

A casing was found shorted under a RR crossing and required insertion of a new segment of pipe and spacers. Additionally, undocumented fittings on the transmission line required replacement resulting in additional labor and material costs. A mechanical coupling at the Dolan station was found on pressure test, that trapped several pigs. Also had additional legal fees for ROW acquisition and restoration due to flooding.

3475 17202802054026 Pressure Test NW Wolcott Wolcott Wolcott Storage Field - Pressure test 3.50 miles of pipeline 2017 2017 Y

Project costs increased due to scope changes. Original scope was to replace leaking valve. However, once the project was started pipe seam anomalies were identified at four locations in the vicinity and cut outs/replacements were completed.

4205 17202802054029 Priority Pipe NE Lebanon Zionsville 16" HCJ to Zionsville - Replace leaking valve 2018 2018 Y

Project costs increased due to scope changes. Original scope was to replace leaking valve. However, once the project was started pipe seam anomalies were identified at four locations in the vicinity and cut outs/replacements were completed. Additional charges due to attorney fees related to land owner issue/easement issues.

4208 17202802054028 Priority Pipe NW Danville Brownsburg 12" HCJ to Fox - Replace leaking insulator 2017 2017 Y




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Maximo Work Order

NumberOracle Project Number Project Category Division OC City Project Short Description

Previous

Planned

Year

(10/1/20)

Current

Planned

Year

Previous

Estimate

(10/1/20)

Current

Estimate

Estimate

Variance

($)

Estimate

Variance

(%)

Timing Variance Commentary Estimate Variance CommentaryCurrent Period

Actual Spend (7/1/20

-12/31/2020)

Annual Actual Spend

(1/1/20 -12/31/2020)

Inception to Date Actual

Spend

(1/1/14 - 12/31/20)

Actual Spend

Variance

($)

Actual Spend

Variance

(%)

In-service?

(Y or N)


8664431 13592002061213 Public Improvement SE CLARKSVILLE NEW ALBANYIN-NEW ALBANY-2500 BLK CHARLESTOWN RD~RELOCATE

GAS MAIN2023 2023 N

10845148 17573302G61212 Public Improvement NE MUNCIE MUNCIE

IN-MUNCIE-WHEELING AVE - RELOCATE MAIN

2020 2020 Y

The project is complete and was projected to exceed the

estimate by 25% in TDSIC-13, but has since trended to

~10% over estimate. Originally designed to install the gas

main in the grass strip/under the sidewalk west of

Wheeling Ave based on the plans provided by the City’s

contracted engineering firm. The fiber- optic utility

relocated before the gas main and bored in the new line

very close to the proposed gas main location. After much

consideration we decided to install our main in the road

to avoid conflict with the fiber line. This resulted in

increased hard surface removal: asphalt cutting & spoil

removal. As well as hard surface restoration: flowable fill

& concrete cap.

15656560 18595502G61217 Public Improvement NW LAFAYETTE FRANKFORTIN-FRANKFORT-WASHINGTON AVE ~~RELOCATE MAINS DUE

TO ROAD RECONSTRUCTION PROJECT - PHASE 22020 2020 N

15634137 18592002G61213 Public Improvement SE CLARKSVILLE NEW ALBANYIN-NEW ALBANY- MT TABOR ROAD PH 2 - RELOCATE MAINS

DUE TO ROAD IMPROVEMENT PROJECT 2024 2024 N

15438738 17583502G51011 System Improvement SE FRANKLIN GREENWOOD IN-GREENWOOD-SYSTEM IMPROVEMENT ON MULLINIX RD

AND UPRATE OUT OF GRASSY CREEK STATION

2018 2018 YEasements costs were less than estimated - could not

acquire some easements and installed main in public

ROW.

15589827 18595302G51214 System Improvement NW DANVILLE PLAINFIELD

IN-PLAINFIELD-STAFFORD RD AREA 3 UPRATE GAS MAIN

2019 2019 Y

Original estimate assumed obtaining easement for

main installation. Planned easements were not

acquired because of existing landlock forced us to

change the scope of the project and installed the main

in public right of way. Additional 100' of 6" pipe

installed because of the route change.

15589890 18595302G51215 System Improvement NW DANVILLE PLAINFIELDIN-PLAINFIELD-STANLEY RD AREA 2 ELEVATE RETEST GAS

MAIN

2019 2019 Y

Unforeseen utility conflicts caused extra depth main

installation by installing shoring, additional traffic

control needed. Additional spot holes by vac truck

required to identify/locate other utilities.

13807515 17595502G51212 System Improvement NW LAFAYETTEWEST

LAFAYETTEIN-WEST LAFAYETTE - KLONDIKE AREA 1~ELEVATE/RETEST

GAS MAIN

2020 2021

Waiting on IURC decision on design and

uprate procedure in regards to

undocumented test records on steel

main and services. Project completion

anticipated in 2021.

N


LAFAYETTE

IN-WEST LAFAYETTE - KLONDIKE AREA 2~ELEVATE/RETEST

GAS MAIN

2020 2021




main and services. Project completion

anticipated in 2021.

Y

Project duration has been extended due to

complexities of uprate plan/process including

collaboration with the IURC Pipeline Safety Division.

Due to the delays it was necessary to construct a

temporary reg station and 2500' of 4" PE main to

connect two an adjacent system last winter. Field

investigation identified an additional 68 services

beyond the quantity estimated that were retired,

retested, or replaced. Charges in TDSIC-14 period

are for the service replacements. Still waiting for IURC

and PHMSA on uprate guidance.

12626778 17202802G53011 System Improvement SE CLARKSVILLEJEFFERSONVILL

E IN-JEFFERSONVILLE-REBUILD RS #14-34-GTE2019 2019 Y

13758448 18202802G53013 System Improvement NW LAFAYETTE FRANKFORT IN-FRANKFORT-REBUILD STATION 2 2019 2019 Y

15525323 18595302G51212 System Improvement NW DANVILLE PLAINFIELD

IN-PLAINFIELD AREA 1 UPRATE GAS MAIN

2020 2022

Still waiting for IURC and PHMSA on

uprate guidance, possible reschedule the

project to 2022.

Y

The initial charges are related to research, engineering

design and uprate procedure. Also, sewer locating has

been completed along with 59' of 2" PE main installed

with 2 services, and additional scattered service

replacements necessary prior to performing the future

uprate. The original plan to increase the system

operating pressure of the system to improve reliability

has been delayed as the Company and IURC work

through specific requirements for the existing main and

service line testing procedures/requirements. Still

waiting for IURC and PHMSA on uprate guidance,

possible reschedule the project to 2022.

15975625 19595302051011 System Improvement NW DANVILLEZIONSVILLE

WHITESTOWN

IN-ZIONSVILLE-E 300 S - INSTALL PIPE TO CONNECT 421 TO

WHITESTOWN AND ANSON AREA NEAR AMAZON TO PROVIDE

CAPACITY AND DELIVERABILITY TO AREA NORTH AND EAST

OF ZIONSVILLE

2019 2019 Y

The project scope was reduced due to ~800' of main

being installed under rural extension project

18595302044210 eliminating the need to install new

main for this public project.

8073722 14595002G50210 System Improvement NW TERRE HAUTE TERRE HAUTEIN-TERRE HAUTE-CLINTON RD (STOP 15)~~OBSOLETE

EQUIPMENT2020 2020 N

12626874 19592002G51011 System Improvement SE CLARKSVILLE CHARLESTOWN

IN-CHARLESTOWN-INSTALL PIPE TO ENSURE CAPACITY AND

DELIVERABILITY TO RIVER RIDGE AREA

2020 2020 Y

Estimate included costs for anticipated rock at all

locations but only encountered rock at one of the

railroad bores. Estimate also anticipated the three

railroad crossings to be permitted as jack and bore

method. However, RR approved horizontal directional

drill installation method which significantly reduced cost

of the crossings. Project is complete.

13894271 16583502061220 Public Improvement SE FRANKLIN FAIRLAND IN-SHELBYVILLE-FAIRLAND ROAD EXTENSION-MAUSOLEUM

ROAD TO FAIRLAND - RELOCATE MAINS

N/A N/A

Project cancelled due to discussion with

City Engineer - project not likely to

happen within ten years.

N Project cancelled due to discussion with City Engineer -

project not likely to happen within ten years.

13494166 1795502G61219 Public Improvement NW LAFAYETTEWEST

LAFAYETTEIN-WEST LAFAYETTE-LINDBERG RD - RELOCATE MAINS DUE

TO ROAD IMPROVEMENT PROJECT

2020 2021 Work was rescheduled to accommodate

and coordinate with an adjacent project.

N

1230707616583502061228

/18583502G61210Public Improvement SE FRANKLIN GREENWOOD

IN-GREENWOOD-WORTHSVILLE RD ~~FROM US 31 WEST TO

AVERITT ROAD - RELOCATE MAINS DUE TO ROAD WIDENING

PROJECT

2020 2020 Y

The proposed route was changed during the

construction phase due to conflicts with a force

sanitary sewer that was in the way to achieve the

desired depth as originally planned. The new route

eliminated a number of road crossings which reduced

restoration cost


LAFAYETTE

IN-WEST LAFAYETTE-STATE ST ~~SECT 6A - RELOCATE MAIN

AND SERVICES

2018 2018 Y

Actual costs exceeded the estimate due to increased

labor charges to accomplish a very difficult RR

crossing bore. The RR crossing bore was more costly

than estimated due to the close proximity of a large

diameter water main not show on the projects plans

which required additional time, fittings and a much

larger bore pit excavation to accomplish the bore

while maintaining the safety and integrity of both

utilities' facilities. The RR required grouting of the old

main under the tracks which took longer to complete

than estimated. The existing pipe condition at the new

main tie-in had corrosion indications which needed

addressed and increased labor costs.

10240617 16573302061213 Public Improvement NE MUNCIE MUNCIEIN-MUNCIE-NEBO RD - RELOCATE MAINS DUE TO ROAD

WIDENING PROJECT2022 2022 N

11781094 16573302061215 Public Improvement NE MUNCIE DALEVILLE IN-DALEVILLE-WALNUT SOUTH OF SR 67 - RELOCATE MAIN N/A N/A N

11840246 16583502061224 Public Improvement SE FRANKLIN FRANKLIN IN-FRANKLIN-ARVIN DR ~~ RELOCATE MAINS DUE TO NEW

ROUNDABOUT PROJECT

2020 2021

Our final work plan has just recently been

approved so project is rescheduled for

2021.

N

12002667 16583502061225 Public Improvement SE FRANKLIN FRANKLININ-FRANKLIN-GRAHAM ~~AT COMMERCE PARKWAY-

RELOCATE MAINS DUE TO NEW ROUNDABOUT2021 2021 N

13196512 16592002061216 Public Improvement SE CLARKSVILLEJEFFERSONVILL

E

IN-JEFFERSONVILLE-SALEM NOBLE ROAD - RELOCATE MAINS

DUE TO ROAD RECONSTRUCTION PROJECT2022 2022 N

11539590 18592002G61212 Public Improvement SE CLARKSVILLE NEW ALBANY

IN-NEW ALBANY-2100-3000BLK GRANT LINE RD - RELOCATE

MAINS DUE TO STORM SEWER PROJECT

2018 2018 Y

The actual cost for this project exceeded the estimate

due to an additional 400 feet of 2 inch main being

installed to establish a second feed to the customers

downstream of the culvert replacement which allowed

them to remain in service during the retire/replace work

at the culvert. Once the culvert replacement work was

finished the original main was replaced and

reconnected as originally planned. TDSIC-12 period

charges were for completion of the additional work

described in TDSIC-11.

13198230 16592002061217 Public Improvement SE CLARKSVILLEJEFFERSONVILL

EIN-JEFFERSONVILLE-CHESTNUT ST-RELOCATE MAIN DUE TO

CSO SEWER PROJECT

2020 2021

This project is rescheduled to 2021 due

to delays in receiving final plans and

conflict data from the City.

N Construction to start in 2021. Current charges are for

material.

12623189 16542358 17583002G61212 Public Improvement NE NOBLESVILLE CARMELIN-CARMEL-HAMILTON COUNTY RELOCATE MAINS DUE TO

BUS RAPID TRANSIT SYSTEM PROJECT2022 2022

Project remains unscheduled by

Hamilton CountyN

12622472 TBD Public Improvement NE ANDERSON ANDERSONIN-MOUNDS LAKE-PHASE ONE - RELOCATE MAINS FOR NEW

RESERVOIR/LAKE 2023 2023

Project details still being studied by the

State of IndianaN

12622472 TBD Public Improvement NE ANDERSON ANDERSONIN-MOUNDS LAKE-PHASE TWO - RELOCATE MAINS FOR NEW

RESERVOIR/LAKE 2023 2023


State of IndianaN

12622472 TBD Public Improvement NE ANDERSON ANDERSONIN-MOUNDS LAKE-PHASE THREE - RELOCATE MAINS FOR

NEW RESERVOIR/LAKE 2023 2023


State of IndianaN

CEI North

TDSIC Plan Projects




CEI North

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Maximo Work Order


Previous

Planned

Year

(10/1/20)

Current

Planned

Year

Previous

Estimate

(10/1/20)

Current

Estimate

Estimate

Variance

($)

Estimate

Variance

(%)



-12/31/2020)

Annual Actual Spend

(1/1/20 -12/31/2020)


Spend

(1/1/14 - 12/31/20)

Actual Spend

Variance

($)

Actual Spend

Variance

(%)

In-service?

(Y or N)


CEI North

TDSIC Plan Projects

10518255 17583002G61213 Public Improvement NE NOBLESVILLE SHERIDANIN-SHERIDAN-STATE ROAD 38 @ SIX POINTS ROAD- MAIN

RELOCATE DUE TO INTERSECTION REBUILD

2019 2019 Y

Actual construction costs are under the original

estimate due to partial reimbursement of relocation

costs received for the portion of the main located

within easement.


LAFAYETTE

IN-WEST LAFAYETTE-KLONDIKE RD - RELOCATE MAINS DUE

TO ROAD RECONSTRUCTION PROJECT2018 2018 Y

13807492 17595502G61212 Public Improvement NW LAFAYETTE FRANKFORTIN-FRANKFORT-WASHINGTON AVE ~~RELOCATE MAINS DUE

TO ROAD RECONSTRUCTION PROJECT - PHASE 12019 2019 Y

236 20200602G06013 Gas LP Plant NW N/A LEBANONIN-LEBANON-FLOW CONTROLLERS UPGRADE

2020 2020 YSome of the control equipment was less expensive

than estimated.

1258872315592602061213/

18592602G61210Public Improvement SE COLUMBUS GREENSBURG

IN-GREENSBURG-VETERANS WAY-PHASE ll - RELOCATE

MAINS DUE TO ROAD CONSTRUCTION PROJECT

2019 2019 Y

The main in one of the conflict areas was found to be

at a sufficient depth to avoid relocation as was

originally planned which reduced the overall project

cost.

10767877 17595502G51210 System Improvement NW LAFAYETTE LAFAYETTE

IN-LAFAYETTE-KOSSUTH ST ~~ELEVATE/RETEST GAS MAIN

2021 2021




main and services.

N


LAFAYETTE IN-WEST LAFAYETTE - KLONDIKE AREA~~ELEVATE/RETEST

GAS MAIN

2020 2021




main and services.

N

12626850 17595302G61215 Public Improvement NW DANVILLE BROWNSBURG

IN-BROWNSBURG-GREEN ST - US 136 TO 56TH ST

~~RELOCATE MAIN

2018 2018 Y

Project costs exceeded the estimate due to an

additional relocation (our original relocation bore was

slightly too shallow) of the newly installed main which

was determined to be in conflict with the new storm

drainage system. This was due to an extremely

congested ROW shared by multiple utilities.

13198131 17592002G61210 Public Improvement SE CLARKSVILLE NEW ALBANYIN-NEW ALBANY- MT TABOR ROAD - RELOCATE MAINS DUE

TO ROAD IMPROVEMENT PROJECT 2018 2018 Y

12622403 17583002G61210 Public Improvement NE NOBLESVILLE CARMELIN-CARMEL-GUILFORD AVE-CITY CENTER DR TO MAIN ST-

RELOCATE MAIN DUE TO STREET WIDENING PROJECT2018 2018 Y

12035020 17583502G61213 Public Improvement SE FRANKLIN GREENWOOD

IN-GREENWOOD-SMITH VALLEY ROAD ~~AT MADISON

AVENUE-RELOCATE MAINS DUE TO NEW ROUNDABOUT

PROJECT

2018 2018 Y

12626703 17595302G61210 Public Improvement NW DANVILLE AVON

IN-AVON-CR 200 N - DAN JONES TO RONALD REAGAN

~~RELOCATE MAINS DUE TO ROAD IMPROVEMENT PROJECT

2018 2018 Y


due to extra depth required to achieve and maintain the

necessary clearance from adjacent conflicting utilities.

