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Northern States Power Company, a Minnesota corporation Minneapolis, Minnesota 55401 NORTH DAKOTA GAS RATE BOOK - NDPSC NO. 2

GENERAL RULES AND REGULATIONS Section No. 1st Revised Sheet No.

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(Continued on Sheet No. 6-2)

Date Filed: 04-09-14 By: David M. Sparby Effective Date: 05-09-14 President and CEO of Northern States Power Company, a Minnesota corporation

Case No. PU-14-219 Order Date: N/A

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Section Item Sheet No. SECTION 1 GENERAL SERVICE RULES

1.1 Application for Service............................................................................................... 6-3 1.2 Service Processing Charge ....................................................................................... 6-3 1.3 Access to Customer's Premises ................................................................................ 6-3 1.4 Continuity of Service.................................................................................................. 6-3 1.5 Deposits and Guarantees.......................................................................................... 6-4 1.6 Service Calls ............................................................................................................. 6-4

SECTION 2 RATE APPLICATION

2.1 Classification of Customers ....................................................................................... 6-6 2.2 Availability of Service Under Rate Schedules............................................................ 6-7 2.3 Choice of Optional Rates........................................................................................... 6-7 2.4 Resale, Breakdown, Supplementary, Standby, or Auxiliary Service .......................... 6-7

SECTION 3 METERING AND BILLING

3.1 Metering and Testing................................................................................................. 6-9 3.2 Special Payments...................................................................................................... 6-9 3.3 Monthly Billing ........................................................................................................... 6-10 3.4 Budget Helper Plan ................................................................................................... 6-10 3.5 Late Payment Charge................................................................................................ 6-10 3.6 Bill Date Due ............................................................................................................. 6-10 3.7 Estimated Bills........................................................................................................... 6-11 3.8 Billing Adjustments .................................................................................................... 6-11 3.9 Returned Check Charge............................................................................................ 6-11

SECTION 4 USE OF SERVICE RULES

4.1 Use of Service ........................................................................................................... 6-13 4.2 Customer's Piping and Equipment ............................................................................ 6-14

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Northern States Power Company Minneapolis, Minnesota 55401 NORTH DAKOTA GAS RATE BOOK - NDPSC NO. 2

GENERAL RULES AND REGULATIONS (Continued) Section No. Original Sheet No.

Relocated from NDPSC No. 1 Sheet No.

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Date Filed: 8-21-96 By: Kenneth J. Zagzebski Effective Date: 9-1-96 General Manager & Chief Executive

Case No. PU-400-95-559 NSP - North Dakota Order Date: 8-28-96

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Section Item Sheet No. SECTION 5 EXTENSION RULES

5.1 General Extension Policy......................................................................................................6-17 5.2 Main Extensions .....................................................................................................................6-18 5.3 Winter Construction...............................................................................................................6-19 5.4 Limitations on the Availability of Gas..................................................................................6-19 5.5 Service Connections .............................................................................................................6-20 5.6 Temporary Service.................................................................................................................6-22

SECTION 6 CURTAILMENT OR INTERRUPTION OF SERVICE 6.1 Refusal or Discontinuance of Service................................................................................6-24 6.2 Curtailment of Supply............................................................................................................6-24

SECTION 7 COMPANY’S RIGHTS

7.1 Waiver of Rights or Defaults ................................................................................................6-28 7.2 Modification of Rates, Rules, and Regulations................................................................6-28


GENERAL RULES AND REGULATIONS (Continued) Section No. 1st Revised Sheet No.

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Date Filed: 04-08-05 By: Kent T. Larson Effective Date: 07-01-05 Vice President, Jurisdictional Relations

Case No. PU-400-04-578 Order Date: 06-01-05

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SECTION 1 GENERAL SERVICE RULES 1.1 APPLICATION FOR SERVICE A party desiring gas service must make application to the Company before commencing the use of the Company's service. The Company reserves the right to require a signed application or written contract for service to be furnished. All applications and contracts for service must be made in the legal name of the party desiring the service. The Company may refuse an applicant or terminate service to a customer who fails or refuses to furnish reasonable information requested by the Company for the establishment of a service account. Any person who uses gas service in the absence of application or contract shall be subject to the Company's rates, rules, and regulations and shall be responsible for payment of all service used. When required by governmental authority, a customer desiring new service or expanded service first must make application for and receive written approval from the Company. Subject to its rates, rules, and regulations, the Company will continue to supply gas service until notified by customer to discontinue the service. The customer will be responsible for payment of all service furnished through the date of discontinuance. 1.2 SERVICE PROCESSING CHARGE The Company will charge $15.00 for the initial establishment or the reestablishment of service for each customer. If any combination of gas or electric services requested by a customer and furnished by the Company is established or reestablished at the same time and location, only one $15.00 charge will be made. If a customer requests reestablishment of service at a location where the same customer discontinued the same service within the preceding 12 month period, an additional reconnection fee will be assessed equal to the sum of the monthly minimum charges applicable during the period service was not taken. 1.3 ACCESS TO CUSTOMER'S PREMISES Company representatives, when properly identified, shall have access to customer's premises at all reasonable times for the purpose of reading meters, making repairs, making inspections, removing the Company's property, or for any other purpose incident to the service. 1.4 CONTINUITY OF SERVICE The Company will use all reasonable care to provide continuous service but does not assume responsibility for a regular and uninterrupted supply of gas service and will not be liable for any loss, injury, or damage resulting from the use of service, or arising from or caused by the interruption or curtailment of the same.

