KEEGAN WERLIN LLP AT T O R N E Y S AT L AW 265 FRANKLIN STREET B O S T O N , M A S S A C H U S E T T S 0 2 11 0 - 3 1 1 3 TELECOPIERS: ——— (617) 951- 1354 (617) 951-1400 (617) 951- 0586 October 31, 2017 Mark D. Marini, Secretary Department of Public Utilities One South Station, 5th Floor Boston, MA 02110 Re: Bay State Gas Company d/b/a Columbia Gas of Massachusetts, Gas System Enhancement Program, D.P.U. 17-GSEP-05 Dear Mr. Marini: On July 7, 2014, Governor Patrick signed into law Chapter 149 of the Acts of 2014, An Act Relative to Natural Gas Leaks (“the Act”). The Act authorizes natural gas distribution companies to file gas infrastructure replacement plans with the Department of Public Utilities (the “Department”) to address the replacement of aging natural gas pipeline infrastructure. Section 145(d) of the Act establishes October 31 of each as the filing date for a gas infrastructure plan pertaining to the upcoming construction year.1 This filing constitutes the 2018 Gas System Enhancement Program (“GSEP”) Plan for Bay State Gas Company d/b/a Columbia Gas of Massachusetts (“CMA” or the “Company”), and is presented to the Department for review and approval for rates effective May 1, 2018. Specifically, the Company’s filing encompasses the following elements: 1 (1) The Testimony of David E. Mueller, Manager of Field Engineering, in support of the GSEP; (2) CMA 2018 GSEP Plan; and (3) The Testimony of Ronald D. Gibbons, in support of the 2018 GSEP Revenue Requirement, the Gas System Enhancement Adjustment Factor (“GSEAF”) and bill impact analysis, the requested alternative GSEP revenue cap calculation or, in the alternative, the waiver of the 1.5 percent GSEP revenue cap, and If the Department deems the plan to be in compliance with the Act and designed to reasonably accelerate eligible infrastructure replacement in the interests of public safety and reducing lost and unaccounted for natural gas associated with gas leaks, recovery of the estimated costs of projects included in the plan begins on May 1 of the subsequent year. Columbia Gas of Massachusetts Gas System Enhancement Program Plan October 31, 2017 Page 2 of 2 the proposed changes to the GSEP provisions of the Company’s Local Distribution Adjustment Clause (“LDAC”), M.D.P.U. No. 216. Consistent with the Company’s 2017 GSEP, which was approved by the Department in D.P.U. 16-GSEP-05, the Company’s filing complies with the statutory filing requirements set forth in G.L. c. 164, § 145(c), and further explains the method by which the Company identified eligible infrastructure for replacement; how the Company prioritized replacement to implement the federal distribution pipeline integrity management plan (“DIMP”); how the Company derived the estimated costs; and the estimated average cost per mile to replace the proposed infrastructure under the GSEP. The CMA GSEP reflects an acceleration of mains replacement in furtherance of stated objectives of the Act. Accompanying this letter, please find enclosed a Notice of Appearance relating to this docket. Should you have any questions regarding the information provided with this filing, please do not hesitate to contact me directly. Thank you for your attention to this matter. Very truly yours, Danielle C. Winter, Esq. Enclosures cc: George Yiankos, Director, Gas Division, DPU Rebecca Tepper, Assistant Attorney General Nathan Forster, Assistant Attorney General D.P.U. 16-GSEP-05 Service List COMMONWEALTH OF MASSACHUSETTS DEPARTMENT OF PUBLIC UTILITIES _______________________________________________ ) Petition of Bay State Gas Company d/b/a ) Columbia Gas of Massachusetts ) _______________________________________________ ) D.P.U. 17-GSEP-05 APPEARANCE OF COUNSEL The undersigned counsel hereby appears for and on behalf of Bay State Gas Company d/b/a Columbia Gas of Massachusetts in the above-referenced proceeding. Respectfully Submitted, ______________________________ Shaela McNulty Collins, Esq. NiSource Corporate Services Company 4 Technology Drive, Suite 250 Westborough, MA 01581 Telephone: (508) 836-7038 E-Mail: shaelacollins@nisource.com Dated: October 31, 2017 COMMONWEALTH OF MASSACHUSETTS DEPARTMENT OF PUBLIC UTILITIES ___________________________________ ) Petition of Bay State Gas Company d/b/a ) Columbia Gas of Massachusetts ) __________________________________ ) D.P.U. 17-GSEP-05 APPEARANCE OF COUNSEL   In the above-referenced proceeding, I hereby appear for and on behalf of Bay State Gas Company d/b/a Columbia Gas of Massachusetts.                                       ______________________________      Danielle C. Winter, Esq. Keegan Werlin LLP 265 Franklin Street Boston, Massachusetts 02110 (617) 951-1400     Dated: October 31, 2017 COMMONWEALTH OF MASSACHUSETTS DEPARTMENT OF PUBLIC UTILITIES ___________________________________ ) Petition of Bay State Gas Company d/b/a ) Columbia Gas of Massachusetts ) __________________________________ ) D.P.U. 17-GSEP-05 APPEARANCE OF COUNSEL   In the above-referenced proceeding, I hereby appear for and on behalf of Bay State Gas Company d/b/a Columbia Gas of Massachusetts. ________________________ Brendan P. Vaughan Keegan Werlin LLP 265 Franklin Street Boston, Massachusetts 02110 (617) 951-1400 Dated: October 31, 2017 COMMONWEALTH OF MASSACHUSETTS DEPARTMENT OF PUBLIC UTILITIES __________________________________________ ) Petition of Bay State Gas Company ) d/b/a Columbia Gas of Massachusetts ) __________________________________________ ) D.P.U. 17-GSEP-05 AFFIDAVIT OF DAVID E. MUELLER David E. Mueller does hereby depose and say as follows: I, David E. Mueller, Manager of Field Engineering, on behalf of Bay State Gas Company d/b/a Columbia Gas of Massachusetts, certify that the attached testimony, which bears my name, was prepared by me or under my supervision and is true and accurate to the best of my knowledge and belief. Signed under the pains and penalties of perjury as of this 31st day of October, 2017. David E. Mueller COMMONWEALTH OF MASSACHUSETTS DEPARTMENT OF PUBLIC UTILITIES Bay State Gas Company d/b/a Columbia Gas of Massachusetts ) ) ) ) D.P.U. 17-GSEP-05 AFFIDAVIT OF RONALD D. GIBBONS Ronald D. Gibbons does hereby depose and say as follows: I, Ronald D. Gibbons, on behalf of Bay State Gas Company d/b/a Columbia Gas of Massachusetts, certify that the attached testimony, which bears my name, was prepared by me or under my supervision and is true and accurate to the best of my knowledge and belief. Signed under the pains and penalties of perjury as of this 31st day of October, 2017. Ronald D. Gibbons COMMONWEALTH OF MASSACHUSETTS DEPARTMENT OF PUBLIC UTILITIES D.P.U. 17-GSEP-05 DIRECT TESTIMONY OF DAVID E. MUELLER EXHIBIT CMA/DEM-1 IN SUPPORT OF BAY STATE GAS COMPANY d/b/a COLUMBIA GAS OF MASSACHUSETTS GAS SYSTEM ENHANCEMENT PROGRAM October 31, 2017 Direct Testimony of David E. Mueller Columbia Gas of Massachusetts D.P.U. 17-GSEP-05 Exhibit CMA/DEM-1 October 31, 2017 Page 1 of 9 1 I. INTRODUCTION 2 Q. Please state your name and business address. 3 A. My name is David E. Mueller. My business address is 4 Technology Drive, 4 Westborough, Massachusetts 01581. 5 Q. By whom are you employed and in what position? 6 A. I am the Manager of Field Engineering for Columbia Gas of Massachusetts (“CMA” 7 or the “Company”). In that capacity, I manage the engineering activities of the 8 Company’s natural gas distribution and transmission systems within its 9 Massachusetts service territories. I am accountable for the leadership and direction 10 of engineering in all of CMA’s service territories. My responsibilities include the 11 development and oversight of the Company’s capital budget program, development 12 of system replacement strategies, design and cost estimation for replacement and 13 expansion projects in accordance with Company policies and standards, and 14 provision of technical solutions for issues regarding system operations. I collaborate 15 with other key business partners within Field Operations, System Planning, 16 Construction Planning and Scheduling, Regulatory and Governmental Affairs, 17 Capital Allocation, and CMA’s executive leadership to ensure the engineering and 18 capital programs support safe and reliable system operations. 19 Direct Testimony of David E. Mueller Columbia Gas of Massachusetts D.P.U. 17-GSEP-05 Exhibit CMA/DEM-1 October 31, 2017 Page 2 of 9 1 Q. What is your educational background? 2 A. I attended Purdue University in West Lafayette and Hammond, Indiana, graduating 3 with a Bachelor of Science in Engineering in 1985. I graduated from Indiana 4 University at South Bend with a Master’s Degree in Business Administration in 5 1993. 6 Q. Please describe your employment history. 7 A. I joined Northern Indiana Public Service Co. (“NIPSCO”), a NiSource affiliate gas 8 and electric distribution company located in northern Indiana, in 1978 as an 9 Engineering Technician, responsible for the design of gas and electric distribution 10 systems. From 1981 to 1990, I served in various leadership roles as a commercial 11 and industrial gas applications engineer. From 1990 to 1994, I served as the 12 engineering supervisor responsible for gas system planning, maintenance, 13 compliance and large project management with NIPSCO. 14 Northern Indiana Fuel and Light Co., which is also a subsidiary company of 15 NiSource, as Operations Manager, where I was responsible for all aspects of 16 distribution and transmission operations. From 2007 to 2012, I served as Manager 17 of Operating Center for Columbia Gas of Kentucky. In April 2012, I transitioned 18 within the Company to my new capacity as the Manager of Field Engineering for 19 CMA. In 1994, I joined Direct Testimony of David E. Mueller Columbia Gas of Massachusetts D.P.U. 17-GSEP-05 Exhibit CMA/DEM-1 October 31, 2017 Page 3 of 9 1 Q. Have you previously testified before any regulatory bodies? 2 A. I have submitted testimony on behalf of CMA in support of the Company’s 2015, 3 2016 and 2017 Gas System Enhancement Program (“GSEP” or the “Plan”) in 4 D.P.U. 14-134, D.P.U. 15-GSEP-05 and D.P.U. 16-GSEP-05, respectively. I have 5 also submitted testimony on behalf of CMA in support of its 2015 and 2016 GSEP 6 Reconciliation filings, D.P.U. 16-GREC-05 and D.P.U. 17-GREC-05. I have also 7 submitted pre-filed testimony in D.P.U. 13-75 on behalf of CMA in support of the 8 Company’s request for approval of a base revenue adjustment, as well as submitting 9 testimony on behalf of CMA in its Targeted Infrastructure Reinvestment Factor 10 (“TIRF”) Compliance Filings, D.P.U. 13-79, D.P.U. 14-83, D.P.U. 15-54 and 11 D.P.U. 16-59. In addition, I have also provided testimony in regulatory proceedings 12 in Kentucky on behalf of Columbia Gas of Kentucky. 13 14 Q. What is your involvement and responsibility with respect to CMA’s 2018 GSEP? 15 A. As Manager of Field Engineering, I have overseen the development and 16 implementation of CMA’s infrastructure replacement program. I have also 17 provided support for the infrastructure replacement projects included in the 18 Company’s GSEP. 19 Q. What is the purpose of your testimony? 20 A. On this date, pursuant to the Acts of 2014, Chapter 149, Section 2, codified at 21 M.G.L. c. 164, §§ 144 and 145 (“Section 145”), CMA has filed with the Direct Testimony of David E. Mueller Columbia Gas of Massachusetts D.P.U. 17-GSEP-05 Exhibit CMA/DEM-1 October 31, 2017 Page 4 of 9 1 Department its 2018 GSEP. The Plan includes: (1) timelines for leak-prone pipe 2 (“LPP”) replacement for CMA; (2) prioritization methods to ensure the GSEP is 3 consistent with the Company’s distribution integrity management plan (“DIMP”); 4 (3) customer benefits associated with the GSEP, including safety and 5 environmental benefits, and benefits to municipalities; (4) potential ramp-up 6 issues and forecast timeline variables related to resources, emerging work, and 7 potential weather considerations that may impact the overall timeline for 8 completion of the Company’s GSEP projects; and (5) anticipated LPP 9 replacement projects for calendar year 2018. Under the 2018 GSEP, CMA 10 anticipates replacing between 55 and 59 miles of leak-prone main and 11 approximately 4,180 services (Exh. CMA/DEM-2, at 49). 12 The 2018 GSEP is presented in the same manner and format as the Company’s 13 2015, 2016 and 2017 GSEPs, which were approved essentially without 14 modification by the Department in D.P.U. 14-134, D.P.U. 15-GSEP-05, and 15 D.P.U. 16-GSEP-05, respectively. 16 GSEP and will support it throughout the Department’s review. 17 The GSEP revenue requirement and estimated typical bill impacts, will be 18 presented separately as part of the pre-filed testimony and exhibits of Ronald D. 19 Gibbons. Mr. Gibbons also addresses the Company’s proposed modifications to Through my testimony, I adopt the 2018 Direct Testimony of David E. Mueller Columbia Gas of Massachusetts D.P.U. 17-GSEP-05 Exhibit CMA/DEM-1 October 31, 2017 Page 5 of 9 1 the GSEP provisions of its Local Distribution Adjustment Clause (“LDAC”) 2 tariff, M.D.P.U. No. 252. 3 4 5 Q. Why has the Company proposed an amendment to the GSEP provisions of its LDAC tariff to include copper services as eligible infrastructure to be replaced under the GSEP? 6 A. Copper is not as susceptible to corrosion as steel, however copper services 7 typically contain a steel curb cock and segments of steel at the main connection. 8 Copper is superior to steel in the galvanic series which means the steel curb valve 9 and the steel segments at the main connection act as sacrificial anodes protecting 10 the copper from corroding. As a consequence, the steel valves and pipe segments 11 experience accelerated rates of corrosion and therefore leaks. 12 Based on these characteristics, the Company considers copper to be leak-prone 13 infrastructure that is appropriate to be included for replacement under the GSEP 14 consistent with Section 145. It is the Company's practice to replace copper 15 services in their entirety along with main replacement projects, when they 16 experience leaks or when the Company determines, during an atmospheric 17 corrosion inspection, that the copper service is in poor condition. 18 19 20 21 Q. Why has the Company proposed an amendment to the GSEP provisions of its LDAC tariff to include plastic and cathodically protected steel main segments replaced or retired as part of a GSEP project as eligible infrastructure to be replaced under the GSEP? 22 A. Over time, the Company has replaced segments of bare steel or cast iron mains 23 and services with plastic or cathodically protected steel to eliminate leaks, install Direct Testimony of David E. Mueller Columbia Gas of Massachusetts D.P.U. 17-GSEP-05 Exhibit CMA/DEM-1 October 31, 2017 Page 6 of 9 1 an offset in the pipeline to allow for the installation of other utilities or structures 2 or to eliminate segments of cast iron that were undermined or otherwise affected 3 by other excavations or construction activities. Where these segments of plastic 4 or cathodically protected steel are encountered on a GSEP project, they are 5 typically included in the project and replaced if their replacement is necessary to 6 make the GSEP project operational or it is more cost-effective than to reuse the 7 existing plastic or cathodically protected steel main. It is more operationally 8 efficient and cost-effective to address the entire project segment of main as a 9 whole and install a new main or service to replace the entire length of the project, 10 including the plastic or cathodically protected steel segments, rather than 11 installing new segments to replace solely the cast iron or bare steel in a piecemeal 12 fashion. 13 inefficient, and more costly, as it requires additional excavation, construction of 14 additional tie-ins and additional operating procedures, such as testing, purging and 15 live gas tapping work to activate and place the new main segments into service. 16 Additionally, the offsets created from the additional tie-ins make future mark outs 17 in response to Dig Safe requests more difficult, which could result in a higher 18 potential for third party damage with associated safety and reliability concerns. 19 Not every segment of plastic or cathodically protected steel encountered in a 20 GSEP project is replaced as part of that project as there are instances where the 21 Company is able to retain the plastic or cathodically protected steel segment. Such a patchwork approach to replacements under the GSEP is Direct Testimony of David E. Mueller Columbia Gas of Massachusetts D.P.U. 17-GSEP-05 Exhibit CMA/DEM-1 October 31, 2017 Page 7 of 9 1 This determination is made on a case-by-case basis in accordance with the 2 circumstances and field conditions associated with each project. 3 Company is unable to retain the plastic or cathodically protected steel segments, 4 replacement or retirement of those segments and the recovery of the associated 5 costs under the GSEP is appropriate as it advances Section 145’s directive to 6 accelerate the replacement of leak-prone infrastructure. Where the 7 8 Q. Have you included an estimate associated with the number of Grade 3 gas leaks that are considered to be environmentally significant? 9 A. Yes. CMA, along with the other Massachusetts local distribution companies, has 10 been actively involved in D.P.U. 16-31, the proceeding commenced by the 11 Department to develop regulations regarding: (1) the classification of natural gas 12 leaks; (2) the establishment of specific criteria to identify Grade 3 leaks that have 13 a significant environmental impact; and (3) the development of a plan to repair 14 these environmentally significant Grade 3 leaks. 15 proceeding is still on-going, the Company recognizes the need to begin addressing 16 Grade 3 leaks that have a significant environmental impact (“G3SEI”). 17 Therefore, the Company estimates that it will repair 150 G3SEI leaks under the 18 2018 GSEP and has developed an operations and maintenance budget of $469,050 19 associated with the repair of these leaks.1 The estimated budget was developed 1 While the D.P.U. 16-31 Company witness Gibbons describes the Company’s proposed edits to the GSEP provision of the LDAC tariff to address cost recovery associated with G3SEI leaks under the GSEP consistent with the provisions of the Energy Diversity Act, St. 2016, c. 188, § 13. Direct Testimony of David E. Mueller Columbia Gas of Massachusetts D.P.U. 17-GSEP-05 Exhibit CMA/DEM-1 October 31, 2017 Page 8 of 9 1 utilizing historical leak repair costs, with an average cost per leak of $3,307. 2 Given that the Department has not yet issued final regulations associated with the 3 classification of gas leaks and the identification and repair of G3SEI leaks, the 4 Company has not yet begun surveying its inventory of Grade 3 gas leaks to 5 identify which should be classified as G3SEI leaks. Given that the Company has 6 not yet determined its G3SEI leaks inventory, the 150 G3SEI leaks estimated to 7 be repaired in 2018 represents the Company’s expected 2017 total of Grade 3 leak 8 repairs and the average cost incurred for those repairs through September 30, 9 2017. Following the issuance of the final regulations in D.P.U. 16-31-B and the 10 Company’s determination of the total inventory of G3SEI leaks, the Company’s 11 annual estimate of G3SEI leaks to be repaired under the GSEP will necessarily be 12 refined. 13 14 Q. Has the Company continued to review its inventory of leak-prone infrastructure to be replaced under the GSEP? 15 A. Yes. Beginning in 2010, CMA began converting its paper maps and records of 16 the Company’s distribution system for inclusion in the Geographic Information 17 System (“GIS”) so that the Company has a more accurate record of its 18 infrastructure and assets that can be more effectively utilized when Company 19 personnel are working on engineering solutions and constructing infrastructure 20 replacement projects in the field. Coupling the asset management capabilities of Direct Testimony of David E. Mueller Columbia Gas of Massachusetts D.P.U. 17-GSEP-05 Exhibit CMA/DEM-1 October 31, 2017 Page 9 of 9 1 GIS and integrating the system with risk modeling tools will improve replacement 2 program management over the term of the GSEP. 3 Through improvements in quality assurance and quality control rigor resulting 4 from the GIS conversion, the Company determined that overall it had less priority 5 pipe on its distribution system than originally reflected in the tabular inventory 6 data. As of the date of this testimony, the Company has determined that a net of 7 approximately 27 miles of priority leak prone uncathodically protected steel, cast 8 iron, and wrought iron were reclassified as either cathodically protected steel or 9 plastic. It is important to note that none of the pipe on the Company’s system has 10 been reclassified as priority pipe: the Company has only seen a reduction in the 11 amount of priority pipe on its system. 12 13 Q. Were the 2018 GSEP and GSEP Project Listing referenced above prepared by you or under your supervision and control? 14 A. Yes. 15 Q. Does this complete your testimony? 16 A. Yes, it does. Bay State Gas Company d/b/a Columbia of Massachusetts Gas System Enhancement Program October 31, 2017 Submitted to: Massachusetts Department of Public Utilities Gas System Enhancement Program October 31, 2017 I. Introduction The Massachusetts natural gas distribution system is one of the oldest in the United States, encompassing a large proportion of leak-prone, fragile or deteriorating infrastructure installed, in some instances, over 100 years ago. The Massachusetts local distribution companies (“LDCs”) that own and operate this system have an obligation to provide safe and reliable service to customers in compliance with applicable state and federal pipeline safety statutes and regulations. However, the challenge of meeting this obligation is amplified on the portions of the distribution system containing leak-prone infrastructure, which includes non-cathodically protected steel and cast-iron facilities. The leak-management activities that are required to maintain the safety and reliability of the gas distribution system impose ever-increasing workforce and resource demands on the LDCs and contribute to operating and maintenance (“O&M”) cost increases. Over the past several years, the Department of Public Utilities (the “Department”) has approved proposals by various LDCs to accelerate the replacement of leak-prone pipe through targeted infrastructure recovery programs with cost recovery through targeted infrastructure reinvestment factors (“TIRFs”). The TIRFs were designed to provide the financial support necessary to increase the pace of replacements, reduce leakage rate and maintain the safety and Columbia Gas of Massachusetts Gas System Enhancement Program D.P.U. 17-GSEP-05 Exhibit CMA/DEM-2 October 31, 2017 Page 2 reliability of the system. Bay State Gas Company d/b/a Columbia Gas of Massachusetts (“CMA” or the “Company”) sought and received approval for its TIRF program in Bay State Gas Company d/b/a Columbia Gas of Massachusetts, D.P.U. 09-30 (2009). The Company’s TIRF was subsequently modified in both Bay State Gas Company d/b/a Columbia Gas of Massachusetts, D.P.U. 12-25 (2012) and Bay State Gas Company d/b/a Columbia Gas of Massachusetts, D.P.U. 13-75 (2014). On May 1, 2016, the Company filed its final TIRF reconciliation filing to fully reconcile the TIRF revenue requirement for costs associated with eligible TIRF projects placed into service on or before December 31, 2014, as directed by the Department in the Company’s most recent base distribution rate case, Bay State Gas Company d/b/a Columbia Gas of Massachusetts, D.P.U. 15-50. The Department approved the final TIRF reconciliation subject to reductions to the revenue requirement as identified by the Company during the course of discovery. Recognizing the public benefit of these programs, the Massachusetts legislature enacted a law to increase the scope and pace of replacement of leak-prone facilities. 2014 Acts. c. 149, Sec. 2, codified at M.G.L. c. 164, §§ 144 and 145 (“Section 145”). Section 145 expands the scope of programs to remediate leaks by authorizing each LDC to propose a plan to accelerate the replacement of leak-prone pipe and ancillary facilities in their service territory, with annual recovery of program costs through a reconciling factor. Specifically, Section 145 (c) of the statute mandates that any plan filed by an LDC include, at minimum, a description of: (1) the Columbia Gas of Massachusetts Gas System Enhancement Program D.P.U. 17-GSEP-05 Exhibit CMA/DEM-2 October 31, 2017 Page 3 eligible infrastructure replacement1 of mains, services, meter sets and other ancillary facilities composed of non-cathodically protected steel, cast iron and wrought iron, prioritized to implement the federal gas distribution integrity management plan (“DIMP”) consistent with subpart P of 49 C.F.R. part 192; (2) an anticipated timeline for completion of each project; (3) the estimated cost of each project; (4) a description of customer costs and benefits under the plan; (5) any other information that would assist the Department in the evaluation of the plan, and (6) requested rate changes. Pursuant to the requirements of Section 145, the Company is submitting this plan for its Gas System Enhancement Program (the “GSEP”) (the “GSEP Plan” or the “Plan”), for review and approval by the Department. Below, Section II provides an overview of the CMA service areas, including the current composition of the leak-prone main inventory. Section III of the Plan presents the currently anticipated timeline for the replacement of leak-prone mains and services on the CMA system, including the estimated number of miles replaced per year. Section IV describes the technology and methodologies used for leak-prone main and service replacements. Section V of the Plan discusses the customer benefits associated with the GSEP, including the safety and environmental benefits, as well as benefits to the municipalities and overall cost-effectiveness of 1 An “eligible infrastructure replacement” project is defined in Section 145 (a) as a replacement or an improvement of existing infrastructure of a gas company that: (i) is made on or after January 2015; (ii) is designed to improve public safety or infrastructure reliability; (iii) does not increase the revenue of a gas company by connecting an improvement for a principal purpose of serving new customers; reduces, or has the potential to reduce, lost and unaccounted for natural gas through a reduction in natural gas system leaks; and (v) is not included in the current rate base of the gas company as determined by the gas company’s most recent rate proceeding. Columbia Gas of Massachusetts Gas System Enhancement Program D.P.U. 17-GSEP-05 Exhibit CMA/DEM-2 October 31, 2017 Page 4 the GSEP over the long term. Section VI presents the prioritization methods the Company will utilize to ensure the GSEP is consistent with the Company’s DIMP and identifies potential rampup issues and forecast timeline variables related to resources, emerging work, and potential weather considerations that may impact the Company’s overall projected timeline for the completion of the programs. Lastly, Section VI presents anticipated leak-prone mains and services replacement projects and estimated project costs. The GSEP Plan’s revenue requirement, rate design, and estimated typical bill impacts will be presented separately as part of the pre-filed testimonies and exhibits of Ronald D. Gibbons. A. 2017 GSEP Following the Department’s approval of the Company’s 2017 GSEP in D.P.U. 16-GSEP05, CMA implemented the 2017 GSEP. Although the 2017 construction season is not yet complete, nor has the Company commenced its review of the 2017 GSEP project documentation to determine actual miles and services replaced and dollars spent,2 the Company anticipates that it is on track to meet its replacement goals in 2017. Through the end of September 2017, the Company has spent approximately $54 million in capital expenditures on GSEP-eligible pipe and service replacements. For the same time period installation of approximately 202,000 feet of main to replace eligible pipe were installed where the projects were completed, and 2,453 2 The 2017 Year-to-Date Construction Forecast is an estimate of actual program performance based on current performance and judgment regarding performance against the program. The forecast is contingent upon executing the program completely without any obstacles adversely impacting execution, such as weather, municipality construction moratoriums, excavating conditions, permitting issues, availability of construction resources, etc. Moreover, it should be noted that actual results are not available until all Company receivable, payable and property accounts and records are fully reconciled and booked in preparation for the GSEP reconciliation filing to be made on May 1, 2018. Columbia Gas of Massachusetts Gas System Enhancement Program D.P.U. 17-GSEP-05 Exhibit CMA/DEM-2 October 31, 2017 Page 5 services were replaced. A significant amount of main and service replacement projects are still in progress that will be completed by the end of 2017. The Company’s project and cost documentation must still undergo a review and verification process in order for the Company to develop final replacement figures and dollars spent to present to the Department for its review and approval in the Company’s May 1, 2018 reconciliation filing. II. Description of “Eligible Infrastructure Replacement” The law requires any GSEP Plan filed with the Department to include, at a minimum, eligible infrastructure replacement of mains, services, meter sets and other ancillary facilities composed of non-cathodically protected steel, cast iron and wrought iron, prioritized under the guidance of the DIMP, as filed with the Department upon request and consistent with subpart P of 49 C. F. R. part 192. M.G.L. c. 164, § 145(c)(i). The Company’s GSEP is consistent with these requirements, as described in detail herein. In recognition of the leak-prone nature of copper services, the Company has incorporated the removal of these services into the GSEP. Additionally, the GSEP incorporates the replacement or retirement of plastic or cathodically protected steel segments of main or services into a GSEP project where the replacement or retirement is needed in order to make the GSEP project operational and/or where the replacement or retirement is necessary to construct the GSEP in a cost-efficient manner. This incorporation is consistent with the DIMP, which includes the replacement of plastic or cathodically protected steel as part of a project that has been prioritized to replace cast iron, wrought iron and uncathodically protected steel. . The replacement or retirement of the segments of plastic or cathodically protected mains undertaken in order to make a GSEP project operational and/or Columbia Gas of Massachusetts Gas System Enhancement Program D.P.U. 17-GSEP-05 Exhibit CMA/DEM-2 October 31, 2017 Page 6 cost-efficient is consistent with and furthers the Section 145 directive to replace leak-prone infrastructure on an accelerated basis. An overview of the Company’s service territory follows, along with a description of leakprone mains and related infrastructure remaining on the Company’s system. In addition, the major infrastructure replacement challenges facing the Company in the future are also addressed. A. Overview of Service Territory CMA’s origins extend back to 1847, making the Company one of the oldest natural gas distribution companies in Massachusetts. Currently, CMA provides service to 314,000 active customers located in 61 cities and towns. CMA’s service territory covers three distinct operating areas. The largest operating area is in Brockton where CMA serves approximately 159,000 customers in 41 municipalities, including cities and towns such as Taunton, Walpole, Bridgewater, and portions of Abington, Middleborough and Swansea. In the Springfield operating area, the Company serves approximately 106,000 customers in 16 municipalities, including cities and towns such as West Springfield, Chicopee, Agawam