The work was also impacted by excessive rain which

slowed the work progress and resulted in higher labor

costs and extended traffic control costs.

221 18200602G06012 Gas Production & Storage SE BLOOMINGTON BLOOMINGTONIN-BLOOMINGTON-H2S REMOVAL

Hindustan Dumpster Containment2020 2020 Y

13378033 16595302061224 Public Improvement NW DANVILLE LEBANONIN-LEBANON-INDIANAPOLIS AVE ~~PHASE II - RELOCATE

MAINS DUE TO ROAD IMPROVEMENT PROJECT

2018 2018 YActual cost is less than the estimated cost due to the

original estimate being based on preliminary plans.

Actual construction cost was based on final plans.


LAFAYETTE

IN-WEST LAFAYETTE-STATE ST ~~SECT 1A, - RELOCATE

MAIN AND SERVICES2017 2017 Y

14712218 17595002G61210 Public Improvement NW TERRE HAUTE TERRE HAUTEIN-TERRE HAUTE-1ST ST & HULMAN ST - RELOCATE MAIN

DUE TO INTERSECTION IMPROVEMENT PROJECTN/A N/A N

12002644 17583502G61215 Public Improvement SE FRANKLIN FRANKLIN IN-FRANKLIN-EASTVIEW DRIVE ~~RELOCATE MAINS DUE TO

NEW ROUNDABOUT PROJECT

N/A N/A NProject cancelled. The planned relocation project was

incorporated into an adjacent System Improvement

project for efficiency.

13894268 16583502061221 Public Improvement SE FRANKLIN GREENWOOD IN-GREENWOOD-STONES CROSSING ROAD RELOCATE

MAINS DUE TO NEW ROUNDABOUT PROJECT

N/A N/A Project cancelled - combined with

Worthsville Rd. project WO # 12307077

N

12562141 17595002G61212 Public Improvement NW TERRE HAUTE TERRE HAUTE

IN-TERRE HAUTE-SPRINGHILL RD US41 TO 7TH ST -

RELOCATE MAINS DUE TO ROAD WIDENING

N/A N/A

Project cancelled. After completing the

conflict analysis of the final plans it has

been determined that there are no

conflicts with Vectren facilities requiring

relocation.

N Project cancelled. After completing the conflict analysis

of the final plans it has been determined that there are

no conflicts with Vectren facilities requiring relocation.

12622753 16583502061229 Public Improvement SE FRANKLIN GREENWOODIN-GREENWOOD-MADISON AVE RAPID TRANSIT RED LINE-

RELOCATE MAINS DUE TO RAPID TRANSIT PROJECT.N/A N/A N

15253207 18583002044210 Rural Extension NE NOBLESVILLE WESTFIELD

15253207-IN-WESTFIELD-SB560 OFFSITE MAIN-OSBORNE

TRAILS EXTENSION

2018 2018 Y

14000440 18595302G51213 System Improvement NWCRAWFORDSVI

LLELINDEN

IN-LINDEN-SR 231 ~~ELEVATE/RETEST GAS MAIN2020 2020 N

16382565 18595302044226 Rural Extension NW DANVILLE PLAINFIELDIN-PLAINFIELD-SB560-TATTERSALL AREA-PHASE 1-INSTALL

MAIN2020 2020 Y

15461041 18595302044213 Rural Extension NW DANVILLE WHITESTOWN IN-WHITESTOWN PHASE 3 WEST-SB560 2019 2019 Y

16803251 19595302044217 Rural Extension NW DANVILLE CAMBY

16803251-IN-CAMBY-10356 LEASES CORN

2019 2019 Y Sewer locating costs exceeded estimate due to

difficulty in locating sewers. Required camera locating.

16453335 19595502044212 Rural Extension NW LAFAYETTE LAFAYETTE

16453335-IN-WEST LAFAYETTE-1838 STA

2019 2019 Y

Actual costs exceeded the project estimate due

primarily to increased construction labor costs caused

by multiple mobilizations and demobilizations to

accommodate the other jobsite contractors and to

avoid work zone conflicts for new access, curbs,

sidewalks, and etc. Work was also slowed significantly

by the extremely wet weather.

17211620 19573302044210 Rural Extension NA MUNCIE MUNCIE

17211620-IN-MUNCIE-9495 S FLEMING S

2019 2019 Y

Actual costs exceeded the estimate due to the

unexpected discovery of non-standard sized main not

indicated on historical records which required an

additional 120' of main to be installed and an unplanned

road bore to accommodate the actual site conditions.

16633036 19583302044210 Rural Extension SE NA KNIGHTSTOWN

16633036-IN-KNIGHTSTOWN-5 POINTS RD2019 2019 Y

Actual costs were less than the estimated costs due to

the utilization of available in-house labor resources

rather than contractor.


16992461-IN-KNIGHTSTOWN-9925 N 5 PO

2019 2019 YActual costs exceeded the estimate due to the addition

of 186' of main and another driveway crossing to

accommodate the customer's meter location request.

16931846 19583502044213 Rural Extension SE FRANKLIN FRANKLIN

16931846-IN-FRANKLIN-250 FAIRGROUND

2019 2019 Y

Credit in TDSIC-14 period was for service costs that

should not have been included on the project. Service

line installations were transferred to standard service

blanket account.

260 TBD Gas Production & Storage NW N/A WOLCOTT IN-WOLCOTT-MISTARAS LEAK DETECTOR N/A N/A N

10729188 17595302G51214 System Improvement NW DANVILLE BROWNSBURGIN-BROWNSBURG-ACRE LN ~~ELEVATE/RETEST MAIN AND

RETIRE REGULATOR STATION2020 2020 N

10767696 17595302G50210 System Improvement NW DANVILLE PLAINFIELDIN-PLAINFIELD-MAXWELLTON ST ~~ELEVATE/RETEST GAS

MAIN2020 2020 N

15524008 18595502G51215 System Improvement NW LAFAYETTE LAFAYETTE

IN-LAFAYETTE-REBUILD STATION #59000019

2020 2021

Project was delayed due to material lead

times delays, work needs to be done

during warmer weather. Project will be

completed in 2021.

NProject was delayed due to material lead times delays,

work needs to be done during warmer weather. Project

will be completed in 2021.

17153234 19592402044216 Rural Extension SE BLOOMINGTON BLOOMINGTON

17153234-IN-BLOOMINGTON-4450 S DARR

2019 2019 Y

Actual costs exceeded the estimate due to an

additional 20' of main being added to the project and

due to failure of the main boring equipment which

delayed the progress and ultimately forced the

installation via trenching which is a slower process and

requires additional site restoration, all of which added

significantly to the overall labor costs.

222 20200602G06011 Gas Production & Storage SE BLOOMINGTON BLOOMINGTON REPLACE HINDUSTAN DEHY 2020 2020 Y




CEI North

Page 3 of 4($3,248,768.21) Diff Diff



Maximo Work Order


Previous

Planned

Year

(10/1/20)

Current

Planned

Year

Previous

Estimate

(10/1/20)

Current

Estimate

Estimate

Variance

($)

Estimate

Variance

(%)



-12/31/2020)

Annual Actual Spend

(1/1/20 -12/31/2020)


Spend

(1/1/14 - 12/31/20)

Actual Spend

Variance

($)

Actual Spend

Variance

(%)

In-service?

(Y or N)


CEI North

TDSIC Plan Projects

10767760 17595302G51215 System Improvement NW LEBANON LEBANON IN-MOUNDS LAKE-PHASE THREE - RELOCATE MAINS FOR

NEW RESERVOIR/LAKE

2020 2020 NConstruction in progress. Costs for material and

easements. Work was delayed because of the

easement issues and permit delays.

12627688/1692176218592602G51210/

20592602G51011System Improvement SE COLUMBUS COLUMBUS

IN-COLUMBUS-COLUMBUS SOUTHSIDE HP LOOP - INSTALL

PIPE TO ENSURE CAPACITY AND DELIVERABILIT TO AREA

SOUTH OF GLADSTONE AVENUE

2020 2020 N

Actual charges include engineering costs only.

Construction has not started - obtaining easements

and environmental and wildlife permits from Indiana

Department of Natural Resources.

17171398 19592402044217 Rural Extension SE FRANKLIN MARTINSVILLE 17171398-IN-MARTINSVILLE-2193 E COU 2019 2019 Y

17164577 19592402044218 Rural Extension SE BLOOMINGTON BLOOMINGTON17164577-IN-BLOOMINGTON-1990 E LUKE

2019 2019 Y Internal crew used to construct project resulting in lower

than estimated labor costs.

16860054 19592602044210 Rural Extension SE COLUMBUS COLUMBUS

16860054-IN-COLUMBUS-S 550 W ~~GMIN

2019 2019 Y


due to additional labor and vacuum excavation

equipment required to search for an un-locatable water

main.

17170296 19592902044210 Rural Extension SE BLOOMINGTON MOORESVILLE

17170296-IN-MOORESVILLE-10751 N RAI

2019 2019 Y

Main was extended an additional 200' and connected

to an existing main to create a dual

feed/interconnection to enhance reliability of system in

the area and support future customer additions.

16633303 19595002044215 Rural Extension NW NA CLAY CITY 16633303-IN-CLAY CITY-316 E 14TH ST 2019 2019 Y

16812927 19595302044218 Rural Extension NW DANVILLE WHITESTOWN

16812927-IN-WHITESTOWN-6460 CENTER

2019 2019 Y

Actual costs exceeded the estimated costs due to

conflicts with adjacent utilities that were found after the

original estimate was completed. Utilities were not

identified during design locate process. Changes to

planned construction route to address the conflicts

added labor cost.

16864094 19595302044220 Rural Extension NW DANVILLE WHITESTOWN 16864094-IN-WHITESTOWN-WALKER FARMS Phase 3 2019 2019 Y

17070878 19595502044218 Rural Extension NW LAFAYETTE LAFAYETTE

17070878-IN-LAFAYETTE-CROOKED ST ~~

2019 2019 YActual costs were under the estimate due to in-house

inspector being used during construction rather than the

budgeted outside contract inspector.

16399870 19583302044212 Rural Extension SE NA RUSHVILLE 16399870-IN-RUSHVILLE-5374 N STATE 2019 2019 Y

15533699 18583502044216 Rural Extension SE FRANKLIN FRANKLINSB560 New Construction Grain Dryer called N-FRANKLIN-SB560

UMBARGER FARM 600 E ~~2019 2019 Y

16448876 19583302044215 Rural Extension SE GREENFIELD GREENFIELD

IN-GREENFIELD-380 N ~~GMINS SB560 MOHAWK

2020 2020 Y

17815788 20592402044210 Rural Extension BLOOMINGTON PARAGON

IN-PARAGON-3208 WAKELAND R2020 2020 Y

The original estimate assumed use of contract

resources for construction. Project was completed by

in-house crews at a lower cost.

16864042 20595302044210 Rural Extension NW DANVILLE WHITESTOWN IN-WHITESTOWN-WALKER FARMS PHASE 4 2020 2020 Y

238 18200602G06011 Gas Production & Storage SE N/A SELLERSBURG

IN-SELLERSBURG-REPLACE HP DRIP

2021 2021 N Project will be cancelled. Credits are due to material

transfer to other projects and other charges to O&M.

200 17200602006013 Gas Production & Storage SE BLOOMINGTON BLOOMINGTON

IN-BLOOMINGTON-REPLACE DEHYDRATOR

2018 2018 Y

Detailed analysis and design determined the existing

contact tower could be retrofitted with new components

and supplemented with a new reboiler instead replacing

contact tower as originally planned. Also, the glycol

system piping was modified to work with the new

components rather than completely replacing the piping

as originally planned

17503816 20595302044212 Rural Extension DANVILLE DALEVILLE IN-DANVILLE-1040 JUDITH LN 2020 2020 Y

17718097 20595302044213 Rural Extension DANVILLE PLAINFIELD

IN-PLAINFIELD-3882 TEKESBU

2020 2020 Y

This project exceeded original estimate due to

unanticipated conflicts with the customer's septic

system which increased the main length by 50' and

increased labor costs. This is an extension of main in

rural extension work order 18595302044226.

15704575 18592002044210 Rural Extension SE CLARKSVILLE GEORGETOWN IN-GEORGETOWN-NOVAPARKE OFFSITE 2021 2021 N

15626368 18592002044212 Rural Extension SE CLARKSVILLE CHARLESTOWN IN-CHARLESTOWN-SB560 BETHANY ROAD 2020 2020 N Construction in progress.

15980207 18593002044221 Rural Extension NW DANVILLE LEBANON IN-LEBANON-6425 N 150 W ~~SB560 N/A N/A N Project cancelled

15774363 18595302044219 Rural Extension NW DANVILLE PLAINFIELD IN-PLAINFIELD-7380 SB560 SPRUCE CT ~~GMINS N/A N/A N

13992299 18595302044220 Rural Extension NW DANVILLE PLAINFIELD IN-PLAINFIELD-E CR 200 S AND S CR 450 E - (SB560) 2021 2021 N

17141212 19595302044222 Rural Extension NW DANVILLE PLAINFIELDIN-PLAINFIELD-SB560 TATTERSALL AREA-PHASE 2-INSTALL

MAIN2020 2020 Y


16912365-IN-KNIGHTSTOWN-9752 N 5 PO2019 2019 Y

Actual costs were less than the estimated due to the

utilization of available in-house labor resources rather

for construction.

16895398 19592402044214 Rural Extension SE FRANKLIN MARTINSVILLE 16895398-IN-MARTINSVILLE-1204 COPE 2019 2019 Y

16983087 19595002044217 Rural Extension NW NA CLAY CITY 16983087-IN-CLAY CITY-536 E FAIR AV 2019 2019 Y

17038726 19595502044215 Rural Extension NW NA WILLIAMSPORT 17038726-IN-WILLIAMSPORT-427 W WASH 2019 2019 Y

16217420 18595302044222 Rural Extension NW NA JAMESTOWN 16217420-IN-JAMESTOWN-SB560 468 CAR 2019 2019 Y

16126427 18592402044218 Rural Extension SE BLOOMINGTON MOORESVILLE

IN-MOORESVILLE-NORTH FOREST GROVE RD-SB560

2018 2018 YCosts increased due to a change to the original plan

which added approximately 300 additional feet of main

to serve additional customers who were identified after

the original estimate was created.

16327050 18583302044213 Rural Extension SE GREENFIELD MCCORDSVILLE16327050-IN-MCCORDSVILLE-6443 N 700

2018 2018 Y


IN-WHITESTOWN-WALKER FARMS PHASE 2 ~~SB560-GAS

MAIN INSTALL

2019 2019 Y

Actual costs exceeded the estimate due to other utility

congestion in a tight relocation work area. Specifically,

there were difficulties obtaining accurate location

information for the existing sewer systems which

required costly insertion of camera equipment and

many additional spot hole excavations to ensure the

integrity of the sewers and gas mains as well as

maintain public and worker safety.

16326636 18592402044220 Rural Extension SE BLOOMINGTON BLOOMINGTON 16326636-IN-BLOOMINGTON-CPG SB560 S 2019 2019 Y

16812175 19595302044219 Rural Extension NW DANVILLE LEBANON 16812175-IN-LEBANON-6475 S 275 E ~~ 2019 2019 Y

16161800 18592402044215 Rural Extension SE BLOOMINGTON BLOOMINGTON IN-BLOOMINGTON-MUIRFIELD PHASE 5 ~~SB560 2018 2018 Y


IN-WHITESTOWN-WALKER FARMS PHASE 1 - SB 560~~GAS

MAIN INSTALL

2018 2018 Y

Actuals costs exceeded the estimated costs for this

project primarily due to three factors. 1. The estimated

costs for all sewer locating were inadvertently excluded

from the final estimate. 2. Due to the project owner's

timing requirements and the planned resurfacing of the

streets all crossings had to be completed in advance of

the rest of the adjacent work which caused multiple

inefficient mobilizations and demobilizations. 3. New

tapping equipment was required due to the size and

type of main pipe used which led to additional labor

costs for an additional tapping crew to assist/train.

16222516 18583502044219 Rural Extension SE FRANKLIN BARGERSVILLE 16222516-IN-BARGERSVILLE-SB560 5844 2018 2018 Y

16302693 18595302044223 Rural Extension NW DANVILLE LEBANON

16302693-IN-LEBANON-3701 S INDIANAP

2018 2018 YThe actual cost of this project is less than the estimate

due to better than expected construction conditions

which resulted in less labor expense.