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Date Filed:

04-02-09 By: David M. Sparby Effective Date: 05-02-09

President and CEO of Northern States Power Company, a Minnesota corporation Case No. PU-09-163 Order Date:


1.5 DEPOSITS AND GUARANTEES Any applicant or customer requesting service may be required to deposit a sum not to exceed one and one-half times the estimated amount of one month's average bill, as determined by the Company. The deposit will earn interest at the rate paid by the Bank of North Dakota on a six month certificate of deposit. The interest rate will be determined as of the first business day of each year, on a six month certificate of deposit with the smallest deposit required. The Company will pay interest annually by direct payment or as a credit on the customer's bill, at the option of the Company. The Company may refund a customer's deposit after 12 consecutive months of prompt payment. If a customer's credit standing becomes unsatisfactory after a deposit has been refunded or if the deposit is inadequate to cover one and one-half times the estimated amount of one month's average bill, a new or additional deposit may be required upon reasonable written notice by the Company. Deposits will not be considered as advance payments on account. Service to a customer who fails to comply with these requirements may be discontinued upon reasonable written notice. Upon request by a customer to discontinue service, the customer's deposit, less any amounts due by the customer to the Company for gas service, will be returned to that customer within 45 days of the date of discontinuance of service. In lieu of cash deposit, a guarantee satisfactory to the Company for a like amount will be acceptable. In case of discontinuance of service for non-payment of amounts payable when due, the Company will not restore service until all arrears are paid in full and a cash deposit as required above is made, or until other satisfactory credit arrangement is made. 1.6 SERVICE CALLS When a customer calls and reports a gas problem, such as a gas leak, inadequate pressure, or no heat during cold weather, priority will be given to emergency requests where there is danger to life and property. The Company's response may be limited to temporary repairs because of the work load or weather conditions.

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GENERAL RULES AND REGULATIONS (Continued) Section No. Original Revised Sheet No.


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SECTION 2 RATE APPLICATION 2.1 CLASSIFICATION OF CUSTOMERS For rate application: A. Residential Customer

A residential customer is one using gas service for general household purposes in space occupied as living quarters, such as single private residences, duplexes, fourplexes, townhouse units, condominium units, mobile homes, apartment units, fraternity houses, sorority houses, and rooming houses.

B. Commercial Customer

A commercial customer is one using gas service in the conduct of some business enterprise in space occupied and operated for commercial purposes, such as stores, offices, shops, hotels, apartment hotels, multiple flats or apartments, wholesale houses, warehouses, garages, filling stations, greenhouses, nurseries, and kennels. Schools, churches, hospitals, and other institutions of a similar nature will be classified as commercial customers. Commercial customers are subdivided into small volume and large volume categories as follows:

Small Volume customers are defined as those having maximum daily requirements of under

2,000 Therms, and Large Volume customers are defined as those having maximum daily requirements of

2,000 Therms or more. C. Industrial Customer An industrial customer is one using gas service and engaged in the production of articles of commerce

through manufacturing, processing, refining, mining, and fabricating. Industrial customers are subdivided into small volume and large volume categories as follows:

Small Volume customers are defined as those having maximum daily requirements of under

2,000 Therms, and Large Volume customers are defined as those having maximum daily requirements of

2,000 Therms or more.