and the City of Springfield. The smallest operating area in terms of geographic area and number of customers is in Lawrence. The Company serves 49,000 customers in four municipalities, including the City of Lawrence, Andover, North Andover, Methuen and a portion of Haverhill. The delivery system relied on to provide service to customer premises encompasses a broad range of components of varying material composition, vintage and O&M histories. As of December 31, 2016, the delivery infrastructure in place to serve customers is comprised of the following as shown in Table II-1: Columbia Gas of Massachusetts Gas System Enhancement Program D.P.U. 17-GSEP-05 Exhibit CMA/DEM-2 October 31, 2017 Page 7 Table II-1 Category Miles of Main Percent of Total Number of Services Percent of Total Non-Cathodically Protected Steel Bare Steel Coated Steel 189 71 3.8% 1.4% 37,335 2,550 13.9% 0.9% 0 2152 0.0% 43.3% 0 46,862 0.0% 17.5% 490 11 9.9% 0.2% 0 0 0.0% 0.0% 2059 0 41.4% 0.0% 181,265 535 67.5% 0.2% 4971 100.0% 268,547 100.0% Cathodically Protected Steel Bare Steel Coated Steel Cast Iron & Wrought Iron Small Diameter (< 12") Large Diameter (> 12") Other Plastic Copper/Undetermined Total Like other natural gas local distribution companies, CMA’s fundamental obligation is to maintain its distribution infrastructure in a manner that is in compliance with applicable state and federal pipeline safety regulations and that will provide safe and reliable service to customers. However, the challenge of meeting these obligations is magnified on the Company’s system by the existence of a significant amount of “leak prone” infrastructure, including non-cathodically protected steel, cast-iron and wrought-iron facilities, without differentiation between small and Columbia Gas of Massachusetts Gas System Enhancement Program D.P.U. 17-GSEP-05 Exhibit CMA/DEM-2 October 31, 2017 Page 8 large diameter cast-iron main. The total inventory of leak-prone infrastructure on the Company’s system includes these types of facilities. As of December 31, 2016, approximately 5.2 percent of CMA’s distribution system is composed of non-cathodically protected steel mains and approximately 10.1 percent is composed of cast iron and wrought iron mains, which means that slightly less than one-sixth of the mainline system is composed of relatively higher risk materials (15.3 percent). Approximately 15 percent of the services existing on the Company’s distribution system are composed of noncathodically protected steel. This is a significant proportion of the system by any objective measure and the leak-management activities that are required to maintain the safety and reliability of the system impose ever-increasing workforce and resource demands on the Company, which contribute to operating and maintenance cost increases. B. Inventory of Leak-Prone Infrastructure In D.P.U. 09-30, the Department approved implementation of the TIRF beginning January 1, 2009, to allow for recovery of the capital costs incurred to complete replacements of non-cathodically protected steel mains and services and associated facilities. Beginning January 1, 2012, and pursuant to D.P.U. 12-25, the Company was authorized to include cast-iron replacement for main equal to or less than 12” in diameter. Under the TIRF provisions of the Local Distribution Adjustment Clause (“LDAC”) tariff, the Company was authorized to recover the costs associated with replacement of non-cathodically protected steel distribution mains and services, cast iron and wrought iron mains (up to and including 12 inches in diameter), and other Eligible Facilities. M.D.P.U. No. 216, §7.01. Section 7.08(6) of the tariff defined Eligible Columbia Gas of Massachusetts Gas System Enhancement Program D.P.U. 17-GSEP-05 Exhibit CMA/DEM-2 October 31, 2017 Page 9 Facilities as those facilities associated with the TIRF projects undertaken by the Company to replace: (1) non-cathodically protected steel distribution mains and associated services; (2) noncathodically protected services replaced independent of main replacement project; (3) cast iron and wrought iron mains (up to and including 12 inches in diameter); and (4) any connected facilities such as services, meters or regulators or pre-existing pipe segments that must be installed, replaced or retired to enable the TIRF project to become operational. Each TIRF had a capital investment reconciliation mechanism designed to recover the annual revenue requirement associated with the accelerated replacement of non-cathodically protected steel and small diameter (12 inches or less in diameter) cast/wrought iron gas distribution mains, including services, service tie-ins, meters, and costs of removal associated with the projects as necessary. During the six years the TIRF program was in operation (2009-2014), , the Company retired on average 36 miles of leak- prone main per year and 2,184 leak prone services per year totaling 218 miles of main and 13,106 services at the end of 2014. Under the 2015 and 2016 GSEP, the Company retired from service on average 43 miles of priority main and 2,709 priority services per year, totaling approximately 86 miles of priority main and 5,418 priority services. As shown in Table II-2, under the GSEP, CMA anticipates replacing nearly 760 miles of leak prone or “Priority Main” within the Company’s three operating areas. Work to replace 760 miles of Priority Main will also encompass the replacement of approximately 40,000 leak-prone services and the completion of all necessary tie-overs (connection of services that are already built to current-day standards to new replacement main) as shown in Table II-3. The breakdown of facilities by operating area is as follows: Columbia Gas of Massachusetts Gas System Enhancement Program D.P.U. 17-GSEP-05 Exhibit CMA/DEM-2 October 31, 2017 Page 10 Table II-2 Operating Center Cast Iron / Wrought Iron Brockton Lawrence Springfield Total Priority Bare Steel Total Priority Pipe 98.6 141.8 240.4 123.1 278.9 500.6 44.3 73.2 259.3 167.4 352.1 759.9 Table II-3 Operating Center Brockton Lawrence Springfield Total Priority Services 12,850 3,823 23,212 39,885 There are two conclusions that arise from this data. First, as mentioned previously, CMA still has an extensive amount of leak-prone mains and services remaining in service. Second, referring to Table II-4(b), CMA is repairing in total over 1,307 main leaks per year on average (based on the actual experience over the past five years for all pipe materials). The 5-year average leakage rate, over the years 2012 to 2016, increased approximately 2.5% over the leakage rate experienced in 2015. Columbia Gas of Massachusetts Gas System Enhancement Program D.P.U. 17-GSEP-05 Exhibit CMA/DEM-2 October 31, 2017 Page 11 Table II-4(a). Priority Pipe and Service Leakage Trends Main 5 Yr Average Total Leaks 2016 Total Leaks 1,307 1,164 Bare Stl Cast Iron Total Priority Pipe Leaks 265 567 832 23% 49% 71.5% 450 NA 450 24% NA 24% % Total Main Lkg Service 2,200 1,878 % Total Svc Lkg Table II-4(b). Priority Pipe and Service Leakage Trends (excl. meter sets)1 Main 5 Yr Average Total Leaks 2016 Total Leaks 1307 1164 % Total Main Lkg Service 1,303 % Total Svc Lkg 1,152 Bare Stl Cast Iron Total Priority Pipe Leaks 265 567 832 23% 49% 71.5% 450 NA 450 39% NA 39% 1 Beginning in 2013 CMA began reporting GR 1 above-ground meter setting leaks in its DOT data. Reported meter setting leaks totaled 1492, 1463, 803, and 726 in 2013, 2014, 2015, and 2016 respectively, which has the effect of significantly distorting the 5-year average and annual percentage of service line leakage relative to total leakage. Therefore, in order to perform relevant analysis directly related to leak prone pipe materials, the leakage data excluding meter set leakage, is presented in Table II-4(b). The increase in the 5-year average is attributable to the significant increase in cast iron joint leakage experienced and slightly elevated corrosion leakage in 2014, plus an increase in equipment failure and material failure leakage on non-priority pipe and slightly elevated cast iron Columbia Gas of Massachusetts Gas System Enhancement Program D.P.U. 17-GSEP-05 Exhibit CMA/DEM-2 October 31, 2017 Page 12 breakage in 2015. However, total leakage in 2016 was below the average for the past five years. As shown in Figure II-1, annual leakage has trended downward each year for the past 3 years. Figure II-1. Annual Main Leakage from 2010 to 2016 In 2016, CMA repaired 1,164 main leaks with nearly 832 leaks eliminated on noncathodically protected steel and cast iron mains. Total main leaks decreased by 264 over 2015 and leaks on priority mains decreased by 227 over 2015. Approximately 72 percent of total main leaks occurred on approximately 15 percent of main line pipe. Moreover, 86 percent of the main leakage reduction was attributed to leak-prone priority pipe. As a percentage of leaks on priority pipe relative to total leaks on all material, leaks on cast iron and uncathodically protected steel pipe in 2016 decreased approximately 3 percent relative to total main leaks with approximately a 1percent reduction in the proportion of priority pipe inventory relative to the total. Furthermore, as shown in Table II-5(b), CMA is eliminating 1,303 service line leaks per year on average (based on the actual experience over the past five years for all materials). In Columbia Gas of Massachusetts Gas System Enhancement Program D.P.U. 17-GSEP-05 Exhibit CMA/DEM-2 October 31, 2017 Page 13 2016, CMA eliminated 1,152 total service line leaks and eliminated 450 leaks on noncathodically protected steel services. Total service line leakage in 2016 was below the average for the past five years. As seen in Figure II-2, this has trended downward steadily over the past seven years. Figure II-2. Annual Service Leakage from 2010 - 2016 Total service line leaks has declined by 227 over 2015. Leaks on priority services have increased slightly by 21 since 2015. However, service line leakage for 2016 is still below the five-year trend line between 2010 and 2014. Approximately 39 percent of service leaks occurred on approximately 15 percent of priority services. The leaks on priority services in 2016 increased approximately 8 percent relative to total leaks compared to priority service leaks in 2015, however, as stated above, leakage on service lines over the past seven years is trending downward. Based on 2016 results, the Company’s data indicates that, if unprotected steel and castiron mains were replaced or retired, on average over the past 5 years, approximately 78 percent Columbia Gas of Massachusetts Gas System Enhancement Program D.P.U. 17-GSEP-05 Exhibit CMA/DEM-2 October 31, 2017 Page 14 of the Company’s main line leak repairs and 39 percent of the service line leaks would have been avoided. This fact is significant given the public-safety ramifications associated with leaking infrastructure and the O&M cost involved in performing leak-management activities on the distribution system each year. III. Timeline for Elimination of Leak-Prone Infrastructure A. Explanation of Company’s GSEP Timeline Section 145 requires each Company filing a gas remediation plan to include: a timeline for removing all leak-prone infrastructure on an accelerated basis specifying an annual replacement pace and program end date with a target end date of either (i) not more than 20 years, or (ii) a reasonable target end date considering the allowable recovery cap established pursuant to subsection (f). M.G.L. c. 164, § 145(c). The Company’s GSEP focuses on replacement of the following eligible facilities: (1) non-cathodically protected steel and cast/wrought iron gas distribution mains; (2) services; (3) service tie-ins; and (4) meters. The timeline for replacement of this infrastructure in the Company’s service territory is currently 20 years. The first five years comprise a ramp-up period; the next five years comprise a level run-rate for replacement; and the remaining ten years are focused on replacing the remaining leak-prone infrastructure over a ramp-down period. While the Company continues to operate under these timeline assumptions, the Company continually evaluates its progress under the GSEP in order to determine if it is feasible to further accelerate leak-prone infrastructure replacement and shorten the overall GSEP timeline. Based on the Company’s current long-range plans to continue to reduce system risk, including the risks associated with leaks, consistent with the DIMP and the environmental impact associated with Columbia Gas of Massachusetts Gas System Enhancement Program D.P.U. 17-GSEP-05 Exhibit CMA/DEM-2 October 31, 2017 Page 15 methane emissions from the system, the Company is targeting a continued increase in capital replacement rate up to the year 2022, then maintain flat annual capital replacement through the end of 2023, and a ramp down period of five years culminating with the conclusion of the GSEP in 2029. The replacement plan is illustrated in Figure III-1. The Company will continue to evaluate available resources requirements, construction cost, and productivity throughout the remainder of the program to adjust resources to match work demand as necessary. Figure III-1. CMA Long-Term GSEP Plan The long-range plan is a directional tool used to guide the Company forward through its accelerated leak-prone infrastructure replacement plan. Regardless of changes to the Company’s replacement plans, the remaining priority pipe will be replaced or eliminated within the original 20-year planning horizon, which began in calendar year 2015. The Company utilizes a balanced approach of (1) risk mitigation, (2) system reliability, (3) operational considerations, and (4) local ordinance compliance and regulatory mandates, with an emphasis on risk mitigation when developing and prioritizing its infrastructure replacement projects. This approach facilitates the acceleration of replacement activities prioritized by risk, Columbia Gas of Massachusetts Gas System Enhancement Program D.P.U. 17-GSEP-05 Exhibit CMA/DEM-2 October 31, 2017 Page 16 and is cost-efficient in doing so, because the Company identifies small concentrations of high risk pipeline segments and then develops projects (generally in the 1,500 to 3,000 foot range) to replace these at-risk segments within a circumscribed area. This allows the Company to efficiently focus construction resources, build an efficient distribution system, ensure future system reliability and prioritize projects against risk that maximize risk reduction within its system. In addition to the risk-based prioritization regimen, the Company prioritizes replacement projects in accordance with factors such as the timing, scope and construction of municipal infrastructure and paving projects, general construction considerations and regulatory compliance considerations, which affect the rate of risk-based pipe replacement on a year-overyear basis. The Company anticipates that infrastructure replacement activities will become more difficult as the Company concentrates its efforts on the urban centers, such as Springfield and Lawrence, in its service territory. In these areas, it is unlikely that the Company will be able to plan and undertake a large number of infrastructure replacement projects as the mains and services are typically located in densely populated urban and business districts with roadways that are paved from building to building and are heavily congested with other underground utilities and structures, making installation of new main problematic. In addition, urban areas tend to have more inside services, which the Company will need to relocate as part of its GSEP, adding an additional step and complexity to infrastructure replacement projects under the GSEP. Heavy vehicular and pedestrian traffic must be also be accommodated. In recognition of these circumstances, municipalities often impose limited work hours, which necessarily slow the rate Columbia Gas of Massachusetts Gas System Enhancement Program D.P.U. 17-GSEP-05 Exhibit CMA/DEM-2 October 31, 2017 Page 17 of production. Given these factors and obstacles, the Company will, at times, most likely be forced to undertake a smaller number of projects that will reduce the amount of priority pipe replaced at any given time. Various other factors may affect the progress made under the GSEP. Site conditions, such as the presence of boulders or ledge, can impact a replacement project’s schedule and cost. Rights of way within municipalities are often quite narrow, leaving CMA’s facilities to compete for limited space with other underground facilities, such as water mains, electric cables, sewer lines and phone cables. Inclement weather will often delay infrastructure replacement projects, which affects the overall schedule and cost of the project. The GSEP is structured to provide the Company with the flexibility to undertake infrastructure replacement projects in any one year in recognition of these circumstances while still mitigating, where possible, the effect these barriers have on the overall GSEP timeline. B. Program Variables and Future Expectations 1. Ramp-Up Issues____________________________________________ As noted above, at a minimum the first five years of the Company’s GSEP will consist of a ramp-up period as the Company works to achieve a levelized run-rate for leak-prone infrastructure replacement. The 2018 GSEP represents the fourth year of the five-year ramp-up period. The Company’s replacement timeline will require significant capital investment and CMA is committed to utilizing this capital cost-effectively in furtherance of its replacement activities. Columbia Gas of Massachusetts Gas System Enhancement Program D.P.U. 17-GSEP-05 Exhibit CMA/DEM-2 October 31, 2017 Page 18 In that regard, CMA intends to rely, for the most part, on contractor crews to undertake the replacement activities under its GSEP. It will take between three and five years to fully develop, train and qualify contractor personnel in the construction and installation of natural gas pipelines. Internally, the Company will need to retain back office personnel to manage the intake and closing of the work orders associated with the accelerated replacement of leak-prone infrastructure. The Company will need to train and qualify additional engineering resources to develop plans, estimate and design projects, select material and prepare construction plans. Lastly, the Company will need to retain, train and qualify additional Company inspectors to oversee the replacement work being conducted by contractors. In addition, CMA is competing with the other Massachusetts, and perhaps regional, LDCs for the same labor sources for its internal workforce and for contractor resources to effectuate the accelerated infrastructure replacement. Thus, the single largest factor in completing replacement projects is expected to be contractor availability and cost. Based on its experience under its TIRF program, it is clear that, in order to obtain favorable pricing for its infrastructure projects from contractor crews, the Company needs to be able to commit to a level of work that will be profitable to an external contractor and that will incent the contractor to develop additional resource capabilities and price the work competitively in order to secure the work. However, external contractors are unlikely to undertake the significant investment required to hire and train the necessary crews unless there is substantial predictability in the work that will be available to support that crew, once created. The GSEP Columbia Gas of Massachusetts Gas System Enhancement Program D.P.U. 17-GSEP-05 Exhibit CMA/DEM-2 October 31, 2017 Page 19 provides a sufficiently predictable and robust capital program to incent the establishment of these expanded resources and attract an aggressively competitive contractor price. CMA has already taken steps to utilize contractors cost-effectively, most notably by recognizing that longer-term contracts with contractors will result in a more stable workforce and lower costs. In years past, the Company had entered into three-year contracts with the contractors performing leak-prone infrastructure replacement. The Company, in recognition of the factors outlined above, completed a request for proposals (“RFP”) process during the 4th quarter of 2012, for a contract start date on April 1, 2013 running through December 31, 2017. The 5-year term was designed to provide a level of predictability and stability to contractors to engender the best possible price. Following the RFP process, the Company awarded work to six contractors. In 2017, the Company issued an RFP for a new 5-year contract, as previously described, to become effective in early 2018. At this time, the Company is evaluating all of the bids and will enter into contracts with contractor companies by the end of 2017. During this RFP process, the Company is seeking renewal of contracts with current contractors and inviting contract bids from any new contractors possessing the required qualifications and capabilities to safely and efficiently engage in replacement of leak-prone infrastructure. In addition to the cost benefits associated with longer-term contracts discussed above, contractor work force stability brought about by longer term contracts is highly beneficial in terms of safety, productivity, quality assurance and customer satisfaction as well as accurate and complete documentation of the work performed. When qualified contractors are consistently employed by the Company, familiarity with the Company’s O&M procedures, construction Columbia Gas of Massachusetts Gas System Enhancement Program D.P.U. 17-GSEP-05 Exhibit CMA/DEM-2 October 31, 2017 Page 20 standards and operations helps to improve the safety of the work site, worker productivity, compliance with pipeline safety regulations, and the quality of work performed. In addition, the Company has found that, when field staff is relatively familiar with the Company and its practices, that staff tends to be more attuned to customer and community issues surrounding particular work sites. In addition, the Company utilizes a common contract structure with its contractors. Under this structure, every participating contractor submitting a bid in response to a longer-term RFP bases the bid on the same “pay units,” so that the contract structures for each contractor are the same. Each contractor applies their pricing methodology to the identified units so that CMA is easily able to compare the bids to determine the best bid award. This makes contract administration easier and enhances cost control by facilitating project estimation and providing a common basis for cost variance analysis. The GSEP will also be enhanced due to the manner in which the Company assigns its contractors to replacement projects. To determine the optimal pool of contractors for planned and scheduled work projects, the Company runs a demand analysis using the various contractual prices and compares one vendor against the other based on total price and performance metrics. Decisions are made on an overall basis to assign certain types of work to individual contractors, with adjustments made on a project-by-project basis, where contractor-specific and projectspecific considerations may apply. Traditionally, the Company assigned contractors to defined territories so that Springfield was traditionally served by one contractor, Brockton by another and Lawrence by yet another contractor. However, with the increasing level of work associated with Columbia Gas of Massachusetts Gas System Enhancement Program D.P.U. 17-GSEP-05 Exhibit CMA/DEM-2 October 31, 2017 Page 21 infrastructure replacement, the Company modified the traditional model to introduce new contractors into each operating area, so that there are more contractors available to work on replacement projects. The Company builds a best cost pool of contractors against a common unitized contract on a competitive basis, which has the effect of reducing cost. Very large specific replacement projects and specialized construction are individually evaluated for price on a competitive basis among all available contractors, which can also have the effect of reducing costs. 2. Program Evolution The Company has identified certain milestones that it expects to achieve through the term of the GSEP, both in relation to the miles replaced and the number of services replaced. In practice, the Company’s ability to achieve the identified milestones will be affected by a number of factors largely outside the Company’s control, which may either facilitate or hinder the number of miles of main replaced each year and cause variances between planned and actual replacements in any year. Infrastructure replacement activities will be affected, at a minimum, by actual weather conditions, complexity of the construction environment, unplanned obstacles to construction, the level of cooperation shown by municipalities in which the projects take place, associated municipal replacement projects and priorities, the availability of cost-effective labor to perform the replacements, the cost and availability of raw materials, and the prevailing circumstances in capital markets and the general business environment in which the Company operates. Similarly, the case may be that technology improvements arise that could aid in the Columbia Gas of Massachusetts Gas System Enhancement Program D.P.U. 17-GSEP-05 Exhibit CMA/DEM-2 October 31, 2017 Page 22 pace of replacement, or that some other circumstance occurs that warrants reconsideration of the pace of replacement or other aspects of the GSEP. IV. Methods Utilized to “Replace & Improve” Leak-Prone Infrastructure The distribution system consists of several different types of piping, including a large amount of cast iron, wrought-iron and non-cathodically protected steel mains and services, which are highly susceptible to corrosion and/or breakage. From the mid-1800s to the 1930s, cast iron piping was installed in the gas distribution system because it was strong and relatively easy to install. However, joining the cast iron pipe segments to produce a leak-free connection was difficult and the mechanical properties of cast iron piping systems made them brittle with little flexibility. Any movement in the supporting earth caused by frost, nearby excavations for other construction work or vibrations from traffic could cause the pipe to crack or the joints to separate, resulting in leaks. Cracked mains and joint leaks account for the majority of all leaks on cast iron mains. Beginning in the 1920’s, bare steel pipe (steel with no exterior coating) was used for gas mains in the distribution system and was the industry standard up to the 1950s. Steel had the advantage of welded connections that were unlikely to leak when properly constructed. Steel mains are relatively stronger than cast iron, are able to withstand greater operating pressure and are more flexible, which allows them to withstand small deflection due to earth movements and vibrations without compromising the system integrity. However, steel is susceptible to corrosion. Corrosion deteriorates the physical integrity of the steel resulting in areas of reduced pipe wall thickness eventually resulting in leaks. To deter the effects of corrosion, piping with Columbia Gas of Massachusetts Gas System Enhancement Program D.P.U. 17-GSEP-05 Exhibit CMA/DEM-2 October 31, 2017 Page 23 an exterior coating was used beginning in the 1950s. Although the exterior coating slows the rate of corrosion, the highest percentage of leaks on steel piping is due to corrosion. In 1971, the United States Department of Transportation (“USDOT”) issued the Minimum Federal Safety Standards for the Transportation of Natural Gas, which prohibited the installation of noncathodically protected steel in gas distribution systems. A. Replacement Techniques to Eliminate Leaks The Company evaluates the appropriate technology and methodology for main and service replacements on a project-by-project basis in each of its operating areas. The methodologies utilized are direct burial, punching or hole hogging, directional boring and insertion. The methodology utilized is determined by taking into consideration safety, environmental impact, cost effectiveness, and the impact on the customer and the municipality. Direct burial is the primary method utilized for almost all main replacements. Direct burial has been the preference due to construction conditions associated with soil type and the presence of hard surfaces in the Company’s service territory, the extensive existing underground infrastructure, and the size of pipe being installed. Punching or hole hogging is utilized when boring short distances for service installations and some main installations when the location and depth of other utilities can positively be determined. The Company has found this methodology very effective in installing or replacing small diameter services to customers and street crossings for main installation. Landscaping and pavement disruption is also kept to a minimum with this methodology, which increases customer satisfaction and reduces restoration costs. Columbia Gas of Massachusetts Gas System Enhancement Program D.P.U. 17-GSEP-05 Exhibit CMA/DEM-2 October 31, 2017 Page 24 Directional boring is primarily utilized for water crossings in environmentally sensitive areas where wetland, wildlife and vegetation cannot be disturbed, and in areas where soil conditions are favorable to the use of this methodology. This methodology is also useful in situations where open cutting is nearly impossible; such as railroad crossings, interstate or major highways or intersections where direct burial would prove to be disruptive to traffic. In some cases, directional boring is utilized when the Company encounters difficult installations. In all cases, directional boring is used only when the location and depth of foreign utilities can be positively identified. When the Company replaces bare and unprotected service lines, the existing steel service line is typically replaced with a plastic service line and a riser, located outside the customer structure. Concurrently, whenever operationally feasible, the Company may also relocate gas meters from inside the customer structure to outside the customer structure. Since gas service is temporarily discontinued to the customer, the Company conducts pressure tests of the new service in accordance with federal and state regulations and the Company’s operating and maintenance procedures. A service line or partial service line that has been disconnected is tested with inert gas or air before the service line is reinstated. The test includes the portion of the service line from the point of disconnection to the valve on the service riser (e.g., meter valve or stop cock). The final connection of the reinstated service line is leak tested at the operating pressure using leak detection soap. Customer piping downstream of the outlet of the meter is subject to, and is checked in accordance with, Massachusetts regulation 248 C.M.R. Part 1.00 through Columbia Gas of Massachusetts Gas System Enhancement Program D.P.U. 17-GSEP-05 Exhibit CMA/DEM-2 October 31, 2017 Page 25 11.00, Rules and Regulations Governing Plumbers and Gas Fitters. This state regulation also incorporates NFPA 54, 2002 edition. The Company secures a permit for gas work in accordance with the requirements of 248 CMR 3.00. The Company does not replace non-cathodically protected steel mains without also replacing the associated services because associated services are composed primarily of noncathodically protected steel and subject to the same corrosive forces associated with priority mainline material. Since services are located in close proximity to the customer’s premises, when a service is exposed (as it is when any main-replacement activities are conducted) or otherwise degraded, safety considerations require simultaneous replacement. Consequently steel service replacements, tie-over of services to the new main made of plastic that are already installed in the proper location and in accordance with current construction standards, and meter