16401288 19583502044210 Rural Extension SE FRANKLIN BARGERSVILLE

16401288-IN-BARGERSVILLE-SB560 5689

2019 2019 YEstimate included a contingency for potholes and

restoration but the main installation used a very

minimal restoration

16534439 19595502044210 Rural Extension NW LAFAYETTE LAFAYETTE 16534439-IN-SB560 BUCK CREEK-7401 U 2019 2019 Y

16340382 18583502044220 Rural Extension SE FRANKLIN MARTINSVILLE 16340382-IN-MARTINSVILLE-SB560 3024 2019 2019 Y

16261644 18583502044221 Rural Extension SE FRANKLIN FRANKLIN16261644-IN-FRANKLIN-SB560 0 W STAT

2019 2019 YTraffic control costs were included in estimate but not

needed.

16299522 18595502044212 Rural Extension NW DANVILLE KIRKLIN

16299522-IN-KIRKLIN-444 W HENRY RD ~~ SB560 MAIN EXT

2018 2018 Y

Traffic control costs for were less than estimated due

to the remote rural location of the work . Additionally,

the main installation was completed at a lower per foot

cost than estimated

16544287 19592002044212 Rural Extension SE CLARKSVILLE SELLERSBURG

16544287-IN-SELLERSBURG-7004 COUNTY

2019 2019 Y

The actual cost for the project exceeded the estimate

due to field modification that was required when other

existing utilities were found to be in conflict with the

planned location of our main. This resulted in our main

being shifted to a location under hard-surface

pavement which required additional labor and materials

to excavate, install, and restore the pavement

N/A 18202802049011 Targeted Economic Development NW DANVILLE PLAINFIELDIN-PLAINFIELD-UPS CNG/ALLPOINTS TED-INSTALL PIPELINE,

METER SET, REG STATIONS2018 2018 Y

-




CEI North

Page 4 of 4($3,248,768.21) Diff Diff



Maximo Work Order


Previous

Planned

Year

(10/1/20)

Current

Planned

Year

Previous

Estimate

(10/1/20)

Current

Estimate

Estimate

Variance

($)

Estimate

Variance

(%)



-12/31/2020)

Annual Actual Spend

(1/1/20 -12/31/2020)


Spend

(1/1/14 - 12/31/20)

Actual Spend

Variance

($)

Actual Spend

Variance

(%)

In-service?

(Y or N)


CEI North

TDSIC Plan Projects

20202802049011 Targeted Economic Development NW TERRE HAUTE TERRE HAUTE

TERRE HAUTE SOUTH INDUSTRIAL PARK (SATURN PET

PRODUCTS)

2020 2020 Y

Credit in TDSIC-14 Period was to correct an accrual

error. Project exceeded the estimate primarily due to

engineering, survey, and property acquisition costs

associated with redesign required to relocate the

planned regulator station site due to inability to acquire

easement at original site.

1761577620595502041222/

20595502045011Targeted Economic Development NW LAFAYETTE FRANKFORT

Frankfort Gas Main Extension - Hwy 28 & 800 W (NHK SEATING)

2020 2020 Y

A portion of the gas main in the original project scope

was not installed because the county did not acquire

the expanded road right of way along Hwy 28 as

planned.

253 17200602006012 Gas Production & Storage NW N/A WOLCOTTIN-WOLCOTT-UPGRADE FLOW CONTROLLER

2018 2018 YActual control valve selected was less than originally

estimated.

231 18200602G06013 Gas Production & Storage SE N/AJEFFERSONVILL

E

IN-JEFFERSONVILLE-ENGINE PRELUBE PUMPS

2018 2018 YOriginal estimate was based on a broad project scope.

The actual work necessary to complete the project cost

significantly less than originally estimated.

11198275 14583502051214 System Improvement SE FRANKLIN WHITELAND

N-WHITELAND-PEARL ST - CASING SHORT REMEDIATION ~~

2017 2017 Y

Additional costs for RR permit and preparation and

unplanned replacement of carrier pipe, resulting in

additional excavations, material, backfill, restoration

and labor costs.

15440622 18595302G51210 System Improvement NW DANVILLE BROWNSBURG

IN-BROWNSBURG-CR 700N ~~2018 SI MAIN - INSTALL 11,000

FT OF 6" PE MAIN TO ENSURE CAPACITY AND

DELIVERABILITY TO AREA WEST OF EAGLE CREEK GOLF

COURSE

2019 2019 Y

Easements needed to cross 13 parcels original plan

assumed installation in ROW. 290 extra hours needed

for traffic control, T&M charges used for extra depth

and shoring boxes.

12265416 17583502G51012 System Improvement SE FRANKLIN FRANKLIN IN-FRANKLIN - NORTH AND EAST SIDE UPRATE 2018 2018 Y

NA 17202802049011 Targeted Economic Development NE RICHMOND RICHMONDIN-RICHMOND-HEARTLAND (Blue Buffalo) PET FOOD

MANUFACTURING -INSTALL REG STATION, MAIN, SERVICE2017 2017 Y

15660577 18582102045212 Targeted Economic Development NE ANDERSON PENDLETONIN-PENDLETON-9302 W 650 S-GMINS-SHELBY MATERIALS-SB

560- DISTRIBUTION2018 2018 Y

N/A 18202802049012 Targeted Economic Development NE ANDERSON PENDLETONIN-PENDLETON-9302 W 650 S-GMINS-SHELBY MATERIALS-SB

560- TRANSMISSION

2018 2018 Y

Cost variance due to additional easement

requirements to construct station - original planned site

could not be obtained. This resulted in station design

changes increasing construction cost.

N/A 15202902051011 Automated Meter Reader (AMR) North N/A VARIOUS AUTOMATED METER READING 2015/16/17 2015/16/17 Y




CEI North

Page 1 of 1

TDSIC Investment January 1, 2020-

June 30, 2020

July 1, 2020 -

December 31, 2020 2020 AnnualActual spend $6,235,225 $3,248,768 $9,483,993

Planned spend as filed 10/1/20 - Total $11,381,641

Variance: Under/(Over) Plan $1,897,649

CEI North

2020 TDSIC Plan Investment Summary




CEI North

Page 1 of 1

Prior plan - Fall 2018 (TDSIC-9)

Funding Category 2014

Actuals

2015

Actuals

2016

Actuals

2017

Actuals

2018

Plan

2019

Plan

2020

Plan7-year Total

BS/CI Replacements $32,059,789 $39,951,500 $36,071,812 $42,638,475 $34,953,000 $35,826,000 $36,722,000 $258,222,576

Distribution Modernization $8,411,803 $7,109,300 $6,519,061 $11,841,712 $13,063,000 $8,638,000 $9,882,000 $65,464,876

Transmission Modernization $15,747,281 $22,969,939 $21,454,782 $41,012,909 $53,430,861 $19,171,000 $20,153,000 $193,939,771

Storage Modernization $0 $0 $0 $0 $2,011,139 $2,923,721 $1,580,744 $6,515,604

Total $56,218,873 $70,030,740 $64,045,655 $95,493,095 $103,458,000 $66,558,721 $68,337,744 $524,142,828

Plan update - Fall 2020 (TDSIC-13)


Actuals

2015

Actuals

2016

Actuals

2017

Actuals

2018

Actuals

2019

Actuals

2020

Plan7-year Total

BS/CI Replacements $32,059,789 $39,951,500 $36,071,812 $42,638,475 $35,333,295 $34,366,206 $43,477,265 $263,898,342

Distribution Modernization $8,411,803 $7,109,300 $6,519,061 $11,841,712 $11,816,290 $8,703,848 $10,582,537 $64,984,551

Transmission Modernization $15,747,281 $22,969,939 $21,454,782 $41,012,909 $58,689,125 $20,598,231 $24,780,792 $205,253,058

Storage Modernization $0 $0 $0 $0 $2,041,632 $1,517,890 $1,851,206 $5,410,728

Total $56,218,873 $70,030,740 $64,045,655 $95,493,095 $107,880,342 $65,186,175 $80,691,799 $539,546,679

Spring 2021 (TDSIC-14)

Compliance Category2014

Actuals

2015

Actuals

2016

Actuals

2017

Actuals

2018

Actuals

2019

Actuals

2020

Actuals

2014-2020

Actuals

% change

TDSIC-9 to 14

BS/CI Replacements $32,059,789 $39,951,500 $36,071,812 $42,638,475 $35,333,295 $34,366,206 $43,026,384 $263,447,461 -2.0%

Distribution Modernization $8,411,803 $7,109,900 $6,519,061 $11,841,712 $11,812,944 $8,649,435 $12,205,061 $66,549,916 -1.7%

Transmission Modernization $15,747,281 $22,969,939 $21,454,782 $41,012,909 $58,689,125 $20,653,179 $21,197,995 $201,725,209 -4.0%

Storage Modernization $0 $0 $0 $0 $2,041,632 $1,517,890 $1,225,035 $4,784,557 26.6%

Compliance Total $56,218,873 $70,031,340 $64,045,655 $95,493,095 $107,876,996 $65,186,710 $77,654,475 $536,507,144 -2.4%

CEI North

Compliance Projects Summary - 7 Year Plan




CEI North

Page 1 of 1

Plan update - Fall 2020 (CSIA-13)


Actuals

2015

Actuals

2016

Actuals

2017

Actuals

2018

Actuals

2019

Actuals

2020

Plan7-year Total

New Business - Targeted Econ Dev $0 $740,885 $85,778 $2,002,023 $2,099,272 $6,433,089 $0 $11,361,048

New Business - Rural Expansion $2,071,900 $5,292,759 $2,024,955 $2,688,025 $2,189,568 $1,450,224 $1,530,622 $17,248,053

System Improvement - Dist $7,294,625 $3,003,423 $3,346,979 $2,472,169 $3,793,041 $2,366,998 $2,713,741 $24,990,976

System Improvement - Trans $3,110,536 $1,658,913 $560,440 $560,310 $421,624 $1,666,196 $4,000,312 $11,978,331

Production & Storage $41,035 $8,083 $224,326 $598,444 $618,771 $57,522 $553,217 $2,101,399

LP Plant $259,690 $31,001 $0 $16,588 $47,809 $0 $1,163,347 $1,518,435

Public Improvement - Dist $9,692,495 $5,570,452 $5,521,202 $6,470,854 $6,149,323 $1,047,404 $0 $34,451,731

Services - Replacement $8,688,351 $9,034,732 $9,229,753 $5,542,525 $0 $0 $1,270,402 $33,765,763

Public Improvement - Trans $1,628,194 $2,076 $0 $0 $0 $0 $150,000 $1,780,271

Automated Meter Reader (AMR) $0 $14,664,881 $29,810,518 $139,143 $16,920 $0 $0 $44,631,461

Gas Communication Equipment $129,343 $22,565 $0 $2,173 $0 $0 $0 $154,082

Total $32,916,169 $40,029,771 $50,803,952 $20,492,255 $15,336,328 $13,021,433 $11,381,641 $183,981,549

Spring 2021 (TDSIC-14)

TDSIC Category2014

Actuals

2015

Actuals

2016

Actuals

2017

Actuals

2018

Actuals

2019

Actuals

2020

Actuals

2014-2020

Actuals

New Business - Targeted Econ Dev $0 $740,885 $85,778 $2,002,023 $2,099,272 $6,433,089 $2,170,669 $13,531,717

New Business - Rural Extension $2,071,900 $5,292,759 $2,024,955 $2,688,025 $2,189,568 $1,450,224 $2,161,080 $17,878,511

System Improvement - Dist $7,294,625 $3,003,423 $3,346,979 $2,472,169 $3,793,041 $2,366,998 $2,499,062 $24,776,297

System Improvement - Trans $3,110,536 $1,658,913 $560,440 $560,310 $421,624 $1,666,196 $579,397 $8,557,416

Production & Storage $41,035 $8,083 $224,326 $598,444 $618,771 $57,522 $947,268 $2,495,449

LP Plant $259,690 $31,001 $0 $16,588 $47,809 $0 $33,042 $388,130

Public Improvement - Dist $9,692,495 $5,570,452 $5,521,202 $6,470,854 $6,149,323 $937,837 $1,093,476 $35,435,639

Services - Replacement $8,688,351 $9,034,732 $9,229,753 $5,542,525 $0 $0 $0 $32,495,361

Public Improvement - Trans $1,628,194 $2,076 $0 $0 $0 $0 $0 $1,630,271

Automated Meter Reader (AMR) $0 $14,664,881 $29,810,518 $139,143 $16,920 $0 $0 $44,631,461

Gas Communication Equipment $129,343 $22,565 $0 $2,173 $0 $0 $0 $154,082

TDSIC Total $32,916,169 $40,029,771 $50,803,952 $20,492,255 $15,336,328 $12,911,866 $9,483,993 $181,974,334

CEI North

TDSIC Projects Summary - 7 year Plan


REVISED Attachment JRM-1


CEI North

Schedule 1

Page 1 of 1

A = B + C B C

Revenue Revenue Revenue

Requirement Requirement Requirement

Line Description Total 20% Deferred 80% Recoverable Reference

1 Compliance Component - Revenue Requirement 77,941,896$ 15,588,379$ 62,353,517$ (A) Attachment JRM-2, Schedule 1, Line 17 & 18

2 TDSIC Component - Revenue Requirement 20,470,556$ 4,094,111$ 16,376,445$ (B) Attachment JRM-3, Schedule 1, Line 17 & 18 (C)

3 CSIA Revenue Requirement Subtotal 98,412,452$ 19,682,490$ 78,729,962$ Line 1 + Line 2

Notes:

(A) To Attachment KJT-1, Schedule 2, Line 1

(B) To Attachment KJT-1, Schedule 2, Line 2

(C) Pending results from 2% TDSIC Annual Retail Revenue Cap Test from Attachment JRM-3, Schedule 8, amounts shown in Column B and C may vary.

INDIANA GAS COMPANY, INC. d/b/a CENTERPOINT ENERGY INDIANA NORTH

CEI NORTH

COMPLIANCE AND SYSTEM IMPROVEMENT ADJUSTMENT (CSIA)

TOTAL ANNUAL REVENUE REQUIREMENT THROUGH DECEMBER 31, 2020




CEI North

Schedule 2

Page 1 of 2

A B C D E F G H

Line Description Total Reference

Actual Recoveries (Inclusive of IURT) 210 220/229 225 240 245 260/270

1 Jul-20 2,710,340$ 112,300$ 2,943$ 6,557$ 56,011$ 194,906$ 3,083,057$ (A)

2 Aug-20 3,523,110$ 252,612$ 6,195$ 3,316$ 71,588$ 250,592$ 4,107,413$ (A)

3 Sep-20 3,952,370$ 340,969$ 9,212$ 21,321$ 85,061$ 257,738$ 4,666,671$ (A)

4 Oct-20 3,953,216$ 564,873$ 14,433$ 24,438$ 127,687$ 291,239$ 4,975,886$ (A)

5 Nov-20 3,959,111$ 971,992$ 22,036$ 56,718$ 139,188$ 295,269$ 5,444,314$ (A)

6 Dec-20 4,006,414$ 1,825,152$ 37,585$ 38,000$ 184,367$ 334,181$ 6,425,698$ (A)

7 Total Actual Recoveries Inclusive of IURT 22,104,561$ 4,067,897$ 92,405$ 150,350$ 663,902$ 1,623,926$ 28,703,040$ Sum Lines 1-6

Actual Recoveries (Exclusive of IURT) 210 220/229 225 240 245 260/270

8 Jul-20 2,670,227$ 110,638$ 2,900$ 6,460$ 55,182$ 192,022$ 3,037,428$ Line 1 x 0.9852

9 Aug-20 3,470,968$ 248,873$ 6,104$ 3,267$ 70,529$ 246,883$ 4,046,624$ Line 2 x 0.9852

10 Sep-20 3,893,875$ 335,923$ 9,076$ 21,005$ 83,802$ 253,924$ 4,597,604$ Line 3 x 0.9852

11 Oct-20 3,894,708$ 556,513$ 14,219$ 24,077$ 125,797$ 286,929$ 4,902,243$ Line 4 x 0.9852

12 Nov-20 3,900,516$ 957,606$ 21,710$ 55,878$ 137,128$ 290,899$ 5,363,738$ Line 5 x 0.9852

13 Dec-20 3,947,119$ 1,798,140$ 37,029$ 37,438$ 181,638$ 329,235$ 6,330,598$ Line 6 x 0.9852

14 Total Actual Recoveries Exclusive of IURT 21,777,413$ 4,007,692$ 91,037$ 148,125$ 654,076$ 1,599,892$ 28,278,235$ Sum Lines 8-13

Approved Recoveries (Exclusive of IURT) 210 220/229 225 240 245 260/270

15 Jul-20 3,832,711$ 217,120$ 7,825$ 11,356$ 89,459$ 252,165$ 4,410,636$ (B)

16 Aug-20 3,826,273$ 224,744$ 7,146$ 8,956$ 94,650$ 255,688$ 4,417,457$ (B)

17 Sep-20 3,829,972$ 282,003$ 8,944$ 12,749$ 99,507$ 250,886$ 4,484,061$ (B)

18 Oct-20 3,854,317$ 739,169$ 9,739$ 40,781$ 140,733$ 284,107$ 5,068,846$ (B)

19 Nov-20 3,903,564$ 1,786,901$ 24,301$ 39,325$ 199,936$ 316,444$ 6,270,471$ (B)

20 Dec-20 3,929,657$ 2,989,125$ 42,400$ 47,257$ 204,768$ 320,019$ 7,533,226$ (B)

21 Total Approved Recoveries Exclusive of IURT 23,176,494$ 6,239,062$ 100,355$ 160,423$ 829,053$ 1,679,310$ 32,184,697$ Sum Lines 15-20

22 Total Variance (C) 1,399,081$ 2,231,371$ 9,318$ 12,298$ 174,976$ 79,418$ 3,906,462$ Line 21 - Line 14

Under/(Over) Recovery

Notes:

(A) Actual Recoveries represent billed CSIA revenues from the Company's customer billing system by month and by Rate Schedule.