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2.2 AVAILABILITY OF SERVICE UNDER RATE SCHEDULES Availability of a rate schedule with respect to the purpose for which service thereunder may be used and the class or classes of customers to which the schedule applies shall be as specified in the rate schedule. Availability of service under a rate schedule at any particular location in a community or territory where the schedule is shown to be effective, depends upon the proximity of the particular location to the Company facilities of adequate capacity at suitable pressure and the limitations of the Company's extension rules and regulations and Town Border Purchase Contract. The extent to which the Company will extend, enlarge, or change its facilities to supply service is determined by Section 5, EXTENSION RULES. Subject to the extension rules, the Company may provide service to customers using 500 Therms or more per day at the available pressures in excess of 10 PSIG (pounds per square inch gauge); customers using less than this amount will be served at available pressures of 10 PSIG or less. Total requirements of a customer supplied at 10 PSIG or less shall not exceed 2,000 Therms per day. 2.3 CHOICE OF OPTIONAL RATES Where more than one rate schedule is available for the same class of service, as indicated by the complete copy of the Company's rates open to public inspection in the Company's office, the Company will assist the customers in making their selection of the rate schedule or schedules which will result in the lowest cost for estimated consumption, based on 12 months' service and on the information at hand. New customers may change to another rate schedule after a reasonable trial of the rate schedule originally selected. The Company is not required to change a customer from one rate schedule to another more often than once in 12 months unless there is a material change in the customer's load, or unless a change, becomes necessary as a result of an order issued by the Public Service Commission or a court having jurisdiction. The Company will not be required to make any change in a fixed term contract except as provided therein. 2.4 RESALE, BREAKDOWN, SUPPLEMENTARY, STANDBY, OR AUXILIARY SERVICE Unless specifically provided otherwise in the rate schedule, or sufficient financial consideration is provided for supplemental or standby service pursuant to Section 5.5, service will not be supplied for resale, breakdown, supplementary, standby, or auxiliary purposes. The Company is authorized to enter into agreements to waive the provisions of the rule and related rules so as to facilitate experimental use of alternative sources of energy by customers on terms that are agreeable to the Company.



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Case No. PU-09-99 Order Date:

SECTION 3 METERING AND BILLING 3.1 METERING AND TESTING The Company will furnish, install, and maintain one set of metering equipment for each account or rate schedule under which service is supplied. The location, number of meters and appurtenances, and specifics of installation will depend on the service arrangements and requirements of the rate schedules. The Company will maintain and test its metering equipment in accordance with the North Dakota Public Service Commission's rules. In the event the Company's test shows meter error in excess of accepted or prescribed tolerances, the Company, in accordance with the rules prescribed by the Commission, will adjust the bills for service during the period of registration error, if known, up to a maximum period of six years. If the error period is not known, adjustment will be made for a period equal to one-half of the time since the most recent test, not to exceed six months. If the average meter error cannot be determined because of failure of part or all of the metering equipment, the customer shall pay an amount based upon registration of check metering equipment or an estimated amount based upon the customer's consumption for comparable operations over a similar period. The customer may, if he so desires, install at his own expense additional meters (for checking purposes only) in series with Company's meter beyond the outlet of Company's meter.

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Customers may contact the Company to report a concern with the accuracy of their natural gas meter. The Company will investigate a natural gas meter within ten calendar days of receiving a report from a customer questioning its accuracy. In the event that the Company fails to investigate a potentially malfunctioning meter within ten days of the customer’s contact, and the meter is later found to be malfunctioning, it will not rebill for any discrepancy in the amount owed for service occurring between when the customer contacted the Company regarding a concern with their meter and when the meter was investigated. 3.2 SPECIAL PAYMENTS In the event that the Company is required to make any payments, or to render utility service at rates or charges which are less than the Company's rates or charges which otherwise would be applicable, to any political subdivision by reason of its operations within such political subdivision regardless of what such payments or services may be called, and regardless of the basis of determination thereof or the authority therefor, customers' bills for utility services supplied within such political subdivision will be increased during the period in which such payments or services are required by an aggregate amount sufficient to recover the amount of such payments and deficiencies. Each bill for services supplied within such political subdivision will be increased by the applicable proportionate part of such aggregate amount.





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3.3 MONTHLY BILLING Bills will normally be rendered monthly and may be paid by mail, at the office of the Company, or to its duly authorized agents, during regular business hours. A "month," as used for billing purposes, does not mean a calendar month, but means the interval between two consecutive periodic meter reading dates which are, as nearly as practicable, at 30 day intervals. The Company may read certain meters less frequently than once each billing month for customers under the Company's self-meter reading procedure, or when the Company and customers otherwise mutually agree, except that a Company representative will read the meter at least once each 12 months. If the billing period is longer or shorter than the normal billing period by more than five days, the bill shall be prorated on a daily basis. 3.4 BUDGET HELPER PLAN Qualified customers may, at their request, be billed under the Company's budget helper plan. The plan will provide for 11 equal monthly payments based on the customer's previous use. The billing for the twelfth month will reflect the actual billing for that month adjusted for the credit or debit balance carried forward from the previous month. The Company will review the account during the budget year to ascertain the reasonableness of the budget amount under current rates or conditions of use of service, and the monthly payment may be adjusted accordingly. 3.5 LATE PAYMENT CHARGE A late payment charge of 1.0% of the unpaid balance will be added to the unpaid balance after the date due. The late payment charge will be assessed as follows:

Class Assessment Date

Interruptible Four working days after date due

All Other Classes Next scheduled billing date (four working days after date due)


GENERAL RULES AND REGULATIONS (Continued) Section No. 2nd Revised Sheet No.