move-outs necessitated by the main-replacement process are appropriately included in the GSEP. The Company also may abandon small diameter cast iron and non-cathodically protected steel mains on various streets where duplicate mains exist. During this process, non-cathodically protected steel service lines are replaced and tied over to the other main, and the meter locations moved outside. When possible, this is a cost effective and efficient way to eliminate existing leaks and the potential occurrence of new leaks while also avoiding the costs of direct main replacement. A. Improvement Techniques to Eliminate Leaks Wherever possible, CMA seeks to replace, rather than repair, leak-prone infrastructure as replacement is a more efficient and cost-effective method for eliminating leaks. The Company Columbia Gas of Massachusetts Gas System Enhancement Program D.P.U. 17-GSEP-05 Exhibit CMA/DEM-2 October 31, 2017 Page 26 will continue to monitor and explore emerging leak repair methods. In the event that an identified repair method provides the same benefits of infrastructure replacement at a comparative cost, the GSEP enables the Company to take advantage of that method. B. Leveraging Municipal Paving Projects to Control Cost Most municipalities in Massachusetts have moratoriums on road construction following municipal work projects that prohibit all excavation in that location for five-year periods. The Company’s current practice, to the extent possible, is to coordinate with state and municipal entities to make necessary replacements in conjunction with municipal work projects. Any time the Company is able to leverage a municipal work project for the purpose of replacing noncathodically protected steel or cast-iron infrastructure for system integrity purposes, the Company can often minimize cost associated with avoidance of paving and street restoration. Conducting replacements in the context of a municipal paving project can have a positive impact on the total project cost if pipe replacement and municipal projects are timed closely together since the municipality often bears the cost of street reconstruction. Moreover, replacing non-cathodically protected pipe in extremely poor condition and cast iron pipe in advance of municipal work has the added safety benefit of eliminating the possibility of worsening the leakage and risk due to the construction activity. In the case of cast iron, depending on the proximity of encroachment by construction of municipal work, the Company is obligated under Department regulations to replace it. Therefore, replacement of a priority pipe segment in advance of municipal work serves the interests of the public safety and costeffectiveness. It is important to note, however, that notification of these types of projects usually Columbia Gas of Massachusetts Gas System Enhancement Program D.P.U. 17-GSEP-05 Exhibit CMA/DEM-2 October 31, 2017 Page 27 has a very short lead time and often takes place after annual replacement planning is completed. Therefore, these types of projects may temporarily supplant other projects identified within annual construction budgets. The short notice associated with municipal work may make it necessary to reprioritize or defer other projects based on a range of considerations depending on the project circumstances. The replacement of underground facilities requires substantial coordination with local municipalities and state highways departments. Under the GSEP, the Company will be better able to provide a systematic and predictable schedule of construction activities to facilitate coordination with local municipal roadway projects and minimize disruption to traffic, roads and highways. Thus, the GSEP’s systematic replacement approach produces efficiency gains allowing more main to be replaced for the same price. Lastly, it should be noted that, as has been discussed, it is the Company’s practice to coordinate with state and municipal entities; however, the Company is not in a position to take advantage of every municipal project that may arise each year within each of the cities and towns that the Company serves. Moreover, because of the complexity and time sensitivity of coordinating utility work within a municipal project, it is uncommon for CMA to utilize the same trench as a municipal project. CMA prefers to replace its facilities prior to the start of municipal work so that the Company facilities do not interfere with municipal work, and do not interfere with future municipal operations and maintenance if the utilities were in the same trench. When the Company is unable to work prior to the municipal project, the Company installs its facilities when the municipal work is completed but prior to paving. Columbia Gas of Massachusetts Gas System Enhancement Program D.P.U. 17-GSEP-05 Exhibit CMA/DEM-2 October 31, 2017 Page 28 V. Customer Costs and Benefits of Plan Section 145 provides that: Any plan filed with the department shall include… a description of customer costs and benefits under the plan. M.G.L. c. 164, § 145(c). A. Costs The total cost of main replacement is the sum of labor costs; materials; contractor charges; road-surface restoration; police traffic safety detail; road opening permits and environmental permitting and environmental protection costs plus similar cost factors for service replacement and meter relocations. Factors outside of the Company’s control, such as weather conditions, site conditions, construction environment operational needs, emergencies and municipal requirements regarding work hours, have the potential to greatly influence infrastructure replacement costs. The GSEP is designed to enable the Company to structure its infrastructure replacement projects in coordination with municipal paving projects and also to take advantage of the economies of scale over the course of the entire scope of the replacement project, such as equipment and materials procurement, which is available through long-term contracts with construction firms and internal resources. These factors help to improve the costeffectiveness of individual replacement projects and the overall GSEP. B. Benefits 1. Safety and Reliability As described above, the Company has a significant amount of leak-prone pipe on its distribution system with a 2016 corrosion leakage rate for uncathodically protected steel main of Columbia Gas of Massachusetts Gas System Enhancement Program D.P.U. 17-GSEP-05 Exhibit CMA/DEM-2 October 31, 2017 Page 29 0.83 leaks per mile, a cast iron leakage rate due to joint leakage and breakage of 0.97 leaks per mile as shown in Table V-1, and a combined composite leakage rate of 0.92 leaks per mile shown in Table V-2. The Company has structured its GSEP to allow for the replacement of the leak-prone infrastructure which, over the course of the GSEP, will reduce annual leakage on the system. In keeping with its past efforts and its commitment to customers, the Company, through its GSEP, will continue to improve the safety and reliability of its distribution system. At approximately 15 percent, priority pipe still represents a significant proportion of the Company’s distribution system. As stated in Section II.B above, on average over the past five years, leaks on priority mains has accounted for 78 percent of the total main leaks cleared and leaks on priority services has accounted for 39 percent of the total service leaks cleared. Combined, nearly 59 percent of all leaks cleared over the past five years were on priority main and service piping. Leakage on priority pipe year-over-year varies significantly due to a range of factors, from relative construction activity, winter weather conditions, depth of frost, and precipitation levels to name a few. Table V‐1 Leakage Rate Trends Bare Steel ‐  Bare Steel  Bare Steel ‐  Bare Steel ‐  Miles Main Main ‐ Leaks Leaks / Mile Corr Leaks 2012                360.9 418                  1.16 418 2013                336.5 315                  0.94 302 2014                318.6 409                  1.28 357 2015                301.1 361                  1.20 274 2016                259.4 265                  1.02 216 5‐Yr Avg.            315.3 354 1.12 313 1  Miles of Main Adjusted for 2014 and 2016 Inventory Revision Bare Steel ‐  Corr Lks / mi                  1.16                  0.90                  1.12                  0.91                  0.83 0.99 CI/WI ‐     Miles  Main                593.1                577.0                553.7                528.5                500.6 550.6 CI/WI ‐     Leaks  618 539 928 698 567 670 CI/WI ‐     Leaks / Mile                  1.04                  0.93                  1.68                  1.32                  1.13                 1.22 CI/WI ‐         CI/WI ‐ Jt &  Jt & Bkg Leaks  Bkg Leaks/mi.                    618 1.04 0.80                   460                   877 1.58                   618 1.17                   484 0.97             611.40 1.11 Columbia Gas of Massachusetts Gas System Enhancement Program D.P.U. 17-GSEP-05 Exhibit CMA/DEM-2 October 31, 2017 Page 30 Table V‐2 Composite Leaks/mile (Combined Bare/UCS and Cast Iron) Priority Mains  Priority Mains  Total Mains ‐  Total Priority  ‐ Corr/Joint/  ‐ Corr/Joint/  Breakage  Priority Mains  Leaks on  Main ‐ Leaks /  Breakage  Leaks/Mile Leaks ‐ Miles Priority Pipe Mile 2016                760.0                832.0                  1.09                   700                  0.92 5‐Yr Avg/                865.9 1023.6                  1.20                   785                  1.10 Referring to Table V-1 the corrosion leakage rate on uncathodically protected steel mains in 2016 of 0.83 is slightly lower than the 5-year average rate of 0.99. Moreover, the 2016 leakage rate is within the 5-year range of 0.83 to 1.16, and moved from the second lowest leakage rate since 2010 as experienced in 2015 to the lowest leakage rate since 2010 in 2016, suggesting that replacement is at least keeping pace with continued uncathodically protected steel failure, and possibly exceeding the rate of failure on the remaining inventory. The 2016 pipe joint and breakage leakage rate for cast iron/wrought iron is 0.97 leaks per mile compared to the 5-year average rate of 1.11. This represents a leakage incidence rate in 2016, consisting predominantly of cast iron joint leakage, that is approximately 13 percent lower than the 5-year average leakage rate on cast iron/wrought iron pipe. Compared to the leakage rate in 2015, cast iron/wrought iron pipe leakage rate per mile in 2016 has declined by approximately 17 percent. The leakage rate per mile in 2016 has fallen below the 5-year cast iron leakage rate, between the years of 2012 and 2016, and is the second lowest leakage rate since 2011. While the cast iron/wrought iron pipe leakage rate compared to the recent past certainly continues to suggest that replacement is exceeding the failure rate, the general leakage trend and the large inventory of cast iron still suggests that replacement of cast iron/wrought iron pipe is a priority focus for replacement in the future years of the program. Columbia Gas of Massachusetts Gas System Enhancement Program D.P.U. 17-GSEP-05 Exhibit CMA/DEM-2 October 31, 2017 Page 31 Based on the data provided in Table V-2, a comparison of the composite bare/uncathodically protected steel and cast iron/wrought iron pipe composite corrosion, joint and breakage leak rates between 2016 and the 5-year average of 0.92 and 1.10 leaks per mile respectively, demonstrates that the rate of pipe replacement based on the failure modes that are most prevalent on priority pipe appears to be keeping pace with the overall rate of deterioration. Regardless, considering that cast iron/wrought iron pipe represents approximately 66 percent of the total priority mainline pipe inventory for CMA, even though the leakage rate is below the 5year average of cast iron leakage and the second lowest since 2012, because of the large inventory and the potential risk due to cast iron failure, the Company will continue to emphasize cast iron replacement over that of bare and uncathodically protected bare steel in 2018. Cast iron/wrought iron pipe replacement therefore represents approximately 51 percent of the targeted priority pipe in the 2018 project plan and increases to 66 percent of total priority pipe replacement planned in 2019 through 2022. To predict leakage levels or rates year over year is at best very difficult. However, the Company’s risk-based GSEP program prioritizes main and service replacement on existing leaks, the probability of future leaks and the consequences those leaks pose to public safety. So assuming that the replacement program at worst keeps pace with the rate of failure on the existing priority pipe inventory, annual leakage associated with corrosion, cast iron joint leaks and cast iron breakage will decrease annually year-over-year to the point that, all things being equal over the life of the replacement program, the Company could experience as much as 60 percent fewer leaks on an annual basis. Therefore, as structured, the GSEP replacement program Columbia Gas of Massachusetts Gas System Enhancement Program D.P.U. 17-GSEP-05 Exhibit CMA/DEM-2 October 31, 2017 Page 32 will represent a substantial improvement in public safety and the reliability of service. Furthermore, as the Company gains additional data and knowledge and new insights into the risk performance of its system, it will continuously make improvements to the replacement program to further leakage reduction, improve safety and protect the environment. 2. Environmental Impacts The benefit of the GSEP on the environment would be substantial and direct, given that leaks have the effect of releasing natural gas to the atmosphere. A principal component of natural gas is methane. Methane emissions occur on the distribution system as a result of leaking infrastructure. The chemical characteristics and interactions of methane in the atmosphere contribute to its impact as a greenhouse gas. Once in the atmosphere, methane absorbs global infrared radiation that would otherwise escape to space and thus contributes to the warming of the earth. Methane accounts for a much smaller percent of overall global warming than carbon dioxide, but is far more capable of trapping heat in the atmosphere than carbon dioxide (x21). For this reason, methane emissions are an environmental concern and a target for reduction by CMA. The impact of methane leakage on the environment is reduced either by replacing leakprone mains and services or by repairing gas leaks. The release of methane gas on a distribution system occurs primarily in relation to leaks occurring on non-cathodically protected steel mains and cast-iron mains. The U.S. Environmental Protection Agency (“EPA”) estimates the impact of methane rates on these types of mains and calculates the impact of annual leakage in equivalent tonnes of CO2. Table V-2 Columbia Gas of Massachusetts Gas System Enhancement Program D.P.U. 17-GSEP-05 Exhibit CMA/DEM-2 October 31, 2017 Page 33 below provides the calculation of the potential reduction per every five years in equivalent CO2 emissions. Table V-2       Cast Iron / Total Program Wrought Iron Mileage/Services (miles) to be Replaced (miles) 708.1    Unprotected Steel (miles)    Reduction in CO2 (equivalent tonnes)1    Priority Services       Reduction in CO2 (equivalent tonnes)1 Reduction in CO2 (equivalent tonnes)31 465.9 242.2 18,114 38,888 Year 4-5 63.0 61.2 3,020 6,817 Year 6-10 261.9 126.8 9,995 21,349 2,657 12,652 Year 11-15 141.0 54.2 5,099 10,722 1,334 6,433 Year 16-20 0.0 0.0 - 3. - 4,840 848 - 22,954 3,869 - Municipal Cost and Convenience When leaks occur, the Company’s resources are deployed on an emergency basis to investigate and make the situation safe. However, municipal resources such as fire departments, police and other public safety staff are also frequently deployed to address potential public-safety issues. This creates cost and inconvenience for municipalities in which the Company provides 3 Table V-2 has traditionally been calculated using the emissions factors developed by the U.S. Environmental Protection Agency (“EPA”) as set out in in 40 CFR Appendix Table W-7 to Subpart W of Part 98. In August 2017, the Massachusetts Department of Environmental Protection (“DEP”) issued methane emissions regulations for those local distribution companies with a GSEP. The DEP regulations, codified in 310 C.M.R. 7.73(5)(b)8.:Table 9, utilize emissions factors that were derived from a Washington State University study, Direct Measurements Show Decreasing Methane Emissions from Natural Gas Local Distribution Systems in the United States, and are generally lower than the EPA emission factors. Consistent with the DEP regulations, the Company has calculated Table V-2 using the emissions factors included in 310 C.M.R. 7.73(5)(b)8.:Table 9. Columbia Gas of Massachusetts Gas System Enhancement Program D.P.U. 17-GSEP-05 Exhibit CMA/DEM-2 October 31, 2017 Page 34 service. Municipal cost is also incurred in training, equipping and maintaining the resources necessary to respond to emergencies involving natural gas. Moreover, municipalities must deal with the inconvenience of emergency and unplanned street openings and emergency coordination with the Company to enable leak repairs. These costs and inconveniences would be reduced where a greater level of system replacement has occurred and the number of leaks is substantially reduced. Customers also incur costs and experience inconvenience when the Company must interrupt service periodically to accommodate emergency and unplanned repairs near their homes and businesses, in addition to increase traffic congestion that arises from these repairs. The Company anticipates that, with accelerated replacement under the GSEP, its need to conduct unplanned and emergency street opening for repair work would be substantially reduced. A reduction in the costs and inconvenience experienced by municipalities and customers due to the replacement of leak-prone infrastructure will help the Company maintain good relations with local governments and customers. Maintaining a safe and reliable system will further strengthen these relationships. 4. O&M Offset The Company’s Plan includes an O&M offset in computing the revenue requirement calculations associated with the GSEP. The O&M offset per mile represents the weighted average cost of leak repairs on non-cathodically protected steel and cast iron mains, which will be multiplied by the total miles replaced during the annual GSEP investment period to determine the savings credited to ratepayers in the annual GSEP revenue requirement. Columbia Gas of Massachusetts Gas System Enhancement Program D.P.U. 17-GSEP-05 Exhibit CMA/DEM-2 October 31, 2017 Page 35 O&M expenses will increase over time due to a number of factors, including inflation. As new leaks occur, and as CMA performs repairs on leak-prone mains or replaces leak-prone main with plastic mains, the inventory of leak-prone mains will also change. Therefore, the two components used in determining the O&M offset (i.e., the cost of repair per mile and leaks per mile) will change over time. The Company will calculate its O&M offset on the basis of a threeyear weighted average of costs of repair per mile and leaks per mile data, in order to provide a more stable O&M offset. 5. Job Creation The Company’s TIRF program has resulted in the creation of new jobs in Massachusetts over the past four years. The Company expects that its GSEP will further increase the amount of construction work performed on the system, which in turn would create or preserve jobs. Additionally, the GSEP will create and preserve jobs within the Company. VI. Construction Plan Detail for Upcoming Construction Year A. Definition of Construction Year A typical construction year begins in early April depending on weather conditions and municipal cooperation in issuing road opening permits. The construction season typically runs through the middle of November and can be extended by the municipalities on a day-to-day basis. B. Description of Available Resources and Deployment for Construction Year As of the beginning of 2017, the Company employed 112 in-house construction and distribution workers for work on its distribution system, including infrastructure replacement projects. While not all of these workers typically conduct GSEP main replacement jobs, they do Columbia Gas of Massachusetts Gas System Enhancement Program D.P.U. 17-GSEP-05 Exhibit CMA/DEM-2 October 31, 2017 Page 36 occasionally assist with the associated tie-ins and service line replacements associated with GSEP projects. Below is a listing of Company personnel who support the GSEP program: 1 – Manager 3 – Welders 18 – Pipe Fitters 7 – Leaders 1 – Project Manager 1– Senior Operations Specialist 13– Construction Specialist 1– Construction Operations Coordinator 42– Inspectors 25– Tie-in employees. In addition to construction and distribution personnel, the Company also employed, as of the beginning of 2017, an engineering staff to perform project design, cost estimating, and project management that consisted of: 1 – Engineering Manager 2 – Engineering Leaders 1 – Principal Engineer 18 – Engineers (including 1 engineering tech, and 2 interns) To provide back office support, such as work planning, scheduling, permitting, etc., the Company utilized: 1 – Work and Resource Planner 2 – Work Schedulers 1 – Scheduling Support Leader 7 – Support Clerks 1 – Capital Closeout Leader 8 – GIS/Capital Closeout Engineering Technicians. Columbia Gas of Massachusetts Gas System Enhancement Program D.P.U. 17-GSEP-05 Exhibit CMA/DEM-2 October 31, 2017 Page 37 During April 2017 the Company added 3 welders, 6 pipe fitters, 3 inspectors and transferred 13 tie-in employees from operations to construction, bringing the total construction complement to 137 employees in 2017 from 112 employees in 2016. To supplement GSEP replacement and other construction work, in 2016, the Company utilized an average of 52 contractor construction crews, ranging from 43 to 59 crews during the peak construction season, comprising three to five qualified personnel per crew capable of executing any type of work required under the Company’s system construction program. The work encompassed by the Company’s construction plan includes GSEP-related infrastructure replacement, customer growth, public improvement and system reliability projects. From purely a resource planning perspective, in 2017, on average 40 crews were needed, ranging from 35 to 49 crews during the peak construction season, to execute GSEP-related main replacement work and an average of 16 crews, ranging from 11 to 24 during the peak construction season, were needed to execute new growth, public improvement, and reliability related projects. To date in 2017, on average the Company has utilized a total of 56 contractor crews, ranging from 50 to 62 crews in order to execute the capital construction program. Going forward during the remaining years of the ramp-up period for the GSEP, the Company anticipates that both it and its contractors will need to add additional staffing resources to accomplish the goals of the GSEP. At a minimum, the Company plans to add two internal pipe fitters, five inspectors, three front line leaders, and three construction specialists, bringing the number of internal Company construction employees to 150. Table IV-1 provides the estimated number of contractor crews the Company will need Columbia Gas of Massachusetts Gas System Enhancement Program D.P.U. 17-GSEP-05 Exhibit CMA/DEM-2 October 31, 2017 Page 38 based on the size and scope of its construction program for the next five years. Table IV‐1  2018 GSEP Related Infrastructure Replacement: -Resource Plan / Actual Resources Reqd. Other Construction, incl. Growth, Pub. Imp. & System Reliability: -Resource Plan / Actual Resources Reqd. Estimated Total Contractor Crew Reqmt's: -Resource Plan / Actual Resources Reqd. Estimated Construction Contractor Crew Requirements 2019 2020 2021 2022 47/51 49/54 51/57 55/64 63/65 26/24 25/23 27/26 31/31 33/36 73/75 74/77 78/83 86/95 96/101     Note that the resource plan provides both a resource plan and an actual crew count. The Company does not rely solely on resource plans derived strictly from the aggregate of individual project requirements for determining crew counts. In reality, factors such as inclement weather, unplanned delays, shifting construction schedules, crew requirements, added compliance and safety procedures, and focus on more timely priority pipe replacement all affect crew efficiency and productivity. The Company continues to evaluate and modify its staffing and contracting needs based on the experiences gained managing the GSEP and the scope and volume of work contained within the Company’s capital construction program, including the GSEP. C. Prioritization of Projects for Construction Year Section 145 requires that: Any plan filed with the department shall include, but not be limited to: (i) eligible infrastructure replacement of mains, services, meter sets and other ancillary facilities composed of non-cathodically protected steel, cast iron and wrought iron, prioritized to implement the federal gas distribution pipeline integrity management plan annually submitted to the department and consistent with subpart P of 49 C. F. R. part 192. M.G.L. c. 164, § 145(c)(i). Columbia Gas of Massachusetts Gas System Enhancement Program D.P.U. 17-GSEP-05 Exhibit CMA/DEM-2 October 31, 2017 Page 39 USDOT promulgated rules regarding DIMP are set forth in 49 CFR Part 192 “Pipeline Safety: Integrity Management Programs for Gas Distribution Pipelines.” Under the DIMP, “gas operators are required to undertake a risk-based assessment of the distribution system and to identify threats to the system in seven categories, which are corrosion, natural forces, excavation damage, other outside force damage, material and weld failure, equipment failure/incorrect operations.” DIMP requires evaluation and prioritization of the risk that these threats pose and the implementation of measures to address the highest risks with an emphasis on leak management, enhanced damage prevention, operator qualification to reduce human error and system replacement. From an overall perspective, the rule specifies implementation of an organized approach to managing risks on gas distribution systems and is designed to result in a repeatable, justifiable and uniform approach to system knowledge, threat determination, risk ranking, mitigation, regulatory compliance and reporting. Public safety is of the utmost concern for CMA and the Company prioritizes leak-prone infrastructure for replacement consistent with its obligation to maintain the safety and reliability of the distribution system. The Company uses risk-modeling tools and other available technology like Optimain, GIS, and SynerGi to assist in making project selections. The Company analyzes and prioritizes main segments for replacement, under a “worst first” concept which considers leakage history, current leakage and the probability of future leaks along with the potential consequences future leakage poses to public safety. In determining the probability of future leakage, the Company considers key factors such as age, size, material, type of construction to build the original system, leak history, corrosion history, and operating pressure. Columbia Gas of Massachusetts Gas System Enhancement Program D.P.U. 17-GSEP-05 Exhibit CMA/DEM-2 October 31, 2017 Page 40 In determining the potential consequences of future leakage, the Company considers population density, proximity to structures, public buildings or business districts, and soil conditions. The modeling system assigns a risk point value for each main segment, which is normalized to ensure high risk segments of varying size are given adequate weight in the replacement selection process and to identify small areas within the system with the highest concentration of risk. Engineers use the information provided from these tools as the primary consideration for selecting, designing, and prioritizing them for replacement. 1. Emerging Work a. Municipal/Public Works Projects There are two kinds of municipal work projects that influence the prioritization of leakprone pipe replacements: (1) municipal projects that require the Company to take some action on its own facilities to accommodate the project, and (2) municipal projects that do not require action by the Company, but that provide an opportunity for the Company to “piggy back” its mains replacement activities with municipal projects so that duplication of street excavation, restoration and paving costs may be avoided. Main replacement projects are timed coincident with municipal projects where possible because of potential cost savings, as well as anticipated avoidance of performing work on public roadways that were recently improved and may be subject to a municipal restriction on further construction activities for some time period. The Company incurs the cost of excavation and repaving activities only once rather than incurring the costs multiple times to return to the same area over time and replace pipeline segments and services as they pose a higher risk. Also, the cost of installation is less expensive because Columbia Gas of Massachusetts Gas System Enhancement Program D.P.U. 17-GSEP-05 Exhibit CMA/DEM-2 October 31, 2017 Page 41 multiple segments are completed at one time, thereby eliminating repetitive costs that are incurred to complete segment replacements, such as the cost of staging crews and installing ties to connect to pipe that is remaining in the ground. At the same time, the Company is able to avoid the risk and cost associated with worsening leakage on priority piping on account of construction activity near or directly over the gas facilities. Specifically, the Company’s prioritization process recognizes that the combining of GSEP replacement with municipal construction projects offers material cost savings as described in Section IV.B due to the potential of excavation, restoration and paving costs. This approach also helps minimize the impact to customers by not having to disturb the new pavement and inconvenience the public due to having to make a leak repair on a leak-prone pipe after the public works project was completed. Each municipality has its own set of street opening regulations governing construction work in a non-emergency capacity (winter moratorium). Generally speaking, the construction season for obtaining street opening permits for nonemergency work begins in April and continues through December. Some municipalities will grant street opening permits outside of the moratorium time period, providing the hot top plants are open and the weather is mild. While there is often times significant benefit by coordinating pipe replacement with municipal paving, it is not always practical, nor desirable to do so. First and foremost, almost every municipal project potentially preempts an equivalent higher risk based project. So, the Company loses discretion over maximizing risk elimination. Second, depending on the timing and scope of the paving project relative to when it is feasible to complete a replacement project, Columbia Gas of Massachusetts Gas System Enhancement Program D.P.U. 17-GSEP-05 Exhibit CMA/DEM-2 October 31, 2017 Page 42 the Company may have to provide temporary paving repair that has the effect of reducing or eliminating cost savings. Third, the amount of paving performed across the entire service territory is usually greater than the replacement budget for a given year. So, the Company balances the condition and leakage history of the pipe, the material impacted (cast iron is more susceptible to leakage and damage due to certain construction practices than bare steel), and regulatory obligations resulting from cast iron encroachments against the type of construction and the intrusiveness of construction on the facility to prioritize which replacement projects are selected for completion in advance of paving. In short, those projects where paving, construction or municipal infrastructure replacement projects will worsen leakage and future maintenance requirements or create a regulatory obligation to replace receive the highest priority when selecting which municipal projects to perform. b. Winter Season Performance in Construction Year Within the Company’s three operating areas over the course of the winter season, Company personnel update information on unprotected steel and cast iron mains to incorporate all new information related to the condition of those mains, including but not limited to any new pipe condition reports, new leaks identified and whether those leaks are repaired or still outstanding. During this period, the Company also contacts cities and towns to obtain the latest information on municipal construction projects, including projected start dates. Over the winter heating season, CMA’s engineering personnel in the operating centers compare their computer simulations of the distribution system performance to actual pressures Columbia Gas of Massachusetts Gas System Enhancement Program D.P.U. 17-GSEP-05 Exhibit CMA/DEM-2 October 31, 2017 Page 43 and flows to identify potential bottlenecks and weaknesses. From these studies, potential solutions, such as main replacements, are developed. c. Emergencies In the winter months, the Company typically performs more emergency repairs, as opposed to other times of the year when there are a larger percentage of planned repairs. Emergency repairs, regardless of the time of year, are prioritized over planned infrastructure replacement or repairs in order to eliminate threats to public safety and maintain the reliability of the system. The need to divert resources to emergency repairs will necessarily disrupt planned replacements under the GSEP. 2. Balancing of Priorities Requires Iterative Approach The GSEP is a long-range plan with a defined end state, namely the elimination of leakprone infrastructure on the Company’s system. The Company intends to implement the GSEP in a manner that focuses on maintaining the safety and reliability of the system in a cost-effective manner. As described above, there are a variety of factors, such as emergency repairs, weather, and municipal paving projects that can and most likely will influence the actual replacement projects undertaken in each year of the GSEP. The Company recognizes that, in order to undertake replacement projects in the most effective manner possible for the good of the system, it must be flexible in its approach to these projects. Prioritizations and lists of planned replacement projects are never static. As new system conditions are discovered, the Company must reassess its priorities and carry out projects that will best benefit the system given currently known operating conditions. Furthermore, as plans Columbia Gas of Massachusetts Gas System Enhancement Program D.P.U. 17-GSEP-05 Exhibit CMA/DEM-2 October 31, 2017 Page 44 for municipal infrastructure improvement and paving are revealed, the Company must adjust its replacement plans to accommodate changing priorities. Therefore, a flexible, rather than rigid, approach to infrastructure replacement projects over the term of the GSEP will ensure that the Company is able to meet its obligation to provide safe and reliable service to its customers. D. Timeline of Completion of Eligible Infrastructure Projects Section 145 requires that: Any plan filed with the department shall include… an anticipated timeline for the completion of each project. M.G.L. c. 164, § 145(c)(ii). 