(B) See Attachment JRM-1, Schedule 2, Page 2.

Based on prior CSIA approvals - adjusted for allocation changes made to TDSIC-10.

(C) To Attachment KJT-1, Schedule 1, Lines 22-27

Rate Schedule


CEI NORTH


ACTUAL VARIANCES BY RATE SCHEDULE THROUGH DECEMBER 31, 2020




CEI North

Schedule 2

Page 2 of 2

A B C D E F G H

Line Description Total Reference

Approved Recoveries (Exclusive of IURT) 210 220/229 225 240 245 260/270

1 Jul-20 3,832,711$ 217,120$ 7,825$ 11,356$ 89,459$ 252,165$ 4,410,636$ (A)

2 Aug-20 3,826,273$ 224,744$ 7,146$ 8,956$ 94,650$ 255,688$ 4,417,457$ (A)

3 Sep-20 3,829,972$ 282,003$ 8,944$ 12,749$ 99,507$ 250,886$ 4,484,061$ (A)

4 Oct-20 3,854,317$ 739,169$ 9,739$ 40,781$ 140,733$ 284,107$ 5,068,846$ (A)

5 Nov-20 3,903,564$ 1,786,901$ 24,301$ 39,325$ 199,936$ 316,444$ 6,270,471$ (A)

6 Dec-20 3,929,657$ 2,989,125$ 42,400$ 47,257$ 204,768$ 320,019$ 7,533,226$ (A)

7 Total Approved Recoveries (Exclusive of IURT) 23,176,494$ 6,239,062$ 100,355$ 160,423$ 829,053$ 1,679,310$ 32,184,697$ Sum Lines 1-6

Notes:

(A) Based on prior CSIA approvals - TDSIC-12, Attachment JCS-R4, Schedule 3

Rate Schedule


CEI NORTH


ADJUSTMENTS TO APPROVED RECOVERIES BY RATE SCHEDULE THROUGH DECEMBER 31, 2020




CEI North

Schedule 3

Page 1 of 2

Line Component

Originating FERC

Account Vectren North - Gas

1 Unbilled Revenue 190 -$

2 Property Taxes 190 775,615$

3 Bad Debts 190 252,573$

4 Accrued Vacation 190 -$

5 Capitalized Gas Inventory in Lines 190 -$

6 Record Sec. 263A CAP Costs 190 61,631$

7 Refund Gas Costs Collected under GCA & FAC 283 (3,491,812)$

8 Coal Inventory 283 -$

9 Prepaid Insurance 283 (150,243)$

10 Construction Deposits 190 385,791$

11 FASB 106 Costs 190 1,459,528$

12 MGP Reserve Net of Insurance 190 177,003$

13 Reverse Exec Restr Stock Accr 190 843,424$

14 Deferred Comp/Long-term Incentive Plan 190 1,834,490$

15 Prepaid Ohio Excise Tax 190 -$

16 Amortization of Debt Expense 283 (532,258)$

17 Amortization of Premium on Reacquired Debt 283 -$

18 Amortization of Rate Case Expense 283 -$

19 Def Debits/Reg Assets 283 (4,301,469)$

20 Amortization of Hedging Costs/Losses 283 (524,254)$

21 Interest on prepaid OH Excise 283 -$

22 Pension Expense in Excess of Tax 283 (3,551,642)$

23 Cap Interest- CWIP 190 (51,350)$

24 AFUDC CWIP (non-protected) 282 (1,599,238)$

25 Depreciation Related (protected) 282 (75,522,569)$

26 Repairs (non-protected) 282 (16,099,947)$

27 Total (100,034,727)$

28 FERC 190 190 5,738,706$

29 FERC 282 282 (93,221,754)$

30 FERC 283 283 (12,551,679)$

31 Total (100,034,727)$

32 Protected [Line 25] (75,522,569)$

33 Unprotected [Line 27 - Line 32] (24,512,158)$

34 Total (100,034,727)$


CEI NORTH


REVISED EXCESS ACCUMULATED DEFERRED INCOME TAX ("EADIT") LIABILITY

As of December 31, 2017




CEI North

Schedule 3

Page 2 of 2

Amortization Period ARAM Defined 10-Years Total Excess

Line Year Protected Unprotected Deferred Credit

1 2018 (5,625,518)$ (2,451,216)$ (8,076,734)$

2 2019 (5,621,088)$ (2,451,216)$ (8,072,303)$

3 2020 (5,623,781)$ (2,451,216)$ (8,074,997)$

4 2021 (5,963,443)$ (2,451,216)$ (8,414,659)$

5 2022 (6,253,060)$ (2,451,216)$ (8,704,276)$

6 2023 (6,617,484)$ (2,451,216)$ (9,068,700)$

7 2024 (6,520,890)$ (2,451,216)$ (8,972,106)$

8 2025 (6,422,567)$ (2,451,216)$ (8,873,783)$

9 2026 (6,580,118)$ (2,451,216)$ (9,031,334)$

10 2027 (5,579,833)$ (2,451,216)$ (8,031,049)$

11 2028 (988,903)$ -$ (988,903)$

12 2029 (243,748)$ -$ (243,748)$

13 2030 (301,321)$ -$ (301,321)$

14 2031 (431,196)$ -$ (431,196)$

15 2032 (666,045)$ -$ (666,045)$

16 2033 (823,498)$ -$ (823,498)$

17 2034 (846,347)$ -$ (846,347)$

18 2035 (870,613)$ -$ (870,613)$

19 2036 (898,387)$ -$ (898,387)$

20 2037 (918,837)$ -$ (918,837)$

21 2038 (924,170)$ -$ (924,170)$

22 2039 (916,987)$ -$ (916,987)$

23 2040 (912,998)$ -$ (912,998)$

24 2041 (922,383)$ -$ (922,383)$

25 2042 (943,832)$ -$ (943,832)$

26 2043 (943,792)$ -$ (943,792)$

27 2044 (953,773)$ -$ (953,773)$

28 2045 (956,199)$ -$ (956,199)$

29 2046 (251,758)$ -$ (251,758)$

30 2047 -$ -$ -$

31 2048 -$ -$ -$

32 2049 -$ -$ -$

33 2050 -$ -$ -$

34 2051 -$ -$ -$

35 2052 -$ -$ -$

36 2053 -$ -$ -$

37 2054 -$ -$ -$

38 2055 -$ -$ -$

39 Total (75,522,569)$ (24,512,158)$ (100,034,727)$


CEI NORTH


REVISED EXCESS ACCUMULATED DEFERRED INCOME TAX ("EADIT") LIABILITY AMORTIZATION

As of December 31, 2017




CEI North

Schedule 4

Page 1 of 1

Total

Line Description Compliance Component TDSIC Component Amount

Return on New Capital Investment:

1 Gross New Capital Investment - As of End of Period 505,508,413$ 168,395,764$ 673,904,177$

2 Accumulated Depreciation - As of End of Period (32,130,516)$ (12,341,770)$ (44,472,286)$

3 Net New Capital Investment - As of End of Period 473,377,897$ 156,053,994$ 629,431,891$

4 New Capital Investment CWIP - As of End of Period 8,314,340$ 546,547$ 8,860,887$

5 PISCC Deferred Balance - As of End of Period 19,911,441$ 7,110,176$ 27,021,617$

6 Total New Capital Investment - As of End of Period 501,603,678$ 163,710,717$ 665,314,395$

7 Pre-Tax Rate of Return 8.37% 7.96%

8 Annualized Return on New Capital Investment 41,984,228$ 13,031,373$ 55,015,601$ (B)

Incremental Expenses:

9 Property Tax Expense - Annualized 3,659,615$ 1,213,761$ 4,873,376$

10 Depreciation Expense - Annualized 17,157,848$ 5,793,393$ 22,951,241$

11 Amortization Expense - Deferred Incremental O&M Expense 14,032,285$ -$ 14,032,285$

12 Amortization Expense - Deferred Depreciation 380,896$ 151,252$ 532,148$

13 Amortization Expense - Deferred PISCC 735,722$ 280,777$ 1,016,499$

14 Total Incremental Expenses 35,966,366$ 7,439,183$ 43,405,549$

Margin Netting:

15 Reduction of Margins from New Snow & Ogden Customers (8,697)$ -$ (8,697)$

16 Annual Revenue Requirement - Compliance and TDSIC Components 77,941,896$ 20,470,556$ 98,412,452$

17 Recoverable Compliance and TDSIC Components within CSIA (80%) 62,353,517$ 16,376,445$ 78,729,962$ (A)

18 To Be Deferred (20%) 15,588,379$ 4,094,111$ 19,682,490$

Notes:

(A)

including the full equity and debt return, and then eligible operating expenses [Line 17 less Line 8 - $23,714,361]. The collection priority will not impact the total amount

authorized by the Commission for immediate recovery in the CSIA [Line 17 - $78,729,962], nor the amount deferred and authorized for future recovery in a base rate

proceeding [Line 18 - $19,682,490].

(B) Equity Return - Compliance Component 34,359,852$

Equity Return - TDSIC Component 10,428,373$

Total Equity Return - Pre-Tax 44,788,225$

Debt Return - Compliance Component 7,624,376$

Debt Return - TDSIC Component 2,603,000$

Total Debt Return 10,227,376$

For accounting purposes only, the collection of 80% of the revenue requirement will cover in order of priority the full return on the investments [Line 8 - $55,015,601],


CEI NORTH


COMBINED COMPLIANCE AND TDSIC COMPONENT

ANNUAL REVENUE REQUIREMENT THROUGH DECEMBER 31, 2020




CEI North

Schedule 1

Page 1 of 1

TotalLine Description Amount Reference


1 Gross New Capital Investment - As of End of Period 505,508,413$ Schedule 2, Line 18, Col. G2 Accumulated Depreciation - As of End of Period (32,130,516)$ Schedule 2, Line 42, Col. G3 Net New Capital Investment - As of End of Period 473,377,897$ Line 1 + Line 2

4 New Capital Investment CWIP - As of End of Period 8,314,340$ Schedule 2, Line 48, Col. G

5 PISCC Deferred Balance - As of End of Period 19,911,441$ Schedule 3, Line 28, Col. G

6 Total New Capital Investment - As of End of Period 501,603,678$ Line 3 + Line 4 + Line 5

7 Pre-Tax Rate of Return 8.37% Schedule 4, Page 1, Line 17

8 Annualized Return on New Capital Investment 41,984,228$ Line 6 x Line 7

Incremental Expenses:

9 Property Tax Expense - Annualized 3,659,615$ (Line 1 x 0.72%) + (Line 4 x 0.24%) (A)

10 Depreciation Expense - Annualized 17,157,848$ Schedule 5, Line 17

11 Amortization Expense - Deferred Incremental O&M Expense 14,032,285$ Schedule 8, Line 5

12 Amortization Expense - Deferred Depreciation 380,896$ Schedule 6, Line 18

13 Amortization Expense - Deferred PISCC 735,722$ Schedule 3, Line 34

14 Total Incremental Expenses 35,966,366$ Sum Lines 9-13

Margin Netting:

15 Reduction of Margins from New Snow & Ogden Customers - As of End of Period (8,697)$ Schedule 10, Line 5, Col. H (C)

16 Annual Revenue Requirement - Compliance Component 77,941,896$ Line 8 + Line 14 + Line 15

17 Recoverable Compliance Component of CSIA (80%) 62,353,517$ Line 16 x 80% (B)

18 To Be Deferred (20%) 15,588,379$ Line 16 x 20% (B)

Notes:

(A)

(B) To Attachment JRM-1, Schedule 1, Line 1(C) Commission's Order in Cause No. 44563, page 11, Net margins should represent a deduction to the Compliance Component revenue requirement,

with 80% of the margins credited immediately to the CSIA and 20% of the margins credited against the deferral to be recovered in CEI North's next base rate case.

The annualized level of property taxes is calculated using an estimated CEI North rate of 2.40% multiplied by the tax basis of the: (1) plant, estimated to be 30% of the gross new capital investment amount, and (2) CWIP, estimated to be 10% of the new capital investment CWIP amount.


CEI NORTH


COMPLIANCE COMPONENT





CEI North

Schedule 2

Page 1 of 1

A B C D E F G

Balance at Balance atLine Gross New Capital Investment 6/30/2020 7/31/2020 8/31/2020 9/30/2020 10/31/2020 11/30/2020 12/31/2020

Gross Assets

1 Transmission 141,452,740$ 144,276,975$ 144,834,025$ 147,351,760$ 149,252,427$ 149,985,257$ 162,405,416$ 2 Distribution 316,505,292$ 318,817,684$ 323,146,716$ 335,097,276$ 338,290,728$ 339,512,858$ 350,670,352$ 3 Distribution - IEDC -$ -$ -$ -$ -$ -$ -$ 4 Underground Storage 3,461,425$ 3,660,010$ 3,677,592$ 3,685,051$ 4,090,406$ 4,099,393$ 4,099,393$ 5 General 312,178$ 312,178$ 312,178$ 312,178$ 312,178$ 312,178$ 312,178$ 6 Total Gross Assets 461,731,635$ 467,066,848$ 471,970,511$ 486,446,265$ 491,945,739$ 493,909,686$ 517,487,340$

Retirements

7 Transmission (769,244)$ (769,244)$ (769,244)$ (769,244)$ (769,244)$ (769,244)$ (885,414)$ 8 Distribution (10,232,755)$ (10,268,436)$ (10,433,994)$ (10,745,030)$ (10,755,954)$ (10,763,999)$ (11,009,462)$ 9 Distribution - IEDC -$ -$ -$ -$ -$ -$ -$

10 Underground Storage (84,051)$ (84,051)$ (84,051)$ (84,051)$ (84,051)$ (84,051)$ (84,051)$ 11 General -$ -$ -$ -$ -$ -$ -$ 12 Total Retirements (11,086,050)$ (11,121,730)$ (11,287,288)$ (11,598,325)$ (11,609,249)$ (11,617,294)$ (11,978,927)$

Gross New Capital Investment

13 Transmission 140,683,496$ 143,507,731$ 144,064,782$ 146,582,517$ 148,483,183$ 149,216,013$ 161,520,002$ 14 Distribution 306,272,537$ 308,549,249$ 312,712,723$ 324,352,245$ 327,534,773$ 328,748,858$ 339,660,890$ 15 Distribution - IEDC -$ -$ -$ -$ -$ -$ -$ 16 Underground Storage 3,377,374$ 3,575,959$ 3,593,540$ 3,601,000$ 4,006,355$ 4,015,342$ 4,015,342$ 17 General 312,178$ 312,178$ 312,178$ 312,178$ 312,178$ 312,178$ 312,178$ 18 Total Gross New Capital Investment 450,645,584$ 455,945,117$ 460,683,223$ 474,847,940$ 480,336,490$ 482,292,392$ 505,508,413$

= (Gross Assets + Retirements) To Schedule 1, Line 1

Balance at Balance atLine Accumulated Depreciation Balance 6/30/2020 7/31/2020 8/31/2020 9/30/2020 10/31/2020 11/30/2020 12/31/2020

Depreciation Expense

19 Transmission 11,627,547$ 11,965,983$ 12,307,706$ 12,652,804$ 13,002,837$ 13,356,231$ 13,726,347$ 20 Distribution 34,828,174$ 35,793,452$ 36,768,446$ 37,768,191$ 38,791,698$ 39,822,045$ 40,872,677$ 21 Distribution - IEDC -$ -$ -$ -$ -$ -$ -$ 22 Underground Storage 99,043$ 109,415$ 120,103$ 130,827$ 142,333$ 154,623$ 166,927$ 23 General 42,463$ 43,546$ 44,628$ 45,710$ 46,792$ 47,874$ 48,956$ 24 Total Depreciation Expense 46,597,228$ 47,912,396$ 49,240,882$ 50,597,532$ 51,983,660$ 53,380,773$ 54,814,907$