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Case No. PU-14-219 Order Date: N/A

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3.6 BILL DATE DUE Bills are due and payable upon presentation. For purposes of applying the late payment charge, the date due shown on the customer's bill shall be:

Class Date Due

Interruptible Minimum of 10 working days after bill mailing date All Other Classes Next scheduled billing date minus four working days

3.7 ESTIMATED BILLS An estimated bill will be rendered if it is impractical for the Company to read the meter or if customer fails to supply a meter reading form in time for the billing operation, or in cases of emergency. An adjustment, if any, will be made in the bill based on the next meter reading. 3.8 BILLING ADJUSTMENTS In the event of a meter or billing error, as defined by the Public Service Commission's rules, the Company shall recalculate the bills for service during the period of the error and make adjustment of bills in accordance with the rules prescribed by the Commission. If a customer has been overcharged as a result of the error, the recalculated amount will be refunded or, where applicable, a credit on a bill shall be made. If a customer has been undercharged as a result of the error, the Company may bill the customer if the amount due exceeds $10.00. 3.9 RETURNED CHECK CHARGE There shall be a charge of $15.00 for any check or draft submitted to the Company for payment that is dishonored or returned by the financial institution on which it is drawn.

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Northern States Power Company d/b/a Xcel Energy Minneapolis, Minnesota 55401 NORTH DAKOTA GAS RATE BOOK - NDPSC NO. 2

GENERAL RULES AND REGULATIONS (CONTINUED) Section No. Original Sheet No.

6 11.1

RESIDENTIAL BILLING OF VACANT RENTAL PROPERTY All Landlords and property managers responsible for residential rental units shall sign a Residential Billing of Vacant Rental Property Agreement and select either the Automatic Turn On (ATO) option or the Lock On Disconnect (LOD) option. The Company will confirm in writing the service option selected by each landlord/property manager. Until such confirmation has been made, a landlord/property manager’s account(s) will not reflect either the ATO or LOD designation nor be subject to the disconnect/reconnect fees described in this tariff. The landlord/property manager will, however, be responsible for any other applicable tariff such as the Service Processing Charge. The landlord/property manager may change their service option selection by written notice to the Company at any time. If a landlord/ property manager’s account becomes delinquent, the Residential Billing of Vacant Rental Property Agreement may be canceled for the buildings in question. Any time there is a tenant transition and it comes to the Company’s attention that a landlord/property manager has not submitted a signed BVRP Agreement and has not selected either the ATO or LOD service option, the Company will mail BVRP Tariff information to the landlord/property manager. The landlord/property manager will have 15 business days to make a selection and submit the required forms; otherwise the Company will notify the landlord/property manager, in writing, of the account’s LOD designation. AUTOMATIC TURN ON OPTION (ATO) If the landlord/property manager selects the ATO option, the Company shall bill the landlord/property manager for natural gas service in unoccupied rental unit(s) during periods of tenant vacancies. Under this option, the Service Processing Charge applicable to customer account name changes will not be applied. Natural gas service for vacant rental unit(s) will remain in the landlord/property manager’s name until 1) a new tenant becomes the customer of record 2) the landlord/property manager (as agent for the tenant) applies for service, or 3) the landlord/property manager submits a request to cancel the ATO option in its entirety. If the ATO option is in effect, billings shall be the responsibility of the landlord/property manager if a new tenant occupies the rental unit but fails to apply for service. LOCK ON DISCONNECT OPTION (LOD) If the landlord/property manager selects the LOD option, service in rental unit(s) will be disconnected when the Company is notified that the tenant has vacated the property. Service in rental unit(s) will be reconnected when there is a new service request. The charge for disconnection of one or more natural gas meters on the same service trip to the same building will be $40.00. The charge for reconnection of one or more natural gas meters on the same service trip to the same building will be $55.00. The maximum charge for servicing multiple natural gas meters on the same service trip to the same building is $55.00. If the meter is unlocked to allow for preparation of the rental unit prior to a new tenant moving in, the landlord/property manager will not be assessed the Service Processing Charge but will be responsible for payment of all other Company services until the new tenant assumes service in their name.