1. Description of Scheduling Process Once the Company has identified infrastructure needing to be replaced, as described above, a project is then developed to replace all relevant mains and services. This is done to replace large amounts of priority pipe and maximize risk reduction as efficiently as possible, improve reliability and ensure adequate capacity for existing and future customers, and lower O&M costs over time. Within this context, projects are developed based on four main drivers of project selection, which are (1) risk determination and reduction; (2) system reliability; (3) input from field operations; and (4) compliance with local ordinances and regulatory mandates with an emphasis on risk, as risk directly impact public safety. Most risk-based projects are typically of a size in the 1,500 – 3,000 feet. However, projects creating obligations based on regulatory mandates, or customer reliability preempt risk-based projects. Annual project plans are developed prioritizing each project as described above, to ensure that Company construction resources are focused on the highest priority projects at any given time. Columbia Gas of Massachusetts Gas System Enhancement Program D.P.U. 17-GSEP-05 Exhibit CMA/DEM-2 October 31, 2017 Page 45 Once the project is selected, it is designed by the engineering group. This design incorporates safe and effective methods of replacing the existing priority main segments with new higher quality high density polyethylene (“HDPE”) or cathodically protected coated steel pipeline by creating construction drawings and plans that provide crews instructions on where and how to install the new facilities. The design also gives consideration to increasing maximum safe operating pressures allowing the use of smaller diameter pipe than that which it replaces resulting in reduced total facility investment. These construction projects are then given to the Company’s Construction Planning Group for review and prioritization for the year thus creating an annualized strategic plan. This helps to determine total construction resources and deployment across the Company’s service territory. Strategic plans are translated into monthly tactical plans, which are individual crew schedules that deploy crews to specific projects and set specific productivity expectations based on project priority. The Construction Group then implements the design in the field, ensuring that the process is done in a timely, efficient, and effective manner. The new pipeline and services are installed and then put into service according to the Company’s standards. Once the new infrastructure is in place, the existing infrastructure is then abandoned using the appropriate Company standards. Each month the tactical and strategic plans are reviewed and adjusted to accommodate changing project priorities. 2. Typical Project Scope/Duration Depending on the size and type of main, number of service replacements and construction conditions most risk-based projects range from 2 crew-days to 200 crew-days, Columbia Gas of Massachusetts Gas System Enhancement Program D.P.U. 17-GSEP-05 Exhibit CMA/DEM-2 October 31, 2017 Page 46 averaging 40 crew-days. The average project duration over the entire portfolio of projects is approximately 45 crew-days. 3. Variables Affecting Schedule a. Permitting Permitting can affect the replacement schedule due to the following reasons: • delays in receipt of permits from the municipality or State agency; • municipalities may hold additional permits until current projects are completed and road restoration is deemed satisfactory; and • extensive permitting for some projects may be required, including the need to receive permits from railroads, local conservation commissions, the U.S. Department of Environmental Protection, U.S. Army Corp, Department of Conservation and Recreation. b. Weather Weather can affect the replacement schedule due to the following reasons: • Inclement weather can slow down the rate of production; • Inclement weather can shut down construction for a period of time; • Extended winter weather into the start of the construction season will cause municipalities to delay issuing permits; and • Early winter weather will shorten the construction season the Company has to complete replacement projects. c. Updated system performance information and emergency work System issues identified during the winter may require improvement projects to maintain the reliable and safe operation of the system that would take precedence over a replacement project. Emergency situations on the system may divert resources away from replacement projects in order to eliminate a safety hazard. Columbia Gas of Massachusetts Gas System Enhancement Program D.P.U. 17-GSEP-05 Exhibit CMA/DEM-2 October 31, 2017 Page 47 E. Projected Project Spending and Project Listing (Sec. 145(c)(iii)) Section 145 requires that: Any plan filed with the department shall include… the estimated cost of each project. M.G.L. c. 164, § 145(c)(iii). 1. Planned Project Spending for 2018 The total estimated 2018 budget for leak-prone infrastructure replacement under the GSEP is $80.0 million. The Company has included a five-year horizon of eligible GSEP Replacement Projects (Appendix A) with this Plan. Projects undertaken in 2018 will be drawn from this Project Listing which is based on the prioritization and selection methodology described above and the information currently available, subject to the influence and impact of the factors, such as municipal paving projects, emergent work and weather, noted above. The Company is in the process of developing more specific work plans for 2018 using the Project Listing. The Company anticipates replacing between 55 and 59 miles of leak-prone main and approximately 4,180 services in 2018. The total service replacements include service replacements undertaken in connection with main replacement projects, in addition to off-project service line replacements undertaken due to factors such as leakage, deterioration as a result of corrosion, as a means to address atmospheric corrosion and leakage where the Company is unable to gain access to a structure to perform leakage and atmospheric corrosion inspections, and other types of compliance requirements or abnormal operating conditions that may threaten the integrity of service lines and public safety. This approach is reflective of historical project scope and cost associated with actual program execution. The project estimates are based on a mix of engineering estimates for a small number of large steel projects and plastic installation Columbia Gas of Massachusetts Gas System Enhancement Program D.P.U. 17-GSEP-05 Exhibit CMA/DEM-2 October 31, 2017 Page 48 projects designed to replace leak prone priority pipe with a weighted average pipe diameter in excess of 8”, and an historical cost per foot of approximately $150 for all other core main replacement projects and an historical cost per service of approximately $6,700.  The total planned spending in 2018 for non-cathodically protected steel replacements is $25.4 million.  The total planned spending for 2018 for cast-iron replacements is $26.6 million.  The total planned spending of 2018 for service line replacements is 28.0 million. Columbia Gas of Massachusetts Gas System Enhancement Program D.P.U. 17-GSEP-05 Exhibit CMA/DEM-2 October 31, 2017 Page 49 Columbia Gas of Massachusetts D.P.U. 17-GSEP-05 Exhibit CMA/DEM-2 Appendix A Page 1 of 14 Operating Center Project Name City Duration (Days) Type to Install Size(s) to Install Install Footage Total GSEP Priority Pipe Retired BS, UCS, WI, CI CI / WI To Be Retired UCS To Be Retired Bare Steel To Be Retired Current MAOP Project Comments / Justification Highest Single Optimain Score per 1000/ft AOCR Score Project Driver: Paving, Emergency, Mandatory Relocation, Preliminary Project Estimate With Services Compliance, Carry Over, Risk, Encroachment, Operational Issues 2018 GSEP Plan Attleboro 25 PH 2" 1,225 1,210 0 0 1,210 99 AORC Rank 11 This project was recommended to be worked by operations due to leak history. Score 277 277 305.0 East Bridgewater 100 PE 8" 6,500 6,320 0 2,570 3,750 99 TIRF project to get ahead of state project 383 208.3 Paving STO Brock St Stoughton 20 PE 8, 30" 375 305 0 0 305 99# Grade 3 under RR, pulled from 2017 couldent get perimt 458 200.4 Operational Issues $229,712 Brockton WBW River St West Bridgewater 18 PH 2", 8" 2,890 2,800 0 0 2,800 99 Recommended by operations to replace this section of 2" BS after several leak repairs. 195 189.9 Operational Issues/Risk $446,900 Brockton SCI Cherry Ln Scituate 50 PH 2" 2,925 2,630 0 0 2,630 99 Town to Pave Cherry Ln - AORC Circles Brockton WBW Oliver St West Bridgewater 12 PH 2" 1,150 1,145 0 0 1,145 99 Project recommended by operations due to several leaks on welds. Brockton ATT Greenwich St Brockton EBW Bedford St Rt 18 Brockton Operational Issues/Risk $304,481 $1,088,900 0 142.5 Paving $579,450 155 105.3 Operational Issues/Risk $212,700 $474,700 Brockton SCI Turner Rd Scituate 30 PH 4" 2,450 2,450 0 0 2,450 99 Active Corrosion - Deemed on 10/2/17 66 86.7 Compliance Brockton HAN Main St Hanover 5 PH 6" 110 120 0 0 120 99 BS under culvert in bad condition - reported by Ops. 83 80.3 Operational Issues $16,500 Brockton BRO Central Sq Brockton 10 PH 2" 1,175 1,145 860 0 285 14"WC 11 76.6 Operational Issues/Risk $270,050 Brockton AVO W Main St Reg Abandonment Avon 2 350 350 0 0 14"WC 32 68.6 Operational Issues $0 Brockton TAU Hodges Ave Taunton 2 N/A N/A 0 430 430 0 0 14" Dual Main no longer required for system stability 76 67.8 Operational Issues $0 Brockton BRO Bigney Ave Brockton 15 PH 2" 1,465 1,465 0 1,465 0 99# This project is recommended for replacement due to several corrosion holes. 43 66.3 Operational Issues/Risk 337 56.0 Risk $93,500 61 54.2 Operational Issues/Risk $444,700 Brockton STO Edgewood Ave Brockton BRO West Chestnut St Recommended for replacement by operations. Leak in 2017 discovered that 3"CI on Central Sq is actually 2" WI in poor condition. Abandonment of LP main and old regulator station at Brockton/Avon line. Stoughton 10 PH 2" 400 400 0 0 400 99# Top 100 Optimain Rank 70. Brought down to Operations 1.25" BS had a leaking service tee.Welder could not welded on tee to repair. Section of main cut out and replaced with plastic. Recommended to replace main in 2018. Brockton 60 PH 8" 2,920 3,025 0 35 2,990 99 Project recommended by Operations due to several leaks $233,150 Brockton TAU Brook St Taunton 35 PH 4" 1,850 1,850 1,850 0 0 14" System Support for elimination of LP pipe (TAU Cohannet St) due anticipated encroachment 13 53.7 encroachment $438,300 Brockton TAU Cohannet St Taunton 45 PH 4" 2,050 2,050 2,050 0 0 14" Anticipated encroachment by planned municipal water work. 13 53.6 encroachment $461,600 Brockton TAU Weir St / Clinton St Taunton 60 PH 8" & 2" 2,700 2,240 1,345 895 0 14 Anticipated encroachment by planned municipal water work. Brockton TAU Everett St Taunton 30 PH 8" & 2" 1,675 1,215 1,215 0 0 14" Future Encroachment by Taunton Water Work Brockton TAU Mason St Taunton 35 PH 8" & 2" 1,700 1,435 910 0 525 14" Anticipated encroachment by planned municipal water work. Brockton BRO Grove St Brockton 150 PH, CS 2", 8", 12", 16" 7,800 6,800 0 0 6,800 99 Recommended to be replaced for operational concerns and leakage. Recommended to replace 1.5" BS by Operations due to leak history. Highest Single Segment Optimain Rank 54. Recommended to replace after leak repair in 2017. Grade 2 DPI due in May 2018. City paving, abandon southern portion of ATT LP system mostly CI AORC RANK 69 NUMBER 127 top ranking optimain score for 2018 Water in the cast iron main. TAU Vernon St project is needed in order for this one to go. $345,050 0 53.0 encroachment 18 43.7 Operational Issues/Risk $375,600 $3,656,275.00 Operational Issues/Risk $116,800 17.6 Operational Issues/Risk $153,400 220 174.0 Paving $667,700 264 162.0 Risk $784,100 11 81.3 Operational Issues $379,100 23 58.5 Paving $438,400 Operations - Water in the Main 11 81.3 Operational Issues $332,200 99 2017 Water Project then Paving 2018. Cant start until after school gets out in June. Municipality wants gas replaced first. Phase project because of the busy roadway 22 44.4 Paving $358,950 6 PH 2" 600 600 0 0 600 99 Randolph 7 PH 2" 710 700 0 385 315 99 Brockton ATT South Main St Attleboro 80 PH 2",4",8" 3,290 3,535 3,350 185 0 14",99# Brockton ATT Newport Ave Attleboro 65 PH 8",2" 4,200 4,800 0 0 4,800 99 Brockton TAU Myrtle St Taunton 35 PH 2" 1,500 1,200 1,200 0 0 14 Brockton TAU Whittenton St Taunton 40 PH 2" 6" 1,940 3,230 3,230 0 0 14" Taunton looking to pave in 2018 Brockton TAU Vernon St Taunton 20 PH 2" 1,500 1,125 1,125 0 0 14 Brockton SHA East St Phase 3 Sharon 30 PH 2",8" 2,125 2,040 0 0 2,040 AVO Gill St $565,800 encroachment 36.3 Randolph RAN Belcher St ATT Riverside Ave encroachment 53.6 24 RAN Grove Ln Brockton Brockton 53.6 370 Brockton Brockton 13 13.0 Avon 10 PH 2" 830 830 0 300 530 99 Town planning to pave Gill St potentially in 2018. 190 123.2 Paving $164,700 Attleboro 30 PH 2", 8" 1,800 1,665 0 0 1,665 99 #15 top ranking optimain score for 2018 with a score of 541 541 173.0 Risk $303,500 Brockton WBW East at Cortland West Bridgewater 5 PH 2" 905 905 0 0 905 99 Highest Single Segment Optimain Rank 16. AORC Rank 62. 530 167.6 Risk $142,450 Brockton SEE Ledge Rd Phase 2 (Pleasant to Arcade) Seekonk 45 PH 8" 4,000 4,100 0 0 4,100 99# AORC Rank 89 Top 100 Optimain Rank 10. 608 149.3 Risk $1,023,923 Brockton MAN Carpenter Ave Mansfield 40 PH 2", 8" 2,040 2,040 0 360 1,680 99 #2, #13 and #22 top ranking optimain scores for 2018. 956 132.0 Risk $366,300 Brockton ATT Park St (Phase 1) Attleboro 100 PH 2,4,8" 7,400 7,400 0 7,400 0 14" #3 top ranking optimain scores for 2018. 850 115.0 Risk $1,277,500 Brockton BRO Nye Ave Brockton 28 PH 2" 3,200 3,159 2,779 0 380 14" Highest Single Segment Optimain Rank 7. 692 111.5 Risk $794,900 Brockton HAN Hanover St Hanover 35 PE 2" 2,020 1,930 0 0 1,930 99 Highest Single Segment Optimain Rank 8. 651 91.7 Risk Brockton BRO Holmes St Brockton 4 875 875 0 0 14" Highest Single Segment Optimain Rank 3. 950 85.7 Risk $6,700 Brockton BRO Henry St Brockton 29 PH 2" 2,650 1,915 1,600 0 315 14" Highest Single Segment Optimain Rank 11. 600 600.3 Risk $625,300 Brockton WAL Washington St (Common end) Walpole 30 PH 2",8" 1,200 870 0 490 380 99 AORC RANK 90 23 409.4 Risk $206,800 Brockton BRI Mount Prospect Bridgewater 7 PH 2" 465 365 0 0 365 99# AORC Rank 4, Top 100 Optimain Rank 42. Additional footage is required to comply with straight and perpendicular service to the last house on the street. 394 393.8 Risk $83,150 Brockton ATT Curtis St Attleboro 30 PH 2" 1,900 1,800 0 0 1,800 99 AORC Rank 31 with an Optimain score of 420 420 354.0 Risk $365,400 $336,500 Brockton HAN Washington St Hanover 45 PH 2,8" 3,005 3,005 0 0 3,005 99 AORC Rank 7 428 330.3 Risk $464,150 Brockton SHA Beach St Sharon 10 PH 2" 700 700 0 0 700 99 AORC Rank 6 (2016) Score 311, #61 2017 Optimain score of 349. 349 311.0 Risk $105,000 Brockton CAN Hubbard St Canton 7 PH 2" 430 425 0 0 425 99# AORC Rank 9, Top 100 Optimain Rank 84 317 283.7 Risk $71,200 Brockton NOR High St Norwell 10 PH 6" 400 400 0 0 400 99 AORC Rank 11 276 275.6 Risk $80,100 Brockton MFD Summer St North Marshfield 15 PH 8" 950 950 0 0 950 99 AORC Rank 14 342 255.0 Risk $176,000 Brockton MFD Summer St Marshfield 20 PH 8" 950 950 0 0 950 99 AORC Rank 14 2018 Paving - 342 254.9 Risk $176,000 $613,700 Brockton SCI Gannet Rd Brockton PEM School St North Brockton HAN Main St Brockton ATT Main St Scituate 55 PH 4" 3,600 3,600 0 0 3,600 99# AORC Rank 17 526 239.0 Risk Pembroke 35 PH 6" 2,200 2,200 0 0 2,200 99# AORC Rank 18 240 238.0 Risk $390,300 Hanover 30 PH 6" 1,700 1,725 0 0 1,725 99 AORC Rank 19 256 235.8 Risk $275,100 99 AORC RANK 347 this has a #64 top ranking optimain score for 2018 347 233.0 Risk $195,000 Attleboro 35 PH 8" 1,300 1,300 0 1,300 0 Columbia Gas of Massachusetts D.P.U. 17-GSEP-05 Exhibit CMA/DEM-2 Appendix A Page 2 of 14 Operating Center Project Name City Duration (Days) Type to Install Size(s) to Install Install Footage Total GSEP Priority Pipe Retired BS, UCS, WI, CI CI / WI To Be Retired UCS To Be Retired Bare Steel To Be Retired Current MAOP Project Comments / Justification Highest Single Optimain Score per 1000/ft AOCR Score Project Driver: Paving, Emergency, Mandatory Relocation, Preliminary Project Estimate With Services Compliance, Carry Over, Risk, Encroachment, Operational Issues 2018 GSEP Plan Brockton MAN Main St Mansfield 25 PH 4" 1,600 1,600 0 0 1,600 99 #105 top ranking optimain score for 2018 with a score of 284. 284 230.0 Risk $327,100 Brockton ATT Division St Attleboro 9 PH 2" 630 570 0 0 570 99 AORC Rank 13 (2016) Score 224.7. 113 225.0 Risk $114,600 99 AORC Rank 23 (2016) Score 212, #88 Optimain rank score of 311 311 212.0 Risk $393,800 AORC Rank 29 223 210.3 Risk $192,600 600 203.2 Risk $382,250 379 202.1 Operational Issues/Risk $214,300 204 201.7 Operational Issues/Risk $159,500 426 200.4 Risk $651,250 Brockton ATT Lawn St (Pond St) Brockton EBW Pleasant Ave Brockton Attleboro 30 PH 2", 4" 2,000 2,000 0 0 2,000 East Bridgewater 20 PH 2" 1,150 1,150 0 0 1,150 99 SEE Fall River Ave @ 195 Seekonk 35 PH 6", 2" 2,325 2,040 0 0 2,040 99# Brockton BRO Edgar St Brockton 10 PH 2" 1,250 1,226 505 158 563 99 Brockton EBW Batti Ave East Bridgewater 16 PH 2" 840 880 0 270 610 99# Brockton STO Kinsley St Stoughton 65 PH 6",2" 3,895 3,455 0 0 3,455 99# Brockton EAS Hill St Easton 16 PH 2", 4" 2,775 2,700 0 0 2,700 99 Highest Single Segment Optimain Rank 82. AORC Rank 43. 318 196.4 Risk $463,150 Brockton EAS Pine St Easton 15 PH 4" 2,425 2,420 0 0 2,420 99 AORC Rank 43. 318 196.4 Risk $410,650 188.9 Risk $111,600 AORC Rank 35 Top 100 Optimain Rank 12. Addition install for eliminatin existing steel branch services. Highest Single Segment Optimain Rank 49. AORC Rank 37. Also Highest Single Segment Optimain Ranks 49, 52 and 81. Recommended for replacement by Operations. Operational Concerns - Pipe in poor condition, 3 leaks closed in WMS on section of pipe in question. AORC Inventory Project AORC Rank 39, Top 100 Optimain Rank 30 Brockton BRO Chilton Rd Brockton 4 PH 2" , 4" 610 600 0 0 600 99 AORC Rank 47. 190 Brockton TAU County St Taunton 30 PH 4" 2,000 2,000 0 0 2,000 99 AORC Rank 48 227 185.0 Risk $360,300 Brockton STO Brickel Rd Stoughton 13 PH 2" 1,050 885 0 0 885 99 AORC Rank 50. Will be abaonding 75' 2" PHHP rather than 2 tie in, deemed more economically feasible this way for now. Additional install footage will allow for a straight and perpendicular service to the last home. 183 183.4 Risk $177,600 Brockton STO Capen St Stoughton 3 PH 4" 225 225 0 0 225 99 AORC Rank 51 108 182.8 Risk $40,450 Brockton STO Washington St South (Monk) Stoughton 18 PH 8" 1,300 1,300 0 0 1,300 99# Highest Single Segment Optimain Rank 58 356 182.8 Risk $228,500 $510,850 Brockton SEE Fuller St Seekonk 45 PH 2", 6" 2,825 2,825 0 0 2,825 99 AORC Rank 53 214 178.5 Risk Brockton RAN Hills St Randolph 19 PH 2" 2,480 2,450 0 0 2,450 99 AORC Rank 54. 183 177.2 Risk $573,000 Brockton DUX Marshall St Duxbury 60 PH 2" 3,300 3,300 0 190 3,110 99 AORC Rank 52. 177 177.0 Risk $629,000 176.0 Risk $274,300 $800,400 Brockton MFD Old Plain St Marshfield 20 PH 4" 1,650 1,650 0 0 1,650 99 AORC Rank 57. 176 Brockton MFD Plain St Marshfield 60 PH 6" 4,800 4,800 0 4,800 0 99 AORC Rank 57. 176 176.0 Risk Brockton BRO Fairview Ave Brockton 8 PH 2" 1,500 1,500 0 0 1,500 99 Highest Single Segment Optimain Rank 65. AORC Rank 59. 346 175.5 Risk LAW 166 HDPE 2"/4"/6"/8" 340 6,195 6,185 0 10 LP Lawrence Water Replacement 68 1143 Encroachment $1,241,590.00 LAW 94 HDPE 2"/6" 1,580 1,425 1,425 0 0 LP Lawrence Sewer Replacement 77 347 Encroachment $553,077.00 AND 43 HDPE 6" 1,900 1,795 0 1,045 750 4 PSIG 5 25.4 Paving Lawrence Lawrence Lawrence Lawrence Lawrence Lawrence Lawrence S Union Street, Lawrence - Carry Over/Water Replacement Water Street, Lawrence Phase 2 Sewer Replacement Highland Rd & Hillside, Andover Phase 1 - Paving Highland Rd, Andover Phase 2 Paving Salem St, Andover - Paving Lowell St, Andover Phase 2 Operations High St, Andover - Paving Haverhill St, Andover - Paving Hidden Rd, Andover - Paving Castle Heights & Joyce Terr, Andove Stirling St, Andover - Paving Andover @ Dale St, Andover - Bridge Carriage Hill Rd, Andover - Operation Lawrence Andover St, North Andover - Paving Lawrence Lawrence Lawrence Lawrence Lawrence Lawrence Andover Paving $251,800 $392,200.00 AND 36 HDPE 4" 2,250 2,220 2,100 0 120 4 PSIG Andover Paving 68 124.3 Paving $404,500.00 AND 34 HDPE 4" 1,680 780 780 0 0 4 PSIG 71 863.6 Paving $285,500.00 AND 58 HDPE 2" 1,480 4,810 2,115 0 2,695 LP 52 162 Operational Issues/Risk $503,197.00 AND AND AND AND AND AND AND 30 33 62 21 19 35 16 HDPE HDPE HDPE HDPE HDPE CS/HDPE HDPE 2" 8" 6" 4" 6" 6" 4" 840 2,005 2,400 800 650 250 650 1,360 1,712 2,305 785 605 225 635 640 1,712 1,795 785 570 170 0 0 0 0 0 0 0 0 720 0 510 0 35 55 635 LP 4 PSIG 4 PSIG LP LP 4 PSIG 99 PSIG Andover Paving Operations Concern History of multiple leak repairs and redundant main, Andover Paving Andover Paving Andover Paving Andover Paving Andover Paving Trident Seal Remediation Operations Concern 112 80 85 29.3 129.4 72 21 94.9 172.4 198 97.6 92.2 28 35 Paving Paving Paving Paving Paving Compliance Risk $226,500.00 $340,950.00 $480,600.00 $193,700.00 $157,800.00 $300,000.00 $157,800.00 NAN 27 HDPE 6" 750 705 595 0 110 4 PSIG North Andover Paving 244.5 132.7 Paving $146,000.00 NAN 60 HDPE 2" 2,280 1,505 1,255 0 250 LP North Andover Paving 76.6 71.2 Paving $529,600.00 NAN 89 HDPE 2"/4" 3,925 3,355 3,355 0 0 LP North Andover Paving 17 60.9 Paving $749,550.00 NAN 102 HDPE 4"/6" 4,220 4,170 3,270 0 900 4 PSIG North Andover Paving MET MET LAW 79 16 18 HDPE HDPE HDPE 2"/4" 4" 2" 3,300 850 560 2,975 850 515 2,875 0 440 0 0 0 100 850 75 LP 4 PSIG LP Methuen Paving Active Corrosion Lawrence Paving LAW 143 HDPE 2", 4" 3,630 3,300 2,790 0 510 LP Lawrence Water Replacement 57 873 Encroachment LAW 103 HDPE 4",8" 2,155 2,115 2,115 0 0 LP Lawrence Water Replacement 36 698 Encroachment $835,068.00 LAW 124 HDPE 2",4" 3,405 2,845 2,845 0 0 LP Lawrence Water Replacement 75 430 Encroachment $1,069,010.00 LAW 100 HDPE 2",4",8" 3,340 2,630 2,630 0 0 LP Lawrence Water Replacement 72 365 Encroachment $1,021,122.00 LAW 75 HDPE 8" 2,300 2,300 2,300 0 0 LP Lawrence Water Replacement 81 809 Encroachment Lawrence Lincoln & Russell St, North Andover - Paving Main / Osgood / Park St, North Andover - Paving Massachusetts Av, North Andover Paving Peever St, Methuen - Paving Powder Hill Rd, Methuen - Active Co Bailey St, Lawrence - Paving Saratoga St, Lawrence - Water Replacement High St, Lawrence - Water Replacement Newbury St, Lawrence - Water Replacement S Broadway, Lawrence - Water Replacement Market St, Lawrence - Water Replacement Swan Ave, Methuen - Corrosion MET 33 HDPE 4" 550 360 170 0 190 LP Corrosion / Operational Concerns 1 69.4 Springfield PENDLETON AVENUE-CSO (1) CHI 12 HDPE 2" 600 550 0 0 550 60 Chicopee CSO Work - Direct conflict with proposed work Springfield BURNETT RD - DOT CHI 9 HDPE 6" 850 850 0 0 850 60 Lawrence Lawrence Lawrence Lawrence Lawrence Lawrence Lawrence Lawrence Lawrence Lawrence Lawrence Mass DOT Project to replace existing infrastructure. Will require pipe replacement Operational concern over inside meter on slab built foundations 81 229 Paving $887,600.00 11 145.6 97.7 23 76.1 85.7 Paving Compliance Paving $682,600.00 $174,400.00 $171,100.00 $1,529,800.00 $559,400.00 Operational Issues/Risk $189,700.00 0.6 Mandatory Relocation $136,900.00 16.3 Mandatory Relocation $127,500.00 Operational Issues/Compliance $337,200.00 Springfield CLYDE STREET - OPERATIONS SPR 41 HDPE 2" 1,310 635 635 0 0 14" Springfield KINGS HWY - OPERATIONS WSF 44 HDPE 6",4",2" 2,445 2,145 0 1,695 450 14" Poor section of main inside multiple catch basins 57.6 95 Springfield DWIGHT RD - SWSC SPR 59 HDPE 2",6",8" 2,210 1,546 1,546 0 0 14" SWSC sewer replacement project 57.9 52.5 Encroachment $525,800.00 Springfield CHICOPEE on CRESCENT from MC SPR 98 HDPE 2" 3,102 3,102 0 0 3,102 60 AORC Rank 8 64.9 300.5 Risk $780,200.00 65.7 104.3 Risk $1,093,750.00 89.4 102.8 Operational Issues/Risk $221,050.00 118 92.4 Encroachment $535,550.00 159.4 64.5 Paving $624,500.00 7.1 62 124.4 59.6 Operational Issues 100.7 69.2 Encroachment Elevated pressure cast iron gas main replacement plan and AORC Rank 212 Operations Concern - Leaky Pipe combined with High Optimain scores in area Springfield ALLEN ST - ELEVATED PRESSUR SPR 141 HDPE 2",4",6",8",12" 4,701 4,255 4,206 0 49 10 Springfield OSWEGO ST-OPERATIONS SPR 40 HDPE 2",4" 625 1,070 1,070 0 0 14" Springfield CAMBRIDGE ST - SWSC SPR 71 HDPE 1",4",6" 2,141 1,511 1,511 0 0 14" SWSC sewer replacement project Springfield FORT PLEASANT AVE- PAVING SPR 79 HDPE 2" 2,600 2,600 2,600 0 0 14" SPRINGFIELD PAVING Springfield RIMMON AVE - VAULT RETIREMEN SPR 3 None 0 0 30 0 30 0 14" Springfield CHESTNUT ST- OPERATIONS SPR 8 None 0 0 300 300 0 0 14" Springfield MIDDLESEX ST - SWSC SPR 39 HDPE 2",6" 2,215 1,020 1,020 0 0 14" Elevated pressure cast iron and high risk score.Highest Single Segment Optimain Rank 4 Operational concerns and poor pressure during winter operations SWSC sewer replacement project 39.1 36.8 Risk Risk $460,550.00 $0.00 $0.00 $412,650.00 Columbia Gas of Massachusetts D.P.U. 17-GSEP-05 Exhibit CMA/DEM-2 Appendix A Page 3 of 14 Operating Center Project Name City Duration (Days) Type to Install Size(s) to Install Install Footage Total GSEP Priority Pipe Retired BS, UCS, WI, CI CI / WI To Be Retired UCS To Be Retired Bare Steel To Be Retired Current MAOP Springfield HANCOCK ST BRDG - ELEVATED SPR 14 HDPE 4" 1,300 1,300 Springfield PLAINFIELD ST- OPS SPR 31 HDPE 2" 2,780 1,600 1,300 0 0 14" 0 1,600 0 60 Project Comments / Justification Highest Single Optimain Score per 1000/ft AOCR Score Project Driver: Paving, Emergency, Mandatory Relocation, Preliminary Project Estimate With Services Compliance, Carry Over, Risk, Encroachment, Operational Issues 2018 GSEP Plan Springfield ORCHARD ST - OPS SPR 156 HDPE 2" 4,430 2,010 2,010 0 0 14" Springfield EDGEWOOD ST - PAVING SPR 39 HDPE 6 3,550 2,770 2,760 10 0 14" Springfield FENWICK STREET SPR 91 HDPE 2" 3,425 3,400 3,400 0 0 14" Elevated pressure cast iron gas main replacement plan and Highest Single Segment Optimain Rank 383 Operational concern over inside meter on slab built foundations Operational concern over inside meter on slab built foundations 107.1 99 Risk $195,000.00 158 91.4 Operational Issues/Compliance $417,000.00 $1,334,500.00 5.4 91.4 Operational Issues/Compliance SPRINGFIELD PAVING 123.8 92.8 Paving SPRINGFIELD PAVING 141.9 74.8 Paving Elevated pressure cast iron gas main replacement plan and Highest Single Segment Optimain Rank 84 131.5 71.2 Risk 57.5 52.5 Paving $532,500.00 $808,550.00 Springfield BLISS RD - ELEVATED PRESSURE LON 43 HDPE 2",6" 2,678 4,754 2,105 1,843 806 10,60 Springfield DORSET ST I/II - PAVING SPR 184 HDPE 2",6" 6,135 5,925 5,925 0 0 14" SPRINGFIELD PAVING Springfield MAIN ST - ACTIVE CORROSION SPR 3 HDPE 6 240 240 70 170 0 14" Active Corrosion 379.3 115.8 Compliance $462,000.00 $36,000.00 Springfield MIDDLE ST - ACTIVE CORROSION FLO 13 HDPE 4 1,200 2,150 850 0 1,300 60 Active Corrosion 38.6 36.6 Compliance $180,000.00 Springfield CHICOPEE on EAST from VICTORIA SPR 54 HDPE 2" 2,805 2,805 0 2,805 0 60 AORC Rank 76 on Ruskin, Helen and Main in Chicopee - Risk $534,650.00 Springfield WEST SPRINGFIELD on WAYSIDE WSF' 3 HDPE 4" 175 175 0 175 0 60 AORC Rank 96 Redundant main retirement Springfield BRIDGE STREET- OPTIMAIN SPR 19 HDPE 4" 1,150 1,150 1,150 0 0 14" AORC Inventory Project,Winter and Bridge Street Springfield WILBRAHAM on DELMOR from MA WIL 44 HDPE 2" 2,430 2,430 0 2,430 0 60 $1,489,750.00 159 159 145.3 145.35 Operational Issues $32,950.00 194 139.5 Risk $219,400.00 137.93 Risk $451,600.00 $1,436,950.00 AORC Rank 2 6.7 Springfield CHICOPEE on SAINT JAMES from C CHI 198 HDPE 6" 4,979 4,263 4,263 0 0 14" AORC Rank 99 64.8 133 Risk Springfield Bayonne St - Paving SPR 37 HDPE 2" 632 632 632 0 0 14" SPRINGFIELD PAVING 82 120 Paving $235,500.00 Springfield HIGH STREET- OPTIMAIN SPR 17 HDPE 6" 825 780 780 0 0 14" Highest Single Segment Optimain Rank 8 147 112 Risk $177,350.00 Springfield METHUEN STREET- OPTIMAIN SPR 47 HDPE 2" 1,650 1,650 1,650 0 0 14" Highest Single Segment Optimain Rank 5 200 100.6 Risk $502,100.00 14" Highest Single Segment Optimain Rank 9, Newbury (Parkin to Rimmon), Morrison, Doyle, Dana 146 89.4 Risk $621,250.00 Springfield Springfield NEWBURY STREET- OPTIMAIN 53 HDPE 3,025 3,025 740 2,285 0 SPR 64 2" 859 709 709 Paving $430,350.00 Springfield Massasoit St - Paving SPR 144 HDPE 2" 3,456 3,456 3,456 0 0 14" SPRINGFIELD PAVING 