Retirements

25 Transmission (769,244)$ (769,244)$ (769,244)$ (769,244)$ (769,244)$ (769,244)$ (885,414)$ 26 Distribution (10,232,755)$ (10,268,436)$ (10,433,994)$ (10,745,030)$ (10,755,954)$ (10,763,999)$ (11,009,462)$ 27 Distribution - IEDC -$ -$ -$ -$ -$ -$ -$ 28 Underground Storage (84,051)$ (84,051)$ (84,051)$ (84,051)$ (84,051)$ (84,051)$ (84,051)$ 29 General -$ -$ -$ -$ -$ -$ -$ 30 Total Retirements (11,086,050)$ (11,121,730)$ (11,287,288)$ (11,598,325)$ (11,609,249)$ (11,617,294)$ (11,978,927)$

Cost of Removal

31 Transmission 4,102,482$ 4,071,750$ 4,108,357$ 4,180,539$ 4,247,195$ 4,268,723$ 4,273,374$ 32 Distribution 5,741,882$ 5,861,967$ 5,941,412$ 6,012,425$ 6,135,645$ 6,206,127$ 6,348,940$ 33 Distribution - IEDC -$ -$ -$ -$ -$ -$ -$ 34 Underground Storage 74,625$ 77,578$ 77,580$ 79,738$ 83,149$ 83,150$ 83,150$ 35 General -$ -$ -$ -$ -$ -$ -$ 36 Total Cost of Removal 9,918,989$ 10,011,295$ 10,127,348$ 10,272,702$ 10,465,990$ 10,558,000$ 10,705,464$

Total Accumulated Depreciation Balance

37 Transmission (6,755,821)$ (7,124,989)$ (7,430,105)$ (7,703,021)$ (7,986,398)$ (8,318,265)$ (8,567,559)$ 38 Distribution (18,853,537)$ (19,663,049)$ (20,393,041)$ (21,010,735)$ (21,900,099)$ (22,851,919)$ (23,514,275)$ 39 Distribution - IEDC -$ -$ -$ -$ -$ -$ -$ 40 Underground Storage 59,633$ 52,214$ 41,528$ 32,962$ 24,868$ 12,578$ 274$ 41 General (42,463)$ (43,546)$ (44,628)$ (45,710)$ (46,792)$ (47,874)$ (48,956)$ 42 Total Accumulated Depreciation Balance (25,592,189)$ (26,779,370)$ (27,826,246)$ (28,726,504)$ (29,908,421)$ (31,205,479)$ (32,130,516)$

= - Depreciation Expense - Retirements + Cost of Removal To Schedule 1, Line 2

Balance atLine CWIP Balance 12/31/202043 Transmission 2,964,795$ 44 Distribution 5,151,576$ 45 Distribution - IEDC -$ 46 Underground Storage 197,969$ 47 General -$ 48 Total CWIP Balance 8,314,340$

To Schedule 1, Line 4


CEI NORTH



NEW CAPITAL INVESTMENT




CEI North

Schedule 3

Page 1 of 1

Line Description Reference A B C D E F G

1 PISCC Rate - Monthly Schedule 4, Page 2, Line 5 / 12 0.54% 0.54% 0.54% 0.54% 0.54% 0.54%2 Debt - PISCC Rate - Monthly Schedule 4, Page 2, Lines 1,3-4 / 12 0.13% 0.13% 0.13% 0.13% 0.13% 0.13%3 Equity - PISCC Rate - Monthly Schedule 4, Page 2, Line 2 / 12 0.41% 0.41% 0.41% 0.41% 0.41% 0.41%

4 Transmission Amortization Rate - Monthly (A) Schedule 6, Line 8 / 12 0.25% 0.25% 0.25% 0.25% 0.25% 0.25%5 Distribution Amortization Rate - Monthly (A) Schedule 6, Line 9 / 12 0.30% 0.30% 0.30% 0.30% 0.30% 0.30%6 Distribution - IEDC Amortization Rate - Monthly (A) Schedule 6, Line 10 / 12 0.30% 0.30% 0.30% 0.30% 0.30% 0.30%7 Underground Storage Amortization Rate - Monthly (A) Schedule 6, Line 11 / 12 0.32% 0.32% 0.32% 0.32% 0.32% 0.32%8 General Amortization Rate - Monthly (A) Schedule 6, Line 12 / 12 0.33% 0.33% 0.33% 0.33% 0.33% 0.33%

Balance at Balance atPISCC Cummulative Deferred Balance - DEBT 6/30/2020 7/31/2020 8/31/2020 9/30/2020 10/31/2020 11/30/2020 12/31/2020

9 Transmission (B) 1,756,307$ 1,759,838$ 1,765,581$ 1,773,336$ 1,783,980$ 1,796,348$ 1,817,320$ 10 Distribution (B) 4,162,576$ 4,189,320$ 4,220,409$ 4,262,147$ 4,313,792$ 4,368,326$ 4,430,957$ 11 Distribution - IEDC (B) -$ -$ -$ -$ -$ -$ -$ 12 Underground Storage (B) 24,482$ 25,822$ 27,303$ 28,800$ 30,568$ 32,607$ 34,651$ 13 General (B) 4,597$ 4,597$ 4,597$ 4,597$ 4,597$ 4,597$ 4,597$ 14 PISCC Deferred Balance 5,947,962$ 5,979,577$ 6,017,890$ 6,068,880$ 6,132,937$ 6,201,877$ 6,287,525$

Balance at Balance atPISCC Cummulative Deferred Balance - EQUITY 6/30/2020 7/31/2020 8/31/2020 9/30/2020 10/31/2020 11/30/2020 12/31/2020

15 Transmission (B) 4,298,263$ 4,309,396$ 4,327,502$ 4,351,951$ 4,385,512$ 4,424,506$ 4,490,627$ 16 Distribution (B) 9,963,928$ 10,048,249$ 10,146,267$ 10,277,862$ 10,440,692$ 10,612,628$ 10,810,098$ 17 Distribution - IEDC (B) -$ -$ -$ -$ -$ -$ -$ 18 Underground Storage (B) 69,470$ 73,694$ 78,363$ 83,085$ 88,657$ 95,085$ 101,530$ 19 General (B) 11,232$ 11,232$ 11,232$ 11,232$ 11,232$ 11,232$ 11,232$ 20 PISCC Deferred Balance 14,342,893$ 14,442,570$ 14,563,364$ 14,724,129$ 14,926,093$ 15,143,450$ 15,413,487$

Balance at Balance atPISCC Cumulative Deferred Balance - DEBT + EQUITY 6/30/2020 7/31/2020 8/31/2020 9/30/2020 10/31/2020 11/30/2020 12/31/2020

21 Transmission Line 9 + Line 15 6,054,570$ 6,069,234$ 6,093,084$ 6,125,287$ 6,169,493$ 6,220,853$ 6,307,946$ 22 Distribution Line 10 + Line 16 14,126,504$ 14,237,569$ 14,366,676$ 14,540,009$ 14,754,484$ 14,980,954$ 15,241,055$ 23 Distribution - IEDC Line 11 + Line 17 -$ -$ -$ -$ -$ -$ -$ 24 Underground Storage Line 12 + Line 18 93,952$ 99,516$ 105,666$ 111,885$ 119,225$ 127,691$ 136,181$ 25 General Line 13 + Line 19 15,828$ 15,828$ 15,828$ 15,828$ 15,828$ 15,828$ 15,828$ 26 PISCC Deferred Balance Sum Lines 21-25 20,290,855$ 20,422,147$ 20,581,254$ 20,793,009$ 21,059,030$ 21,345,327$ 21,701,011$

27 Less: Amortization of PISCC (C) (1,475,232)$ (1,527,621)$ (1,580,011)$ (1,632,401)$ (1,684,791)$ (1,737,180)$ (1,789,570)$

28 Total PISCC Deferred Balance Line 26 + Line 27 18,815,623$ 18,894,525$ 19,001,243$ 19,160,608$ 19,374,239$ 19,608,146$ 19,911,441$


Annualized Amortization Expense

29 Transmission Line 4 x Line 21 x 12 185,528$ 30 Distribution Line 5 x Line 22 x 12 544,323$ 31 Distribution - IEDC Line 6 x Line 23 x 12 -$ 32 Underground Storage Line 7 x Line 24 x 12 5,238$ 33 General Line 8 x Line 25 x 12 633$ 34 Total Amortization Expense Sum Lines 29-33 735,722$


(A) Based on Amortization Life of Plant as of December 31, 2013. Annual depreciation rate is 1 divided by Number of Years, as shown on Attachment JRM-2, Schedule 6.(B) Calculated as the PISCC rates (lines 2 & 3) multiplied by the monthly PISCC eligible balances. PISCC eligible balances are based on the gross plant placed in service not yet captured for recovery in the CSIA.(C) Amortization of approximately $52,390 per month beginning in July 2020 is based on annualized amortization expense of $628,678 from TDSIC-12, Attachment JCS-R2, Schedule 3, Line 34.


CEI NORTH



POST IN-SERVICE CARRYING COSTS (PISCC)




CEI North

Schedule 4

Page 1 of 2

A B C D = B x C

Line After-Tax (A) Amount ($000's) Weighting Cost WACC

1 Debt 474,876$ 30.75% 4.84% 1.49%2 Equity 777,931$ 50.37% 10.20% 5.14%3 Cost Free Capital 265,532$ 17.19% 0.00% 0.00%4 Other 26,100$ 1.69% 1.50% 0.03%5 Total 1,544,440$ 6.66% (B)


Pre-Tax Equity Component Calculation

6 After-Tax Cost of Equity per Line 2 5.14% Line 2, Col. D7 One 100.00%8 Less: Current State Tax Rate 5.075% (C)

9 Federal Taxable 94.93% Line 7 - Line 810 One Less Federal Income Tax 79.00% 1 - 21%11 Effective Gross-Up Factor 74.99% Line 9 x Line 1012 Pre-Tax Equity 6.85% Line 6 / Line 11

Forecast - Adjusted ROR (fixed ROE)

Pre-Tax

13 Debt 1.49% from Line 114 Equity 6.85% from Line 1215 Cost Free Capital 0.00% from Line 316 Other 0.03% from Line 417 Total Pre-Tax Rate of Return 8.37% Sum Lines 13-16


(A) All data in Lines 1 through 5 are per Order in most recent TDSIC Case, Cause No. 44430-TDSIC-13

(B) Proof Equity Debt and Other Total18 Total New Capital Investment 501,603,678$ 501,603,678$ from Schedule 1, Line 619 Pre-Tax Return 6.85% 1.52% from Lines 13-1620 Return 34,380,812$ 7,624,376$ Line 18 x Line 1921 State Tax 1,744,826$ 5.075% x Line 2022 Federal Taxable Return 32,635,986$ 7,624,376$ Line 20 - Line 2123 Federal Tax 6,853,557$ Line 22 x 21%24 After Tax Return $ 25,782,429$ 7,624,376$ 33,406,805$ Line 20 - Lines 21 and 23

25 After-Tax Rate of Return 6.66% Line 24 / Line 18equals Line 5

(C) Represents a blended State Tax Rate: - January 1, 2021 - December 31, 2021 @ 5.075%- Based on 5.250% @ January 1, 2021 and 4.900% @ July 1, 2021


CEI NORTH



PRE-TAX RATE OF RETURN AND AFTER TAX PISCC RATE AT JUNE 30, 2020




CEI North

Schedule 4

Page 2 of 2

A B C D = B x C


1 Debt 474,873$ 31.66% 4.87% 1.54%2 Equity 728,182$ 48.54% 10.20% 4.95%3 Cost Free Capital 270,233$ 18.01% 0.00% 0.00%4 Other 26,820$ 1.79% 1.50% 0.03%5 Total 1,500,108$ 6.52%

(A) All data in Lines 1 through 5 represent the actual balances as of December 31, 2019 (as presented in TDSIC-13 filing on JCS-3, Sch 4, Pg 2).


CEI NORTH



AFTER TAX PISCC RATE AT DECEMBER 31, 2019




CEI North

Schedule 5

Page 1 of 1

Balance atLine Description 12/31/2020 Reference

Depreciable In-Service Balance

1 Transmission 161,520,002$ Schedule 2, Line 13, Col. G2 Distribution 339,660,890$ Schedule 2, Line 14, Col. G3 Distribution - IEDC -$ Schedule 2, Line 15, Col. G4 Underground Storage 4,015,342$ Schedule 2, Line 16, Col. G5 General 312,178$ Schedule 2, Line 17, Col. G6 Total 505,508,413$ Sum Lines 1-5

Monthly Depreciation Rates

7 Transmission 0.24% (A)

8 Distribution 0.30% (A)

9 Distribution - IEDC 0.00% (B)

10 Underground Storage 0.30% (A)

11 General 0.35% (A)

Annualized Depreciation Expense

12 Transmission 4,600,616$ Line 1 x Line 7 x 1213 Distribution 12,399,542$ Line 2 x Line 8 x 1214 Distribution - IEDC -$ Line 3 x Line 9 x 1215 Underground Storage 144,704$ Line 4 x Line 10 x 1216 General 12,986$ Line 5 x Line 11 x 1217 Total Annualized Depreciation Expense 17,157,848$ Sum Lines 12-16


(A)

(B) Reflects no plant additions through current period for class of plant.

Current average of authorized depreciation rates. Supporting work papers will show a detailed calculation of depreciation rates by class of plant.


CEI NORTH



ANNUALIZED DEPRECIATION EXPENSE ON NEW CAPITAL INVESTMENT




CEI North

Schedule 6

Page 1 of 1

A B C D E F G

Balance at Balance atLine Description 6/30/2020 7/31/2020 8/31/2020 9/30/2020 10/31/2020 11/30/2020 12/31/2020

Deferred Depreciation Balance (A)

1 Transmission 2,678,077$ 2,684,323$ 2,693,856$ 2,706,765$ 2,724,609$ 2,745,813$ 2,783,602$ 2 Distribution 7,677,649$ 7,737,626$ 7,806,918$ 7,900,095$ 8,016,502$ 8,139,711$ 8,282,780$ 3 Distribution - IEDC -$ -$ -$ -$ -$ -$ -$ 4 Underground Storage 49,038$ 52,015$ 55,307$ 58,636$ 62,746$ 67,641$ 72,550$ 5 General 10,534$ 10,534$ 10,534$ 10,534$ 10,534$ 10,534$ 10,534$ 6 Less: Amortization of Deferrals (B) (733,579)$ (760,751)$ (787,924)$ (815,096)$ (842,269)$ (869,441)$ (896,614)$ 7 Total Deferred Depreciation Balance 9,681,718$ 9,723,747$ 9,778,691$ 9,860,933$ 9,972,122$ 10,094,257$ 10,252,852$

Depreciation Rates (C)

8 Transmission 2.94%9 Distribution 3.57%

10 Distribution - IEDC 3.57%11 Underground Storage 3.85%12 General 4.00%

Deferred Depreciation Amortization Expense

13 Transmission Line 1 x Line 8 81,871$ 14 Distribution Line 2 x Line 9 295,814$ 15 Distribution - IEDC Line 3 x Line 10 -$ 16 Underground Storage Line 4 x Line 11 2,790$ 17 General Line 5 x Line 12 421$ 18 Deferred Depreciation Amortization Expense Sum Lines 13-17 380,896$


(A) Calculated by taking the gross new plant investment, less retirements, placed in-service but not yet included in CSIA recovery.(B) Amortization of approximately $27,173 per month beginning in July 2020 is based on annualized amortization expense of $326,070 from TDSIC-12, Attachment JCS-R2, Schedule 6, Line 18.(C) Based on Amortization Life of Plant as of December 31, 2013. Annual depreciation rate is 1 divided by Number of Years.

Transmission - 34 yearsDistribution - 28 yearsDistribution - IEDC - 28 yearsUnderground Storage - 26 yearsGeneral - 25 years


CEI NORTH



AMORTIZATION OF DEFERRED DEPRECIATION




CEI North

Schedule 7

Page 1 of 1

Line Description Amount Reference1 TDSIC-1, Compliance Component - through 06/30/2014 593,517$ TDSIC-1, JCS-2, Sch 7, Line 12 TDSIC-2, Compliance Component - through 12/31/2014 1,207,722$ TDSIC-2, JCS-2, Sch 7, Line 23 TDSIC-3, Compliance Component - through 06/30/2015 1,794,369$ TDSIC-3, JCS-2, Sch 7, Line 34 TDSIC-4, Compliance Component - through 12/31/2015 2,440,171$ TDSIC-4, JCS-2, Sch 7, Line 45 TDSIC-5, Compliance Component - through 06/30/2016 3,067,362$ TDSIC-5, JCS-2, Sch 7, Line 56 TDSIC-6, Compliance Component - through 12/31/2016 3,386,735$ TDSIC-6, JCS-2, Sch 7, Line 67 TDSIC-7, Compliance Component - through 06/30/2017 4,144,544$ TDSIC-7, JCS-2, Sch 7, Line 7 (B)

8 TDSIC-8, Compliance Component - through 12/31/2017 5,079,749$ TDSIC-8, JCS-2 (Revised), Sch 7, Line 89 TDSIC-9, Compliance Component - through 06/30/2018 5,891,954$ TDSIC-9, JCS-2, Sch 7, Line 9

10 TDSIC-10, Compliance Component - through 12/31/2018 6,236,696$ TDSIC-10 JCS-R2, Sch 7, Line 10 (C)

11 TDSIC-11, Compliance Component - through 06/30/2019 7,288,122$ TDSIC-11 JCS-2 (Revised), Sch 7, Line 1112 TDSIC-12, Compliance Component - through 12/31/2019 6,697,420$ TDSIC-12 JCS-R2, Sch 7, Line 1213 TDSIC-13, Compliance Component - through 06/30/2020 7,714,986$ TDSIC-13 JCS-2, Sch 7, Line 1314 TDSIC-14, Compliance Component - through 12/31/2020 7,299,719$ (A)

15 Total Deferred Revenue Requirement 62,843,066$

Notes:

(A)

(B) Adjusted to reflect the lower pre-tax rate of return using a 21% Federal Tax Rate - no other changes made to authorized amounts.(C) TDSIC-10 deferred revenues have been adjusted to reflect the corrected allocation previously described in Witness Swiz’s

TDSIC-11 testimony (Page 18).