(Continued on Sheet 11.12)

Date Filed: 05-26-06 By: Kent T. Larson Effective Date: 1-10-2007 Vice President, Customer & Community Services

Case No. PU-06-216 Order Date: 1-10-2007



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START/STOP SERVICE NOTIFICATION

N Tenant has the right to start or stop service in rental unit(s) by notifying the Company. Alternatively, the tenant may start or stop service in rental unit(s) by completing a “Residential Tenant Authorization Form for Tenant or Landlord to Start Service” and/or a “Residential Tenant Authorization Form for Tenant or Landlord To Stop Service” which authorizes the landlord/property manager to start or stop rental unit(s) service in tenant’s name. Under the terms of this form, the tenant is the user of the service in rental unit(s) and is responsible for payment of all Company services from the Service Start Date through the Service Stop Date, which are selected and communicated by the tenant to the landlord/property manager. The tariff does not require tenants or landlords/property managers to use this form. RESIDENTIAL BILLING OF VACANT RENTAL PROPERTY As stated in the Residential Tenant Authorization Form for Tenant or Landlord to Start Service and Residential Tenant Authorization Form for Tenant or Landlord to Stop Service, if the tenant fails to notify the Company or the landlord/property manager of the Service Stop Date, they will be responsible for all Company charges. If the tenant completes either form, the landlord/property manager is to fax the Form to the Company within one business day. If discrepancies arise pertaining to when the tenant actually left, either the landlord and/or tenant may be required to submit an affidavit attesting to proof of user of service in rental unit(s). Other acceptable documents such as signed and dated tenant move-out documentation may be requested from the landlord and/or tenant. RENTAL PROPERTY OWNERSHIP CHANGES Changes to either the ATO option or LOD option due to sale or transfer of ownership of facilities must be communicated to the Company in writing within three business days to avoid possible Late Payment Charges or other billing issues. The user of the energy is the person responsible for the payment of the energy bill. Non-energy usage issues are between the tenant and the landlord/property manager. N





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SECTION 4 USE OF SERVICE RULES 4.1 USE OF SERVICE Gas service may be used only for the purposes set forth in the respective rate schedules. The Company is a public utility engaged in the business of supplying gas service to the ultimate consumer. Gas service is furnished for the use of customer only and the customer shall not resell it to other persons or permit other persons to use it, except under the following conditions: A. Gas service may be purchased by an owner or single lessee on the applicable rate for the use of

customer’s tenants when gas service is included with the rental of space (not metered or billed as a separate charge) when such tenants are located:

1. In a group of buildings of portable construction such as trailers or in tourist or resort cabins or in a

motel, provided such buildings are located on a single piece of property not intersected by a public road, highway, street, or alley; or

2. In a group of buildings owned, leased, or otherwise controlled by the owner or lessee, when such

buildings are located on a single parcel, or contiguous parcels, of property and the principal use or occupancy of said buildings shall be incidental to the operation of educational, hospital, correctional, or eleemosynary institutions.

B. Gas service may be purchased by an owner or single lessee on the applicable rate for the use of

customer’s tenants when gas service is included with the rental of space (not metered or billed as a separate charge) when such tenants are in a single building operated as a unit by the owner or by a single lessee. Where two or more single buildings are served through one meter, the billing shall be computed as though each building used an equal portion of the total service metered and were independently billed.




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4.1 USE OF SERVICE (Continued) B. (Continued)

1. For the purposes of this paragraph, a "single building" is defined as follows:

a. A self-contained complete structure separated by space from all other structures; or

b. A structure having common walls or party walls with adjoining structures. However, each

portion of a structure separated from other portions in that structure by an area separation wall as defined in the Uniform Building Code (1973), and each portion of a structure separated from other portions thereof by a street, alley, highway, or any other public way (regardless of connections over or under such street, alley, highway, or public way) is a single building.

2. For the purposes of this paragraph, structures or portions of a structure shall not be considered a

"single building" merely by reason of the existence of underground ducts or tunnels, common heating or utility facilities, garages, passageways, common entry halls or elevators, or any other similar facilities.

4.2 CUSTOMER'S PIPING AND EQUIPMENT The customer will install, maintain, and keep in repair its piping and equipment as prescribed by any public authority with jurisdiction over the installation of gas facilities. In the event the customer fails to do so, or if the Company finds that the customer's piping or equipment, in the Company's opinion, is not adequate and safe, or that the operation thereof under existing conditions is not safe, the Company may discontinue the supply of gas. Any inspection of a customer's piping and equipment by the Company is for the purpose of avoiding unnecessary interruptions of service to its customers or damage to its property and for no other purpose, and will not be construed to impose any liability upon the Company to a customer or any other person by reason thereof. In addition, the Company will not be liable or responsible for any loss, injury, or damage that may result from the use of or defects in a customer's piping or equipment.




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4.2 CUSTOMER'S PIPING AND EQUIPMENT (Continued) The Company may, however, at any time require a customer to make such changes in his equipment or use thereof as may be necessary to eliminate any hazardous condition or any adverse effect which the operation of the customer's equipment may have on said customer, other customers of the Company, the public, or the Company's employees, equipment, or service. In lieu of changes by the customer, the Company may require reimbursement from the customer for the cost incurred by the Company in alleviating an adverse effect on the Company's facilities caused by the customer's property. The customer will not make a material increase in his load or equipment without first making arrangements with the Company for additional gas supply. The piping, meters, and appurtenances used in furnishing gas service to a customer have a definite capacity and any increase in load or equipment may require a change in the Company's equipment.