73.9 81.7 Paving $1,121,400.00 Alsace St - Paving SPR 21 HDPE 6" 713 713 713 0 0 14" SPRINGFIELD PAVING 29.7 79.8 Paving $173,950.00 Springfield Crane St - Paving SPR 9 HDPE 2" 472 236 236 0 0 14" SPRINGFIELD PAVING 67 79.3 Paving $90,900.00 Springfield Hastings St - Paving SPR 43 HDPE 6" 1,382 1,382 1,382 0 0 14" SPRINGFIELD PAVING 95.3 78.6 Paving $348,000.00 Springfield Fenwick St - Paving SPR 113 HDPE 2" 3,322 3,322 3,322 0 0 14" SPRINGFIELD PAVING 88.1 78.5 Paving $913,700.00 Springfield RIMMON AVENUE- OPTIMAIN SPR 61 HDPE 6" 2,375 3,950 3,900 50 0 14" Highest Single Segment Optimain Rank 4, Rimmon Ave, MP from Hampden St 203 78 Risk $624,250.00 Springfield CAREW ST - SWSC SPR 54 HDPE 6" 1,405 1,400 1,400 0 0 14" 70 77 Risk $391,650.00 109.2 74.3 Risk $466,650.00 Springfield LAUREL ST - ELEVATED PRESSU Claremont St - Paving LON SPR 51 38 HDPE 6" Springfield Springfield Dexter St - Paving SPR HDPE HDPE 2",6",8" 4" 2,039 766 6,050 766 5,759 0 0 291 0 14" 14", 10 SPRINGFIELD PAVING SWSC sewer replacement project - Encroachment? Elevated pressure cast iron and high risk score ,Highest Single Segment Optimain Rank 24 6.9 82.6 766 0 0 14" SPRINGFIELD PAVING 52.1 73.2 Paving $275,700.00 Springfield EAST STREET- PAVING CHI 77 HDPE 2" 2,750 2,750 2,113 289 348 14" CHICOPEE PAVING 70.8 72.8 Paving $754,200.00 Springfield Grenada Terr - Paving SPR 38 HDPE 6" 1,636 1,147 1,147 0 0 14" SPRINGFIELD PAVING 24.6 69.1 Paving $339,200.00 Springfield Alvin St - Paving SPR 34 HDPE 4" 1,333 1,333 1,333 0 0 14" SPRINGFIELD PAVING 4.1 68.4 Paving $293,750.00 Springfield Gold St - Paving SPR 69 HDPE 4" 1,820 1,820 1,820 0 0 14" SPRINGFIELD PAVING 35.9 68 Paving $527,600.00 Springfield Forest St - Paving SPR 29 HDPE 4" 845 845 845 0 0 14" SPRINGFIELD PAVING 27.9 67.9 Paving $220,550.00 Springfield DENTON CIRCLE- PAVING SPR 23 HDPE 14" SPRINGFIELD PAVING 6" 775 775 775 0 0 29.6 63 Paving $183,250.00 Springfield Atwater Rd - Paving SPR 98 HDPE 4" 5,616 4,651 4,301 0 350 14" SPRINGFIELD PAVING 27.8 62.9 Paving $1,030,000.00 Springfield Mayfair Ave - Paving SPR 16 HDPE 2" 475 475 475 0 0 14" SPRINGFIELD PAVING 43.4 62 Paving $131,550.00 Springfield STATE STREET- OPTIMAIN SPR 38 HDPE 12" 2,900 2,900 2,900 0 0 14" Highest Single Segment Optimain Rank 7 148 61.6 Springfield ELLINGTON RD - PAVING LON 45 HDPE 2",6" 2,251 2,236 1,822 357 57 14" LONGMEADOW PAVING 57 60 Risk $488,600.00 Paving $451,550.00 Springfield Florida St - Paving SPR 133 HDPE 2" 3,041 3,041 3,041 0 0 14" SPRINGFIELD PAVING 32.5 59.6 Paving $1,012,250.00 Springfield Parkside St - Paving SPR 43 HDPE 2" 1,377 1,377 1,377 0 0 14" SPRINGFIELD PAVING 63.2 59.6 Paving $347,250.00 Springfield Clarence St - Paving SPR 6 HDPE 2" 537 537 537 0 0 14" SPRINGFIELD PAVING 4.9 58.9 Paving Springfield Craig St - Paving SPR 33 HDPE 2" 1,657 1,171 0 1,171 0 14" SPRINGFIELD PAVING 21 55.4 Paving $328,950.00 Springfield Coleman St - Paving SPR 27 HDPE 4" 1,289 1,289 1,289 0 0 14" SPRINGFIELD PAVING 37.8 55.2 Paving $267,050.00 Springfield NOTTINGHAM ST- OPTIMAIN SPR 38 CS 12" 2,000 2,000 0 2,000 0 14" Highest Single Segment Optimain Rank 2 303 53.7 Risk $440,700.00 Springfield Grover St - Paving SPR 68 HDPE 4" 1,666 1,388 1,388 0 0 14" SPRINGFIELD PAVING 15.2 53.5 Paving $524,600.00 Paving $237,300.00 Paving $220,200.00 Springfield Cass St - Paving SPR 35 HDPE 2" 644 1,619 1,619 0 0 14" SPRINGFIELD PAVING 41 51.3 Springfield Sunrise Terr - Paving SPR 21 HDPE 4" 1,200 1,047 800 0 247 14" SPRINGFIELD PAVING 13.2 37.6 Springfield ACREBROOK DRIVE-CSO (1) CHI 33 HDPE 6" 1,300 1,269 0 1,269 0 60 Chicopee CSO Work - Direct conflict with proposed work 30 30 Springfield AMHERST ST- PAVING SPR 27 HDPE 2",6" 1,220 1,200 1,000 200 0 14" SPRINGFIELD PAVING 13.2 56.8 Springfield FEDERAL ST-OPERATIONS/PAVIN NOR 40 HDPE 4" 625 3,880 3,000 0 880 14" Water in main has resulted in potential customer outages due to service freeze offs during winter operations, redundant main 2018 GSEP Plan Totals: Total Feet: 309,544 313,184 160,339 152,845 Total Miles: 58.6 59.3 30.4 28.9 51.2% 48.8% % Retirement of Total 9 25 $80,550.00 Mandatory Relocation $355,800.00 Paving $250,000.00 Operational Issues/Reliability $281,350.00 Total 2018 Project Plan: Off-Project Service Replacements + Min Cap Main R 2018 GSEP Main and Service Cost: $71,286,555 $8,713,445 $80,000,000 Columbia Gas of Massachusetts D.P.U. 17-GSEP-05 Exhibit CMA/DEM-2 Appendix A Page 4 of 14 Operating Center Project Name City Duration (Days) Type to Install Medway 18 PH Size(s) to Install Install Footage Total GSEP Priority Pipe Retired BS, UCS, WI, CI CI / WI To Be Retired UCS To Be Retired Bare Steel To Be Retired Current MAOP Project Comments / Justification Highest Single Optimain Score per 1000/ft AOCR Score Project Driver: Paving, Emergency, Mandatory Relocation, Preliminary Project Estimate With Services Compliance, Carry Over, Risk, Encroachment, Operational Issues 2019-2022 GSEP Plan 4" 1,475 1,475 0 1,475 0 99 AORC Inventory Project 176 174.4 Risk $261,450 Taunton 35 PH 2" 2,400 2,400 0 975 1,425 99 AORC Inventory Project 209 165.9 Risk $460,500 Stoughton 52 PH 2", 6" 2,800 2,800 0 670 2,130 99 AORC Inventory Project 244 162.8 Risk $594,200 ATT Highland Ave Attleboro 30 PH 2",8" 1,805 1,805 0 0 1,805 99 AORC Inventory Project 191 162.0 Risk $331,050 ATT Pine St Attleboro 30 PH 8" 100 3,130 3,130 0 0 99, 14" AORC Inventory Project 284 162.0 Risk $162,400 Brockton MFD Stevens Rd Marshfield 45 PH 2" 3,005 2,920 0 2,265 655 99 Highest Single Segment Optimain Inventory Project 314 161.6 Risk $671,850 Brockton HOL Upland St Holbrook 15 PH 2" 2,755 2,755 0 0 2,755 99 Highest Single Segment Optimain Inventory Project 417 159.9 Risk $480,250 14" AORC Inventory Project & Low Point of Taunton Matteson LP System 161 159.6 Risk $196,900 Brockton MWY Holliston Brockton TAU Baker Rd Brockton STO Pleasant St (McGarvey) Brockton Brockton Brockton Brockton TAU Whitsbourgh St Taunton FOX South St Foxboro 20 25 PH 2" 1,000 585 585 0 0 2,280 99 AORC Inventory Project 20 158.0 Risk $378,500 PH 2",8" 2,300 2,280 0 0 Brockton SHA Bay Rd Sharon 35 PH 6", 4" 2,560 2,560 0 2,560 0 99 AORC Inventory Project 16 158.0 Risk $451,000 Brockton HSN Crescent St Hanson 10 PH 2" 600 600 0 0 600 99 AORC Inventory Project 156 155.7 Risk $103,400 Sharon 6 PH 2" 300 300 0 300 0 99 AORC Inventory Project 20 155.0 Risk $58,400 Stoughton 50 PH 6", 2" 3,695 3,795 0 595 3,200 99 AORC Inventory Project 145 154.3 Risk $648,050 HAN King St #1 Hanover 20 PE 8" 1,500 1,500 0 0 1,500 99 Highest Single Segment Optimain Inventory Project 375 153.3 Risk $258,500 ATT Edgewood Ave Attleboro 40 PH 2" 3,570 2,900 0 0 2,900 99 Highest Single Segment Optimain Inventory Project 375 151.0 Risk $656,100 SCI Fay Rd Scituate 15 PE 2" 785 785 0 0 785 99 Highest Single Segment Optimain Inventory Project 472 150.8 Risk $144,550 Brockton NOR High St South Norwell 10 PH 6" 650 650 0 0 650 99 AORC Inventory Project 251 149.6 Risk $97,500 Brockton MAN Highland Ave Mansfield 15 PH 2" 800 755 0 0 755 99 AORC Inventory Project 209 148.0 Risk $160,200 Brockton WAL Mass Ave Walpole 20 PH 2",4" 1,010 1,010 0 500 510 99 AORC Inventory Project 22 148.0 Risk $178,300 Brockton BRO Pearl St PH1 Brockton 23 PH 2" , 8" 3,560 3,560 0 450 3,110 99 AORC Inventory Project 214 146.5 Risk $594,300 Brockton BRO Pearl St PH2 Brockton 25 PH 8" 3,500 3,470 0 0 3,470 99 AORC Inventory Project 282 146.5 Risk Brockton TAU Ingell St Taunton 100 ST 12" 4,000 4,000 0 4,000 0 99 AORC Inventory Project 145 145.2 Risk $633,500 Brockton SEE Perrin Ave Seekonk 15 PH 2" 770 770 0 0 770 99 AORC Inventory Project 144 143.5 Risk $135,600 $120,000 Brockton SHA Cottage St Brockton STO Park St North Brockton Brockton Brockton $625,500 Brockton RAN South St Randolph 5 PH 6" 800 800 800 0 0 99 AORC Inventory Project 93 143.2 Risk Brockton WAL Park Lane Walpole 25 PH 4" 2,050 2,020 0 2,020 0 99 AORC Inventory Project 58 142.0 Risk $367,800 Brockton EAS Washington St PH1 Easton 30 PH 8" 4,500 4,500 0 0 4,500 99 Highest Single Segment Optimain Inventory Project 493 141.1 Risk $695,100 Easton 2,200 200 $356,800 Brockton EAS Washington St PH2 10 PH 2" 2,200 0 2,000 99 Highest Single Segment Optimain Inventory Project 493 141.1 Risk Brockton STO Britton St Stoughton 2 PH 2" 60 60 0 60 0 99# AORC Inventory Project 393 140.7 Risk $9,000 Brockton STO Pierce St Stoughton 40 PH 2" 2,315 2,315 0 820 1,495 99 AORC Inventory Project 112 140.7 Risk $420,950 Brockton STO Park St South Stoughton 50 PH 6", 4" 3,660 3,685 0 1,585 2,100 99 AORC Inventory Project 117 140.1 Risk $629,400 Brockton BRO Parker St Brockton 28 PH 6" , 2" 3,050 3,020 2,370 650 0 14" AORC Inventory Project 131 139.1 Risk $671,900 Brockton MFD Cove St Marshfield AORC Inventory Project 138 Brockton ATT Irving Ave Attleboro 20 PH 2" 1,100 1,100 0 600 500 99 Highest Single Segment Optimain Inventory Project 298 137.0 Risk $205,200 Brockton MFD High St Medfield 25 PH 8",2" 1,550 1,540 0 540 1,000 99 AORC Inventory Project 28 135.0 Risk $272,700 Brockton WRE Beech St Wrentham 45 PH 8",2" 3,450 3,450 0 2,000 1,450 99 AORC Inventory Project 21 134.0 Risk $618,000 Brockton BRO Sumner St Brockton 28 CS 12" 2,700 2,680 0 2,680 0 99 AORC Inventory Project 132 131.8 Risk $559,100 Brockton ATT Bushee St Attleboro 28 PH 2",8" 2,300 2,300 1,960 0 340 14" AORC Inventory Project 63 129.3 Risk $405,300 Brockton EBW Elm St East Bridgewater 45 PH 8" 3,440 3,440 0 1,720 1,720 99 AORC Inventory Project 127 127.6 Risk $529,400 124.8 Risk $56,800 20 PH 2" 1,250 1,250 0 0 1,250 99 137.2 Risk $267,900 Brockton RAN Vanderbilt St Randolph 3 PH 2" 200 180 0 0 180 99 AORC Inventory Project 170 Brockton RAN Russ ST Randolph 4 PH 2" 480 450 0 200 250 99 AORC Inventory Project 87 122.8 Risk $92,100 Brockton TAU Williams St Taunton 15 PH 2" 1,150 1,150 0 0 1,150 99 AORC Inventory Project 123 122.8 Risk $185,900 Brockton SCI First Ave Scituate 15 PH 4" 650 650 0 0 650 99 AORC Inventory Project 48 122.6 Risk $137,700 Brockton SCI Bradford Ave Scituate 20 PH 2" 750 750 0 165 585 99 Highest Single Segment Optimain Inventory Project 367 122.6 Risk Brockton HAN Center St Hanover 10 PH 2" 200 125 0 0 125 99 AORC Inventory Project 121 121.7 Risk $43,400 121.1 Risk $1,278,700 121.0 Risk $835,500 Brockton RAN Tucker Terrace Randolph 40 PH 2" 5,800 5,760 0 760 5,000 99 Highest Single Segment Optimain Inventory Project 372 Brockton WRE Creek St Wrentham 50 PH 4",2" 4,230 4,230 0 2,000 2,230 99 AORC Inventory Project 231 $172,800 Brockton WAL Gleason St Walpole 15 PH 4" 600 600 0 0 600 99 AORC Inventory Project 20 121.0 Risk $110,100 Brockton WAL Adams Rd Walpole 12 PH 2" 800 800 0 200 600 99 AORC Inventory Project 23 120.0 Risk $146,800 $558,200 Brockton EAS Depot St Easton 15 PH 4" 3,230 3,220 0 355 2,865 99 AORC Inventory Project 120 119.8 Risk Brockton STO Rayburn Stoughton 34 PH 2" 1,300 1,300 0 0 1,300 99# Highest Single Segment Optimain Inventory Project 417 118.3 Risk $329,000 Brockton WAL Washington St (Bird to June) Walpole 25 PH 2",8" 1,200 1,155 0 920 235 99 AORC Inventory Project 10 118.3 Risk $206,800 99 AORC Inventory Project Brockton WAL Washington St Walpole 25 PH 2", 4" 1,200 1,155 0 10 118.0 Risk $206,800 920 235 Brockton ATT Orr St Attleboro 35 PH 8",2" 3,130 3,130 0 2,130 1,000 99 AORC Inventory Project 36 117.0 Risk $549,900 Brockton ATT Emory St Attleboro 35 PH 2", 8" 2,600 2,600 1,200 1,400 0 14" AORC Inventory Project 82 116.0 Risk $477,100 Brockton BRO Morgan St Brockton 3 PH 2" 220 210 0 0 210 14" AORC Inventory Project 83 115.5 Risk $46,400 Brockton BRO Spark St Brockton 7 PH 2", 4" 880 1,440 1,165 0 275 14" AORC Inventory Project 83 115.5 Risk $185,600 Walpole 10 PH 2" 366 0 366 0 99 AORC Inventory Project 10 115.0 Risk Brockton CAN Crane St Canton 5 PH 2" 210 210 0 210 0 99 AORC Inventory Project 76 114.8 Risk $44,900 Brockton STO Washington St North Stoughton 15 PH 8" 1,150 1,150 0 0 1,150 99 AORC Inventory Project 114 114.8 Risk $192,600 Brockton RAN Orchard St Randolph 17 PH 2" 2,900 2,895 0 1,650 1,245 99 AORC Inventory Project 126 114.2 Risk $508,700 Brockton BRO Forest Ave Brockton 35 PH 2" 4,250 4,240 4,240 0 0 14 AORC Inventory Project 11 113.0 Risk $965,800 Brockton WAL Lilac Ct 410 $88,300 Columbia Gas of Massachusetts D.P.U. 17-GSEP-05 Exhibit CMA/DEM-2 Appendix A Page 5 of 14 Operating Center Project Name City Duration (Days) Type to Install Size(s) to Install Install Footage Total GSEP Priority Pipe Retired BS, UCS, WI, CI CI / WI To Be Retired UCS To Be Retired Bare Steel To Be Retired Current MAOP Project Comments / Justification Highest Single Optimain Score per 1000/ft AOCR Score Project Driver: Paving, Emergency, Mandatory Relocation, Preliminary Project Estimate With Services Compliance, Carry Over, Risk, Encroachment, Operational Issues Brockton ATT Eldredge St Attleboro 30 PH 2",8" 2,500 2,470 1,200 0 1,270 14" AORC Inventory Project 16 112.7 Risk $495,600 Brockton ATT Main @ Thatcher St Attleboro 25 PH 2",8" 1,700 1,690 0 0 1,690 99 AORC Inventory Project 228 112.0 Risk $295,200 Brockton WAL Plymouth Ln Walpole 10 PH 2" 200 190 0 190 0 99 AORC Inventory Project 21 110.0 Risk $36,700 Brockton SCI Dartmouth St Scituate 55 PE 2" 3,100 3,680 0 280 3,400 99 Highest Single Segment Optimain Inventory Project 416 109.8 Risk $632,500 Brockton EAS Main ST Easton 12 PH 8" 2,080 2,070 0 0 2,070 99 AORC Inventory Project 110 109.8 Risk $318,700 Brockton BRO Irvington St Brockton 43 PH, CS 2" , 12" 4,200 4,150 4,150 0 0 14" AORC Inventory Project 207 109.6 Risk $904,700 Brockton ATT Harvard St Attleboro 10 PH 2" 400 362 0 362 0 99 AORC Inventory Project 36 108.0 Risk $66,700 Brockton EBW Bedford at Maple East Bridgewater 20 PH 8" 220 220 0 0 220 99 AORC Inventory Project 196 107.6 Risk $33,000 Brockton TAU Bartlett St Taunton 10 PH 2" 225 225 0 0 225 99 AORC Inventory Project 108 107.6 Risk $40,450 Brockton ATT Holden St Attleboro 30 PH 2", 8" 4,030 4,025 0 845 3,180 99 Highest Single Segment Optimain Inventory Project 430 107.0 Risk $631,300 Brockton ATT Mendon Ave Attleboro 20 PH 2",8" 1,000 975 0 625 350 99 AORC Inventory Project 227 106.0 Risk $163,400 Brockton MFD Leondard Rd Taunton 10 PH 2" 530 515 0 0 515 99 AORC Inventory Project 106 106.0 Risk $106,300 Brockton WBW Purchase St West Bridgewater 5 PH 2" 600 590 0 80 510 99# AORC Inventory Project 155 105.3 Risk $96,700 Brockton SCI Cornet Stetson Scituate 35 PH 8" 3,500 3,500 0 0 3,500 99 AORC Inventory Project 105 104.5 Risk $571,900 Brockton BRO Cross St Brockton 33 PH 2" 3,700 4,605 2,620 80 1,905 14" AORC Inventory Project 16 104.0 Risk $782,800 Brockton FOX Lewis Rd Foxboro 25 PH 2",6" 2,520 2,520 0 2,520 0 99 AORC Inventory Project 93 104.0 Risk $431,600 Brockton HOL Rockwood St Holbrook 12 PH 2" 1,460 1,460 0 740 720 99 AORC Inventory Project 150 103.6 Risk $292,700 Brockton EBW Thatcher St East Bridgewater 30 PH 8" 2,350 2,350 0 0 2,350 99 AORC Inventory Project 103 103.4 Risk $379,300 Brockton RAN Canton ST Randolph 40 PH 2", 8" 4,550 4,495 0 3,225 1,270 99 AORC Inventory Project 110 102.1 Risk $903,600 Brockton LAK Taunton St Lakeville 15 PH 8" 1,100 1,100 0 0 1,100 99 AORC Inventory Project 75 102.0 Risk $178,400 Brockton HAN King St #3 Hanover 20 PH 8" 1,250 1,250 0 0 1,250 99 AORC Inventory Project 19 101.8 Risk $214,300 Brockton BRO Myrtle St Brockton 25 PH 2" 2,600 2,500 2,500 0 0 14" AORC Inventory Project 46 101.4 Risk Brockton SCI Egypt Beach Rd Scituate 10 PH 2" 600 600 0 0 600 99 AORC Inventory Project 59 101.2 Risk $116,800 Brockton TAU Fremont St Taunton 125 PH 6", 2" 7,400 6,180 4,250 1,485 445 14" AORC Inventory Project 167 101.0 Risk $1,424,900 Brockton STO Washington St (Morton) Stoughton 10 PH 4" 600 600 0 0 600 99 AORC Inventory Project 212 100.0 Risk $103,400 Brockton BRO Burkside Ave Brockton 40 PH 2", 6" 5,150 5,235 4,515 0 720 14" AORC Inventory Project 14 99.9 Risk $1,040,500 Brockton BRO Waldo St Brockton 50 PH 2", 6" 5,400 5,340 3,475 1,865 0 14" AORC Inventory Project 14 99.9 Risk $1,205,300 Brockton SEE Metropolitan Park Ave Seekonk 18 PH 2" 1,030 960 0 800 160 99 AORC Inventory Project 30 99.8 Risk $221,500 $637,900 Brockton STO Woodbine Stoughton 77 PH 2" 3,710 3,710 0 0 3,710 99 AORC Inventory Project 26 99.6 Risk Brockton RAN Liberty St Randolph 33 PH 2", 8" 3,860 3,850 0 0 3,850 99 AORC Inventory Project 47 99.4 Risk $753,200 Brockton BRO Hermon St Brockton 4 PH 2" 520 515 0 0 515 99 AORC Inventory Project 28 99.0 Risk $104,800 $858,000 Brockton BRO Whipple Ave Brockton 32 PH 2", 8" 3,385 3,895 3,545 350 0 14" AORC Inventory Project 28 99.0 Risk $661,850 Brockton SCI Jericho Rd #2 Scituate 20 PH 6" 1,150 1,150 0 0 1,150 99 AORC Inventory Project 69 99.0 Risk $219,400 Brockton SCI Harbor Heights Scituate 10 PH 2" 420 420 0 0 420 99 Highest Single Segment Optimain Inventory Project 320 99.0 Risk $103,200 Brockton BRO Custer St Brockton 9 PH 2" 1,160 1,155 1,155 0 0 14" AORC Inventory Project 123 98.4 Risk $241,000 Brockton MAN East St Mansfield 25 PH 2",4" 1,000 800 0 800 0 99 AORC Inventory Project 279 98.0 Risk $190,200 Brockton ATT Fisher Ave Attleboro 20 PH 2", 4" 1,000 975 0 0 975 99 AORC Inventory Project 8 98.0 Risk $170,100 Brockton MFD Tower Ave Marshfield 65 PH 2" 3,700 3,670 0 2,450 1,220 99 Highest Single Segment Optimain Inventory Project 350 97.5 Risk $910,100 Brockton WAL West St Walpole 30 PH 6",2" 1,950 1,910 0 0 1,910 99 AORC Inventory Project 263 97.0 Risk $359,500 Brockton SCI Sea View Ave Scituate 6 PH 2" 260 235 0 0 235 99 AORC Inventory Project 345 96.2 Risk $59,100 Brockton SCI Williams Ave Scituate 15 PH 2" 160 310 0 0 310 99 Highest Single Segment Optimain Inventory Project 345 96.2 Risk $44,100 Brockton MAN Samoset Ave (Brook St) Mansfield 40 PH 2" 2,050 2,050 0 250 1,800 99 AORC Inventory Project 276 96.0 Risk $387,900 Brockton BRO Atlanta St Brockton 2 PH 2" 205 200 0 0 200 99 AORC Inventory Project 118 95.6 Risk $37,450 Brockton BRO Mellen St Brockton 14 PH 2" 1,460 1,455 565 890 0 14" AORC Inventory Project 133 95.3 Risk $299,400 Brockton SEE Forest St Seekonk 20 PH 2" 1,060 1,060 0 0 1,060 99 AORC Inventory Project 139 95.2 Risk $246,100 Brockton CAN Leblanc Dr Canton 8 PH 2" 330 330 0 0 330 99 AORC Inventory Project 75 94.8 Risk $69,600 Brockton BRO Keith Ave Brockton 16 PH 2" 2,180 2,175 1,840 335 0 14" AORC Inventory Project 34 94.6 Risk $414,100 Brockton BRO South St Brockton 40 PH, CS 2", 4", 12" 3,130 3,030 3,030 0 0 14" AORC Inventory Project 34 94.6 Risk $663,800 Brockton EAS Belmont ST Easton 19 PH 8" 2,300 2,300 0 0 2,300 99 AORC Inventory Project 90 94.2 Risk $405,300 Brockton BRO Snell Place Brockton 25 PH, CS 2", 12" 2,715 2,635 2,635 0 0 14 AORC Inventory Project 66 93.5 Risk $514,450 Brockton BRO James St Brockton 20 PH 2", 4" 2,700 2,680 2,680 0 0 14 AORC Inventory Project 66 93.5 Risk $478,700 Brockton DUX King Caesar Rd Duxbury 75 PH 4" & 2" 7,325 7,175 0 300 6,875 99 AORC Inventory Project 95 93.1 Risk $1,326,550 93.0 Risk $68,800 $319,300 Brockton RAN Saratoga St Randolph 3 PH 2" 280 275 0 0 275 99 AORC Inventory Project 67 Brockton HAN Pleasant St Hanover 20 PH 8" 1,950 1,950 0 0 1,950 99 AORC Inventory Project 27 91.7 Risk Brockton HAN Circuit St Hanover 30 PH 8" 3,670 3,670 0 0 3,670 99 AORC Inventory Project 27 91.7 Risk $604,100 Brockton BRO Highland St Brockton 53 PH 2", 6" 6,400 6,290 6,210 0 80 14 AORC Inventory Project 16 91.4 Risk $1,295,000 Brockton BRO Warren Ave Brockton 8 PH 6" 1,050 1,030 1,030 0 0 14 AORC Inventory Project $170,900 Brockton MWY Mechanic St Medway 4 PH 2" 250 205 0 0 205 99 AORC Inventory Project Highest Single Segment Optimain Inventory Project 16 91.4 Risk 91 91.3 Risk 415 91.0 Risk $217,000 $44,200 Brockton ATT Morey St Attleboro 20 PH 2", 8" 1,000 950 250 0 700 14",99# Brockton MFD Massasoit Rd Marshfield 10 PH 2" 450 450 0 450 0 99 AORC Inventory Project 42 90.0 Risk $114,400 Brockton BRO Pine St PH1 Brockton 74 PH 2", 6" 7,980 10,205 9,480 550 175 14 AORC Inventory Project 54 88.5 Risk $1,820,100 Brockton BRO Pine St PH2 Brockton 60 PH 2", 6" 7,560 7,535 6,725 330 480 14 AORC Inventory Project 54 88.5 Risk $1,469,000 Columbia Gas of Massachusetts D.P.U. 17-GSEP-05 Exhibit CMA/DEM-2 Appendix A Page 6 of 14 Operating Center Project Name Brockton STO Britton Ave Brockton BRO Waverly Park Brockton EAS Washington St II Brockton RAN West St Brockton SHA Potter Ave City Duration (Days) Stoughton 20 Brockton 8 Easton 5 Size(s) to Install Install Footage Total GSEP Priority Pipe Retired BS, UCS, WI, CI PH 2" 1,275 PH 2" 770 8" 1,240 1,180 Type to Install PH Bare Steel To Be Retired Highest Single Optimain Score per 1000/ft Project Driver: Paving, Emergency, Mandatory Relocation, Preliminary Project Estimate With Services Compliance, Carry Over, Risk, Encroachment, Operational Issues CI / WI To Be Retired UCS To Be Retired 1,275 0 1,275 0 99 AORC Inventory Project 12 88.3 Risk $224,750 760 0 0 760 99 AORC Inventory Project 89 88.1 Risk $169,100 1,180 Current MAOP 99 Project Comments / Justification AORC Inventory Project AOCR Score 93 88.1 Risk $192,700 0 0 Randolph 7 PH 2", 4" 750 750 0 750 0 99 AORC Inventory Project 88 88.1 Risk $146,000 Sharon 20 PH 2", 4" 800 750 0 0 750 99 AORC Inventory Project 41 88.0 Risk $140,100 Brockton ATT 1298 county St Attleboro 5 PH 8" 200 150 0 150 0 99 AORC Inventory Project 8 88.0 Risk $63,500 Brockton MFD June St Marshfield 25 PH 2" 1,150 1,150 0 0 1,150 99 AORC Inventory Project 76 87.8 Risk $286,400 Brockton MFD Arnold Rd Marshfield 35 PH 2" 1,360 1,360 0 1,360 0 99 AORC Inventory Project 76 87.8 Risk $384,900 Brockton ATT Thatcher St Attleboro 40 PH 2",8" 2,900 2,900 0 0 2,900 99 Highest Single Segment Optimain Inventory Project 332 87.0 Risk $495,300 Brockton TAU E. Britannia St Taunton 30 PH 2" 1,650 1,730 1,730 0 0 14" AORC Inventory Project 13 86.9 Risk $354,700 Brockton TAU Bay St Ph 3 Taunton 15 PH 6" 900 1,050 1,050 0 0 14" AORC Inventory Project 13 86.9 Risk $188,600 Brockton STO Bay Rd North Stoughton 36 PH 8" 2,400 2,400 0 0 2,400 99 AORC Inventory Project 94 86.9 Risk $433,700 Brockton BRO White Ave Brockton 19 PH 2", 8" 2,650 2,550 2,550 0 0 14 AORC Inventory Project 61 86.7 Risk $498,000 Brockton BRO Calmar St Brockton 75 PH, CS 2", 12" 7,375 7,895 7,505 0 390 14 AORC Inventory Project 77 85.3 Risk $1,648,950 0 600 AORC Inventory Project 142 Brockton SCI Lantern Ln Scituate 15 PE 2" 435 400 0 0 400 99 Highest Single Segment Optimain Inventory Project 387 83.9 Risk $105,450 Brockton SHA Glenview Sharon 20 PH 4" 1,250 1,225 0 1,225 0 99 AORC Inventory Project 53 83.6 Risk $254,500 Brockton SHA Franklin Rd Sharon 6 PH 4" 400 370 0 370 0 99 AORC Inventory Project 28 83.4 Risk $93,500 Brockton RAN Velma Randolph 4 PH 2" 275 265 0 0 265 99 AORC Inventory Project 181 83.1 Risk $61,350 Brockton RAN Harriette St Randolph 5 PH 2" 640 630 0 0 630 99 AORC Inventory Project 181 83.1 Risk $163,000 PH Brockton STO Pearl Steet Pl Stoughton 10 PH 2" 600 600 0 99 85.2 Risk $110,100 Brockton 30 2", 4" 4,510 4,715 4,715 0 0 14" AORC Inventory Project 20 83.1 Risk $897,600 Brockton BRO Greenfield St Brockton 25 PH 2" 3,250 3,225 3,225 0 0 14" AORC Inventory Project 20 83.1 Risk $695,200 Brockton ATT Walton St Attleboro 25 PH 2",6" 1,750 1,740 0 1,740 0 99 AORC Inventory Project 53 83.0 Risk $316,100 Brockton STO Bay Rd South Stoughton 40 PH 2", 8" 2,875 2,875 0 360 2,515 99 AORC Inventory Project 83 82.9 Risk $491,550 Brockton SCI Newell St Scituate 25 PH 2" 1,370 1,175 0 0 1,175 99 AORC Inventory Project 72 82.9 Risk $339,500 Brockton BRO Mason St Brockton 29 PH 2", 8" 3,840 4,740 4,620 120 0 14" AORC Inventory Project 87 82.9 Risk $783,700 Brockton BRO Kingman St Brockton Brockton BRO Moraine St 38 PH 2", 8" 4,400 4,375 4,375 0 0 14" AORC Inventory Project 87 82.9 Risk $961,500 Brockton BRO Lyman St Brockton 6 PH 2", 8" 1,300 1,285 0 335 950 99 AORC Inventory Project 87 82.9 Risk $241,900 Brockton BRO Johnson St Brockton 14 PH 2" 1,850 1,845 1,740 0 105 14" AORC Inventory Project 78 81.8 Risk $371,300 Brockton ATT Turner St Attleboro 45 PH 2",4",8" 2,400 2,930 0 0 2,930 99 AORC Inventory Project 130 81.8 Risk $561,000 Brockton TAU Wales St Taunton 25 PH 2" 1,050 975 975 0 0 14" AORC Inventory Project 11 81.3 Risk $284,800 Brockton TAU Granite St Taunton 5 PH 2" 150 310 310 0 0 14" AORC Inventory Project 11 81.3 Risk $22,500 Brockton TAU Weir St Taunton 20 PH 4" 1,125 1,125 840 0 285 14" AORC Inventory Project 145 81.2 Risk $242,450 80.9 Risk $351,200 $639,250 Taunton 20 2" 1,850 1,050 1,050 0 0 14" AORC Inventory Project 12 Brockton TAU Cohannet St #2 Taunton 40 PH 6" 3,815 2,215 1,280 935 0 14" AORC Inventory Project 12 80.9 Risk Brockton ATT Main St (Dewey to C. Jordan) Attleboro 25 PH 2",6" 1,300 1,300 0 1,300 0 99 AORC Inventory Project 4 80.4 Risk $255,300 Brockton BRO Avon St Brockton 4 PH 8" 775 760 0 0 760 99 AORC Inventory Project 14 80.0 Risk $116,250 80.0 Risk $1,231,000 Brockton TAU Winthrop Place PH 5,750 0 AORC Inventory Project 13 Brockton TAU Bay St North Taunton 120 PH 2",4", & 6" 6,865 6,865 0 14" Brockton TAU Fifth Ave Taunton 20 PH 2" & 6" 575 1,135 1,135 0 0 14" AORC Inventory Project 13 80.0 Risk $159,950 Brockton BRO Forest St Brockton 8 PH 6" 2,020 2,010 0 2,010 0 99 AORC Inventory Project 31 79.9 Risk $356,600 Brockton BRO Second St Brockton 3 PH 2" 300 300 300 0 0 14" AORC Inventory Project 22 79.7 Risk $71,800 Brockton BRO Nilsson St Brockton 25 PH 2" 2,800 2,795 2,795 0 0 14" AORC Inventory Project 22 79.7 Risk $621,000 Brockton MFD Emory Rd Marshfield 20 PH 2" 1,500 1,500 0 0 1,500 99 AORC Inventory Project 92 79.5 Risk $265,200 Brockton BRO Bernice Ave Brockton 42 PH 2, 4, 8" 5,740 5,640 3,890 1,170 580 14" AORC Inventory Project 59 79.3 Risk $1,216,100 2,980 79.3 Risk Brockton BRO Breer St Brockton 32 PH, CS 2", 12" 4,060 4,045 1,065 0 14" AORC Inventory Project 59 Brockton HSN E. Washington St Hanson 45 PH 8" 5,120 8,450 0 0 8,450 99 AORC Inventory Project 197 79.0 Risk $835,000 Brockton BRO Emmett St Brockton 38 PH 2, 4, 6" 4,305 4,975 4,225 645 105 14" AORC Inventory Project 63 78.8 Risk $1,000,850 $830,100 $148,950 Brockton MFD Marion St Marshfield 15 PH 2" 725 675 0 0 675 99 AORC Inventory Project 62 78.7 Risk Brockton STO Phillips Ave Stoughton 7 PH 2" 430 430 0 0 430 99 AORC Inventory Project 116 78.6 Risk $98,000 Brockton BRO Carroll Ave Brockton 45 PH 2" 5,900 5,800 5,360 260 180 14" AORC Inventory Project 183 77.7 Risk $1,246,800 2,530 0 0 99 AORC Inventory Project 120 77.4 Risk $627,400 Brockton BRO Gay St Brockton 6 PH 2" 810 800 0 800 0 99 AORC Inventory Project 11 77.3 Risk $148,300 Brockton BRO Warren Ave @ Dover Brockton 22 PH 8" 3,600 4,040 3,300 0 740 99, 14" AORC Inventory Project 21 77.2 Risk $707,500 Brockton SCI Hawthorne St Scituate 45 PH 2" 2,530 2,530 Brockton MMY Milford St Medway 46 PH 8" 2,875 2,875 0 2,875 0 99 AORC Inventory Project 77 76.9 Risk $538,450 Brockton MWY Franklin St Medway 20 PH 8" 1,425 1,425 0 1,425 0 99 AORC Inventory Project 77 76.9 Risk $253,950 0 200 99 AORC Inventory Project 72 76.8 Risk Brockton BRO Richard St Brockton 4 PH 2" 535 530 0 530 0 99 AORC Inventory Project 72 76.8 Risk $100,350 Brockton BRO Lebanon St Brockton 35 PH 2", 4" , 8" 5,300 5,240 5,240 0 0 14" AORC Inventory Project 18 76.6 Risk $1,056,300 Brockton BRO Dewey Ave Brockton 3 PH 2" 210 200 0 $65,000 Brockton BRO W Ashland St Brockton 38 PH 2", 4" 4,520 4,495 4,495 0 0 14" AORC Inventory Project 18 76.6 Risk $979,500 Brockton BRO Farrington St Brockton 50 PH 2", 4" 6,950 6,850 6,850 0 0 14" AORC Inventory Project 18 76.6 Risk $1,417,700 Brockton BRO Warren at Florence Brockton 7 PH 4" 1,000 950 950 0 0 14" AORC Inventory Project 11 76.6 Risk $170,100 Brockton BRO Arch St Brockton 28 PH, CS 2", 8", 12" 2,740 3,380 2,430 0 950 14", 99# AORC Inventory Project 11 76.6 Risk $632,100 Columbia Gas of Massachusetts D.P.U. 17-GSEP-05 Exhibit CMA/DEM-2 Appendix A Page 7 of 14 Operating Center Project Name Brockton CAN Morton St Brockton BRO Otis St City Total GSEP Priority Pipe Retired BS, UCS, WI, CI CI / WI To Be Retired Highest Single Optimain Score per 1000/ft Project Driver: Paving, Emergency, Mandatory Relocation, Preliminary Project Estimate With Services Compliance, Carry Over, Risk, Encroachment, Operational Issues UCS To Be Retired Bare Steel To Be Retired 0 0 400 99 AORC Inventory Project 107 76.5 Risk $73,400 2,030 40 0 14" AORC Inventory Project 76 76.4 Risk $166,500 Duration (Days) Type to Install Size(s) to Install Install Footage Canton 6 PH 2" 400 400 Brockton 12 PH 8" 440 2,070 0 225 Current MAOP Project Comments / Justification AOCR Score 2" 225 89 76.2 Risk $40,450 Brockton BRO Trout St Brockton 25 PH 2", 8" 3,985 3,955 3,955 0 0 14" AORC Inventory Project 28 76.2 Risk $818,850 Brockton ATT Horton St Attleboro 60 PH 2",4",8" 4,200 4,190 2,190 0 2,000 14",99# AORC Inventory Project 221 75.0 Risk $864,500 Brockton SEE George St Seekonk 4 PH 225 0 99 AORC Inventory Project Brockton BRO Richmond St Brockton 55 PH 2" 7,670 7,930 6,865 130 935 14" AORC Inventory Project 47 74.9 Risk $1,579,300 Brockton BRO Battles St Brockton 26 PH 2", 4" 3,200 4,705 4,075 630 0 14" AORC Inventory Project 47 74.9 Risk $694,400 Brockton MFD Canal St Marshfield 10 PH 4" 440 440 0 0 440 99 AORC Inventory Project 39 74.4 Risk $86,100 Brockton MFD Bay Ave Marshfield 15 PH 2" 1,290 1,290 0 0 1,290 99 AORC Inventory Project 39 74.4 Risk $220,300 0 14" AORC Inventory Project 0 67 74.3 Risk $893,550 Brockton BRO Annis Ave Brockton 32 PH 2", 4" 4,215 4,140 4,140 Brockton TAU Shores St Taunton 85 PH 4" & 2" 3,775 3,840 3,405 0 435 14" AORC Inventory Project 46 74.2 Risk $887,850 Brockton TAU Tremont St #1 Taunton 100 PH 6" & 2" 5,840 5,485 4,035 770 680 14" AORC Inventory Project 46 74.2 Risk $1,284,700 $452,200 Brockton TAU Danforth St Taunton 35 PH 4" & 2" 2,300 2,040 2,040 0 0 14" AORC Inventory Project 46 74.2 Risk Brockton TAU Tremont St #2 Taunton 15 PH 4" 320 980 980 0 0 14" AORC Inventory Project 46 74.2 Risk $94,900 Brockton HSN Reed St Hanson 30 PH 4" 3,400 3,400 0 0 3,400 99 AORC Inventory Project 78 74.1 Risk $550,200 Brockton WAL Chapman St Walpole 15 PH 2" 650 650 0 0 650 99 AORC Inventory Project 272 74.0 Risk $144,400 Brockton TAU Benefit St Taunton 40 PH 4" & 2" 2,005 1,840 1,840 0 0 14" AORC Inventory Project - Also new Low Point in 80002007 system 154 73.4 Risk $481,650 Brockton TAU School St Taunton 15 PH 4" 1,050 1,050 1,050 0 0 14" AORC Inventory Project 154 73.4 Risk $211,100 Brockton STO Seventh St Stoughton 8 PH 2" 560 560 0 115 445 99 AORC Inventory Project 73 72.8 Risk $110,800 Brockton MFD Summer St #2 Marshfield 12 PH 8" 870 870 0 870 0 99 AORC Inventory Project 72 72.3 Risk $130,500 Brockton ATT Forest St (Phase 2) Attleboro 100 PH 2,4,8" 2,500 4,000 2,500 1,500 14" AORC Inventory Project 525 72.0 Risk $542,500 Brockton MFD Liberty Rd Medfield 10 PH 4" 760 760 0 760 0 99 AORC Inventory Project 23 71.5 Risk $120,700 0 2,630 780 3,450 3,410 99 AORC Inventory Project 61 71.4 Risk $571,100 Brockton BRO Liberty St Brockton 22 PH 2", 8" Brockton BRO French Ave Brockton 29 PH 2", 8" 3,350 3,250 3,250 0 0 14" AORC Inventory Project 31 71.2 Risk $690,100 Brockton BRO Davis Ave Brockton 8 PH 2" 1,100 1,080 1,080 0 0 14" AORC Inventory Project 31 71.2 Risk $211,900 Brockton BRO Marion Ave Brockton 50 PH 2" , 8" 6,200 6,165 4,935 590 640 14" AORC Inventory Project 31 71.2 Risk $1,298,500 Brockton BRO Martland Ave Brockton 35 PH 2" , 6" 5,150 5,095 3,480 1,485 130 14" AORC Inventory Project 22 71.1 Risk $953,400 Brockton BRO Clarence St Brockton 34 PH 2', 8" 4,410 6,455 5,970 485 0 14" AORC Inventory Project 22 71.1 Risk $889,300 1,070 BRO Moraine St Brockton 38 2" 4,850 4,770 3,700 0 71.1 Risk $1,015,600 Brockton BRO Burton Ave Brockton 60 PH 2", 4" 7,210 7,680 5,560 2,120 0 14" AORC Inventory Project 42 70.5 Risk $1,436,600 Brockton BRO Ferris Brockton 36 PH 2", 4" 4,510 4,420 3,605 815 0 14" AORC Inventory Project 42 70.5 Risk $897,600 Brockton BRO Litchfield Brockton 45 PH 2", 4" 5,860 5,810 3,640 1,990 180 14" AORC Inventory Project 42 70.5 Risk $1,173,800 Brockton TAU Battle Row Taunton 20 PH 2" 1,050 1,050 1,050 99 AORC Inventory Project 165 70.3 Risk $191,000 Brockton ATT Charles St Attleboro 35 PH 2",8" 2,150 2,140 2,140 0 0 14" Highest Single Segment Optimain Inventory Project 208 70.0 Risk $389,500 Brockton ATT Fifth St Attleboro 35 PH 2,4,8" 2,300 2,305 700 1,105 500 14",99# AORC Inventory Project 198 70.0 Risk $385,200 