Attachment KJT-1, Schedule 3, Line 20, Sum of Jul-Dec 2021 x Allocation of Compliance Component Revenue Requirement from Attachment JRM-1, Schedule 1


CEI NORTH



DEFERRED REVENUE REQUIREMENT (20%)




CEI North

Schedule 8

Page 1 of 1

Line Description Amount Reference

1 Balance - at end of previous reconciliation period [06/30/2020] 15,331,202$ TDSIC-13, JCS-2, Sch 8, Line 5 (A)

2 Deferral - current reconcilation period [Jul-Dec 2020] 6,806,403$ Petitioner's Exhibit No. 2, Attachment SJV-23 Balance - at end of current reconciliation period [12/31/2020] 22,137,605$ Sum Lines 1-34 Less: Expected Recoveries (8,105,320)$ (B)

5 Balance - to be recovered in current effective period 14,032,285$ Sum Lines 4-5To Schedule 1, Line 11

Notes:

(A) Includes remaining North PSA balance at 04/10/17 as shown in TDSIC-7(B) Expected recoveries attributable to O&M from TDSIC-13


CEI NORTH



AMORTIZATION OF DEFERRED INCREMENTAL O&M EXPENSE




CEI North

Schedule 9

Page 1 of 1


1 Total New Statutory Investment - As of End of Period 501,603,678$ From Schedule 1, Line 6

2 After-Tax Rate of Return 6.66% From Schedule 4, Page 1, Line 5

3 NOI Adjustment for GCA Earnings Test - TDSIC-14, Compliance Component 33,406,805$ Line 1 x Line 2


CEI NORTH



NOI ADJUSTED FOR GCA EARNINGS TEST




CEI North

Schedule 10

Page 1 of 1

A B C D E F G H

Balance at Total ThruLine Description 6/30/2020 7/31/2020 8/31/2020 9/30/2020 10/31/2020 11/30/2020 12/31/2020 12/31/2020

Net Margins from Snow & Ogden Customers

1 Snow & Ogden Average Customers (A) 30.000 30.000 30.000 30.000 30.000 30.0002 Rate 210 - Order Granted Margin Per Customer (B) 14.79$ 14.71$ 16.37$ 21.07$ 29.25$ 40.04$ 3 Customer Margin Adjustment 50,290$ 444$ 441$ 491$ 632$ 878$ 1,201$ 54,377$ 4 Less: Expected Recoveries (C) 45,680$ 5 Balance - at end of current reconciliation period [12/31/2020] 8,697$


Notes:

(A)

(B)

(C) Expected recoveries through December 31, 2020

Revised base rates and charges were approved effective June 1, 2018 following a Thirty Day Filing pursuant to Cause No. 45032, identified by the Commission as #50171 (approved May 30, 2018).

As customers are added at various points during the calendar month, the applicable billing period for a customer is prorated by day during the first billing month, resulting in a 'partial customer'. That customer in subsequent periods is considered one full customer.

NET MARGINS GAINED FROM NEW CUSTOMERS (SNOW & OGDEN)


CEI NORTH






CEI North

Schedule 1

Page 1 of 1



1 Gross New Capital Investment - As of End of Period 168,395,764$ Schedule 2, Line 18, Col. G2 Accumulated Depreciation - As of End of Period (12,341,770)$ Schedule 2, Line 42, Col. G3 Net New Capital Investment - As of End of Period 156,053,994$ Line 1 + Line 2

4 New Capital Investment CWIP - As of End of Period 546,547$ Schedule 2, Line 48, Col. G

5 PISCC Deferred Balance - As of End of Period 7,110,176$ Schedule 3, Line 33, Col. G



8 Annualized Return on New Capital Investment 13,031,373$ Line 6 x Line 7

Incremental Expenses

9 Property Tax Expense - Annualized 1,213,761$ (Line 1 x 0.72%) + (Line 4 x 0.24%) (A)

10 Depreciation Expense - Annualized 5,793,393$ Schedule 5, Line 17

11 Amortization Expense - Deferred Incremental O&M Expense -$ N/A for TDSIC Component

12 Amortization Expense - Deferred Depreciation 151,252$ Schedule 6, Line 18

13 Amortization Expense - Deferred PISCC 280,777$ Schedule 3, Line 39

14 Total Incremental Expenses 7,439,183$ Sum Lines 9-13

Margin Netting:

15 Reduction of Margins from New Snow & Ogden Customers - As of End of Period -$ N/A for TDSIC Component

16 Annual Revenue Requirement - TDSIC Component 20,470,556$ Line 8 + Line 14

17 Recoverable TDSIC Component of CSIA (80%) 16,376,445$ Line 16 x 80% (B)

18 To Be Deferred (20%) 4,094,111$ Line 16 x 20% (B)

Notes:

(A)

(B) To Attachment JRM-1, Schedule 1, Line 2



CEI NORTH


TDSIC COMPONENT





CEI North

Schedule 2

Page 1 of 1

A B C D E F G

Balance at Balance atLine Gross New Capital Investment Balance 6/30/2020 7/31/2020 8/31/2020 9/30/2020 10/31/2020 11/30/2020 12/31/2020

Gross Assets

1 Transmission 22,590,249$ 22,692,924$ 22,280,029$ 22,307,061$ 22,311,076$ 22,335,665$ 22,349,298$ 2 Distribution 140,290,967$ 140,351,702$ 141,403,173$ 141,483,152$ 143,265,994$ 143,288,391$ 144,977,105$ 3 Distribution - IEDC 1,896,580$ 1,896,580$ 1,896,580$ 1,896,580$ 1,896,580$ 1,896,580$ 2,451,542$ 4 Underground Storage 1,532,989$ 1,730,584$ 1,598,555$ 1,598,555$ 1,599,992$ 1,599,992$ 2,384,954$ 5 General 569,724$ 569,724$ 569,724$ 569,724$ 569,724$ 569,724$ 569,724$ 6 Total Gross Assets 166,880,509$ 167,241,514$ 167,748,061$ 167,855,072$ 169,643,365$ 169,690,352$ 172,732,622$

Retirements

7 Transmission (647)$ (647)$ (647)$ (647)$ (647)$ (647)$ (647)$ 8 Distribution (4,146,949)$ (4,146,949)$ (4,198,020)$ (4,198,020)$ (4,198,020)$ (4,222,865)$ (4,222,865)$ 9 Distribution - IEDC -$ -$ -$ -$ -$ -$ -$ 10 Underground Storage -$ -$ -$ -$ -$ -$ -$ 11 General (113,346)$ (113,346)$ (113,346)$ (113,346)$ (113,346)$ (113,346)$ (113,346)$ 12 Total Retirements (4,260,942)$ (4,260,942)$ (4,312,013)$ (4,312,013)$ (4,312,013)$ (4,336,858)$ (4,336,858)$

Gross New Capital Investment Balance

13 Transmission 22,589,602$ 22,692,277$ 22,279,382$ 22,306,414$ 22,310,429$ 22,335,019$ 22,348,651$ 14 Distribution 136,144,018$ 136,204,752$ 137,205,153$ 137,285,132$ 139,067,974$ 139,065,526$ 140,754,240$ 15 Distribution - IEDC 1,896,580$ 1,896,580$ 1,896,580$ 1,896,580$ 1,896,580$ 1,896,580$ 2,451,542$ 16 Underground Storage 1,532,989$ 1,730,584$ 1,598,555$ 1,598,555$ 1,599,992$ 1,599,992$ 2,384,954$ 17 General 456,377$ 456,377$ 456,377$ 456,377$ 456,377$ 456,377$ 456,377$ 18 Total Gross New Capital Investment 162,619,567$ 162,980,571$ 163,436,048$ 163,543,058$ 165,331,352$ 165,353,494$ 168,395,764$

= (Gross Assets + Retirements) To Schedule 1, Line 1

Balance at Balance atLine Accumulated Depreciation Balance 6/30/2020 7/31/2020 8/31/2020 9/30/2020 10/31/2020 11/30/2020 12/31/2020

Depreciation Expense

19 Transmission 1,653,140$ 1,708,963$ 1,764,406$ 1,819,378$ 1,874,389$ 1,929,435$ 1,984,529$ 20 Distribution 20,452,394$ 20,868,065$ 21,285,219$ 21,703,897$ 22,124,805$ 22,547,854$ 22,972,931$ 21 Distribution - IEDC 185,049$ 189,607$ 194,166$ 198,724$ 203,282$ 207,840$ 213,055$ 22 Underground Storage 65,525$ 71,286$ 77,143$ 82,806$ 88,470$ 94,137$ 101,283$ 23 General 90,813$ 92,676$ 94,539$ 96,402$ 98,265$ 100,128$ 101,991$ 24 Total Depreciation Expense 22,446,921$ 22,930,598$ 23,415,473$ 23,901,207$ 24,389,212$ 24,879,395$ 25,373,790$

Retirements

25 Transmission (647)$ (647)$ (647)$ (647)$ (647)$ (647)$ (647)$ 26 Distribution (4,146,949)$ (4,146,949)$ (4,198,020)$ (4,198,020)$ (4,198,020)$ (4,222,865)$ (4,222,865)$ 27 Distribution - IEDC -$ -$ -$ -$ -$ -$ -$ 28 Underground Storage -$ -$ -$ -$ -$ -$ -$ 29 General (113,346)$ (113,346)$ (113,346)$ (113,346)$ (113,346)$ (113,346)$ (113,346)$ 30 Total Retirements (4,260,942)$ (4,260,942)$ (4,312,013)$ (4,312,013)$ (4,312,013)$ (4,336,858)$ (4,336,858)$

Cost of Removal

31 Transmission 74,687$ 74,687$ 74,687$ 75,517$ 75,517$ 75,517$ 75,517$ 32 Distribution 8,599,523$ 8,599,985$ 8,600,313$ 8,600,701$ 8,601,440$ 8,602,684$ 8,603,133$ 33 Distribution - IEDC -$ -$ -$ -$ -$ -$ -$ 34 Underground Storage 11,027$ 11,027$ 11,027$ 11,027$ 11,027$ 11,027$ 11,027$ 35 General 5,485$ 5,485$ 5,485$ 5,485$ 5,485$ 5,485$ 5,485$ 36 Total Cost of Removal 8,690,722$ 8,691,184$ 8,691,512$ 8,692,730$ 8,693,469$ 8,694,713$ 8,695,162$

Total Accumulated Depreciation Expense

37 Transmission (1,577,806)$ (1,633,629)$ (1,689,072)$ (1,743,214)$ (1,798,226)$ (1,853,272)$ (1,908,365)$ 38 Distribution (7,705,922)$ (8,121,131)$ (8,486,886)$ (8,905,176)$ (9,325,345)$ (9,722,305)$ (10,146,934)$ 39 Distribution - IEDC (185,049)$ (189,607)$ (194,166)$ (198,724)$ (203,282)$ (207,840)$ (213,055)$ 40 Underground Storage (54,498)$ (60,259)$ (66,116)$ (71,778)$ (77,443)$ (83,110)$ (90,256)$ 41 General 28,018$ 26,155$ 24,292$ 22,429$ 20,566$ 18,703$ 16,840$ 42 Total Accumulated Depreciation Expense (9,495,257)$ (9,978,471)$ (10,411,948)$ (10,896,464)$ (11,383,730)$ (11,847,824)$ (12,341,770)$

= - Depreciation Expense - Retirements + Cost of Removal To Schedule 1, Line 2

Balance atLine CWIP Balance 12/31/202043 Transmission 278$ 44 Distribution 575,933$ 45 Distribution - IEDC -$ 46 Underground Storage (29,663)$ 47 General -$ 48 Total CWIP Balance 546,547$



CEI NORTH


TDSIC COMPONENT

NEW CAPITAL INVESTMENT




CEI North

Schedule 3

Page 1 of 1

Line Description Reference A B C D E F G

1 PISCC Rate - Monthly Schedule 4, Page 2, Line 5 / 12 0.56% 0.56% 0.56% 0.56% 0.56% 0.56%2 PISCC Rate - Monthly - DEBT Schedule 4, Page 2, Lines 1,3-4 / 12 0.13% 0.13% 0.13% 0.13% 0.13% 0.13%3 PISCC Rate - Monthly - EQUITY Schedule 4, Page 2, Line 2 / 12 0.43% 0.43% 0.43% 0.43% 0.43% 0.43%

4 Transmission Amortization Rate - Monthly (A) Schedule 6, Line 8 / 12 0.25% 0.25% 0.25% 0.25% 0.25% 0.25%5 Distribution Amortization Rate - Monthly (A) Schedule 6, Line 9 / 12 0.30% 0.30% 0.30% 0.30% 0.30% 0.30%6 Distribution - IEDC Amortization Rate - Monthly (A) Schedule 6, Line 10 / 12 0.30% 0.30% 0.30% 0.30% 0.30% 0.30%7 Underground Storage Amortization Rate - Monthly (A) Schedule 6, Line 11 / 12 0.32% 0.32% 0.32% 0.32% 0.32% 0.32%8 General Amortization Rate - Monthly (A) Schedule 6, Line 12 / 12 0.33% 0.33% 0.33% 0.33% 0.33% 0.33%

Balance at Balance atPISCC Cumulative Deferred Balance - DEBT 6/30/2020 7/31/2020 8/31/2020 9/30/2020 10/31/2020 11/30/2020 12/31/2020

9 Transmission (B) 272,740$ 275,890$ 278,844$ 281,554$ 284,283$ 287,030$ 289,801$ 10 Distribution (B) 1,967,069$ 1,970,426$ 1,974,488$ 1,979,267$ 1,985,225$ 1,992,327$ 2,000,513$ 11 Distribution - IEDC (B) 26,617$ 26,617$ 26,617$ 26,617$ 26,617$ 26,617$ 26,968$ 12 Underground Storage (B) 10,363$ 10,964$ 11,607$ 12,166$ 12,726$ 13,287$ 14,345$ 13 General (B) 9,560$ 9,560$ 9,560$ 9,560$ 9,560$ 9,560$ 9,560$ 14 PISCC Deferred Balance (B) 2,286,348$ 2,293,457$ 2,301,116$ 2,309,163$ 2,318,410$ 2,328,820$ 2,341,186$

Balance at Balance atPISCC Cumulative Deferred Balance - EQUITY 6/30/2020 7/31/2020 8/31/2020 9/30/2020 10/31/2020 11/30/2020 12/31/2020

15 Transmission (B) 705,031$ 715,683$ 725,672$ 734,834$ 744,062$ 753,352$ 762,724$ 16 Distribution (B) 4,687,213$ 4,698,567$ 4,712,303$ 4,728,462$ 4,748,611$ 4,772,626$ 4,800,305$ 17 Distribution - IEDC (B) 66,601$ 66,601$ 66,601$ 66,601$ 66,601$ 66,601$ 67,789$ 18 Underground Storage (B) 31,606$ 33,639$ 35,812$ 37,703$ 39,597$ 41,494$ 45,072$ 19 General (B) 22,050$ 22,050$ 22,050$ 22,050$ 22,050$ 22,050$ 22,050$ 20 PISCC Deferred Balance (B) 5,512,500$ 5,536,540$ 5,562,438$ 5,589,649$ 5,620,920$ 5,656,122$ 5,697,940$

Balance atPISCC Cumulative Deferred Balance - DEBT + EQUITY 6/30/2020 7/31/2020 8/31/2020 9/30/2020 10/31/2020 11/30/2020 12/31/2020