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Date Filed: 10-01-05 By: Kent T. Larson Effective Date: 12-14-05 Vice President of Jurisdictional Relations


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SECTION 5 EXTENSION RULES 5.1 GENERAL EXTENSION POLICY Subject to the availability of gas supply, the Company will extend, enlarge, or change its gas distribution facilities to supply gas service to prospective customers providing the extension, enlargement, or change is cost justified. When such extension, enlargement, or change is not cost justified, it may be constructed if the service applicant(s) make appropriate advance payment to the Company. In determining whether the expenditure is justified, the Company will take into consideration the total cost of serving the prospective customer(s) as well as the anticipated revenues, and will apply the general principle that the rendering of natural gas service to new customers will not create an undue burden on existing customers.

Cost Justification Formula

In general, residential and commercial extensions (including standby and supplemental service connections) will be justified using the cost justification formula defined below. The Maximum Justifiable Expenditure reflects the justifiable cost of all extension facilities necessary to serve the new load, including mains, services, meters, and other materials.

Maximum Justifiable Expenditure =

C x [12 x MM + DC x AS] LARR

Where: C = New Customers expected from this extension within 5 years MM = Monthly Minimum charge DC = Distributed Charge per therm AS = Average Annual Sales (therms) per customer

LARR = Levelized Annual Revenue Requirement factor (reflects revenues required to cover depreciation expense, property taxes, income taxes, interest expense, return on equity, and O&M

The Company will inform the Commission in writing of an LARR Factor changes and include documentation of the calculation. Such updates would reflect cost of capital data submitted to the Commission n its most recent annual report of regulated earnings (unless more relevant cost of capital information is available).

T TN TN TN N T TND TND TN C C CT CT CT CT CT N N N



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5.2 MAIN EXTENSIONS The Company will extend, enlarge, or change its gas mains or other facilities for supplying gas service when the anticipated revenue from the sale of additional service to result there from is such as to justify the expenditure. When the expenditure is not so justified, the extension, enlargement, or change of facilities will be made only if the customer, at the Company's option: A. Pays in advance to the Company in cash for the additional installation costs for excess footage as

required by the Company’s current footage costs or by promissory note acceptable to the Company, the portion of the capital expenditure not justified by the anticipated annual revenue with provision for refund of all or part of such payment,

B. Agrees to pay a special monthly charge, C. Agrees to pay annually a specified minimum charge, or D. Agrees to a combination of the above methods. In addition, a non-refundable payment in advance must be made covering the specified additional cost of any unusual construction. For each additional customer served directly from the main extension within five years from the date of its completion, the person who made advance payment will receive refunds based on the revenue to be received from the additional customers served from the extension and the costs required to serve such customers. The total of such refunds will in no event exceed the total advance payment. No refunds will be made for additional customers served by additional main extensions connected at any point to the first customer's original extension. For trailer parks, the Company will only extend its gas main to a delivery point at a permanent structure which houses facilities such as offices or laundry facilities. It shall be the trailer park owner's responsibility to extend the distribution system to individual trailer sites.

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5.3 WINTER CONSTRUCTION When the service or main is installed between October 1 and April 15, inclusive, because of failure of customer to meet all requirements of the Company by September 30 or because the customer's property, or the streets leading thereto, are not ready to receive the service pipe or gas main by such date, such work will be subject to a winter construction charge when winter conditions of ground frost and/or snow exist, for the entire length of underground service or gas main installed. Winter construction will not be undertaken by the Company where prohibited by law or where it is not practical to install gas main or gas service pipe during the winter season. The charges immediately below apply to frost depths of 18” or less. At greater frost depths, the Company will individually determine the job cost. The Company reserves the right to charge for any unusual winter construction expenses. All winter construction charges are non-refundable and are in addition to any normal construction charges

Winter Construction Charge

Excavation $400 per excavating unit

Main & Service Extensions 4 Inch or Under Pipe $3.00 per foot Over 4 Inch Pipe Determined Individually

5.4 LIMITATIONS ON THE AVAILABILITY OF GAS New and existing customers requiring service for new or increased firm or interruptible gas loads must make an application for such service. The Company shall apply the applicable limitations set forth in this section in determining whether to approve an application. When supplies of gas and distribution capacity are adequate, Company will authorize connection of qualifying customers in the order that their application is received. When an applicant is one for which a main extension is required, the application will be held until the main extension is approved, at which time it shall be processed the same as an on-main customer. A. New and Existing Firm Customers

1. New customers will be added in accordance with Section 5, EXTENSION RULES, of the General Rules and Regulations.

2. Existing loads, except as noted below, may be increased and new loads added only with the approval

of the Company based upon the adequacy of gas supplies and gas distribution capacity. 3. Increases in existing loads for non-heating requirements not in excess of 0.5 Therm per hour do not

require Company approval in accordance with Section 1.1, APPLICATION FOR SERVICE, of the General Rules and Regulations.