Brockton ATT Jefferson St Attleboro 30 PH 8",2" 2,800 2,765 2,765 0 0 14" AORC Inventory Project 251 70.0 Risk $580,800 Brockton Brockton SCI Gannet Road Cutoff Brockton TAU Van Buren St Brockton MFD Reed St Brockton MWY Maple St PH 0 0 14" AORC Inventory Project 23 Scituate 10 PH 2" 470 400 0 0 400 99 AORC Inventory Project 95 70.0 Risk $97,300 Taunton 100 PH 2" 4,545 5,450 5,450 0 0 14" AORC Inventory Project 16 69.8 Risk $1,056,950 Marshfield 10 PH 2" 300 300 0 0 300 99 AORC Inventory Project 160 69.8 Risk $65,100 Medway 15 PH 6" 1,150 1,140 0 1,140 0 99 AORC Inventory Project 70 69.7 Risk $179,200 $103,200 13 69.4 Risk 255 69.0 Risk $395,800 AORC Inventory Project 36 68.8 Risk $210,300 68.6 Risk $651,000 $733,500 Brockton SCI Harbor Heights Scituate 10 PH 2" 420 420 0 0 420 99 AORC Inventory Project Brockton ATT County St Attleboro 45 PH 2",4" 2,460 2,460 1,820 640 0 14" Highest Single Segment Optimain Inventory Project Brockton CAN Hemlock Dr Canton 15 PH 2" 1,000 850 0 850 0 99 PH 2" , 6" 2,905 205 0 14" AORC Inventory Project 32 Brockton BRO Lenox Brockton 28 PH 2" 3,550 3,490 1,360 2,130 0 14" AORC Inventory Project 54 68.4 Risk Brockton BRO May Ave Brockton 12 PH 2" 1,950 1,925 1,765 0 160 14" AORC Inventory Project 42 68.3 Risk $366,200 Brockton BRO Holbrook Ave Brockton 62 PH 2", 4" 6,570 6,505 5,390 605 510 14" AORC Inventory Project 47 68.2 Risk $1,400,900 Brockton BRO King Ave Brockton 50 CS, PH 2", 12" 5,100 5,070 5,070 0 0 14" AORC Inventory Project 47 68.2 Risk $1,019,600 Brockton HOL Wright Ave Holbrook 3 PH 2" 415 400 0 0 400 99 AORC Inventory Project 116 67.9 Risk 67.8 Risk $302,200 Brockton BRO Locust Brockton 30 3,000 3,110 $75,650 Brockton TAU Hodges Ave HP Taunton 35 PH 8" 1,300 1,300 0 0 1,300 99 AORC Inventory Project 76 Brockton BRO Smith Ave Brockton 45 PH 2" 5,100 5,020 4,770 0 250 14" AORC Inventory Project 36 67.6 Risk $1,073,200 Brockton 5 PH 8" 700 650 650 0 0 14" AORC Inventory Project 36 67.6 Risk $125,100 Marshfield 10 PH 2" 460 460 0 460 0 99 AORC Inventory Project 59 66.9 Risk $109,200 29 66.8 Risk $60,300 66.5 Risk $958,300 66.5 Risk $1,009,700 Brockton BRO Montello at Arch Brockton MFD Alabama St Brockton TAU Washington St LP Taunton 12 N/A N/A 0 1,400 1,400 0 0 14" AORC Inventory Project - Main feed in LP system, can not be eliminated until many other local LP to HP projects are completed. Brockton BRO Temple St Brockton 47 PH, CS 2, 4, 12 4,200 4,145 4,145 0 0 14" AORC Inventory Project 58 BRO Davids St Brockton AORC Inventory Project 58 PH 2" 4,860 4,860 0 0 14" Brockton TAU Davenport Terr Taunton 60 PH 2" & 6" 3,730 3,730 2,530 1,200 0 14" AORC Inventory Project 25 66.1 Risk Brockton Brockton WAL Hanson St Walpole 20 40 PH 2",8" 1,100 4,900 1,085 0 0 1,085 99 AORC Inventory Project 19 65.9 Risk $225,300 Brockton FOX Rockhill Rd Foxboro 20 PH 4" 900 880 0 880 0 99 AORC Inventory Project 59 65.9 Risk $155,100 $720,300 Brockton DUX River Ln Duxbury 10 PH 2" 600 600 0 600 0 99 AORC Inventory Project 57 65.6 Risk $96,700 Brockton NOR Library Sq Norton 30 PH 2",6" 2,050 2,050 0 2,050 0 99 AORC Inventory Project 21 65.5 Risk $387,900 Brockton RAN Martin Terr Randolph 4 PH 2" 800 797 0 0 797 99 AORC Inventory Project 30 65.4 Risk $120,000 Columbia Gas of Massachusetts D.P.U. 17-GSEP-05 Exhibit CMA/DEM-2 Appendix A Page 8 of 14 Operating Center Project Name Brockton RAN Amvets Ln Brockton WAL Chapman St City Duration (Days) Type to Install Size(s) to Install Install Footage Total GSEP Priority Pipe Retired BS, UCS, WI, CI CI / WI To Be Retired UCS To Be Retired Bare Steel To Be Retired Current MAOP Project Comments / Justification Highest Single Optimain Score per 1000/ft AOCR Score Project Driver: Paving, Emergency, Mandatory Relocation, Preliminary Project Estimate With Services Compliance, Carry Over, Risk, Encroachment, Operational Issues Randolph 4 PH 2" 390 387 0 0 387 99 AORC Inventory Project 90 65.4 Risk $78,600 Walpole 25 PH 2",6" 1,350 1,350 0 750 600 99 AORC Inventory Project 10 65.3 Risk $242,700 145 Brockton 15 PH 2", 8" 2,315 5,090 4,870 75 14" 64.7 Risk $407,550 Brockton BRO Franklin St Brockton 24 PH 2", 8" 2,950 3,010 3,010 0 0 14" AORC Inventory Project 27 64.7 Risk $482,700 Brockton BRO Stonehill St Brockton 4 PH 2" 475 465 0 465 0 99 AORC Inventory Project 45 64.0 Risk $84,650 Brockton BRO/EAS Belmont St Brockton/Easton 25 PH 8" 3,550 3,530 0 3,530 0 99 AORC Inventory Project 45 64.0 Risk $539,200 Brockton BRO Charles St AORC Inventory Project 27 Brockton BRO Perkins Ave Brockton 60 PH, CS 4", 20" 5,050 6,110 2,550 1,535 2,025 14", 99 AORC Inventory Project 22 63.9 Risk $992,000 Brockton BRO Leyden St at Perkins Ave Brockton 45 PH, CS 2", 20" 3,550 5,590 3,125 415 2,050 14", 99 AORC Inventory Project 22 63.9 Risk $787,100 ATT Lindsey Ave Attleboro 0 410 0 99 AORC Inventory Project Brockton 8 PH 6" 450 410 14 63.9 Risk $74,200 Brockton HSN Lakeside Rd Hanson 45 PH 2" 2,300 2,300 0 0 2,300 99 AORC Inventory Project 57 63.6 Risk $432,100 Brockton MFD Main St Medfield 30 PH 8",2" 1,650 1,640 0 0 1,640 99 AORC Inventory Project 37 63.5 Risk $314,500 Brockton BRO Ida Ave Brockton 35 PH 2", 6" 4,400 5,170 0 5,170 0 99 AORC Inventory Project 47 63.1 Risk $907,900 Brockton BRO Warren Ave at Tribou St Brockton 4 PH 6" 350 350 350 0 0 14" AORC Inventory Project 79 63.1 Risk $79,300 Brockton ATT Snell St Attleboro 30 PH 2",8" 2,400 2,400 0 0 2,400 99 AORC Inventory Project 225 63.0 Risk $373,400 ATT Cherry St PH 8",2" Attleboro 20 930 0 300 630 99 AORC Inventory Project 33 63.0 Risk $206,500 Brockton SCI Meadow Ln Scituate 12 PH 2" 700 700 0 400 300 99 AORC Inventory Project 76 63.0 Risk $158,600 Brockton ATT Frenier Ave Attleboro 30 PH 2",4" 2,200 2,155 0 0 2,155 99 AORC Inventory Project 13 62.9 Risk $363,500 Brockton STO Memorial Stoughton 20 PH 2" 1,125 1,125 0 0 1,125 99 AORC Inventory Project 114 62.6 Risk $296,050 Brockton BRO Prospect St Brockton 80 PH 2", 6" 7,005 7,005 6,810 195 0 14" AORC Inventory Project 11 62.5 Risk $1,539,850 Brockton 930 Brockton STO Willow St Stoughton 50 PH 6" 2,480 2,480 0 365 2,115 99 AORC Inventory Project Brockton BRO Walnut St Brockton 50 PH 2" 5,675 5,675 5,675 0 0 14" AORC Inventory Project 96 62.5 Risk $418,900 74 61.7 Risk $1,199,650 405 61.4 Risk $535,500 61.1 Risk $664,100 Brockton SCI Jericho Rd Scituate 50 PE 6" 2,900 2,900 0 0 2,900 99 Highest Single Segment Optimain Inventory Project Brockton ATT Hodges St Attleboro 45 PH 2", 8" 3,400 3,385 3,385 0 0 14" AORC Inventory Project 25 Brockton BRI Lawrence Ave Bridgewater 4 PH 2" 330 330 0 0 330 99 AORC Inventory Project 102 61.0 Risk $49,500 Brockton DUX Plumfield Ln Duxbury 10 PH 2" 600 600 0 600 0 99 AORC Inventory Project 58 60.8 Risk $90,000 Brockton NOR River Rd - Beach Betterment Phase 2 Norwell 125 ST 12" 6,150 6,150 0 6,150 0 99 AORC Inventory Project - $407 per foot based on Phase 1 estimate. Added $100k for bore under Route 3. 61 60.7 Risk $2,763,850 Brockton DUX Freeman Place Duxbury 15 PH 2" 800 800 0 0 800 99 AORC Inventory Project 125 60.3 Risk $166,900 Brockton TAU 420 Winthrop St Taunton 10 PH 2" 160 850 0 850 0 99 AORC Inventory Project 56 59.8 Risk $77,600 Brockton TAU Thrasher St Taunton 50 PH 2" & 4" 3,570 5,215 3,030 805 1,380 14" AORC Inventory Project 25 59.7 Risk $656,100 Brockton DUX Soule Ave Duxbury 10 PH 2" 440 440 0 440 0 99 AORC Inventory Project 53 59.6 Risk $72,700 Brockton DUX Landing Rd Duxbury 20 PH 2" 1,020 960 0 960 0 99 AORC Inventory Project 53 59.6 Risk $199,900 Brockton ATT Scott St Attleboro 25 PH 2", 6" 1,400 1,380 0 0 1,380 99 AORC Inventory Project 14 59.1 Risk $357,400 Brockton PEM Water St Pembroke 30 PH 4" 2,700 2,700 0 0 2,700 99 AORC Inventory Project 52 58.7 Risk $431,800 Brockton PEM 270 Washington St Pembroke 15 PH 4" 700 700 0 700 0 99 AORC Inventory Project 52 58.7 Risk $131,800 Sharon 30 PH 2",8" 1,800 1,800 0 0 1,800 99 AORC Inventory Project 19 58.7 Risk $350,400 Stoughton 25 PH 8" 1,300 1,355 0 55 1,300 99 AORC Inventory Project 15 57.6 Risk $241,900 SHA Spring Lane Sharon 45 PH 2", 6" 2,600 2,600 0 2,600 0 99 AORC Inventory Project 4 57.5 Risk $671,400 WAL Elm St Walpole 40 PH 2",8" 1,600 670 0 0 670 99 AORC Inventory Project 0 57.0 Risk $246,700 WAL Elm St Walpole 15 PH 6" 700 700 0 0 700 99 AORC Inventory Project 11 57.0 Risk $118,400 $612,550 Brockton SHA Bay Rd Brockton STO Bay Rd #3 Brockton Brockton Brockton Brockton 80 PH, CS 2", 12" 3,235 5,855 2,315 3,540 0 14" AORC Inventory Project 24 56.7 Risk Brockton WRE South St (Nickerson) Wrentham 40 PH 8" 2,500 2,500 0 2,500 0 99 AORC Inventory Project 4 56.5 Risk Brockton ATT West St (Read) Attleboro 45 PH 2",8" 2,700 2,670 0 0 2,670 99 AORC Inventory Project 40 56.4 Risk $431,800 Brockton BRO Cross St Phase 2 Brockton 15 PH 2" 1,325 1,315 1,315 0 0 14" AORC Inventory Project 12 56.3 Risk $272,450 Brockton BRO Hubbard Ave at Main St $375,000 Brockton SCI Hatchet Rock Rd Scituate 35 PH 2" 2,370 2,245 0 0 2,245 99 AORC Inventory Project 56 56.0 Risk $429,200 Brockton BRO Centre St at Commercial Brockton 3 PH 8" 300 275 0 275 0 99 AORC Inventory Project 23 55.4 Risk $45,000 Brockton BRO Court Ave Brockton 2 PH 2" 200 195 0 195 0 99 AORC Inventory Project 23 55.4 Risk $36,700 Brockton DUX Harden Hill Rd Duxbury 15 PH 2" 1,160 870 0 0 870 99 AORC Inventory Project 54 55.2 Risk $207,500 Brockton TAU County St South Taunton 50 PH 8" & 2" 3,250 3,250 0 1,400 1,850 99 AORC Inventory Project 133 55.2 Risk $541,100 Brockton BRO Main St at Haverhill Brockton 3 PH 4" 300 290 290 0 0 14" AORC Inventory Project 31 54.9 Risk $58,400 Brockton TAU Woodlawn St Taunton 20 PH 4" 1,125 1,125 0 0 1,125 99 AORC Inventory Project 204 54.8 Risk $182,150 Brockton TAU Booster Park Taunton 50 PH & ST 12" & 2" 3,370 3,000 0 0 3,000 99 AORC Inventory Project 38 53.9 Risk $552,400 Brockton SHA Quincy St Sharon 20 PH 4" 800 800 0 800 0 99 AORC Inventory Project 6 53.9 Risk $133,400 53.5 Risk $497,200 Brockton ATT Elizabeth St Attleboro 35 PH 2",6" 2,600 2,590 2,590 0 0 14" AORC Inventory Project 18 Brockton MFD Careswell St #1 Marshfield 25 PH 4" 2,500 2,500 0 0 2,500 99 AORC Inventory Project 53 53.2 Risk $395,100 Brockton MFD Careswell St #2 Marshfield 45 PH 4" 4,800 6,230 0 1,430 4,800 99 AORC Inventory Project 53 53.2 Risk $820,500 $410,100 Brockton MFD Ocean St Marshfield 30 PH 6" 2,600 2,850 0 2,850 0 99 AORC Inventory Project 12 52.6 Risk Brockton SEE Willis Ave Seekonk 6 PH 2" 465 465 0 0 465 99 AORC Inventory Project 21 52.2 Risk $89,850 Brockton ATT Union St Attleboro 30 PH 4" 2,000 2,000 2,000 0 0 14" AORC Inventory Project 260 52.0 Risk $454,100 52.0 Risk $484,900 Brockton ATT Main St at Beacon St 45 PH 2" 2,250 1,360 890 0 14" AORC Inventory Project 258 Brockton BRI Spring St Bridgewater 5 PH 4" 235 245 0 0 245 99# AORC Inventory Project 334 51.2 Risk $41,950 Brockton ATT Gardner Ave Attleboro 20 PH 4" 1,300 1,300 0 1,300 0 99 AORC Inventory Project 62 46.6 Risk $228,500 Brockton BRO Crescent Brockton 85 PH 2", 4" 12,000 11,755 5,750 5,025 980 14" Recommended for replacement due to planned state project on Crescent St in 2021, end of low pressure system. Planned for 2019. 54 40.6 Paving Attleboro 2,250 $2,583,900 Columbia Gas of Massachusetts D.P.U. 17-GSEP-05 Exhibit CMA/DEM-2 Appendix A Page 9 of 14 Operating Center Project Name Brockton MAN Common St Brockton SHA Garden St City Duration (Days) Type to Install Size(s) to Install Install Footage Total GSEP Priority Pipe Retired BS, UCS, WI, CI CI / WI To Be Retired UCS To Be Retired Bare Steel To Be Retired Current MAOP Project Comments / Justification Highest Single Optimain Score per 1000/ft AOCR Score Project Driver: Paving, Emergency, Mandatory Relocation, Preliminary Project Estimate With Services Compliance, Carry Over, Risk, Encroachment, Operational Issues Mansfield 8 PH 4" 500 500 0 500 0 99 AORC Inventory Project 22 39.7 Risk $81,700 Sharon 15 PH 8" 1,070 1,065 0 1,065 0 99 AORC Inventory Project 16 39.5 Risk $207,400 39.0 Risk $103,400 ATT Westminster Attleboro AORC Inventory Project 12 Brockton ATT Olive St Attleboro 5 PH 6" 500 500 0 500 0 99 AORC Inventory Project 12 38.7 Risk Brockton WAL East St Walpole 5 PH 8" 250 220 0 220 0 99 AORC Inventory Project 9 38.3 Risk $64,300 Brockton WAL Greenwood Walpole 25 PH 4",8" 1,300 1,290 0 330 960 99 AORC Inventory Project 15 34.3 Risk $295,500 $340,500 Brockton 8 PH 4" 600 580 0 580 0 99 Brockton MAN Main St (East to Cobb) Mansfield 30 PH 8" 1,600 1,585 0 0 1,585 99 AORC Inventory Project Brockton ATT George St Attleboro 50 PH 2",8" 2,700 2,650 1,900 0 750 14" Highest Single Segment Optimain Inventory Project Brockton ATT Twelfth St Attleboro 10 PH 4",8" 800 770 770 0 0 14" AORC Inventory Project $81,700 19 30.2 Risk 233 28.0 Risk $431,800 9 27.3 Risk $140,100 438 Risk $804,500 Brockton BRO Longwood Ave Brockton 36 PH 4" 3,800 3,792 3,792 0 0 14" Highest Single Segment Optimain Inventory Project Brockton RAN Tileston Randolph 30 PH 2" 3,920 3,920 0 3,730 190 99 Highest Single Segment Optimain Inventory Project 359 Risk $748,800 Brockton BRO Florence St Brockton 26 PH 2", 4" 3,100 2,975 2,975 0 0 14" Highest Single Segment Optimain Inventory Project 348 Risk $753,100 Brockton BRO Packward Way Brockton 20 PH 2" 2,175 2,175 804 1,371 0 14" Highest Single Segment Optimain Inventory Project 348 Risk $460,250 Brockton BRO Manners Ave Brockton 15 PH 2", 4" 2,600 2,545 0 685 1,860 14" Highest Single Segment Optimain Inventory Project 333 Risk $544,100 PH BRO Forest Rd Brockton 5 2" 735 721 541 180 0 14" Highest Single Segment Optimain Inventory Project 331 Risk $150,450 Brockton BRO Wheeler Brockton 22 PH 2" 3,020 3,012 2,599 413 0 14" Highest Single Segment Optimain Inventory Project 318 Risk $674,100 Brockton BRO Glenwood Brockton 23 PH 2", 4", 6" 2,700 3,315 2,800 515 0 14" Highest Single Segment Optimain Inventory Project 310 Risk $592,600 Brockton RAN Julian Rd Randolph 12 PH 2" 1,600 1,590 0 540 1,050 99 Highest Single Segment Optimain Inventory Project 303 Risk $347,200 Brockton BRO Bartlett Brockton 15 PH 2" 1,900 2,000 2,000 0 0 14 Highest Single Segment Optimain Inventory Project 300 Risk $419,000 Operational Issues/Reliability $200,400 Brockton Brockton TAU Berkley St Taunton 26 PH 6" 800 760 0 760 0 99 Lawrence Lawrence Lawrence Lawrence Lawrence Exchange / Spruce St - Optimain Osgood St - Operations Island St - Operations Belmont St - Water Replacement Bourque / Adam St LAW LAW LAW LAW LAW 78 142 15 55 76 HDPE HDPE HDPE HDPE HDPE 2"/4" 2"/4" 4" 2" 2"/4" 1,950 2,100 720 1,230 1,900 1,950 2,100 1,000 1,185 1,720 1,950 2,100 0 1,185 1,720 0 0 0 0 0 0 0 1,000 0 0 LP LP 99 PSIG LP LP Lawrence Lawrence Albion / E. Haverhill St - Operations LAW 39 HDPE 2"/4" 1,525 1,525 1,525 0 0 LP Hamlet / Monroe St - Redundant main LAW 54 HDPE 4" 1,310 2,115 1,215 0 900 LP Lawrence Old South Lane/Central St - Paving AND 61 HDPE 6" 2,280 2,280 1,000 0 1,280 LP Lawrence Lawrence Ridge Street/School St - Paving Railroad St - Paving Washington St (Broadway/Cross) Operations Lawrence Lawrence Lawrence Lawrence Lawrence Lawrence Lawrence Lawrence Lawrence Lawrence Lawrence Lawrence Lawrence Lawrence Lawrence Lawrence Lawrence Lawrence Lawrence Lawrence Lawrence Lawrence Lawrence Lawrence Lawrence Lawrence Lawrence Lawrence Lawrence Lawrence Lawrence Lawrence Lawrence Lawrence Lawrence Lawrence Lawrence Lawrence Lawrence Lawrence Lawrence Lawrence Lawrence Lawrence Manchester St - Operations Park St/Bartlet St/Punchard St Paving Shepard / Glenn St - Operations Spruce St (Willow) Phase I Optimain Spruce St (Willow) Phase II Optimain Haverhill St - Optimain Railroad Rd - Optimain Dascomb Rd - Optimain Lowell St - Optimain Essex St - Optimain Norris St - Operations Elm St - Paving Mechanic Street (Newbury/Elm/E Haverhill) - Optimain Windsor St - Optimain Alder Street - Optimain Andrew Cir (Andover/Peters) Optimain Beacon Ave - Optimain Oakwood St - Optimain Bennington St - Optimain Wildrose Dr (Holly/Hickory) Optimain Grace St (Henry) - Optimain Marie St (Taylor/Buco/Paris) Optimain Essex St - Optimain Elm St - Optimain Main St - Elevated Cast Iron Pleasant St (Bruce/Bedford/Brookfield) Elevated Cast Iron Sheldon Street - Elevated Cast Iron Locust Rd (Tudor/Tower) - Elevated Cast Iron Howell Dr (Summer) - Optimain Edmands St - Optimain Haverhill St - Optimain Common St - Optimain Prospect St (Phase 2) - Optimain Prospect St (Phase 1) - Optimain Lexington St - Optimain Platt St - Optimain Ferry St - Optimain Montgomery St - Optimain Hansom Rd - Optimain Dracut St - Optimain Bedford St (Lowell/Melvin/Oxford/Kempton) Kirk St -Elevated Cast Iron Saunders Street (Bruce/Thorndike/Knox) AND AND 19 26 HDPE HDPE 6" 6" 740 1,350 740 1,350 740 1,350 0 0 0 0 4 PSIG 4 PSIG LAW 51 HDPE 6" 2,000 2,000 2,000 0 0 LP LAW 35 HDPE 6" 1,410 1,410 1,410 0 0 LP AND 42 HDPE 6" 1,090 1,090 1,090 0 0 LP Recommended to be replaced by Gas Systems Planning in order to ensure system reliability and ensure that the contract pressures for the Middleboro Interconnects are met. Lawrence Paving Low point on the LP system . Improves pressure. Multiple leak repairs Lawrence Water Replacement Multiple leak repairs on 2" WI 1 105 109 4.9 143 64 869.0 667.0 38 0 240.0 Paving Operational Issues/Reliability Operational Issues/Risk Mandatory Relocation Operational Issues/Risk $640,900.00 $629,900.00 $108,000.00 $365,400.00 $526,200.00 Lawrence water replacement project 77 567.0 Redundant main 16 0 Encroachment $443,150.00 Andover Paving 64 52.6 Andover Paving Andover Paving Operations suggested main to be replaced due to history of leaks Operations suggested main to be replaced due to history of leaks 13 96 72 69 372.8 Operational Issues/Risk $325,400.00 Andover Paving 82 81.8 Paving $264,000.00 Operational Issues/Risk $370,700.00 Paving $556,400.00 56.3 72.1 Paving Paving $164,600.00 $242,700.00 373.0 Operational Issues/Risk $588,100.00 LAW 87 HDPE 2"/4" 2,000 2,000 0 0 2,000 99 PSIG 52 55.0 Operational Issues $360,300.00 LAW 69 HDPE 6" 2,380 2,380 2,380 0 0 LP AORC Inventory Project 100 1360.0 Risk $819,300.00 LAW 74 HDPE 6" 2,950 2,950 2,950 0 0 LP AORC Inventory Project 100 1360.0 Risk LAW AND AND MET LAW LAW AND 93 47 117 72 37 98 70 HDPE HDPE HDPE HDPE HDPE HDPE HDPE 6" 2" 2" 4"/6" 6" 6" 6" 3,280 1,750 4,400 2,750 1,370 3,890 2,630 3,280 1,750 4,400 2,850 1,370 3,890 2,440 3,280 1,750 0 2,550 1,370 3,890 2,440 0 0 0 100 0 0 0 0 0 4,400 200 0 0 0 LP LP 99 pSIG LP LP LP LP AORC Inventory Project AORC Inventory Project AORC Inventory Project AORC Inventory Project AORC Inventory Project AORC Inventory Project Paving 61 55 113 104 102 62 82 595.0 304.0 148.0 293.0 266.6 82.5 76.7 Risk Risk Risk Risk Risk Risk Paving LAW 35 HDPE 6" 1,350 1,350 1,350 0 0 LP AORC Inventory Project 91 308.0 Risk $370,000.00 MET LAW 20 75 HDPE HDPE 4" 2" 980 2,900 980 2,900 980 2,900 0 0 0 0 LP LP AORC Inventory Project AORC Inventory Project 91 92 230.6 1361.0 Risk Risk $220,700.00 $696,300.00 Saddle tees / Main reported to be in poor condition $938,300.00 $532,200.00 $329,500.00 $747,100.00 $861,400.00 $272,500.00 $1,333,900.00 $729,500.00 MET 78 HDPE 6" 3,000 3,000 2,530 0 470 LP AORC Inventory Project 90 260.0 Risk $758,200.00 LAW LAW LAW 33 42 51 HDPE HDPE HDPE 6" 6" 4" 1,200 1,820 2,080 1,200 1,820 2,080 1,200 1,820 2,080 0 0 0 0 0 0 LP LP LP AORC Inventory Project AORC Inventory Project AORC Inventory Project 54 77 92 289.0 698.5 1301.0 Risk Risk Risk $267,100.00 $447,200.00 $633,600.00 AND 106 HDPE 6" 4,400 4,400 0 0 4,400 99 PSIG AORC Inventory Project 90 213.9 Risk $1,095,500.00 MET 12 HDPE 6" 520 520 470 0 50 LP AORC Inventory Project 61 269.6 Risk $178,500.00 MET 45 HDPE 4" 1,800 1,800 1,800 0 0 LP AORC Inventory Project 92 340.3 Risk $497,800.00 AND AND AND 15 18 95 HDPE HDPE HDPE 2" 4"/6" 6" 710 700 4,010 710 710 4,010 710 710 1,590 0 0 0 0 0 2,420 LP LP 4 PSIG AORC Inventory Project AORC Inventory Project Elevated pressure cast iron gas main replacement plan 88 88 86 352.0 352.0 293.0 Risk Risk Risk $247,200.00 $212,200.00 $769,000.00 MET 76 HDPE 6" 3,300 3,300 3,300 0 0 4 PSIG Elevated pressure cast iron gas main replacement plan 82 260.0 Risk $789,800.00 MET 51 HDPE 2" 1,520 1,520 1,520 0 0 4 PSIG Elevated pressure cast iron gas main replacement plan 81 40.0 Risk $261,500.00 MET 75 HDPE 2" 3,200 3,200 3,200 0 0 4 PSIG Elevated pressure cast iron gas main replacement plan 81 473.0 Risk $828,400.00 AND NAN LAW LAW LAW LAW LAW LAW LAW LAW AND LAW 51 45 59 74 55 50 84 43 54 46 54 41 HDPE HDPE HDPE HDPE HDPE HDPE HDPE HDPE HDPE HDPE HDPE HDPE 2" 2" 6" 4" 4" 3" 4" 6" 8" 2" 6" 6" 2,320 2,180 2,300 3,150 2,400 2,030 2,480 1,920 1,580 1,050 3,620 1,890 2,320 2,180 2,300 3,150 2,400 2,030 2,480 1,920 1,580 1,050 3,620 1,890 2,320 2,180 2,300 3,150 2,400 2,030 2,480 1,320 1,580 0 0 1,890 0 0 0 0 0 0 0 0 0 0 1,250 0 0 0 0 0 0 0 0 600 0 1,050 2,370 0 LP LP LP LP LP LP LP LP LP LP 99 PSIG LP AORC Inventory Project AORC Inventory Project AORC Inventory Project AORC Inventory Project AORC Inventory Project AORC Inventory Project AORC Inventory Project AORC Inventory Project AORC Inventory Project AORC Inventory Project AORC Inventory Project AORC Inventory Project 81 81 80 78 77 77 77 77 75 74 87 73 332.0 230.6 172.4 172.0 698.5 698.5 888.8 228.0 680.8 500.0 42.0 614.4 Risk Risk Risk Risk Risk Risk Risk Risk Risk Risk Risk Risk $522,200.00 $494,500.00 $827,400.00 $794,100.00 $648,100.00 $532,300.00 $720,400.00 $468,900.00 $458,100.00 $385,300.00 $824,400.00 $591,700.00 LAW 54 HDPE 6" 1,540 1,540 1,540 0 0 LP AORC Inventory Project 70 664.2 Risk $344,900.00 MET 48 HDPE 6" 1,755 1,755 1,755 0 0 4 PSIG Elevated pressure cast iron gas main replacement plan 73 666.0 Risk $424,050.00 LAW 66 HDPE 6" 2,195 3,330 3,330 0 0 LP AORC Inventory Project 73 652.3 Risk $717,850.00 Columbia Gas of Massachusetts D.P.U. 17-GSEP-05 Exhibit CMA/DEM-2 Appendix A Page 10 of 14 Operating Center Project Name Lawrence Golf Ave (White/Greenlawn/Deering/Bradley/ Armstrong/Frost) - Optimain Chester St Salem St Texas Ave (Riverside/Tower Hill) Essex St Standish St - Optimain East St - Elevated Cast iron Beech St - Elevated Cast Iron Portland St Glen St (Riverside/Franklin/Laurel/Avon/Par k) - Optimain Merrimack St (South Canal) Lawrence Lawrence Lawrence Lawrence Lawrence Lawrence Lawrence Lawrence Lawrence Lawrence Lawrence Lawrence Lawrence Lawrence Lawrence Lawrence Lawrence Lawrence Lawrence Lawrence Lawrence Lawrence Lawrence Lawrence Lawrence Lawrence Lawrence Lawrence Lawrence Lawrence Lawrence Lawrence Lawrence Lawrence Lawrence Lawrence Lawrence Lawrence Lawrence Lawrence Lawrence Highest Single Optimain Score per 1000/ft Project Driver: Paving, Emergency, Mandatory Relocation, Preliminary Project Estimate With Services Compliance, Carry Over, Risk, Encroachment, Operational Issues City Duration (Days) Type to Install Size(s) to Install Install Footage Total GSEP Priority Pipe Retired BS, UCS, WI, CI CI / WI To Be Retired UCS To Be Retired Bare Steel To Be Retired Current MAOP MET 81 HDPE 6" 3,500 3,650 2,440 150 1,060 LP AORC Inventory Project 73 172.0 Risk $699,200.00 LAW LAW LAW LAW AND MET NAN LAW 43 45 77 34 7 12 12 44 HDPE HDPE HDPE HDPE HDPE HDPE HDPE HDPE 2" 2" 4" 6" 6" 4" 6" 6" 1,250 1,820 3,750 1,420 200 460 490 2,100 1,250 1,820 3,750 1,420 440 460 490 2,100 1,250 1,820 2,550 1,420 0 310 490 2,100 0 0 0 0 440 0 0 0 0 0 1,200 0 0 150 0 0 LP LP LP LP 99 PSIG 4 PSIG 4 PSIG LP AORC Inventory Project AORC Inventory Project AORC Inventory Project AORC Inventory Project AORC Inventory Project AORC Inventory Project AORC Inventory Project AORC Inventory Project 73 71 71 69 53 52 87 69 860.0 863.6 500.5 615.4 31.0 450.8 229.1 381.2 Risk Risk Risk Risk Risk Risk Risk Risk $422,000.00 $433,800.00 $910,900.00 $521,200.00 $97,000.00 $129,300.00 $107,000.00 $502,600.00 Project Comments / Justification AOCR Score MET 92 HDPE 2"/4" 3,000 3,000 3,000 0 0 LP AORC Inventory Project 71 369.7 Risk $838,600.00 LAW 107 HDPE 6" 4,520 7,525 7,525 0 0 LP AORC Inventory Project 69 381.2 Risk $832,100.00 Red Spring Rd (Moraine) - Optimain AND 46 HDPE 6" 1,080 1,080 1,080 0 0 LP AORC Inventory Project 68 234.5 Risk $296,000.00 Cypress St (Riverside Drive) Osgood St Olive St (Phase 1) Tewksbury St Glenn St (Borque / Adams St) Genessee St (Boylston/Madison) Cambridge St Durham St Border St (Tyler, Newton) Salem St Weare St Perry St (Meadow) Carleton St Dumbarton St - Optimain Elm St -Optimain Belmont Street - Optimain Saunders Street - Optimain May Street - Optimain Haverhill St (Hampton/Morton) Russell St - Optimain Colby St (Katherine) Broadway - Optimain Main St - Elevated Cast Iron Hewitt Av - Elevated Cast Iron Third Street - Optimain Cutler St Lyndale St (Concord) - Optimain Olive St (Phase 2) Bourque St Walker Ave (McKenney) - Elevated Cast Iron Lesley St - Optimain Lowell St - Optimain Brookfield St Pearl Ave (Pearl St) Lowell St Pleasant St - Elevated Cast Iron Larchwood Rd - Optimian Warwick St Osgood St - Optimian Kendall St Heather St - Elevated Cast Iron Johnson St - Elevated Cast Iron Oakside Dr - Elevated Cast Iron East St - Elevated Cast Iron Storrow St Summer St - Elevated Cast Iron Andover St - Elevated Cast Iron LAW LAW LAW LAW LAW LAW LAW LAW LAW LAW LAW LAW LAW AND MET NAN NAN NAN LAW NAN LAW MET AND NAN NAN LAW MET LAW LAW 61 69 67 56 65 37 64 60 47 41 49 41 55 15 48 43 35 37 49 54 44 25 26 42 81 55 63 17 14 HDPE HDPE HDPE HDPE HDPE HDPE HDPE HDPE HDPE HDPE HDPE HDPE HDPE HDPE HDPE HDPE HDPE HDPE HDPE HDPE HDPE HDPE HDPE HDPE HDPE HDPE HDPE HDPE HDPE 6" 6" 4" 6" 2"/4" 6" 2" 4" 6" 2" 6" 4" 6" 6" 6" 2" 4" 4" 2"/6" 6" 2"/4" 6" 6" 6" 2"/4" 6" 6" 4" 2" 1,860 2,650 2,450 1,980 2,225 1,350 2,650 1,720 1,660 1,090 1,800 1,320 2,470 730 1,760 1,950 1,145 1,305 1,980 2,300 1,300 720 960 1,500 3,385 1,270 2,400 750 570 1,860 2,650 2,450 1,980 2,225 1,350 2,650 1,720 1,660 1,090 1,800 1,320 2,470 730 1,760 1,860 1,000 965 1,980 2,300 1,300 750 960 1,500 3,358 1,270 2,400 750 570 1,860 2,650 2,450 1,980 0 0 2,650 1,720 1,660 1,090 1,800 1,320 2,470 730 1,360 1,860 1,000 965 1,680 2,000 1,300 520 960 1,500 3,358 1,270 1,800 750 570 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 30 0 0 0 0 0 0 0 0 0 0 0 2,225 1,350 0 0 0 0 0 0 0 0 400 0 0 0 300 300 0 200 0 0 0 0 600 0 0 LP LP LP LP 99 PSIG 99 PSIG LP LP LP LP LP LP LP LP LP LP LP LP LP LP LP LP 4 PSIG 4 PSIG LP LP LP LP LP AORC Inventory Project AORC Inventory Project AORC Inventory Project AORC Inventory Project AORC Inventory Project AORC Inventory Project AORC Inventory Project AORC Inventory Project AORC Inventory Project AORC Inventory Project AORC Inventory Project AORC Inventory Project AORC Inventory Project AORC Inventory Project AORC Inventory Project AORC Inventory Project AORC Inventory Project AORC Inventory Project AORC Inventory Project AORC Inventory Project AORC Inventory Project AORC Inventory Project Elevated pressure cast iron gas main replacement plan Elevated pressure cast iron gas main replacement plan AORC Inventory Project AORC Inventory Project AORC Inventory Project AORC Inventory Project AORC Inventory Project 68 72 68 67 66 66 66 65 65 65 64 62 62 62 62 61 61 61 60 65 72 60 51 72 60 60 60 59 59 657.6 667.4 588.9 423.7 97.8 98.0 608.6 767.4 767.4 567.1 196.7 770.0 522.2 111.1 294.9 389.0 389.0 389.0 533.7 196.0 739.0 162.1 228.6 68.0 291.0 460.5 102.0 589.0 226.0 Risk Risk Risk Risk Risk Risk Risk Risk Risk Risk Risk Risk Risk Risk Risk Risk Risk Risk Risk Risk Risk Risk Risk Risk Risk Risk Risk Risk Risk $580,500.00 $531,500.00 $682,400.00 $491,300.00 $514,650.00 $343,200.00 $524,800.00 $392,000.00 $517,000.00 $511,900.00 $497,800.00 $399,000.00 $531,300.00 $216,700.00 $424,800.00 $607,400.00 $359,350.00 $296,250.00 $571,700.00 $378,500.00 $402,700.00 $154,900.00 $278,000.00 $338,900.00 $836,050.00 $431,700.00 $594,500.00 $233,100.00 $253,000.00 AND 37 HDPE 6" 1,310 1,310 1,310 0 0 4 PSIG Elevated pressure cast iron gas main replacement plan 58 334.0 Risk $310,400.00 MET AND LAW LAW LAW NAN MET LAW MET LAW MET NAN MET MET LAW AND AND 36 29 11 62 33 63 24 12 12 67 15 18 9 54 64 12 37 HDPE HDPE HDPE HDPE HDPE HDPE HDPE HDPE HDPE HDPE HDPE HDPE HDPE HDPE HDPE HDPE HDPE 4" 6" 6" 4" 6" 6" 2"/4" 2" 4" 6" 6" 6" 2"/4" 6" 4"/6" 4" 2"/4" 1,260 1,120 560 2,750 1,850 2,700 1,450 730 740 3,160 800 1,120 490 1,820 2,120 710 1,680 1,260 1,120 560 2,750 1,850 2,700 1,450 730 740 3,160 800 1,120 490 1,820 2,120 710 1,680 1,260 0 560 2,050 1,850 2,700 1,450 730 740 1,960 800 1,120 490 1,820 1,920 710 1,680 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1,120 0 700 0 0 0 0 0 1,200 0 0 0 0 200 0 0 LP 99 PSIG LP LP LP 4 PSIG LP LP LP LP 4 PSIG 4 PSIG 4 PSIG 4 PSIG LP 4 PSIG 4 PSIG AORC Inventory Project AORC Inventory Project AORC Inventory Project AORC Inventory Project AORC Inventory Project Elevated pressure cast iron gas main AORC Inventory Project AORC Inventory Project AORC Inventory Project AORC Inventory Project Elevated pressure cast iron gas main Elevated pressure cast iron gas main Elevated pressure cast iron gas main Elevated pressure cast iron gas main AORC Inventory Project Elevated pressure cast iron gas main Elevated pressure cast iron gas main 58 57 50 61 57 57 57 57 56 56 56 54 54 54 53 53 52 76.0 67.0 860.0 615.6 276.6 251.0 450.8 318.5 203.6 596.0 44.0 6.0 726.7 172.6 156.0 18.0 104.0 Risk Risk Risk Risk Risk Risk Risk Risk Risk Risk Risk Risk Risk Risk Risk Risk Risk $329,700.00 $302,000.00 $117,500.00 $459,400.00 $398,100.00 $518,900.00 $411,800.00 $323,900.00 $171,300.00 $896,100.00 $254,000.00 $281,900.00 $153,900.00 $608,000.00 $586,000.00 $253,900.00 $432,900.00 MET 60 HDPE 4" 2,400 2,400 100 0 2,300 LP AORC Inventory Project 52 291.2 Risk $561,000.00 LAW MET AND MET LAW Lawrence Methuen Lawrence 7 12 14 14 7 10 53 61 HDPE HDPE HDPE HDPE HDPE HDPE HDPE HDPE 6" 4" 2" 6" 2" 6" 6" 2"/4" 250 750 910 800 260 450 1,760 2,500 1,620 690 910 800 260 450 1,760 2,500 1,620 690 910 800 0 450 1,760 2,500 0 0 0 0 0 0 0 0 0 0 0 0 260 0 0 0 LP LP LP LP LP LP 4 PSIG LP AORC Inventory Project AORC Inventory Project AORC Inventory Project AORC Inventory Project AORC Inventory Project AORC Inventory Project Elevated pressure cast iron gas main replacement plan AORC Inventory Project 67 50 50 50 50 49 45 43 651.0 522.5 257.0 133.9 14.0 354.0 268.0 107.4 Risk Risk Risk Risk Risk Risk Risk Risk $251,900.00 $213,000.00 $250,400.00 $247,300.00 $72,500.00 $168,000.00 $444,900.00 $609,500.00 Lawrence Lawrence Margin St Quincy St - Optimain Poor St - Optimain Jefferson St - Optimain Crestwood St -Optimain Ames St - Optimain Pleasant St - Elevated Cast Iron Pleasant St - Optimain Edgar St (Newport/Hobson/Sampson/Alfred) Elevated Cast Iron Union St - Optimain Foreside Street (Hill/Falmouth/Freeport/Butternut) Elevated Pressure Merrimack St - Elevated Cast Iron Derry Road (Comet/Bradley/Varnum) - Elevated Pressure Brook St - Optimain Forest St - Elevated Cast Iron Greenhalge Road (Ford/Gaston/Russell) - Elevated Cast Iron High Plain Road - Optimain Albion/Houston - Optimain Mariline Ave - Elevated Cast Iron Virginia Rd (Shirley) - Optimain Main St - Elevated Cast Iron Woodland St - Elevated Cast iron Hampshire St and Kimball Cir Elevated Cast Iron Pleasant St and Pleasant Circle Elevated Cast Iron Rollins - Optimain Carmel Rd - Optimain Springfield Springfield Springfield Lawrence Lawrence Lawrence Lawrence Lawrence Lawrence Lawrence Lawrence Lawrence Lawrence Lawrence Lawrence Lawrence Lawrence Lawrence Lawrence Lawrence Lawrence Lawrence Lawrence Lawrence Lawrence Lawrence Lawrence Lawrence Lawrence Lawrence Lawrence Lawrence Lawrence Lawrence Lawrence Lawrence Lawrence Lawrence Lawrence Lawrence Lawrence Lawrence Lawrence Lawrence Lawrence Elmore St (Randolph/Zoar/Berwick) Optimain Methuen 62 HDPE 2" 2,650 2,650 1,650 0 1,000 4 PSIG Methuen 47 HDPE 4" 1,100 1,110 1,110 0 0 LP replacement plan replacement plan replacement plan replacement plan replacement plan replacement plan replacement plan Elevated pressure cast iron gas main replacement plan 40 225.0 Risk $678,900.00 AORC Inventory Project 36 150.2 Risk $352,600.00 Methuen 89 HDPE 6" 4,000 4,000 950 0 3,050 4 PSIG Elevated pressure cast iron gas main replacement plan 28 47.2 Risk $814,400.00 Methuen 57 HDPE 6" 2,430 2,430 2,430 0 0 4 PSIG Elevated pressure cast iron gas main replacement plan 52 281.9 Risk $478,400.00 Methuen 89 HDPE 6" 3,080 3,080 0 0 3,080 4 PSIG Elevated pressure cast iron gas main replacement plan 56 256.8 Risk $642,900.00 Methuen Methuen 40 43 HDPE HDPE 2"/4" 6" 1,635 1,890 1,635 1,890 1,000 1,890 0 0 635 0 LP 4 PSIG AORC Inventory Project Elevated pressure cast iron gas main replacement plan 59 28 178.9 28.7 Risk Risk $339,050.00 $397,400.00 Methuen 66 HDPE 4"/6" 2,520 2,520 2,520 0 0 4 PSIG Elevated pressure cast iron gas main replacement plan 27 43.1 Risk $538,800.00 Andover Methuen Methuen Andover Andover Methuen 104 136 69 38 33 28 HDPE HDPE HDPE HDPE HDPE HDPE 4" 2"/4" 4" 6" 4" 2" 3,950 4,215 2,680 1,750 1,350 1,000 3,950 3,865 2,680 1,750 1,350 3,400 0 3,865 2,680 750 1,350 3,400 0 0 0 0 0 0 3,950 0 0 1,000 0 0 99 PSIG LP 4 PSIG LP 4 PSIG 4 PSIG AORC Inventory Project AORC Inventory Project Elevated pressure cast iron gas main replacement plan AORC Inventory Project Elevated pressure cast iron gas main replacement plan Elevated pressure cast iron gas main replacement plan 24 45 41 23 21 82 45.0 283.0 149.0 45.0 28.0 182.0 Risk Risk Risk Risk Risk Risk $907,400.00 $1,000,750.00 $649,900.00 $369,700.00 $349,900.00 $351,000.00 Methuen 144 HDPE 6" 6,195 2,920 2,920 0 0 4 PSIG Elevated pressure cast iron gas main replacement plan 12 31.1 Risk $1,693,050.00 Methuen 41 HDPE 2" 1,740 1,740 1,740 0 0 4 PSIG Elevated pressure cast iron gas main replacement plan 25 40.3 Risk $408,400.00 Lawrence Andover 55 30 HDPE HDPE 2" 2" 3,110 1,000 3,110 1,000 3,110 1,000 0 0 0 0 LP LP AORC Inventory Project AORC Inventory Project 93 42 475.0 140.0 Risk Risk $881,900.00 $290,700.00 NORTHAMPTON on KING from BRI NOR 18 HDPE 4" 575 575 0 575 0 60 AORC Inventory Project, Bridge St, Damon Rd, King St 25 133 Risk $146,550.00 CHICOPEE on BRIGHTWOOD from CHI 11 HDPE 2" 525 525 0 525 0 60 AORC Inventory Project 208.7 97.136 Risk $105,550.00 BRIDGE from DWIGHT to STEARNS SPR 21 HDPE 2" 1,200 1,200 1,190 10 0 14" Redundant CI/Leak history 135.5 12.7 Risk $220,200.00 Columbia Gas of Massachusetts D.P.U. 17-GSEP-05 Exhibit CMA/DEM-2 Appendix A Page 11 of 14 Operating Center Project Name Springfield Springfield Size(s) to Install CI / WI To Be Retired UCS To Be Retired Bare Steel To Be Retired Current MAOP 500 0 500 0 60 Chicopee CSO Work - Direct conflict with proposed work 1,615 1,615 0 0 14 Operational concern over past leaks 1,490 0 1,490 0 14" 3,555 2,835 2,835 0 0 3,000 3,000 3,000 0 0 986 986 0 5,124 4,924 0 City Duration (Days) Type to Install Install Footage CHRISTOPHER STREET-CSO (3) CHI 10 HDPE 2" 500 HARWICH ROAD WSF 18 HDPE 6" 1,615 Springfield SPRINGFIELD on TEMBY from BOS SPR 60 HDPE 6 2,778 Springfield Columbus - Inventory SPR 45 HDPE 4" Springfield Winter St SPR 83 HDPE 4" Springfield MATTON STREET- OPTIMAIN SPR 39 HDPE 4" 565 Springfield Exchange St - Inventory CHI 176 HDPE 2" 5,124 Total GSEP Priority Pipe Retired BS, UCS, WI, CI Project Comments / Justification Highest Single Optimain Score per 1000/ft AOCR Score 0.5 N/A Project Driver: Paving, Emergency, Mandatory Relocation, Preliminary Project Estimate With Services Compliance, Carry Over, Risk, Encroachment, Operational Issues Mandatory Relocation $115,200.00 11.1 47.8 Operational Issues/Risk $242,250.00 AORC Inventory Project 140.6 101.7 Risk $564,100.00 14" AORC Inventory Project 13.7 212.2 Risk $560,050.00 14" AORC Inventory Project, Winter, Pearl, Mattoon, Chestnut, Bridge, Dwight 150 127 Risk $718,000.00 0 14" Highest Single Segment Optimain Inventory Project 137 126.8 Risk $366,150.00 200 14" AORC Inventory Project 102.6 125.9 Risk $1,358,200.00 125 125 Risk $4,800.00 99.1 120 Risk $338,650.00 Springfield WEST SPRINGFIELD on PIPER from WSF' 5 HDPE 6" 32 32 0 32 0 60 AORC Inventory Project located at the intersection of Piper Road and Mount Pleasant Avenue. Pipe surronding project has low optimain scores. Springfield Saratoga St - Inventory SPR 44 HDPE 6" 1,141 1,141 1,141 0 0 14" AORC Inventory Project Springfield SPRINGFIELD on MAIN from LOCU SPR 122 HDPE 4" 2,800 3,917 3,023 894 0 14" AORC Inventory Project,Broad, Wendell, Elmwood, Rutledge, Main 92 114 Risk $868,900.00 Springfield SPRINGFIELD on SAINT JAMES fro SPR 111 HDPE 6 2,610 3,875 3,665 210 0 14" AORC Inventory Project 131 113 Operational Issues/Risk $800,200.00 Springfield Union St - Inventory SPR 51 HDPE 6" 3,300 3,300 3,300 0 0 14" AORC Inventory Project 54.5 112 Risk $562,000.00 Springfield Fairview St CHI 63 HDPE 4" 2,700 2,700 2,700 0 0 14" AORC Inventory Project,Fairview (Bonneville to Hafey), Sitnik, Van Horn, Moore What is the score ranking with respect to our protocol for this year? 71 112 Risk $599,300.00 Springfield Beech St - Inventory SPR 74 HDPE 2" 2,801 2,801 2,801 0 0 14" AORC Inventory Project 42 111.1 Risk $647,950.00 Springfield CHICOPEE on GILL from CHICOPE CHI 96 HDPE 2" 3,135 3,027 0 3,027 0 60 3 109 Risk $751,650.00 $355,200.00 AORC Inventory Project,Gill, Cox, Harding, Marshall, Chicopee St What is the score ranking with respect to our protocol for this year? AORC Inventory Project, Dwight (Liberty to Bridge), Chestnut (Murray to Lyman) Springfield Dwight St SPR 30 HDPE 6" 2,100 2,100 2,100 0 0 14" 67 108 Risk Springfield WEST SPRINGFIELD on AMES from WSF' 10 HDPE 2" 350 350 350 0 0 14" AORC Inventory Project,Stay LP 72.4 107 Risk $92,700.00 Springfield Massasoit St - Inventory SPR 150 HDPE 2" 3,335 3,335 3,335 0 0 14" AORC Inventory Project 74.6 106.1 Risk $1,083,150.00 Springfield Mandalay St- Inventory SPR 91 HDPE 2" 3,645 3,600 3,600 0 0 14" AORC Inventory Project, Groveton, Mandalay, Califorina, Arden, Dell 84.9 105.3 Risk $828,150.00 Springfield Locust St SPR 122 HDPE 6" 2,300 2,300 1,400 900 0 14" AORC Inventory Project,Locust, Acushnet, Warriner 94 104 Risk $901,100.00 Springfield Daley St CHI 71 HDPE 2" 3,500 3,500 0 2,600 900 60 AORC Inventory Project, Daley, Cora, Willwood, Haus, Chicopee (Riverpark to Willwood) 22 102 Risk $692,500.00 Springfield St James Ave- Inventory CHI 81 HDPE 2" 3,240 3,200 2,880 320 0 14" AORC Inventory Project,St James and Marabrough 135.8 102 Risk $740,600.00 Springfield Utica St - Inventory SPR 106 HDPE 4" 3,816 3,816 3,816 0 0 14" AORC Inventory Project 9 100.8 Risk $914,100.00 Springfield Quincy St - Paving SPR 111 HDPE 2" 2,746 2,746 2,746 0 0 14" SPRINGFIELD PAVING 37.6 100.6 Paving $874,200.00 Springfield CHICOPEE on DALE from SILVIN to CHI 73 HDPE 3,505 3,505 0 3,505 0 60 AORC Inventory Project,Replace poor Steel 166 95 Risk Springfield SPRINGFIELD on CHESTNUT from SPR 72 HDPE 4" 2,590 2,425 2,015 410 0 14" AORC Inventory Project,Incl. Mattoon, Dwight, Harrison, Market, Court 248 91 Risk $663,200.00 Springfield SPRINGFIELD on SHAMROCK from SPR 144 HDPE 6" 4,050 3,900 3,780 120 0 14" AORC Inventory Project,Shamrock, Oakland, Noel, 93.6 89 Risk $1,096,600.00 $699,950.00 Springfield SOUTH HADLEY on CENTRAL from SHL 16 HDPE 2" 800 800 0 800 0 60 AORC Inventory Project,replace 2" WSMP connect to granby 105.7 87.1 Risk $153,500.00 Springfield Lloyd Avenue - Paving SPR 49 HDPE 2" 1,645 1,645 1,645 0 0 14" SPRINGFIELD PAVING 2.4 87 Paving Springfield SPRINGFIELD on PLAINFIELD from SPR 154 HDPE 2" 3,025 2,850 2,850 0 0 14" AORC Inventory Project,Plainfield Street (Orchard to Loweell), Lowell St, Orchard St 115 86 Risk $414,250.00 $1,311,350.00 Springfield Tracy St - Paving SPR 13 HDPE 2" 458 458 458 0 0 14" SPRINGFIELD PAVING 28 85 Paving $108,900.00 Springfield Savoy Ave - Paving SPR 78 HDPE 4" 3,097 3,097 3,097 0 0 14" SPRINGFIELD PAVING 30 83.4 Paving $699,050.00 Springfield SPRINGFIELD on UNION from RIDG SPR 40 HDPE 4" 2,300 1,760 1,760 0 0 14" AORC Inventory Project 233.1 82.6 Risk $418,700.00 Springfield SPRINGFIELD on ALLEN from WHI SPR 95 CS 6" 4,150 4,150 4,150 0 0 10 AORC Inventory Project 130 81 Risk $910,600.00 115 80 Risk $1,425,650.00 Springfield SPRINGFIELD on DICKINSON from SPR 200 HDPE 4" 4,591 4,591 4,591 0 0 14" AORC Inventory Project to replace main on Locust, Leyfred, Darwell, Woodsie Terr, feed from Mill Street. Springfield Washington Blvd - Paving SPR 50 HDPE 6" 2,360 2,360 2,360 0 0 14" SPRINGFIELD PAVING 44.6 71.2 Springfield MELVILLE STREET- OPTIMAIN SPR 38 HDPE 2" 1,550 1,550 1,550 0 0 14" Highest Single Segment Optimain Inventory Project 134 70 Springfield RIVERS AVENUE- CSO (2) CHI 50 HDPE 2" 1,485 1,455 1,455 0 0 14" Chicopee CSO Work - Direct conflict with proposed work 76.6 68.5 Mandatory Relocation $504,150.00 $771,950.00 Paving $481,300.00 Risk $420,100.00 Springfield MASSACHUSETTS AVE- OPTIMAIN SPR 78 HDPE 2" 1,975 1,975 1,975 0 0 14" Highest Single Segment Optimain Inventory Project 128 63.5 Risk Springfield ELLSWORTH RD- OPTIMAIN SPR 63 HDPE 2" 2,225 2,220 2,220 0 0 14" Highest Single Segment Optimain Inventory Project 129 63.3 Risk $662,050.00 Springfield LONGMEADOW STREET- OPTIMA LON 18 HDPE 2" 800 800 800 0 0 10 Highest Single Segment Optimain Inventory Project 130 63 Risk $200,400.00 Springfield Ivanhoe St - Paving SPR 6 HDPE 4" 313 313 313 0 0 14" SPRINGFIELD PAVING 8.1 61 Paving $60,350.00 Springfield Pelham St - Paving SPR 34 HDPE 4" 1,444 1,200 1,200 0 0 14" SPRINGFIELD PAVING 30.4 61 Paving $310,400.00 $419,150.00 Springfield SPRINGFIELD on WILBRAHAM from SPR 43 HDPE 2" 2,035 2,035 2,035 0 0 14" AORC Inventory Project,Maebeth St (Wilbraham to Sunrise), Sunrise (Maebeth to Catalpa Terr) 36.1 60.5 Risk Springfield SACHEM STREET- OPTIMAIN SPR 12 HDPE 6" 560 560 560 0 0 14" Highest Single Segment Optimain Inventory Project 140 58.9 Risk Springfield Upland St - Paving SPR 27 HDPE 2" 1,135 1,135 1,135 0 0 14" SPRINGFIELD PAVING 47.9 58 Paving $250,650.00 Springfield OREGON STREET- OPTIMAIN SPR 32 HDPE 2" 1,500 1,500 1,500 0 0 14" Highest Single Segment Optimain Inventory Project 128 56.4 Risk $352,300.00 Springfield Piedmont St - Paving SPR 16 HDPE 2" 553 195 195 0 0 14" SPRINGFIELD PAVING 4.4 55.2 Paving $136,550.00 Springfield Redlands St - Paving SPR 34 HDPE 4" 765 1,503 1,503 0 0 14" SPRINGFIELD PAVING 44.9 52 Paving $255,450.00 Springfield Pheland St - Paving SPR 67 HDPE 2" 2,937 2,937 2,937 0 0 14" SPRINGFIELD PAVING 7.7 50.4 Paving $628,150.00 Springfield WALLACE AVENUE- CSO (2) CHI 13 HDPE 2" 625 625 0 346 279 60 Chicopee CSO Work - Direct conflict with proposed work 2.4 45.7 Mandatory Relocation $140,650.00 Springfield JAMES STREET- CSO (3) CHI 66 HDPE 4" 3,765 3,750 270 3,480 0 60 Chicopee CSO Work - Direct conflict with proposed work 9.7 45.7 Mandatory Relocation $772,450.00 Springfield APPLETON ST- OPTIMAIN SPR 48 HDPE 2" 1,700 1,700 1,700 0 0 14" Highest Single Segment Optimain Inventory Project 126 43 Risk $496,200.00 Springfield CHICOPEE on CORA from CHICOP CHI 113 HDPE 6" 3,532 3,532 0 3,532 0 60 AORC Inventory Project 154.7 72.96 Risk $864,800.00 SPR 144 2" 4,030 3,895 3,895 AORC Inventory Project,Incl. Moore, Talcott, Abbe 192 Risk $1,247,700.00 Springfield Burr St Inventory - Inventory SPR 156 HDPE 6" 4,566 4,566 4,566 0 0 14" AORC Inventory Project 72.1 188.5 Risk $1,247,700.00 Springfield ST JAMES AVENUE- OPTIMAIN SPR 17 HDPE 6" 600 590 0 590 0 14" Highest Single Segment Optimain Inventory Project 117 144.6 Risk $170,400.00 Springfield HAMPDEN on SOMERS from BAYB HAM 11 HDPE 6" 800 800 0 800 0 60 AORC Inventory Project 36.5 123.05 Risk $133,400.00 Springfield SPRINGFIELD on DEMOND from P HDPE 0 0 14" 68 $130,900.00 Columbia Gas of Massachusetts D.P.U. 17-GSEP-05 Exhibit CMA/DEM-2 Appendix A Page 12 of 14 Operating Center Project Name City Duration (Days) Type to Install Springfield SPRINGFIELD on FLORA from CAL SPR 30 Springfield MANDALAY STREET- OPTIMAIN SPR 23 Springfield Orleans St SPR 107 Size(s) to Install Install Footage Total GSEP Priority Pipe Retired BS, UCS, WI, CI HDPE 2 1,140 HDPE 6" 900 HDPE 4" 3,700 CI / WI To Be Retired UCS To Be Retired Bare Steel To Be Retired 1,140 0 1,140 0 60 891 891 0 0 14" 3,700 3,700 0 0 Current MAOP 14" Project Comments / Justification 55.1 113.4 Risk 117 105.3 Risk $242,200.00 36 101 Risk $930,200.00 61.1 100.7 Risk $779,750.00 85.1 100.4 Risk $1,088,300.00 Larkspur St- Invetory SPR 82 HDPE 6" 3,635 3,635 3,635 0 0 14" Oakland - Inventory SPR 145 HDPE 6" 3,682 3,682 2,832 850 0 14" AORC Inventory Project Springfield ASHGR0VE STREET- CSO (4) CHI 17 HDPE 2 815 815 0 442 373 60 Chicopee CSO Work - Direct conflict with proposed work Springfield Loring St - Inventory SPR 58 HDPE 6 1,653 1,653 1,653 0 0 14" AORC Inventory Project WSF 57 HDPE Springfield Springfield Springfield INDIAN ORCHARD on OAK from CA IOR 86 Lincoln St - Inventory LON 78 Cedar St- Inventoty SPR 72 Springfield SPRINGFIELD on ABBE from RIVER SPR 68 0 0 14" AORC Inventory Project,Ohio (Westfield to Falmouth), Westfield (Ohio to Pilgrim) 1,791 0 0 14" AORC Inventory Project,Oak St, Main St 1,815 994 0 14" AORC Inventory Project 1,750 955 0 14" AORC Inventory Project,Cedar, Lebanon, James 1,615 1,615 0 0 14" AORC Inventory Project,Abbe Ave( Fisk Ave to Riverside Rd) 6" 3,200 2,700 2,700 HDPE 6" 1,828 1,791 HDPE 6" 4,624 2,809 HDPE 4 2,705 2,705 HDPE 2 1,615 Project Driver: Paving, Emergency, Mandatory Relocation, Preliminary Project Estimate With Services Compliance, Carry Over, Risk, Encroachment, Operational Issues Highest Single Segment Optimain Inventory Project Springfield Ohio Ave AOCR Score AORC Inventory Project AORC Inventory Project,Orleans, Lillian, Union (Oak to Stebbins), Stebbins (Union to Quincy), Quincy (Stebbins to Oak), Carpenter AORC Inventory Project,Larkspur, Trillium, Greenbrier, Bethel, Springfield Springfield Highest Single Optimain Score per 1000/ft $258,100.00 2.3 97.2 Mandatory Relocation 36.4 96.7 Risk $455,650.00 52 96 Risk $620,700.00 66 94 Risk $175,850.00 $609,200.00 20.2 93.9 Risk $834,300.00 52 93.8 Risk $640,250.00 43.3 92.9 Risk $550,450.00 Springfield Grandby - Inventory SPR 173 HDPE 6" 3,810 3,810 2,929 881 0 14" AORC Inventory Project 44.2 91.5 Risk $1,187,900.00 Springfield William st - Inventory SPR 24 HDPE 4" 975 975 975 0 0 14" AORC Inventory Project 66.2 91.4 Risk $213,250.00 Springfield Connecticut Ave SPR 63 HDPE 6" 3,200 2,900 2,400 500 0 14" 17 89 Risk $640,800.00 Springfield Main St (Osgood to Carew) SPR 69 HDPE 4" 3,060 3,560 3,560 0 0 14" 79.3 88.5 Risk $653,300.00 AORC Inventory Project,Connecticut (Parking to Athol), Park, Upton, Dana (Conn. To Newbury) AORC Inventory Project,Morgan, Main St, John St, St George St Springfield SPRINGFIELD on RUSKIN from ELE SPR 173 HDPE 6" 4,752 4,752 4,752 0 0 14" AORC Inventory Project 76.4 88.09 Risk $1,295,700.00 Springfield Shawmut - Inventory SPR 138 HDPE 6" 4,025 4,025 4,025 0 0 14" AORC Inventory Project 74.7 87.2 Risk $1,045,950.00 Springfield Center St CHI 71 HDPE 6" 3,000 3,000 3,000 0 0 14" AORC Inventory Project,Center (Nonotuck to Exchange), Exchange (Center to Cabot), Miller, Nonotuck (Center to South), Gilmore (Nonotuck to Union), Cabot @ Center, Park (Chestnut to Dwight) 122 87 Risk $664,400.00 Springfield Clifford St - Inventory SPR 62 HDPE 2 1,842 1,842 1,842 0 0 14" AORC Inventory Project 48.6 86.9 Risk $497,400.00 Springfield Exchange St- Inventory CHI 134 HDPE 6" 3,600 3,450 3,450 0 0 14" AORC Inventory Project,Exchange St, School St, Dwight St,Perksin 87.7 86.4 Risk $1,102,800.00 Springfield EXCHANGE STREET- OPTIMAIN CHI 45 HDPE 6" 900 888 388 0 500 14" Highest Single Segment Optimain Inventory Project 113 86.4 Risk $416,400.00 Springfield Memorial Ave (Main St to Rotary) WSF 12 CS 12 550 550 0 550 0 14" AORC Inventory Project,Memorial Ave (Main St to Rotary) 14 86 Risk $109,300.00 Springfield Hanward St ELM 58 HDPE 2 3,200 3,000 2,600 400 0 14" AORC Inventory Project,Hanward St, Field (Hanward to Dell), Pleasant (Birchland to Hanward) 35 86 Risk $607,300.00 Springfield Stebbins - Inventory SPR 101 HDPE 2 3,716 3,716 3,716 0 0 14" AORC Inventory Project 27.6 85.9 Risk $865,600.00 Springfield Bangor St - Inventory SPR 43 HDPE 6" 1,714 1,714 1,714 0 0 14" AORC Inventory Project 52.9 85.7 Risk $384,400.00 14" Springfield Grape - Inventory CHI 186 HDPE 6" 3,919 3,919 3,919 AORC Inventory Project 54.7 85.7 Risk $1,291,350.00 Springfield SPRINGFIELD on GLENWOOD from SPR 128 HDPE 6" 3,975 3,975 3,830 145 0 14" AORC Inventory Project 155.3 85 RIsk $1,018,350.00 Springfield REVERE STREET- OPTIMAIN SPR 31 HDPE 6" 650 610 310 300 0 14" AORC Inventory Project,From Grand St to Orange St 120 84.2 Risk $305,200.00 Springfield Kensington St - Inventory SPR 94 HDPE 6 2,938 2,938 2,938 0 0 14" AORC Inventory Project 53.8 84.17 Risk $769,000.00 Springfield SPRINGFIELD on LIBERTY from GE SPR 170 HDPE 6" 3,577 3,402 2,948 454 0 14" AORC Inventory Project,Ledyard, Genesee, Franklin, Liberty, Tracy, Columbia 80.1 84 Risk $1,186,450.00 Springfield Drexel St- Inventory SPR 57 HDPE 2 3,010 3,000 3,000 0 0 14" AORC Inventory Project,Drexel, Eddy, Fairfax 19.8 83.4 Risk $612,300.00 Springfield Palmyra St SPR 61 HDPE 6" 2,600 2,600 2,600 0 0 14" 79 83 Risk $591,000.00 Springfield ? on GEORGE from DEXTER to PIN SPR 79 HDPE 6" 2,910 2,900 2,900 0 0 14" 153.6 83 Risk $671,000.00 Springfield WEST SPRINGFIELD on MEMORIA WSF 66 HDPE 6" 383 6,522 5,180 1,342 0 14" 82.9 83 Risk $365,650.00 Springfield SPRINGFIELD on BELMONT from W SPR 227 HDPE 6" 5,128 4,992 4,992 0 0 14" 2.1 79 Risk $1,606,700.00 Springfield SPRINGFIELD on MILL from LOCUS SPR 56 HDPE 16" 1,290 1,290 1,290 0 0 4 251 77 Risk $474,900.00 Springfield PHOENIX STREET- OPTIMAIN SPR 37 HDPE 6" 1,550 1,450 1,450 0 0 14" AORC Inventory Project, From Newbury St to Kendall St 122 76.6 Risk $406,700.00 Springfield SCOTT STREET- OPTIMAIN SPR 27 HDPE 6" 750 725 725' 0 0 14" Highest Single Segment Optimain Inventory Project 114 72.1 Risk $266,600.00 Springfield SARATOAGA AVENUE-CSO (4) CHI 25 HDPE 6" 980 980 980 0 0 14" Chicopee CSO Work - Direct conflict with proposed work 32.1 70.7 Mandatory Relocation $260,900.00 Springfield DRESSER AVENUE- CSO (4) CHI 19 HDPE 6" 850 825 825 0 0 14" Chicopee CSO Work - Direct conflict with proposed work 59.3 70.7 Mandatory Relocation $201,200.00 Springfield ELM STREET- OPTIMAIN NOR 29 HDPE 4" 1,650 1,638 1,638 0 0 14" Highest Single Segment Optimain Inventory Project 113 63.1 Risk $334,600.00 Springfield BONNER ST/BEVERLY ST- CSO (4 CHI 85 HDPE 2" 2,575 2,382 190 2,192 0 60 Chicopee CSO Work - Direct conflict with proposed work 4.8 52.9 Mandatory Relocation $888,750.00 120 46.7 Risk $297,900.00 68 74.8 Risk $483,300.00 $808,950.00 0 0 AORC Inventory Project,Palmyra, Plumtree @ Allen, Wayne (Palmyra to Perkins), Allen (Palmyra to Wexford) AORC Inventory Project, Maple St, George St, Dorn St, Newman, Smith AORC Inventory Project, Memorial, Dyke, Bramble, Springfield St (AGA) AORC Inventory Project, Larkspur, Trillium, Greenbrier, White, Ashmont, Prescott, Wesson, Belvedire, Fountain, Blaine, Belmont AORC Inventory Project, Warriner Street, Locust St (Main St to Mill St) Springfield ROCHFORD STREET- OPTIMAIN SPR 25 HDPE 2" 1,450 1,445 0 1,445 0 60 Highest Single Segment Optimain Inventory Project Springfield SPRINGFIELD on BLAKE from WOO SPR 49 HDPE 6" 2,150 2,275 2,275 0 0 14" AORC Inventory Project, Blake Street, Belvidre St(Fountain St to Velentine St), Fairdel St, Dixwell St, Valentine St Springfield LONGMEADOW on EMERSON from LON 94 HDPE 6" 3,651 3,651 3,151 0 500 14" AORC Inventory Project on Bliss St and Emerson St Springfield SPRINGFIELD on SYCAMORE from SPR 101 HDPE 6" 2,000 2,000 2,000 0 0 14" AORC Inventory Project, Sycamore/Kenyon Springfield CHICOPEE on BALTIMORE from MA CHI 43 HDPE 6" 2,670 2,570 570 2,000 0 14" AORC Inventory Project, Baltimore,Maryland, and New York tie into 60 psig Springfield FORT PLEASANT from EDGELAND SPR 145 HDPE 6" 2,882 2,882 2,882 0 0 14" Springfield MEMORIAL from YORK to HEYWOO WSF' 18 HDPE 6" 0 4,000 4,000 0 0 14" AORC Inventory Project, Memorial Drive AORC Inventory Project, Replace LP CI and UPCS main on Phillips Street with LP PH from Boston Road. Springfield SPRINGFIELD on PHILLIPS from H Springfield Springfield SPR 12 HDPE 6" 496 496 CHICOPEE on GRANBY from GRAT CHI 24 HDPE 4" 1,225 NORTHAMPTON on SERVICE CEN NOR 2 HDPE 4" 90 Springfield WEST SPRINGFIELD on KINGS fro WSF 16 HDPE 6" 900 Springfield SPRINGFIELD ST/NEWBURY ST - CHI 320 HDPE 4 13,710 Springfield MAIN STREET- OPTIMAIN SPR 19 HDPE 8 900 850 AORC Inventory Project 91 70.6 Risk 83.4 68.7 Risk $688,600.00 60 64.9 Risk $480,900.00 $968,300.00 59.9 64.77 Risk 202.7 60 Risk $93,800.00 43.3 58.6 Risk $114,600.00 $237,350.00 231 265 0 14" 1,225 0 1,225 0 60 AORC Inventory Project 32.4 32.4 Risk 90 0 90 0 60 AORC Inventory Project 44.4 22.07 Risk 900 0 900 0 14" AORC Inventory Project,Chestnut 246.2 21.1 risk $161,800.00 12,788 6,394 0 6,394 14" AORC Inventory Project, CSO work 195.5 58.7 Risk $2,900,700.00 850 0 0 14" AORC Inventory Project 109 124.7 Risk $208,700.00 $20,200.00 Columbia Gas of Massachusetts D.P.U. 17-GSEP-05 Exhibit CMA/DEM-2 Appendix A Page 13 of 14 Highest Single Optimain Score per 1000/ft Project Driver: Paving, Emergency, Mandatory Relocation, Preliminary Project Estimate With Services Compliance, Carry Over, Risk, Encroachment, Operational Issues Operating Center Project Name City Duration (Days) Type to Install Size(s) to Install Install Footage Total GSEP Priority Pipe Retired BS, UCS, WI, CI CI / WI To Be Retired UCS To Be Retired Bare Steel To Be Retired Current MAOP Springfield ? on LIBERTY from CALVIN to TOU SPR 79 HDPE 6 2,850 4,380 3,080 1,300 0 14" AORC Inventory Project, Poor CI 15.1 92 Risk Springfield ANDREW STREET- OPTIMAIN SPR 38 HDPE 2 1,350 1,300 1,300 0 0 14" Highest Single Segment Optimain Inventory Project 111 88.5 Risk $396,800.00 Springfield SPRINGFIELD on NURSERY from F SPR 90 HDPE 6 1,621 3,831 1,916 0 1,915 14" AORC Inventory Project 7 87.87 Risk $571,450.00 AORC Inventory Project to replace main on Elwood, Avondale, Neptune, Rochelle and Roseland. 112 83.7 Risk $938,800.00 AORC Inventory Project 77.3 82.3 Risk $447,300.00 78.4 81.7 Risk $1,031,400.00 Springfield WEST SPRINGFIELD on RIVERDA WSF' 116 HDPE 6 3,802 3,802 3,802 0 0 14" Springfield Stratford St - Inventory SPR 56 HDPE 6 1,642 1,642 1,642 0 0 14" Springfield Allendale St- Inventory SPR 124 HDPE 6 3,660 3,600 3,600 Springfield College St SPR 155 HDPE 6 4,600 4,300 Springfield Wheeler - Inventory SPR 68 HDPE 2 2,607 2,607 Project Comments / Justification AORC Inventory Project,Brookline, Allendale, Hebron, Ringold, Carew AORC Inventory Project,College, Maynard, Larch, Shattuck (College to Maynard) AOCR Score $668,700.00 0 0 14" 4,300 0 0 14" 73 81 Risk $1,306,400.00 1,420 1,187 0 14" AORC Inventory Project 27.5 80.9 Risk $592,050.00 AORC Inventory Project 32.2 80.1 Risk $251,300.00 56.4 80 Risk $893,650.00 86 80 Risk $814,700.00 Springfield Bowles St - Inventory SPR 36 HDPE 2 648 648 648 0 0 14" Springfield Ontario St- Inventory SPR 97 HDPE 6 3,635 3,630 2,700 930 0 14" Springfield California Ave SPR 82 HDPE 2 3,600 3,500 3,400 100 0 14" Springfield NEWBURY STREET- OPTIMAIN SPR 17 HDPE 6 1,150 1,125 0 1,125 0 14" Springfield Carlton - Inventory SPR 51 HDPE 6 1,638 1,638 1,638 0 0 14" AORC Inventory Project 46.4 79.8 Risk $399,800.00 Springfield Lebanon St - Inventory SPR 38 HDPE 2 1,207 1,207 1,207 0 0 14" AORC Inventory Project 68.8 79.5 Risk $315,050.00 Springfield SPRINGFIELD on ELSIE from HIGH SPR 55 HDPE 2 2,120 2,400 1,950 300 150 14" AORC Inventory Project,combine this project with ALDEN (ROW 204) 97.8 79.49 Risk $478,800.00 Springfield Norman St- Inventory SPR 60 HDPE 6 2,575 2,700 1,000 1,700 0 14" AORC Inventory Project,Norman St, Roy St 27.3 79.2 Risk $580,550.00 Springfield CALIFORNIA AVENUE- OPTIMAIN SPR 39 HDPE 2 1,875 1,850 1,850 0 0 14" AORC Inventory Project,California and Arden 112 79 Risk $428,650.00 Springfield CHICOPEE on BOYLSTON from WO CHI 9 HDPE 2 600 600 0 0 600 60 AORC Inventory Project, replace 2" BSMP Springfield Banbury - Inventory SPR 113 HDPE 6 3,300 3,300 3,300 0 0 14" AORC Inventory Project 75.6 78.6 Risk $870,200.00 Springfield Brooks St - Inventory SPR 21 HDPE 6 1,209 1,209 1,209 0 0 14" AORC Inventory Project 12.7 78.5 Risk $221,550.00 Springfield Chapin Terr- Inventory SPR 35 HDPE 2 1,585 1,585 1,195 390 0 14" AORC Inventory Project, Chapin Terr, Marvin St 28.9 78.5 Risk $338,250.00 72 78 Risk $1,038,700.00 81 78 Risk $922,850.00 86 78 Risk $574,100.00 AORC Inventory Project,Ontario, Connecticut, Parkin, Francis AORC Inventory Project,California, Mandalay, Arden, Island Pond (Arden to Allen) Highest Single Segment Optimain Inventory Project AORC Inventory Project, Commonwealth (Fountain to Carroll), Draper (Fountain to Darroll), Shawmut ( Fountain to Fern), Fern (Draper to Shawmut) AORC Inventory Project, Gillette Street, Clement Street, Ford Street AORC Inventory Project, Main St (Osgood to Patton), John St 113 78.8 80 78.8 Risk Risk $212,700.00 $103,400.00 Springfield Draper St SPR 114 HDPE 6 4,200 4,200 3,800 400 0 14" Springfield ALLEN from CLEMENT to GILLETTE SPR 102 HDPE 2 3,785 3,700 2,715 985 0 14" Springfield Main St SPR 57 HDPE 6 2,800 4,700 4,100 600 0 14" Springfield Clavin St - Inventory SPR 45 HDPE 4" 1,587 1,587 335 1,253 0 14" AORC Inventory Project 3.2 77.8 Risk $385,450.00 Springfield Knox St- Inventory SPR 124 HDPE 6 3,400 3,355 3,355 0 0 14" AORC Inventory Project, Knox, Smith, Dorne, Newman, Windsor, Renne 53 77.7 Risk $1,039,300.00 Springfield Blunt - Inventory SPR 197 HDPE 2 5,441 5,441 5,441 0 0 14" AORC Inventory Project 38.7 77.6 Risk $1,492,850.00 Springfield Spruceland St - Inventory SPR 61 HDPE 4 3,027 3,027 3,027 0 0 14" AORC Inventory project 24.5 77.5 Risk $601,450.00 Springfield Kings Hwy WSF 54 HDPE 4 3,200 3,500 2,500 1,000 0 14" AORC Inventory Project, Kings (700' W of Boulevard to Amostown), Amostown (Kings to 200' W of Kings), Piper (Kings to Hillside), Kings Terr 69 77 Risk $593,900.00 Springfield COMMONWEALTH AVENUE- OPTI SPR 56 HDPE 6 2,050 2,000 2,000 0 0 14" AORC Inventory Project, Washtington St to Carroll 107 77 Risk $588,900.00 Springfield SPRINGFIELD on BAY from ARBUT SPR 55 HDPE 2 1,350 2,124 1,912 212 0 14" AORC Inventory Project, Baywood, Arbutus, Goldenrod 183.9 77 Risk $396,800.00 Springfield Greenleaf - Inventory WSF 210 HDPE 6 2,653 2,653 2,653 0 0 14" AORC Inventory Project 42.3 76.9 Risk $1,329,250.00 Springfield Genesse St- Inventory SPR 82 HDPE 2 2,570 2,570 2,005 565 0 14" AORC Inventory Project, Ledyard, Genesee, Tracy, Liberty 78.7 76 Risk $713,800.00 14" AORC Inventory Project, Mereline, Londergan, Riderick, Kinston 175.7 76 Risk $536,250.00 Springfield EAST LONGMEADOW on LOMBAR ELM 66 HDPE 6 2,101 2,427 2,110 317 0 Springfield School - Inventory WSF 255 HDPE 2 2,288 2,288 2,288 0 0 14" AORC Inventory Project 70.4 74.4 Risk $1,482,200.00 Springfield Home St - Inventory SPR 73 HDPE 6 1,982 1,982 1,982 0 0 14" AORC Inventory project 48.8 74.37 Risk $572,000.00 AORC Inventory Project, Longmeadow (Converse to Edgewood), Meadowbrook 65 74 Risk $694,100.00 Springfield Longmeadow St LON 64 HDPE 6 3,600 3,600 3,600 0 0 14" Springfield Priscilla St - Inventory SPR 88 HDPE 6 1,434 1,434 1,434 0 0 14" AORC Inventory Project 81 73.3 Risk $603,700.00 AORC Inventory Project on Wilbraham, Dearborn, Colonial, Dresden, Reed 94 67.2 Risk $1,593,700.00 295.2 66.87 Springfield WILBRAHAM from BYRON to ROOS SPR 219 HDPE 2 5,220 5,220 5,220 0 0 14" Springfield CLARENDON from BUCKINGHAM t SPR 101 HDPE 6 3,162 3,162 3,162 0 0 14" Springfield CLANTOY STREET- OPTIMAIN SPR 64 HDPE 4 1,485 1,435 1,435 0 0 14" Highest Single Segment Optimain Inventory Project 111 66.8 Risk $638,150.00 Springfield CENTRAL STREET- OPTIMAIN SPR 14 HDPE 6 850 840 840 0 0 14" Highest Single Segment Optimain Inventory Project 106 60.2 Risk $167,700.00 Springfield OHIO AVENUE- OPTIMAIN WSF 43 HDPE 2 2,075 2,075 2,075 0 0 14" Springfield LONGMEADOW on FARMINGTON LON 51 HDPE 6 2,850 2,850 2,575 275 0 14" Springfield CHICOPEE on SPRINGFIELD from CHI 87 HDPE 2 3,565 3,560 3,560 0 0 14" Springfield SPRINGFIELD on PARKER from CA SPR 126 HDPE 2 5,300 5,200 0 5,200 0 60 Springfield LUDLOW on GREENWICH from PR LUD 110 HDPE 6 3,500 3,500 3,500 0 0 14" AORC Inventory Project, Incl. Prospect, Birch, Highland 114 60 Risk $1,020,800.00 Springfield SPRINGFIELD on WOODSIDE from SPR 214 HDPE 6 5,100 4,500 4,500 0 0 14" AORC Inventory Project, break project into 2 phases 75.1 53.55 Risk $1,555,600.00 Springfield DAWSON from PASADENA to WHIT SPR 107 HDPE 6 2,115 2,115 2,115 0 0 14" AORC Inventory Project, Pasadena, Dawson, Gordon 13.3 Springfield WHITTIER from LONGFELLOW to H SPR 178 HDPE 4 3,743 3,457 3,457 0 0 14" AORC Inventory Project Highest Single Segment Optimain Inventory Project AORC Inventory Project, Farmington St (Laurel St to Burbank), Oxford St (Farmington to eom), Eton (farmington to eom), Ruby(Farmington to eom) AORC Inventory Project, Mellen St, Northwood St, Springfield St(Mellen St to Northwood St), Sherman St(Springfiedl St to Davenport St) AORC Inventory Project, Catalina Dr, Malibu Dr, Briarcliff, Bartles St, Parker(Ruthven to Briarcliff) Risk $822,700.00 108 55.7 Risk $478,750.00 56.5 65.8 Risk $541,400.00 90.4 62 Risk $782,650.00 16.6 62 Risk $1,143,400.00 13.4 Risk $725,950.00 AORC Inventory Project, Priscilla, Standish, Hiawatha, Longfellow. Tie in to IP on Sylvan @ Belmont AORC Inventory Project, Oak St, End of Project should have been replaced AORC Inventory Project, Elm St (East Elm St to Rochelle), Witch St, Gay Terr 81.9 5519 Risk $1,224,750.00 116.7 116.7 Risk $5,400.00 24 76 Risk $648,800.00 Springfield INDIAN ORCHARD on OAK from KA IOR 5 HDPE 6" 36 36 36 0 0 14" Springfield WEST SPRINGFIELD on ELM from WSF 65 HDPE 6 3,030 3,030 3,030 0 0 14" Springfield SPRINGFIELD on TIFFANY from W SPR 59 HDPE 6 3,241 3,241 621 2,620 0 14" AORC project to replace main on Tiffany 122.6 75 Risk $600,050.00 Springfield Benedict St- Inventory LON 62 HDPE 6 3,325 3,320 3,320 0 0 14" AORC Inventory Project, Benedict, Birchwood, Llewellyn 33.1 74.3 Risk $639,450.00 Springfield Callender St- Inventory ELM 48 HDPE 6 2,954 2,254 2,254 0 0 14" AORC Inventory Project, Callender, Park, William, School 17.8 73.6 Risk $530,200.00 Springfield Eton - Inventory SPR 89 HDPE 6 3,432 3,432 3,432 0 0 14" AORC Inventory Project 49.8 73.6 Risk $776,100.00 Springfield Hampden St - Inventory IOR 37 HDPE 4 1,141 1,141 1,141 0 0 14" AORC Inventory project 47.8 73.59 Risk $298,450.00 Columbia Gas of Massachusetts D.P.U. 17-GSEP-05 Exhibit CMA/DEM-2 Appendix A Page 14 of 14 Operating Center Project Name City Duration (Days) Type to Install Size(s) to Install Install Footage Total GSEP Priority Pipe Retired BS, UCS, WI, CI CI / WI To Be Retired UCS To Be Retired Bare Steel To Be Retired Current MAOP Project Comments / Justification Highest Single Optimain Score per 1000/ft AOCR Score Project Driver: Paving, Emergency, Mandatory Relocation, Preliminary Project Estimate With Services Compliance, Carry Over, Risk, Encroachment, Operational Issues Springfield Main St ELM 64 HDPE 10 2,800 2,800 2,800 0 0 14" AORC Inventory Project, Main (Shaw to Dewey), Dewey, Westwood (Main to 400' W of Main) 84 73 Risk Springfield Linden - Inventory CHI 90 HDPE 6 3,036 3,036 3,036 0 0 14" AORC Inventory Project 69.7 72.8 Risk $723,400.00 Springfield Tyrone St - Inventory SPR 82 HDPE 6 3,064 3,064 3,064 0 0 14" AORC Inventory project 27.6 72.4 Risk $714,200.00 $701,400.00 $621,000.00 Springfield Dana St- Inventory SPR 68 HDPE 6 3,470 3,400 3,400 0 0 14" AORC Inventory Project, Dana, Connecticut, Upton, Park, Milford 30.3 72.4 Risk Springfield Bacon - Inventory SPR 70 HDPE 2 3,619 3,619 0 3,619 0 60 AORC Inventory Project 21.1 72.2 Risk $690,250.00 Springfield Mooreland St - Inventory SPR 81 HDPE 2 1,457 1,457 1,457 0 0 14" AORC Inventory project 13.9 71.93 Risk $566,950.00 White Ave- Inventory ELM 20 HDPE 6 Springfield 800 750 750 0 0 14" AORC Inventory Project, White Ave 50.3 71.5 Risk $187,000.00 Springfield Washington - Inventory SPR 74 HDPE 6 2,950 2,950 2,950 0 0 14" AORC Inventory Project 36.8 71.2 Risk $656,900.00 Springfield GIFFORD from ALLEN RIDGE to AM SPR 56 HDPE 4 2,720 2,720 2,340 380 0 14" AORC Inventory Project, Gifford St ( Harkness to Canterbury) Canturberry, Allen Ridge (CI main) 19.7 70.9 Risk $555,400.00 Springfield Melville St - Inventory SPR 72 HDPE 4 2,734 2,734 2,734 0 0 14" AORC Inventory project 58.4 70.9 Risk $631,200.00 Springfield Suffolk St- Inventory SPR 70 HDPE 6 2,635 2,600 2,600 0 0 14" AORC Inventory Project, Suffolk, Marlborough 62.6 70.9 Risk $663,250.00 Springfield Buckingham - Inventory SPR 92 HDPE 4 2,764 2,764 2,764 0 0 14" AORC Inventory Project 39.4 70.8 Risk $722,800.00 AORC Inventory project 50.4 70.69 Risk $452,650.00 59 70.4 Risk $534,500.00 Springfield