21 Transmission Line 9 + Line 15 977,771$ 991,574$ 1,004,516$ 1,016,387$ 1,028,345$ 1,040,382$ 1,052,525$ 22 Distribution Line 10 + Line 16 6,654,282$ 6,668,994$ 6,686,792$ 6,707,729$ 6,733,836$ 6,764,953$ 6,800,818$ 23 Distribution - IEDC Line 11 + Line 17 93,217$ 93,217$ 93,217$ 93,217$ 93,217$ 93,217$ 94,757$ 24 Underground Storage Line 12 + Line 18 41,968$ 44,603$ 47,419$ 49,869$ 52,323$ 54,780$ 59,416$ 25 General Line 13 + Line 19 31,609$ 31,609$ 31,609$ 31,609$ 31,609$ 31,609$ 31,609$ 26 PISCC Deferred Balance Sum Lines 21-25 7,798,848$ 7,829,997$ 7,863,553$ 7,898,812$ 7,939,331$ 7,984,942$ 8,039,126$

27 Amortization of PISCC - Transmission (242,787)$ (249,286)$ (255,786)$ (262,285)$ (268,784)$ (275,283)$ (281,782)$ 28 Amortization of PISCC - Distribution (554,042)$ (569,563)$ (585,084)$ (600,605)$ (616,126)$ (631,647)$ (647,168)$ 29 Amortization of PISCC - Distribution - IEDC -$ -$ -$ -$ -$ -$ -$ 30 Amortization of PISCC - Underground Storage -$ -$ -$ -$ -$ -$ -$ 31 Amortization of PISCC - General -$ -$ -$ -$ -$ -$ -$ 32 Less: Amortization of PISCC (C) (796,830)$ (818,850)$ (840,870)$ (862,890)$ (884,910)$ (906,930)$ (928,950)$

33 Total PISCC Deferred Balance Line 26 + Line 32 7,002,018$ 7,011,147$ 7,022,683$ 7,035,922$ 7,054,421$ 7,078,012$ 7,110,176$


Annualized Amortization Expense

34 Transmission Line 4 x Line 21 x 12 30,957$ 35 Distribution Line 5 x Line 22 x 12 242,886$ 36 Distribution - IEDC Line 6 x Line 23 x 12 3,384$ 37 Underground Storage Line 7 x Line 24 x 12 2,285$ 38 General Line 8 x Line 25 x 12 1,264$ 39 Total Amortization Expense Sum Lines 29-33 280,777$


(A) Based on Amortization Life of Plant as of December 31, 2013. Annual depreciation rate is 1 divided by Number of Years, as shown on Attachment JRM-3, Schedule 6.(B) Calculated as the PISCC rates (line 2 & 3) multiplied by the monthly PISCC eligible balances. PISCC eligible balances are based on the gross plant placed in-service not yet captured for recovery in the CSIA.(C) Amortization of approximately $22,020 per month beginning in July 2020 is based on annualized amortization expense of $264,240 from TDSIC-12, Attachment JCS-R3, Schedule 3, Line 39.


CEI NORTH


TDSIC COMPONENT

POST IN-SERVICE CARRYING COSTS (PISCC)




CEI North

Schedule 4

Page 1 of 2

A B C D = B x C


1 Debt 534,876$ 33.44% 4.73% 1.58%2 Equity 749,716$ 46.87% 10.20% 4.78%3 Cost Free Capital 291,246$ 18.21% 0.00% 0.00%4 Other 23,611$ 1.48% 0.50% 0.01%5 Total 1,599,449$ 6.37% (B)


Pre-Tax Equity Component Calculation

6 After-Tax Cost of Equity per Line 2 4.78% Line 2, Col. D7 One 100.00%8 Less: Current State Tax Rate 5.075% (C)

9 Federal Taxable 94.93% Line 7 - Line 810 One Less Federal Income Tax 79.00% 1 - 21%11 Effective Gross-Up Factor 74.99% Line 9 x Line 1012 Pre-Tax Equity 6.37% Line 6 / Line 11

Forecast - Adjusted ROR (fixed ROE)

Pre-Tax

13 Debt 1.58% from Line 114 Equity 6.37% from Line 1215 Cost Free Capital 0.00% from Line 316 Other 0.01% from Line 417 Total Pre-Tax Rate of Return 7.96% Sum Lines 13-16


(A) All data in Lines 1 through 5 represent the actual balances as of December 31, 2020.

(B) Proof Equity Debt and Other Total18 Total New Capital Investment 163,710,717$ 163,710,717$ from Schedule 1, Line 619 Pre-Tax Return 6.37% 1.59% from Lines 13-1620 Return 10,435,117$ 2,603,000$ Line 18 x Line 1921 State Tax 529,582$ 5.075% x Line 2022 Federal Taxable Return 9,905,535$ 2,603,000$ Line 20 - Line 2123 Federal Tax 2,080,162$ Line 22 x 21%24 After Tax Return $ 7,825,372$ 2,603,000$ 10,428,373$ Line 20 - Lines 21 and 23

25 After Tax Return % 6.37% Line 24 / Line 18equals Line 5

(C) Represents a blended State Tax Rate: - January 1, 2021 - December 31, 2021 @ 5.075%- Based on 5.250% @ January 1, 2021 and 4.900% @ July 1, 2021


CEI NORTH


TDSIC COMPONENT

PRE-TAX RATE OF RETURN AT DECEMBER 31, 2020




CEI North

Schedule 4

Page 2 of 2

A B C D = B x C


1 Debt 474,876$ 30.75% 4.84% 1.49%2 Equity 777,931$ 50.37% 10.20% 5.14%3 Cost Free Capital 265,532$ 17.19% 0.00% 0.00%4 Other 26,100$ 1.69% 1.50% 0.03%5 Total 1,544,440$ 6.66%

(A)

All data in Lines 1 through 5 represent the actual balances as of June 30, 2020 (as presented in TDSIC-13 filing on JCS-3, Sch 4, Pg 1).


CEI NORTH


TDSIC COMPONENT

AFTER TAX PISCC RATE AT JUNE 30, 2020




CEI North

Schedule 5

Page 1 of 1

Balance atLine Description 12/31/2020 Reference

Depreciable In-Service Balance

1 Transmission 22,348,651$ Schedule 2, Line 13, Col. G2 Distribution 140,754,240$ Schedule 2, Line 14, Col. G3 Distribution - IEDC 2,451,542$ Schedule 2, Line 15, Col. G4 Underground Storage 2,384,954$ Schedule 2, Line 16, Col. G5 General 456,377$ Schedule 2, Line 17, Col. G6 Total 168,395,764$ Sum Lines 1-5

Monthly Depreciation Rates

7 Transmission 0.25% (A)

8 Distribution 0.29% (A)

9 Distribution - IEDC 0.24% (A)

10 Underground Storage 0.36% (A)

11 General 0.33% (A)

Annualized Depreciation Expense

12 Transmission 661,299$ Line 1 x Line 7 x 1213 Distribution 4,940,017$ Line 2 x Line 8 x 1214 Distribution - IEDC 70,460$ Line 3 x Line 9 x 1215 Underground Storage 103,501$ Line 4 x Line 10 x 1216 General 18,116$ Line 5 x Line 11 x 1217 Total Annualized Depreciation Expense 5,793,393$ Sum Lines 12-16


(A)

(B) Reflects no plant additions through current period for class of plant.

Current average of authorized depreciation rates. Supporting work papers will show a detailed calculation of depreciation rates by class of plant.


CEI NORTH


TDSIC COMPONENT

ANNUALIZED DEPRECIATION EXPENSE - ON NEW CAPITAL INVESTMENT




CEI North

Schedule 6

Page 1 of 1

A B C D E F G

Balance at Balance atLine Description 6/30/2020 7/31/2020 8/31/2020 9/30/2020 10/31/2020 11/30/2020 12/31/2020

Deferred Depreciation Balance (A)

1 Transmission 443,761$ 449,909$ 455,676$ 460,972$ 466,307$ 471,678$ 477,095$ 2 Distribution 3,675,104$ 3,681,564$ 3,689,446$ 3,698,791$ 3,710,366$ 3,724,053$ 3,739,739$ 3 Distribution - IEDC 43,099$ 43,099$ 43,099$ 43,099$ 43,099$ 43,099$ 43,756$ 4 Underground Storage 29,169$ 30,569$ 32,066$ 33,368$ 34,673$ 35,979$ 38,765$ 5 General 15,107$ 15,107$ 15,107$ 15,107$ 15,107$ 15,107$ 15,107$ 6 Less: Amortization of Deferrals (B) (440,080)$ (452,085)$ (464,090)$ (476,094)$ (488,099)$ (500,104)$ (512,108)$ 7 Total Deferred Depreciation Balance 3,766,160$ 3,768,163$ 3,771,305$ 3,775,244$ 3,781,453$ 3,789,813$ 3,802,353$

Depreciation Rates (C)

8 Transmission 2.94%9 Distribution 3.57%10 Distribution - IEDC 3.57%11 Underground Storage 3.85%12 General 4.00%

Deferred Depreciation Amortization Expense

13 Transmission Line 1 x Line 8 14,032$ 14 Distribution Line 2 x Line 9 133,562$ 15 Distribution - IEDC Line 3 x Line 10 1,563$ 16 Underground Storage Line 4 x Line 11 1,491$ 17 General Line 5 x Line 12 604$ 18 Deferred Depreciation Amortization Expense Sum Lines 13-17 151,252$


(A) Calculated by taking the gross new plant investment, less retirements, placed in-service but not yet included in CSIA recovery.(B) Amortization of approximately $12,005 per month beginning in July 2020 is based on annualized amortization expense of $144,056 from TDSIC-12, Attachment JCS-R3, Schedule 6, Line 18.(C) Based on Amortization Life of Plant as of December 31, 2013. Annual depreciation rate is 1 divided by Number of Years.

Transmission - 34 yearsDistribution - 28 yearsDistribution - IEDC - 28 yearsUnderground Storage - 26 yearsGeneral - 25 years


CEI NORTH


TDSIC COMPONENT

AMORTIZATION OF DEFERRED DEPRECIATION




CEI North

Schedule 7

Page 1 of 1

Line Description Amount (A) Reference1 TDSIC-1, TDSIC Component - through 06/30/2014 154,886$ TDSIC-1, JCS-3, Sch 7, Line 12 TDSIC-2, TDSIC Component - through 12/31/2014 142,189$ TDSIC-2, JCS-3, Sch 7, Line 23 TDSIC-3, TDSIC Component - through 06/30/2015 593,033$ TDSIC-3, JCS-3, Sch 7, Line 34 TDSIC-4, TDSIC Component - through 12/31/2015 866,375$ TDSIC-4, JCS-3, Sch 7, Line 45 TDSIC-5, TDSIC Component - through 06/30/2016 1,430,201$ TDSIC-5, JCS-3, Sch 7, Line 56 TDSIC-6, TDSIC Component - through 12/31/2016 1,508,103$ TDSIC-6, JCS-3, Sch 7, Line 67 TDSIC-7, TDSIC Component - through 06/30/2017 1,695,222$ TDSIC-7, JCS-3, Sch 7, Line 7 (C)

8 TDSIC-8, TDSIC Component - through 12/31/2017 1,577,588$ TDSIC-8, JCS-3 (Revised), Sch 7, Line 89 TDSIC-9, TDSIC Component - through 06/30/2018 1,816,862$ TDSIC-9, JCS-3, Sch 7, Line 9

10 TDSIC-10, TDSIC Component - through 12/31/2018 1,724,791$ TDSIC-10 JCS-R3, Sch 7, Line 10 (D)

11 TDSIC-11, TDSIC Component - through 06/30/2019 2,077,604$ TDSIC-11 JCS-3 (Revised), Sch 7, Line 1112 TDSIC-12, TDSIC Component - through 12/31/2019 1,865,702$ TDSIC-12 JCS-R3, Sch 7, Line 1213 TDSIC-13, TDSIC Component - through 06/30/2020 2,207,396$ TDSIC-13 JCS-3, Sch 7, Line 1314 TDSIC-14, TDSIC Component - through 12/31/2020 1,917,188$ (B)

15 Total Deferred Revenue Requirement 19,577,140$

Notes:

(A)

(B)

(C) Adjusted to reflect the lower pre-tax rate of return using a 21% Federal Tax Rate - no other changes made to authorized amounts.(D) TDSIC-10 deferred revenues have been adjusted to reflect the corrected allocation previously described in Witness Swiz’s

TDSIC-11 testimony (Page 18).

Pending results from 2% TDSIC Annual Retail Revenue Cap Test from Attachment JRM-3, Schedule 8, additional information may be provided for TDSIC Deferred in Excess of 2% Cap.Attachment KJT-1, Schedule 3, Line 20, Sum of Jul-Dec 2021 x Allocation of TDSIC Component Revenue Requirement from Attachment JRM-1, Schedule 1


CEI NORTH


TDSIC COMPONENT

DEFERRED REVENUE REQUIREMENT (20%)




CEI North

Schedule 8

Page 1 of 2


1 Current TDSIC Recoverable Portion (A) 16,376,445$ Schedule 1, Line 172 Less Current IEDC Recoverable Portion (223,027)$ Schedule 8, Page 2, Line 173 Prior TDSIC Recoverable Portion (A) 16,701,151$ TDSIC-13, JCS-3, Schedule 1, Line 174 Less Prior IEDC Recoverable Portion (179,424)$ TDSIC-13, JCS-3, Schedule 8, Page 2, Line 175 Increase in TDSIC Recoverable Portion (368,309)$ Line 1 + Line 2 - Line 3 - Line 4

6 Total Retail Revenues (A) 566,110,250$ 12 Months Ended As of End of Period7 TDSIC Cap 2% [Ind. Code § 8-1-39-14(a)]8 TDSIC Cap - 2% of Retail Revenues 11,322,205$ Line 6 x Line 7

9 Does Increase in TDSIC Exceed 2% Cap? No If Line 5 > Line 8, Yes; If not, No

If Yes:

10 TDSIC Cap - 2% of Retail Revenues -$ If Yes - Line 8; If No, $011 Plus: Prior TDSIC Recoverable Portion -$ If Yes - Line 3; If No, $012 Total TDSIC Recoverable in CSIA -$ Line 10 + Line 11

13 Current TDSIC Recoverable Portion -$ If Yes - Line 1; If No, $014 TDSIC Deferred in Excess of 2% Cap -$ Line 13 - Line 12

If No:

15 Current TDSIC Recoverable Portion - CSIA 16,376,445$ If No, Line 1; If Yes, $0

Note:

(A) TDSIC Recoverable portion is calculated by subtracting the recoverable component from Distribution IEDC (targeted economic development projects) from the total recoverable component. Retail revenues are also adjusted to exclude revenues associated with targeted economic development projects.