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5.4 LIMITATIONS ON THE AVAILABILITY OF GAS (Continued) B. New and Existing Interruptible Customers

1. New customers will be added in accordance with Section 5, EXTENSION RULES, of the General Rules and Regulations.

2. Existing interruptible loads may be increased only with the approval of the Company based upon

adequacy of gas distribution capacity.

3. Customer shall have access to sufficient standby alternate fuel for periods of curtailment of the delivery of gas. However, standby fuel supply is not required for natural gas vehicles which can operate using a readily available alternate fuel nor for interruptible customers who agree to confine their use of natural gas to the months of April through October in any calendar year.

5.5 SERVICE CONNECTIONS The customer, without expense to the Company will grant the Company right-of-way on his premises for the installation and maintenance of the necessary pipes and appurtenances, and will provide and maintain on the premises, at a location satisfactory to the Company, proper space for the Company's piping, meters, regulators, and appurtenances. The service and meter connections as installed by the Company will be the Company's property and will be maintained by the Company at its own expense. The customer will provide for the safekeeping of the Company's meters and other facilities and reimburse the Company for the cost of any alterations to the Company's property necessitated by the customer and for any loss or damage to the Company's property located on the premises, except when the loss or damage is caused solely by the Company's negligence or other causes beyond the control of the customer. The Company will designate the location of and, at its own expense, furnish and install a residential service of proper capacity for a maximum straight line distance of 75 feet inside the property boundary, unless such service is intended for standby or supplementary use, as platted, or property abutting upon any public street, highway, lane, or road along which the Company has or will install gas mains or, in the case of a mobile home, for a maximum straight line distance of 75 feet from the main, for:




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5.5 SERVICE CONNECTIONS (Continued) A. Indoor Metering

From its gas main to and including the first fitting or valve inside customer's building wall. B. Outdoor Metering

From its gas main to the service riser. The Company designated meter location will be the nearest practical point of entry to the building. Footage in excess of 75 feet, and any additional footage requested by the customer, even though the total horizontal distance is less than 75 feet, will be extended if customer will share in the cost. Residential customers requesting a service connection for standby or supplementary use shall be charged the cost of the service connection less cost justified pursuant to the cost justification formula contained in Section 5.1. To the extent that the cost justification exceeds the service cost, such excess amount will be applied as cost justification for service main. Otherwise, customer will pay the entire main extension cost plus the difference between the service connection cost and cost justification. Payment for excess footage of residential service extensions will be made in advance to the Company. In addition, a non-refundable payment in advance must be made covering the specified additional cost of any unusual construction, including services of 75 feet or less. The Company will designate the location of, and at its own expense, up to an amount cost justified by the anticipated annual consumption, furnish a commercial industrial service of proper capacity to the nearest practical point of entry to the building. If the customer has a preferred service location, the customer will be charged the excess footage from the Company designated location to the customer preferred location. Payment for excess footage of commercial industrial service extensions will be made in advance to the Company. In addition, a non-refundable payment in advance must be made covering the specified additional cost of any unusual construction.



6 22




5.5 SERVICE CONNECTIONS (Continued) In addition, the Company will, at its own expense for all customers, furnish and install piping for a distance not to exceed five feet for: A. Indoor Metering

From the service to the meter header or meter yoke. B. Outdoor Metering

From the end of the horizontal service pipe to the outside of the customer's building wall. If this distance exceeds five feet in length, the Company will extend the piping if the customer will share the cost based on the Company’s current footage costs. 5.6 TEMPORARY SERVICE The following special requirement is prescribed to govern temporary service:

A customer taking temporary service (less than five years) will pay the rate applicable to the class of service rendered and will pay in advance the Company's specified cost, figured on a time and material basis, of the installation and removal of the facilities, including the meter required to furnish the desired service, less the salvage value of such facilities.

C

D




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SECTION 6 CURTAILMENT OR INTERRUPTION OF SERVICE 6.1 REFUSAL OR DISCONTINUANCE OF SERVICE With notice, the Company may refuse or discontinue gas service for any of the following reasons: failure to pay amounts payable when due; failure to meet the Company's deposit or credit requirements; breach of contract for service; failure to provide the Company with reasonable access to its property or equipment; failure to make proper application for service; failure to comply with the other provisions of the Company's rates, rules, and regulations on file with the Public Service Commission; when the Company is unable to furnish gas service to customer because it cannot obtain permits or necessary rights-of-way; unauthorized diversion of gas or use of or tampering with the Company's equipment; in the event of a condition determined to be hazardous to the customer, other customers of the Company, the public, or the Company's employees, equipment, or service; when necessary to comply with any order or request of any governmental authority having jurisdiction. In case of emergency, the Company may, without notice, refuse or discontinue gas service when necessary to make emergency repairs, replacements, or changes in the Company's equipment. Any discontinuance of supply will not relieve the customer from his obligations to the Company. 6.2 CURTAILMENT OF SUPPLY The Company may curtail the supply of gas in accordance with the provisions of this section. If a firm customer fails to curtail use of gas when requested to do so by the Company, customer shall pay to the Company, in addition to the regular rate applicable to the class of service rendered, the amount which equals any payment the Company is required to make to its pipeline supplier under the terms of its town border contract as a result of such failure to curtail. If an interruptible customer fails to curtail use of gas when requested to do so by the Company, customer shall pay to the Company, in addition to the regular rate applicable to the class of service rendered, the amount specified in the "Additional Charge for Use of Gas During Curtailment" provision of the applicable rate schedule. Such payments, however, shall not preclude the Company from shutting off the customer's supply of gas in the event of customer’s failure to curtail use thereof when requested by the Company to do so.




6 25 G 34 & G 35





6.2 CURTAILMENT OF SUPPLY (Continued) The Company may curtail the supply of gas to all customers according to the following Schedule of Priority of Service Categories when ordered by Northern Natural Gas Company to curtail the supply of gas on any billing day in accordance with its FERC gas tariff. In order to avoid exceeding contract demand on any billing day, the Company may curtail the supply of gas to those customers receiving service under interruptible gas service agreements according to the following Schedule of Priority of Service Categories. Over a reasonable period of time, all customers purchasing gas under the same rate schedule within each category will be treated alike as far as practicable. The customer shall supply the Company with names of persons authorized to receive and effectuate such curtailment requests. Curtailment of supply of gas shall begin with Priority Category 8 and progress to Priority Category 1. Schedule of Priority of Service Categories 1. a. Residential, small commercial, and irrigation requirements less than 500 Therms on a peak day.

b. All commercial and irrigation requirements from 500 Therms per day through 1,999 Therms per day and all industrial requirements through 1,999 Therms per day.

c. Company storage injection requirements. d. Requirements greater than 1,999 Therms per day for schools, hospitals, sanitation facilities,

correctional institutions, police protection, and fire protection except where the requirements can be satisfied through the utilization of existing alternate fuel capability. Propane is not considered an alternate fuel for establishing user priorities.

e. Requirements for essential agricultural uses as certified by the USDA except where the requirements can be satisfied through the utilization of existing alternate fuel capability. Propane is not considered an alternate fuel for establishing user priorities.

When curtailment in this Category 1 is required, the order of curtailment shall be (e), (d), (c), (b), and

then (a). 2. Requirements for essential process and feedstock uses and plant protection other than when

production operations are shutdown, except where the requirements can be satisfied through the utilization of existing alternate fuel capability. Propane is not considered an alternate fuel for establishing user priorities.

3. All commercial and industrial requirements from 2,000 Therms per day through 4,999 Therms per day,

not otherwise classified.




6 26 G 35




6.2 CURTAILMENT OF SUPPLY (Continued) Schedule of Priority of Service Categories (Continued) 4. All commercial and industrial requirements for non-boiler use 5,000 Therms per day and over, not

otherwise classified; all commercial requirements from 5,000 Therms per day through 14,999 Therms per day, not otherwise classified.

5. Industrial requirements for boiler fuel use from 5,000 Therms per day through 14,999 Therms per day,

not otherwise classified. 6. Commercial and industrial requirements for boiler fuel use from 15,000 Therms per day through 29,999

Therms per day, not otherwise classified. 7. Commercial and industrial requirements for boiler fuel use from 30,000 Therms per day through

100,000 Therms per day, not otherwise classified. 8. Commercial and industrial requirements for boiler fuel use over 100,000 Therms per day, not otherwise

classified.


GENERAL RULES AND REGULATIONS (Continued) Section No. Original Sheet No.


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SECTION 7 COMPANY'S RIGHTS 7.1 WAIVER OF RIGHTS OR DEFAULTS No delay by the Company in enforcing any of its rights may be deemed a waiver of such rights, nor may a waiver by the Company of any of a customer's defaults be deemed a waiver of any other or subsequent defaults. 7.2 MODIFICATION OF RATES, RULES, AND REGULATIONS The Company reserves the right, in any manner permitted by law, to modify any of its rates, rules, and regulations or other provisions now or hereafter in effect. The rates, terms, conditions, and other matters agreed to in fixed term contract shall be in harmony with the Company’s rates, rules, and regulations in effect at the time the contract is entered into but thereafter the contract can be changed only by mutual agreement and by lawful authority having jurisdiction.

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