CEI NORTH


TDSIC COMPONENT

2% TDSIC ANNUAL RETAIL REVENUE CAP TEST




CEI North

Schedule 8

Page 2 of 2

Line Description Distribution - IEDC Reference


1 Gross New Capital Investment - As of End of Period 2,451,542$ Schedule 2, Line 15, Col. G2 Accumulated Depreciation - As of End of Period (213,055)$ Schedule 2, Line 39, Col. G3 Net New Capital Investment - As of End of Period 2,238,487$ Line 1 + Line 2

4 New Capital Investment CWIP - As of End of Period -$ Schedule 2, Line 45, Col. G

5 PISCC Deferred Balance - As of End of Period 94,757$ Schedule 3, Line 23 + Line 29, Col. G



8 Annualized Return on New Capital Investment 185,726$ Line 6 x Line 7

Incremental Expenses

9 Property Tax Expense - Annualized 17,651$ (Line 1 x 0.72%) + (Line 4 x 0.24%) (A)

10 Depreciation Expense - Annualized 70,460$ Schedule 5, Line 14

11 Amortization Expense - Deferred Incremental O&M Expense -$ N/A for TDSIC Component

12 Amortization Expense - Deferred Depreciation 1,563$ Schedule 6, Line 15, Col. G

13 Amortization Expense - Deferred PISCC 3,384$ Schedule 3, Line 36, Col. G

14 Total Incremental Expenses 93,058$ Sum Lines 9-13

Margin Netting:

15 Reduction of Margins from New Snow & Ogden Customers - As of End of Period -$ N/A for TDSIC Component

16 Annual Revenue Requirement - TDSIC Component 278,784$ Line 8 + Line 14

17 Recoverable TDSIC Component of CSIA (80%) 223,027$ Line 16 x 80% (B)

18 To Be Deferred (20%) 55,757$ Line 16 x 20%

Notes:

(A)

(B) To Attachment JRM-3, Schedule 8, Page 1, Line 2



CEI NORTH


TDSIC COMPONENT

TARGETED ECONOMIC DEVELOPMENT REVENUE REQUIREMENT THROUGH DECEMBER 31, 2020




CEI North

Schedule 9

Page 1 of 1


1 Total New Capital Investment - As of End of Period 163,710,717$ From Schedule 1, Line 6

2 After-Tax Rate of Return 6.37% From Schedule 4, Page 1, Line 5

3 NOI Adjustment for GCA Earnings Test - TDSIC-14, TDSIC Component 10,428,373$ Line 1 x Line 2


CEI NORTH


TDSIC COMPONENT

NOI ADJUSTED FOR GCA EARNINGS TEST

Petitioner's Exhibit No. 4REVISED Attachment KJT-1Cause No. 44430-TDSIC-14

CEI NorthSchedule 1Page 1 of 1

Rate Schedule AmountProjected Customer

CountProjected Billing

Quantities (therms) (Per Month) (Per therm) Reference

CSIA Allocated Revenue Requirement (A)1 210 54,407,001$ 572,056 (E) 7.93$ 2 220/229 16,439,931$ 205,504,120 (E) 0.0800$ 3 225 403,599$ 19,996,359 (E) 0.0202$ 4 240 413,809$ 2,870,279 (E) 0.1442$ 5 245 2,330,707$ 138,108,171 (E) 0.0169$ 6 260/270 4,734,915$ 667,182,590 (E) 0.0071$

7 Total 78,729,962$

CSIA Allocated EADIT Credit (B)8 210 (8,253,567)$ 572,056 (E) (1.20)$ 9 220/229 (2,315,680)$ 205,504,120 (E) (0.0113)$ 10 225 (71,656)$ 19,996,359 (E) (0.0036)$ 11 240 (45,382)$ 2,870,279 (E) (0.0158)$ 12 245 (414,410)$ 138,108,171 (E) (0.0030)$ 13 260/270 (841,957)$ 667,182,590 (E) (0.0013)$

14 Total (11,942,652)$

Subtotal – Annual Allocated Revenue Requirement and EADIT Credit15 210 46,153,434$ 6.72$ Line 1 + 816 220/229 14,124,251$ 0.0687$ Line 2 + 917 225 331,943$ 0.0166$ Line 3 + 1018 240 368,427$ 0.1284$ Line 4 + 1119 245 1,916,297$ 0.0139$ Line 5 + 1220 260/270 3,892,958$ 0.0058$ Line 6 + 13

21 Total 66,787,310$

CSIA Allocated Variances Under/(Over) Recovery (C)22 210 1,399,081$ 566,893 (F) 0.41$ 23 220/229 2,231,371$ 77,299,733 (F) 0.0289$ 24 225 9,318$ 6,535,894 (F) 0.0014$ 25 240 12,298$ 1,627,747 (F) 0.0076$ 26 245 174,976$ 62,104,578 (F) 0.0028$ 27 260/270 79,418$ 325,654,220 (F) 0.0002$

28 Total 3,906,462$

Total Excluding IURT29 210 47,552,514$ 7.13$ Line 15 + 2230 220/229 16,355,622$ 0.0976$ Line 16 + 2331 225 341,261$ 0.0180$ Line 17 + 2432 240 380,725$ 0.1359$ Line 18 + 2533 245 2,091,273$ 0.0167$ Line 19 + 2634 260/270 3,972,376$ 0.0061$ Line 20 + 27

35 Total 70,693,771$

Total Including IURT (D)36 210 7.24$ Line 29 / 0.985337 220/229 0.0991$ Line 30 / 0.985338 225 0.0183$ Line 31 / 0.985339 240 0.1379$ Line 32 / 0.985340 245 0.0169$ Line 33 / 0.985341 260/270 0.0062$ Line 34 / 0.9853

Notes:(A) From KJT-1, Schedule 2, Column D + Column F(B) From KJT-1, Schedule 2, Column H(C) From JRM-1, Schedule 2, Page 1, Line 22 – amount to be recovered from or passed back to customers over 6-months.(D) IURT gross up factor of 0.9853 effective January 1, 2021(E) Based on 2021 budgeted annual customer count and volumes(F) Based on 2020 budgeted semi-annual customer count and volumes

INDIANA GAS COMPANY, INC. d/b/a CENTERPOINT ENERGY INDIANA NORTHCEI NORTH

COMPLIANCE AND SYSTEM IMPROVEMENT ADJUSTMENT (CSIA)RATE DERIVATION

FOR THE PERIOD OF JULY 1, 2021 THROUGH DECEMBER 31, 2021



RevenueLine Requirement

1 Compliance Component - Annual Revenue Requirement 62,353,517$ (A)

2 TDSIC Component - Annual Revenue Requirement 16,376,445$ (B)

3 CSIA Costs to be Recovered 78,729,962$ (C)

4 EADIT Credit Component (11,942,652)$ (D)

A B C D E F G H

Line Rate Schedule Description

Compliance Allocation

Percentage

Compliance AllocatedRevenue

Requirement

TDSIC Allocation

Percentage

TDSIC AllocatedRevenue

Requirement

EADIT Credit Allocation

PercentageEADIT Credit

Allocated Amount(Line 1 x Column C) (Line 2 x Column E) (Line 4 x Column G)

5 210 Residential Sales Service 69.11% 43,092,516$ 69.09% 11,314,485$ 69.11% (8,253,567)$

6 220/229 General Sales Service 19.39% 12,090,347$ 26.56% 4,349,584$ 19.39% (2,315,680)$

7 225 School/Government Transportation Service 0.60% 374,121$ 0.18% 29,478$ 0.60% (71,656)$

8 240 Interruptible Sales Service 0.38% 236,943$ 1.08% 176,866$ 0.38% (45,382)$

9 245 Large General Transportation Service 3.47% 2,163,667$ 1.02% 167,040$ 3.47% (414,410)$

10 260/270Large Volume Transportation Service & Long-term Contract Service 7.05% 4,395,923$ 2.07% 338,992$ 7.05% (841,957)$

62,353,517$ 16,376,445$ (11,942,652)$

Notes:(A) From JRM-1, Schedule 1, Page 1 of 1, Line 1, Col. C(B) From JRM-1, Schedule 1, Page 1 of 1, Line 2, Col. C(C) Line 1 + Line 2(D) From WP JRM-1-2.2 EADIT Credit


COMPLIANCE AND SYSTEM IMPROVEMENT ADJUSTMENT (CSIA)ALLOCATION OF REVENUE REQUIREMENT EXCLUDING VARIANCES



Line Rate Schedule Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22 Annual Total

Projections (A)1 210 - Residential Sales Service Count 562,785 561,819 562,447 565,370 572,760 576,179 578,191 579,243 579,404 578,038 575,506 572,928 572,056 12 Mos Avg2 220/229 - General Sales Service Therms 2,744,893 2,654,529 3,516,758 9,002,552 22,578,790 36,802,210 44,669,288 36,621,086 25,383,881 12,974,749 5,609,275 2,946,109 205,504,120 3 225 - School/Government Transportation Service Therms 518,163 533,676 612,102 949,508 1,449,750 2,472,695 3,228,187 3,350,583 2,966,392 1,939,931 1,272,367 703,005 19,996,359 4 240 - Interruptible Sales Service Therms 79,585 57,214 61,667 187,697 745,037 496,547 327,277 281,141 262,306 201,356 101,639 68,814 2,870,279 5 245 - Large General Transportation Service Therms 6,391,933 6,857,709 8,398,745 10,362,132 12,035,133 18,058,925 17,330,581 18,193,247 11,018,159 12,307,292 9,128,462 8,025,852 138,108,171 6 260/270 - Large Volume Transportation Service & Long-term Contract Service Therms 50,223,100 51,274,130 47,981,540 54,229,720 60,197,210 61,748,520 65,545,087 60,169,337 58,037,967 54,399,657 53,451,397 49,924,927 667,182,590

Applicable Rates (B)7 210 - Residential Sales Service Count 7.13$ 7.13$ 7.13$ 7.13$ 7.13$ 7.13$ 6.72$ 6.72$ 6.72$ 6.72$ 6.72$ 6.72$ 8 220/229 - General Sales Service Therms 0.0976$ 0.0976$ 0.0976$ 0.0976$ 0.0976$ 0.0976$ 0.0687$ 0.0687$ 0.0687$ 0.0687$ 0.0687$ 0.0687$ 9 225 - School/Government Transportation Service Therms 0.0180$ 0.0180$ 0.0180$ 0.0180$ 0.0180$ 0.0180$ 0.0166$ 0.0166$ 0.0166$ 0.0166$ 0.0166$ 0.0166$

10 240 - Interruptible Sales Service Therms 0.1359$ 0.1359$ 0.1359$ 0.1359$ 0.1359$ 0.1359$ 0.1284$ 0.1284$ 0.1284$ 0.1284$ 0.1284$ 0.1284$ 11 245 - Large General Transportation Service Therms 0.0167$ 0.0167$ 0.0167$ 0.0167$ 0.0167$ 0.0167$ 0.0139$ 0.0139$ 0.0139$ 0.0139$ 0.0139$ 0.0139$ 12 260/270 - Large Volume Transportation Service & Long-term Contract Service Therms 0.0061$ 0.0061$ 0.0061$ 0.0061$ 0.0061$ 0.0061$ 0.0058$ 0.0058$ 0.0058$ 0.0058$ 0.0058$ 0.0058$

Projected Recoveries13 210 - Residential Sales Service Line 1 x Line 7 4,015,277$ 4,008,389$ 4,012,869$ 4,033,720$ 4,086,447$ 4,110,841$ 3,887,368$ 3,894,444$ 3,895,524$ 3,886,338$ 3,869,314$ 3,851,982$ 47,552,514$ 14 220/229 - General Sales Service Line 2 x Line 8 267,891$ 259,072$ 343,222$ 878,615$ 2,203,605$ 3,591,757$ 3,070,110$ 2,516,959$ 1,744,628$ 891,751$ 385,524$ 202,485$ 16,355,622$ 15 225 - School/Government Transportation Service Line 3 x Line 9 9,340$ 9,620$ 11,034$ 17,116$ 26,133$ 44,572$ 53,588$ 55,620$ 49,243$ 32,203$ 21,122$ 11,670$ 341,261$ 16 240 - Interruptible Sales Service Line 4 x Line 10 10,817$ 7,776$ 8,381$ 25,511$ 101,261$ 67,488$ 42,009$ 36,087$ 33,669$ 25,846$ 13,046$ 8,833$ 380,725$ 17 245 - Large General Transportation Service Line 5 x Line 11 106,699$ 114,474$ 140,198$ 172,973$ 200,900$ 301,454$ 240,468$ 252,437$ 152,881$ 170,768$ 126,660$ 111,361$ 2,091,273$ 18 260/270 - Large Volume Transportation Service & Long-term Contract Service Line 6 x Line 12 305,296$ 311,685$ 291,670$ 329,651$ 365,926$ 375,356$ 382,450$ 351,083$ 338,647$ 317,418$ 311,885$ 291,308$ 3,972,376$

19 Total Recoveries including variances during first six months 4,715,321$ 4,711,017$ 4,807,374$ 5,457,585$ 6,984,273$ 8,491,470$ 7,675,993$ 7,106,631$ 6,214,592$ 5,324,324$ 4,727,551$ 4,477,640$ 70,693,771$

20 20% Deferred (based on Revenue Requirement piece only) 1,291,563$ 1,290,945$ 1,310,649$ 1,451,767$ 1,778,187$ 2,093,795$ 2,256,493$ 2,090,675$ 1,829,584$ 1,570,308$ 1,395,929$ 1,322,594$ 19,682,491$

Notes:(A) Based on 2021 budgeted annual customer count and volumes(B) First six months Per KJT-1, Sch 1, Lines 29 - 34. Second six months Per KJT-1, Sch 1, Lines 15 - 20. All rates exclude IURT.


COMPLIANCE AND SYSTEM IMPROVEMENT ADJUSTMENT (CSIA)PROJECTED RECOVERIES BY MONTH

Indiana Gas Company, Inc. D/B/A Sheet No, 40 Vectren Energy Delivery of Indiana, Inc. (Vectren North) Fourteenth Revised Page 1 of 1 Tariff for Gas Service Cancels Thirteenth Revised Page 1 of 1 I.U.R.C. No. G-19

Effective: July 1, 2021

APPENDIX K COMPLIANCE AND SYSTEM IMPROVEMENT ADJUSTMENT

APPLICABILITY

The Compliance and System Improvement Adjustment (“CSIA”) shall be applicable to all Customers on the Rate Schedules set forth in the CSIA Charges section below.

DESCRIPTION

The CSIA shall include, as approved by the Commission:

(1) In Cause No. 44429, recovery of costs incurred pursuant to Federally Mandated Projects(“Compliance”) as provided for in Ind. Code Ch. 8-1-8.4;

(2) In Cause No. 44429, recovery of costs associated with Company’s TDSIC Plan (“TDSIC”) asprovided for in Ind. Code Ch. 8-1-39 for the purposes of safety, reliability, systemmodernization, or economic development; and

(3) In Cause No. 45032-S21, credits associated with the amortization of Excess AccumulatedDeferred Income Tax (“EADIT Credits”) liability resulting from the Tax Cuts and Jobs Act of2017.

Reconciliation

Company’s actual CSIA costs and EADIT Credits shall be reconciled semi-annually with actual CSIA recoveries, with any differences being reflected as a charge or credit in a subsequent CSIA.

Allocation Percentages

CSIA costs and EADIT Credits shall be allocated to the Rate Schedules based on percentages approved in Cause No. 44430 TDSIC-5 and Cause No. 45032-S21.

Rate Schedule Compliance Allocation

Percentage TDSIC Allocation

Percentage EADIT Credit

Allocation Percentage 210 69.11% 69.09% 69.11%

220/229 19.39% 26.56% 19.39% 225 0.60% 0.18% 0.60% 240 0.38% 1.08% 0.38% 245 3.47% 1.02% 3.47%

260/270 7.05% 2.07% 7.05%

CSIA CHARGES

The CSIA shall be applied to each customer or therm of metered gas usage as applicable. The current CSIAs by Rate Schedule are set forth below:

Rate Schedule $ per Month $ per Therm 210 $7.24

220/229 $0.0991 225 $0.0183 240 $0.1379 245 $0.0169

260/270 $0.0062

Petitioner's Exhibit No. 4 REVISED Attachment KJT-2 Cause No. 44430 TDSIC-14

CEI North Page 1 of 2

Indiana Gas Company, Inc. D/B/A Sheet No, 40 Vectren Energy Delivery of Indiana, Inc. (Vectren North) Fourteenth Revised Page 1 of 1 Tariff for Gas Service Cancels Thirteenth Revised Page 1 of 1 I.U.R.C. No. G-19

Effective: July 1, 2021

Deleted: Thirteenth

Deleted: Twelfth

Deleted: January

APPENDIX K COMPLIANCE AND SYSTEM IMPROVEMENT ADJUSTMENT

APPLICABILITY

The Compliance and System Improvement Adjustment (“CSIA”) shall be applicable to all Customers on the Rate Schedules set forth in the CSIA Charges section below.

DESCRIPTION

The CSIA shall include, as approved by the Commission:

(1) In Cause No. 44429, recovery of costs incurred pursuant to Federally Mandated Projects(“Compliance”) as provided for in Ind. Code Ch. 8-1-8.4;

(2) In Cause No. 44429, recovery of costs associated with Company’s TDSIC Plan (“TDSIC”) asprovided for in Ind. Code Ch. 8-1-39 for the purposes of safety, reliability, system modernization, or economic development; and

(3) In Cause No. 45032-S21, credits associated with the amortization of Excess AccumulatedDeferred Income Tax (“EADIT Credits”) liability resulting from the Tax Cuts and Jobs Act of2017.

Reconciliation

Company’s actual CSIA costs and EADIT Credits shall be reconciled semi-annually with actual CSIA recoveries, with any differences being reflected as a charge or credit in a subsequent CSIA.

Allocation Percentages

CSIA costs and EADIT Credits shall be allocated to the Rate Schedules based on percentages approved in Cause No. 44430 TDSIC-5 and Cause No. 45032-S21.

Rate Schedule Compliance Allocation

Percentage TDSIC Allocation

Percentage EADIT Credit

Allocation Percentage 210 69.11% 69.09% 69.11%

220/229 19.39% 26.56% 19.39% 225 0.60% 0.18% 0.60% 240 0.38% 1.08% 0.38% 245 3.47% 1.02% 3.47%

260/270 7.05% 2.07% 7.05%

CSIA CHARGES

The CSIA shall be applied to each customer or therm of metered gas usage as applicable. The current CSIAs by Rate Schedule are set forth below:

Rate Schedule $ per Month $ per Therm 210 $7.24

220/229 $0.0991 225 $0.0183 240 $0.1379 245 $0.0169

260/270 $0.0062

Deleted: 6.34

Deleted: 493

Deleted: 54

Deleted: 818

Deleted: 50

Deleted: 59

Petitioner's Exhibit No. 4 REVISED Attachment KJT-2 Cause No. 44430 TDSIC-14

CEI North Page 2 of 2

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May 21, 2021 INDIANA UTILITY REGULATORY COMMISSION

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