Orchard St - Inventory CHI 55 HDPE 6 1,767 1,767 1,767 0 0 14" Springfield SPRINGFIELD on ROLLINS from HO SPR 51 HDPE 6 2,670 2,570 2,220 350 0 14" AORC Inventory Project, Rollin St (Rush St to Boston Rd), Rush St, Crittenden St, Woodruff Street AORC Inventory Project, Hollywood, Fairmont, Lawndale, Commonwealth, Meredith Springfield Fairmont St- Inventory SPR 121 HDPE 6 3,735 3,700 3,700 0 0 14" 55.5 69.9 Risk $1,015,850.00 Springfield Massasoit - Inventory NOR 74 HDPE 4 3,073 3,073 2,673 0 400 14" AORC Inventory Project 59.3 69.9 Risk $655,250.00 Springfield Alexander St - Inventory SPR 74 HDPE 6 2,304 2,304 2,304 0 0 14" AORC Inventory project 20.6 69.1 Risk $606,900.00 Springfield Ventura - Inventory SPR 215 HDPE 6 3,908 3,908 3,908 0 0 14" AORC Inventory Project 31.7 69.1 Risk $1,470,600.00 Springfield Haskin St SPR 56 HDPE 2 2,200 3,300 3,100 200 0 14" AORC Inventory Project, Haskin, Peer (Haskin to Hood), Gladstone, Bay (Haskin to 300' E of Jasper), Hood (Peer to Bay), Jasper 61 69 Risk $524,300.00 Springfield ANNAWON from BRADDOCK to RO SPR 83 HDPE 6 2,200 2,200 2,200 0 0 14" AORC Inventory Project, Poor CI 15.4 69 RIsk $624,800.00 Springfield Dorset St- Inventorty ELM 66 HDPE 6 3,230 3,230 2,730 500 0 14" AORC Inventory Project, Dorset, Barnum, Bosworth 47.1 68.8 Risk $665,400.00 Springfield SPRINGFIELD on ALLEN from THA SPR 93 HDPE 12 4,650 4,650 4,650 0 0 14" AORC Inventory Project, Allen Street from Island Pond to Waltnut tie into 60 psig 174 68.1 Risk $905,200.00 Springfield Kieth St - Inventory SPR 90 HDPE 6 2,243 2,243 2,243 0 0 14" AORC Inventory project 21 68.03 Risk $684,850.00 Springfield Newbury St- Inventory SPR 86 HDPE 6 4,500 4,450 4,450 0 0 14" AORC Inventory Project, Greenleaf, Eldridge, conrad, belvidere, newbuty 21.9 68 Risk $896,100.00 Springfield Los Angeles - Inventory SPR 110 HDPE 6 2,948 2,948 2,948 0 0 14" AORC Inventory Project 54.1 68 Risk $824,100.00 Springfield Rush St SPR 87 HDPE 6 4,500 4,500 3,900 600 0 14" 55 68 Risk $902,800.00 AORC Inventory Project, Rush, Elizabeth, County, Viola, Switzer (Emily to Viola), Berkshire (Rollins to Rush), Rollins (Crittenden to Berkshire), Hobston ( Rollins to Woodruff), Woodruff AORC Inventory Project, Strong, Judson, Alvin, Norman, Long, Roy (Alvin to Norman) Springfield Strong St SPR 129 HDPE 6 5,200 5,200 4,800 400 0 14" 57 68 Risk $1,235,600.00 Springfield Mountain View - Inventory SPR 137 HDPE 6 2,318 2,318 2,318 0 0 14" AORC Inventory Project 23.9 67.9 Risk $877,000.00 Springfield Ramah St - Inventory SPR 71 HDPE 4 3,531 3,531 3,531 0 0 14" AORC Inventory Project 2.9 67.43 Risk $690,450.00 Springfield Gillette Ave- Inventory SPR 98 HDPE 6 4,440 4,400 4,400 0 0 14" AORC Inventory Project, Gillette Ave, Gillete Cir, Plumtree 43.5 67.4 Risk $954,100.00 Springfield Melha St SPR 121 HDPE 6 4,600 4,600 4,600 0 0 14" AORC Inventory Project, Melha, Parkside, Harlan, Thames, Lexington (Knollwood to Harlan) 65 67 RIsk $1,132,200.00 Springfield Edmund - Inventory ELM 219 HDPE 2 4,548 4,548 4,132 416 0 14" AORC Inventory Project 44.7 66.9 Risk $1,553,200.00 Springfield Churchill St- Inventory SPR 51 HDPE 6 1,700 1,696 1,696 0 0 14" AORC Inventory Project , Greenleadf, Churchill, Sumner 56.1 66.7 Risk $449,300.00 Springfield Chilson - Inventory SPR 101 HDPE 6 3,827 3,827 3,827 0 0 14" AORC Inventory Project 60.7 66.6 Risk Springfield Haskin St - Inventory SPR 71 HDPE 6 3,291 3,291 3,291 0 0 14" AORC Inventory Project 32.9 66.45 Risk $681,250.00 Springfield High St- Inventory WSF 86 HDPE 2 2,925 2,925 2,425 500 0 14" AORC Inventory Project 40.6 66.4 Risk $780,450.00 Springfield SPRINGFIELD on FLINT from SOUT SPR 158 HDPE 4 6,518 6,518 0 6,518 0 60 AORC Inventory Project 71.9 66.24 Risk $1,399,800.00 Springfield SPRINGFIELD on GILLETTE from A SPR 112 HDPE 6 4,720 5,020 4,290 0 730 14" AORC Inventory Project , Incl. Hartford, Whittum 93 66 Risk $1,096,600.00 Springfield Fernleaf St - Inventory SPR 91 HDPE 4 4,474 4,474 4,474 0 0 14" AORC Inventory Project 15.7 65.9 Risk $905,600.00 Springfield CLANTOY from DUPONT to ARION- SPR 49 HDPE 4 1,485 1,485 1,485 0 0 14" AORC Inventory Project , Clantoy St, Arion St, Dupont St 89.1 64.8 Risk $417,050.00 Springfield ASHLEY from NELSON to SILVER-2 SPR 165 HDPE 2 6,256 6,256 4,170 0 2,086 14" AORC Inventory Project on Silver, murray, brook, lyman, ashley, shepherd, elm ames and smith and guy 234 63.5 Risk $1,420,800.00 Springfield LONGMEADOW on LAUREL from S LON 83 HDPE 0 0 14" AORC Inventory Project , Laurel St (Woodsley to Hopkins) 58.3 63.2 Risk $700,900.00 Total 2018-2021 GSEP Project Plan: $357,326,500 3,020 3,020 3,020 Total Feet: 12 1,562,685 1,608,241 1,058,051 Total Miles: 296.0 304.6 % Retirement of Total 549,466 200.4 104.1 Total 2018-2021 GSEP Off-Project Services and Minimum Main Replacement: 65.8% 34.2% 2018-2021 GSEP Main and Service Cost: Total 2018 GSEP Budget: Total 5 Yr GSEP Budget: $862,150.00 $37,673,500 $395,000,000 $80,000,000 $475,000,000 THE COMMONWEALTH OF MASSACHUSETTS DEPARTMENT OF PUBLIC UTILITIES D.P.U. 17-GSEP-05 DIRECT TESTIMONY OF RONALD D. GIBBONS EXHIBIT CMA/RDG-1 IN SUPPORT OF BAY STATE GAS COMPANY d/b/a COLUMBIA GAS OF MASSACHUSETTS GAS SYSTEM ENHANCEMENT PROGRAM RECOVERY CALCULATION October 31, 2017 DIRECT TESTIMONY OF RONALD D. GIBBONS EXHIBIT CMA/RDG-1 TABLE OF CONTENTS I.  INTRODUCTION ..............................................................................................................3  II.  OVERVIEW OF THE FILING ..........................................................................................5  III.  GSEP RECOVERY ............................................................................................................8  IV.  CALCULATION OF THE GSEAF AND TYPICAL BILL IMPACT ANALYSES......24  A. CALCULATION OF THE GSEAF ......................................................................24  B. CAP LIMITATION ...............................................................................................27  C. TYPICAL BILL IMPACT ANALYSES ...............................................................35  V.  CMA’S PROPOSED GSEP TARIFF REVISIONS ........................................................36  ii Testimony of Ronald D. Gibbons Columbia Gas of Massachusetts D.P.U. 17-GSEP-05 Exhibit CMA/RDG-1 October 31, 2017 Page 3 of 39 1 I. INTRODUCTION 2 Q. Please state your name and business address. 3 A. Ronald D. Gibbons, 290 W. Nationwide Blvd., Columbus, Ohio 43215. 4 Q. By whom are you employed? 5 A. I am employed by NiSource Corporate Services Company (“NCSC”), a 6 management and services subsidiary of NiSource Inc. (“NiSource”) and affiliate 7 of Bay State Gas Company d/b/a/ Columbia Gas of Massachusetts. (“CMA” or 8 the “Company”). 9 10 Q. What positions have you held during your employment with NiSource and its predecessors? 11 A. Since my employment in January 1981 by the Columbia Gas System Service 12 Corporation, the predecessor of NCSC, I have held positions of increasing 13 responsibility in the accounting department (1981-1984), as an auditor (1984- 14 1989), and in the regulatory accounting department (1989-present). 15 promoted to my present position, Manager of Regulatory Strategy and Support, in 16 May 2006. I was 17 18 Q. What are your present duties and responsibilities as Manager of Regulatory Strategy and Support? 19 A. Since the merger of Columbia Energy Group and NiSource in November 2000, I 20 have been responsible for coordinating and preparing data and reports required to 21 support the recovery of gas costs as well as assisting in the preparation of rate Testimony of Ronald D. Gibbons Columbia Gas of Massachusetts D.P.U. 17-GSEP-05 Exhibit CMA/RDG-1 October 31, 2017 Page 4 of 39 1 case data and exhibits for CMA. In my current position as Manager, my 2 responsibilities have increased to include all regulatory accounting activities for 3 CMA. In the past, my work has included gas cost recovery activities and filings 4 for CMA’s affiliates: Columbia Gas of Kentucky, Columbia Gas of Maryland, 5 Columbia Gas of Pennsylvania, and Columbia Gas of Virginia. I also assist the 6 Director of Regulatory Strategy and Support with various regulatory analyses and 7 activities. 8 Q. What is your educational background? 9 A. I graduated from The Ohio State University in 1980 with a Bachelor of Science 10 degree in Administrative Science with a major in accounting. I have also attended 11 several ratemaking seminars sponsored by universities and trade associations. 12 Q. Have you previously testified before any regulatory bodies? 13 A. Yes. I have testified before the Massachusetts Department of Public Utilities 14 (“Department”) where I have submitted testimony on behalf of CMA in support 15 of the Company’s Targeted Infrastructure Reinvestment Factor (“TIRF”) 16 proceedings, namely D.P.U. 13-79, D.P.U. 14-83, D.P.U. 15-55 and D.P.U. 16- 17 59, as well as the Company’s 2016 and 2017 Gas System Enhancement Programs 18 (“GSEP” or the “Plan”), D.P.U. 15-GSEP-05 and D.P.U. 16-GSEP-05, and the 19 2015 and 2016 GSEP Reconciliations (“GREC”), D.P.U. 16-GREC-05 and 20 D.P.U. 17-GREC-05. D.P.U. 17-GREC-05 is currently pending before the Testimony of Ronald D. Gibbons Columbia Gas of Massachusetts D.P.U. 17-GSEP-05 Exhibit CMA/RDG-1 October 31, 2017 Page 5 of 39 1 Department. I have also testified before the Public Service Commission of 2 Kentucky, the Public Service Commission of Maryland, the Maine Public Utilities 3 Commission and the New Hampshire Public Utilities Commission. 4 II. OVERVIEW OF THE FILING 5 Q. Please explain the purpose of the Company’s filing. 6 A. The purpose of this filing is to implement the provisions of Section 2 of Chapter 7 149 of the Acts of 2014, codified at M.G.L. c. 164, § § 144 and 145 (“Section 8 145”), which authorizes CMA and other gas local distribution companies 9 (“LDCs”) to obtain approval from the Department of a plan to address aging or 10 leaking natural gas infrastructure within the Commonwealth in the interest of 11 public safety and reducing lost and unaccounted for natural gas through a 12 reduction in natural gas system leaks. 13 authorizes gas LDCs to begin to recover through rates the estimated costs 14 associated with infrastructure plans approved by the Department, subject to 15 reconciliation to actual prudently incurred costs. 16 This filing represents the fourth annual GSEP filing by the Company pursuant to 17 Section 145. The 2018 GSEP, D.P.U. 17-GSEP-05, is presented in a manner and 18 format that is different than the Company’s 2017 GSEP approved by the 19 Department in D.P.U. 16-GSEP-05. Pursuant to the Department’s directive in 20 D.P.U. 16-GSEP-05, the Company is calculating rate base for all years of the Among other things, Section 145 Testimony of Ronald D. Gibbons Columbia Gas of Massachusetts D.P.U. 17-GSEP-05 Exhibit CMA/RDG-1 October 31, 2017 Page 6 of 39 1 calendar year 2018 revenue requirement as a sum of the monthly average rate 2 base as shown on Exhibit CMA/RDG-2, Schedule 1, Column 5. Bay State Gas 3 Company d/b/a Columbia Gas of Massachusetts, D.P.U. 16-GSEP-05, at 15 4 (2017). 5 The 2015 and 2016 revenue requirements for GSEP calendar year 2018 shown in 6 Column 5, Lines 4 and 5 respectively, on Exhibit CMA/RDG-2, Schedule 1 are 7 calculated based on the sum of the monthly average rate base for the actual 8 investments proposed in D.P.U. 17-GREC-05, the Company’s currently pending 9 GSEP Reconciliation proceeding for calendar year 2016 GSEP investments. The 10 2017 revenue requirement on Line 6 calculates the sum of the monthly average 11 rate base utilizing the approved projected level of GSEP plant investments and 12 retirements approved in D.P.U. 16-GSEP-05. To calculate the monthly average 13 rate base for the projected 2017 and 2018 GSEP investment years included in the 14 2018 GSEP, shown on Lines 6 and 7 respectively, the Company allocated the 15 additions, cost of removal and retirements utilizing a composite average of the 16 historical actual data for calendar years 2015 and 2016. The Company utilized a 17 historical 18 Department’s finding that, since “[t]he Company now has two years of data on 19 which to base its estimated monthly plant balances during the year that eligible 20 GSEP investments are placed into service, the Department determines that 21 calculating the estimated revenue requirement in a manner that more closely composite average allocation methodology based upon the Testimony of Ronald D. Gibbons Columbia Gas of Massachusetts D.P.U. 17-GSEP-05 Exhibit CMA/RDG-1 October 31, 2017 Page 7 of 39 1 replicates the method used to calculate the actual revenue requirement may result 2 in more accurate revenue requirement estimates.” D.P.U. 16-GSEP-05, at 15. 3 Q. What is the purpose of your testimony in this proceeding? 4 A. The purpose of my testimony is to present: (1) the development and support of the 5 GSEP revenue requirement for the 2018 Investment Year; (2) the calculation of 6 the Gas System Enhancement Adjustment Factor (“GSEAF”) to be effective May 7 1, 2018: (3) presentation and request for acceptance of a proposed alternate prior 8 year (2016) revenue calculation applicable to the Cap Limitation, or a request for 9 a waiver of the annual Cap Limitation; and (4) the bill impacts associated with the 10 implementation of these rates. 11 In addition, my testimony also presents the Company’s proposed redline changes 12 to the GSEP provisions of its Local Distribution Adjustment Charge (“LDAC”) 13 tariff, M.D.P.U. No. 216, including the change to a monthly average rate base 14 methodology in the annual projected GSEP filings as opposed to the annual 15 average rate base methodology for the annual revenue requirement as ordered by 16 the Department in D.P.U. 16-GSEP-05, at 15. The Company worked closely with 17 representatives of other LDCs with GSEP Plans to develop the proposed changes 18 to the GSEP provisions of the respective LDAC tariffs. Testimony of Ronald D. Gibbons Columbia Gas of Massachusetts D.P.U. 17-GSEP-05 Exhibit CMA/RDG-1 October 31, 2017 Page 8 of 39 1 Q. What exhibits and schedules are you sponsoring? 2 A. I am sponsoring the following exhibits and schedules: 3 4  Exhibit CMA/RDG–2 – Calculation of the GSEP Recovery (including calculation of the GSEAF Rates) 5  Exhibit CMA/RDG–3 – Typical Bill Impact Analysis 6 7  Exhibit CMA/RDG–4 – Clean LDAC Tariff Reflecting the Proposed revisions to the GSEP provisions in Section 8.0 8 9  Exhibit CMA/RDG–5 – Redlined LDAC Tariff Reflecting the Proposed revisions to the GSEP provisions in Section 8.0 10 11 Q. Are other witnesses testifying on behalf of the Company in this proceeding? 12 A. Yes. Mr. David Mueller is submitting testimony to introduce and adopt the 13 Company’s 2018 GSEP. Among other things, the GSEP, included as Exhibit 14 CMA-DEM-2, describes the GSEP timeline, scope of work that the Company 15 intends to perform under its Plan, and factors which may impact the 16 implementation of the GSEP and relevant eligible replacement projects. His 17 testimony also explains the methodology used by the Company to prioritize the 18 replacement of leak prone infrastructure. 19 III. GSEP RECOVERY 20 21 Q. What is the GSEP Recovery (or Revenue Requirement) for the Company’s 2018 GSEP? 22 A. As shown in Exhibit CMA/RDG-2, Schedule 1, the 2018 GSEP revenue 23 requirement, which is based on actual capital spending for 2015 and 2016 and 24 forecasted capital spending for the calendar years 2017 and 2018, is $26,839,882. Testimony of Ronald D. Gibbons Columbia Gas of Massachusetts D.P.U. 17-GSEP-05 Exhibit CMA/RDG-1 October 31, 2017 Page 9 of 39 1 Q. Please describe Exhibit CMA/RDG-2. 2 A. Exhibit CMA/RDG-2 consists of eight schedules used in developing the 3 4 Company’s 2018 GSEP revenue requirement.  Schedule 1 - calculates the total GSEP recovery used in Schedule 8 for the 5 GSEAF rate calculations by Rate Class Sector. The cumulative GSEP 6 recovery before adjustments reflects the revenue requirement for each 7 GSEP program investment year, in this case 2015, 2016, 2017 and 2018, 8 which includes return on rate base, depreciation, property taxes, and 9 offsets for operations and maintenance (“O&M”) savings based on the 10 GSEP plant investments. The projected GSEP revenue requirement for 11 program year 2018 also contains the Company’s estimate for 12 environmentally significant Grade 3 leak repairs expenses. Schedule 1 13 further details, as applicable, the adjustments to GSEP recovery related to 14 the billing cap limitation. 15  Schedule 2 (2015, 2016, 2017 and 2018) - calculates the GSEP monthly 16 revenue requirement before adjustments related to the projected eligible 17 GSEP investments and retirements to be made in 2018, as well as the 18 projected level of investments and retirements from the 2017 GSEP as 19 approved by the Department in D.P.U. 16-GSEP-05 and included in the 20 2018 revenue requirement. 21 requirement is the actual investments and retirements from program years Also reflected in the 2018 revenue Testimony of Ronald D. Gibbons Columbia Gas of Massachusetts D.P.U. 17-GSEP-05 Exhibit CMA/RDG-1 October 31, 2017 Page 10 of 39 1 2015 and 2016 as proposed in D.P.U. 17-GREC-05, the Company’s 2 current pending GSEP Reconciliation proceeding of calendar year 2016. 3 As previously discussed, a monthly average rate base methodology has 4 been utilized for determining all revenue requirements for each investment 5 year with the year’s annual revenue requirement being the sum of the 6 monthly average calculations. 7 Schedule 2 – 2015 in 2015 determines the annual revenue requirement for 8 year 1 of 2015 investments, Exhibit CMA/RDG-2, Schedule 2 – 2015 in 9 2016 determines the annual revenue requirement for year 2 of 2015 10 investments, Exhibit CMA/RDG-2, Schedule 2 – 2015 in 2017 determines 11 the annual revenue requirement for year 3 of 2015 investments, and so 12 forth. The cumulative 2018 GSEP revenue requirement contains annual 13 monthly average revenue requirements for each of the GSEP program 14 years as shown on Schedule 2, Line 135 (Line 137 for year 2018) for each 15 year 1 and Line 83 for each year 2 and beyond which are carried forward 16 to Lines 4, 5, 6 and 7 of Exhibit CMA/RDG-2, Schedule 1, Column 5. 17  For instance, Exhibit CMA/RDG-2, Schedule 3 (2015, 2016, 2017 and 2018) - calculates the Deferred Tax 18 Deductions for Federal and State Taxes associated with accelerated tax 19 depreciation. This information is used in the Deferred Tax Calculation in 20 Schedule 2. 21 calculations for each GSEP program year. Similar to Schedule 2, Schedule 3 contains monthly Testimony of Ronald D. Gibbons Columbia Gas of Massachusetts D.P.U. 17-GSEP-05 Exhibit CMA/RDG-1 October 31, 2017 Page 11 of 39 1  Schedule 4 - details the Capital Structure and return on rate base as 2 approved in D.P.U. 13-75 and D.P.U. 15-50, the Company’s two most 3 recent base distribution rate proceedings. Further, this Schedule calculates 4 the Pre-Tax Rate of Return utilized in the annual monthly revenue 5 requirement calculations on Schedule 2 (2015, 2016, 2017 and 2018). 6  Schedule 5 - calculates the property tax expense related to the GSEP Plant 7 Investment. In year 1 of each investment year, the property tax expense is 8 $0 due to the fiscal year expense recognition of property taxes which 9 begins in July of the year following the investment year. Year 2 of each 10 investment year is multiplied by 0.5 to reflect a half-year recognition of 11 expense in the second calendar year. Property tax expense for years 3 and 12 beyond of the program year, for each investment year is determined by 13 multiplying the property tax rate by the Net Plant in Service. 14  15 16 Schedule 6 - calculates the GSEP O&M savings off-set generated from the replacement of the GSEP plant.  Schedule 7 - calculates the reduction to the Depreciable Plant Additions, if 17 necessary, after the two-part Overheads and Burdens test is performed. 18 Column 3 reflects the yearly unadjusted forecasted GSEP investment. 19 Any resulting adjustments from the Overheads and Burdens test filed in 20 the annual May 1 GREC filing are reflected in Column 4. The yearly Testimony of Ronald D. Gibbons Columbia Gas of Massachusetts D.P.U. 17-GSEP-05 Exhibit CMA/RDG-1 October 31, 2017 Page 12 of 39 1 adjusted GSEP investments are presented in Column 5 and carried forward 2 to Schedule 2.  3 4 Schedule 8 - detailed calculation of the GSEAF rates by class based on the GSEP revenue requirement allowable for billing from Schedule 1. 5 6 7 Q. Why do Schedules 2 and 3 include references for years such as “(2015 in 2018)”, “(2016 in 2018)”, “(2017 in 2018)” and “(2018 in 2018)” in their titles? 8 A. The year indicators in the Schedule reference will enable the Department and 9 stakeholders to distinguish information by vintage year. The first year referenced 10 represents the GSEP program year in which the investments were recognized as 11 plant-in-service. The second year referenced represents the calendar year (and 12 GSEP year) upon which the revenue requirement is being determined. 13 example, Schedule 2 – 2015 – Calculation of the Monthly GSEP Revenue 14 Requirement before Adjustments has four pages, the 2015 vintage year in 2015, 15 the 2015 vintage year in 2016, the 2015 vintage year in 2017 and the 2015 vintage 16 year in 2018. For the 2018 GSEP, the current (first) year of investments for 2018, 17 the second prior year GSEP year (2017), the third prior GSEP year (2016) and the 18 fourth prior year GSEP year (2015) investments are used to develop the current 19 GSEP revenue requirement. For Testimony of Ronald D. Gibbons Columbia Gas of Massachusetts D.P.U. 17-GSEP-05 Exhibit CMA/RDG-1 October 31, 2017 Page 13 of 39 1 2 Q. Can you provide more insight regarding the GSEP Recovery Before Adjustments on Schedule 1? 3 A. Yes. There are three adjustments included on Schedule 1 in Lines 11 through 22. 4 The first adjustment is to include recovery of the prior year (2017) revenue 5 requirement above the 1.5 percent GSEP revenue cap as approved in the 6 Company’s prior GSEP October Filing, D.P.U. 16-GSEP-05. Please note that the 7 prior GSEP revenue requirement was not over the revenue cap limitation, 8 therefore the amount reflected on Schedule 1, Column 5, Line 11 is $0. The 9 second adjustment is to remove any incremental Grade 3 leak repairs costs 10 included in the 2018 GSEP revenue requirement from the cap recovery 11 calculation as all environmentally significant Grade 3 leaks repairs (O&M) are 12 recoverable under GSEP consistent with the provisions of the Energy Diversity 13 Act, St. 2016, c. 188, § 13. The sum of these two adjustments and the incremental 14 change in the 2018 GSEP revenue requirement are reflected in the Additional 15 Revenue Requirement Before Cap Limitation on Schedule 1, Column 5, Line 15. 16 The third adjustment, the Cap Limitation calculated on Lines 17 through 24, 17 represents the amount of the Company’s incremental 2018 GSEP revenue 18 requirement which exceeds the 1.5 percent revenue cap set out in Section 145. In 19 this instance, utilizing the traditional approach for the calculation of the prior 20 year’s revenues, the Cap Limitation adjustment would result in a reduction to the 21 incremental 2018 GSEP recovery by $3,079,967. 22 Company’s proposed alternative prior year’s (2016) revenue calculation described However, utilizing the Testimony of Ronald D. Gibbons Columbia Gas of Massachusetts D.P.U. 17-GSEP-05 Exhibit CMA/RDG-1 October 31, 2017 Page 14 of 39 1 in detail beginning on page 27 of my testimony, and shown on Exhibit 2 CMA/RDG-2, Schedule 1, Line 22, allows the Company’s incremental 2018 3 GSEP revenue requirement as calculated in D.P.U. 17-GSEP-05 to remain under 4 the Cap Limitation. The resulting Incremental GSEP Recovery Allowable Per 5 Rate Cap on Line 24 and the Incremental Revenue Requirement Related to Grade 6 3 Leak Repairs costs on Line 25 are added to reflect the Total GSEP Revenue 7 Requirement Allowable for Billing on Line 26 of $26,839,882. 8 9 Q. Please summarize the GSEP revenue requirement calculation as presented in each of the Schedule(s) 2 for the respective GSEP program years. 10 A. Schedule 2 for GSEP program year 2015 reflects four Schedules: (a) a Schedule 11 2-2015 in 2015 for the 2015 actual GSEP revenue requirement, as filed and 12 currently pending in D.P.U. 17-GREC-05; (b) three separate Schedule 2s for the 13 2015 GSEP program year reflected in calendar years 2016, 2017 and 2018 14 reflecting updates for depreciation, Accumulated Deferred Income Tax (“ADIT”), 15 property taxes and the appropriate pre-tax returns approved in D.P.U. 13-75 and 16 D.P.U. 15-50, the Company’s most recent base distribution rate proceedings, 17 which has been included in a revised 2015 and 2016 GSEP revenue requirement 18 for the purpose of calculating the subsequent calendar years’ revenue 19 requirements and the appropriate 2017 and 2018 incremental revenue increases. 20 Schedule 2 for GSEP program year 2016 reflects three Schedules: (a) a Schedule 21 2-2016 in 2016 for the 2016 actual GSEP revenue requirement, as filed and Testimony of Ronald D. Gibbons Columbia Gas of Massachusetts D.P.U. 17-GSEP-05 Exhibit CMA/RDG-1 October 31, 2017 Page 15 of 39 1 currently pending in D.P.U. 17-GREC-05; (b) two separate Schedule 2s for the 2 2016 GSEP program year reflected in calendar years 2017 and 2018 reflecting 3 updates for depreciation, ADIT, property taxes and the pre-tax return approved in 4 D.P.U. 15-50, which has been included in a revised 2016 GSEP revenue 5 requirement for the purpose of calculating the subsequent calendar years’ revenue 6 requirements and the appropriate 2017 and 2018 incremental revenue increases. 7 Schedule 2 for GSEP program year 2017 reflects two Schedules: (a) a Schedule 8 2-2017 in 2017 for the 2017 projected GSEP revenue requirement, as filed and 9 currently pending in D.P.U. 17-GSEP-05; and (b) a separate Schedule 2 for the 10 2017 GSEP program year reflected in calendar year 2018 reflecting updates for 11 depreciation, ADIT, property taxes and the pre-tax return approved in D.P.U. 15- 12 50. 13 Schedule 2-2017 in 2018 both reflect the 2017 GSEP investments filed and 14 currently pending in D.P.U. 17-GSEP-05, the revenue requirement has been 15 calculated utilizing a monthly average rate base rather than the annual average 16 rate base methodology filed in D.P.U. 17-GSEP-05. The 2017 monthly average 17 revenue requirement is utilized for the purpose of calculating the subsequent 18 calendar years’ revenue requirement. Unlike the 2015 and 2016 calendar years’ 19 GSEP revenue requirements, the 2017 calendar year revenue requirement does 20 not roll-forward to Schedule 1; rather, the 2017 GSEP revenue requirement on 21 Schedule 1 reflects the revenue requirement filed and approved in D.P.U. 17- Further, while the GSEP investments in Schedule 2-2017 in 2017 and Testimony of Ronald D. Gibbons Columbia Gas of Massachusetts D.P.U. 17-GSEP-05 Exhibit CMA/RDG-1 October 31, 2017 Page 16 of 39 1 GSEP-05 for the sole purpose of calculating the appropriate 2017 and 2018 2 incremental revenue increases. 3 Schedule 2-2018 in 2018 develops the current year’s projected 2018 GSEP 4 investment portion of the revenue requirement. 5 revenue requirement is calculated utilizing a monthly average rate base inclusive 6 of ADIT at the pre-tax return approved in D.P.U. 15-50, monthly depreciation and 7 projected monthly environmentally significant Grade 3 leak repairs expenses. 8 There is no property tax expense recognition in the first year of investments due 9 to the lag of the fiscal tax year. 10 11 The current year’s 2018 GSEP There are several sections reflected in the development of Schedule 2. They are:  Total GSEP Plant Investment – This section details the plant additions and 12 cost of removal investments for the GSEP program year after adjusting for 13 the applicable Overheads and Burdens test reflected in Schedule 7. The 14 total estimated 2018 GSEP investment of $83,855,251 includes the gross 15 plant investments of $80,000,000 as referenced in Exhibit CMA/DEM-2, 16 at 49 and Appendix A, plus $3,855,251 for the estimated Cost of Removal 17 associated with the 2018 GSEP investments. The Cost of Removal was 18 estimated based on negative net salvage percentages calculated in the 19 depreciation study filed by the Company, and subsequently approved by 20 the Department, in D.P.U. 12-25. This estimate is only used to establish a Testimony of Ronald D. Gibbons Columbia Gas of Massachusetts D.P.U. 17-GSEP-05 Exhibit CMA/RDG-1 October 31, 2017 Page 17 of 39 1 rate for the 2018 GSEP collection period and will be replaced with the 2 actual cost of removal in the Company 2018 GREC, which will be filed on 3 May 1, 2019. Please see Attachment (a) for the estimated 2018 Cost of 4 Removal calculation. 5 $66,259,201, respectively, are the actual investments as filed in D.P.U. 17- 6 GREC-05. 7 investment as filed in D.P.U. 17-GSEP-05, although the rate base is 8 calculated utilizing a monthly average methodology rather than an annual 9 average and the revenue requirement is calculated as the sum of the 10 11 For 2015 and 2016, the total $50,175,713 and For 2017, the total $72,960,410 is the same projected calculated twelve monthly revenue requirements.  Depreciable Retirements – This section details the projected (actual for 12 2015 and 2016) retirements separated between mains and services for the 13 initial investment year and in total for subsequent years. 14 information is not needed to calculate rate base, it is utilized in the next 15 section on Schedule 2 to remove the depreciation expense associated with 16 the replaced pipe that will no longer be utilized by the Company. 17  While this Book Depreciation Expense – This section calculates the additional 18 depreciation expense experienced by the Company for the new GSEP 19 investments and reduces the depreciation expense associated with the 20 retired investments. The depreciation calculations develop an annual level 21 of expense based on the month’s additions and retirements, which is then Testimony of Ronald D. Gibbons Columbia Gas of Massachusetts D.P.U. 17-GSEP-05 Exhibit CMA/RDG-1 October 31, 2017 Page 18 of 39 1 multiplied by 0.5 to reflect a half year convention in the initial year of 2 investment. Subsequent years reflect the full year’s amount of applicable 3 depreciation. 4  Deferred Tax Calculation – This section calculates the federal and state 5 tax reserves utilizing the tax deductions calculated in Schedule 3. The 6 effective State Tax rate of 5.2 percent reflects the 8 percent state income 7 tax rate adjusted for the 35 percent federal deduction for state income 8 taxes. The deferred tax calculation also reflects the allocated portion of 9 the deferred tax impact of the Company’s Net Operating Loss (“NOL”) to 10 GSEP as a proportion to total capital additions. Additionally, the deferred 11 tax calculation for 2018 reflects the pro forma normalized level as 12 calculated according to IRS Regulation 26 C.F.R. 1.167(l)-1(h)(6). 13  Rate Base Calculation – This section utilizes information calculated in 14 above sections of this Schedule to calculate each month’s cumulative 15 month end rate base. 16  Revenue Requirement Calculation – This section develops the GSEP 17 monthly revenue requirement before adjustments by calculating the return 18 on rate base, depreciation, property taxes, O&M savings off-set and 19 environmentally significant Grade 3 leak repairs expense (included in the 20 current year’s (2018 in 2018) GSEP revenue requirement only). The rate Testimony of Ronald D. Gibbons Columbia Gas of Massachusetts D.P.U. 17-GSEP-05 Exhibit CMA/RDG-1 October 31, 2017 Page 19 of 39 1 base included in this calculation is developed using a simple average of 2 the beginning of the month and ending month’s rate base amount. The 3 pre-tax Rate of Return used for 2018, 2017 and 2016 is 11.19 percent from 4 the Company’s most recent base distribution rate case, D.P.U. 15-50. The 5 pre-tax rate of return used for 2015 reflects 11.19 percent from D.P.U. 15- 6 50 for the months of November and December 2015 and 11.28 percent 7 from the Company’s prior rate case, D.P.U. 13-75. 8 applicable pre-tax rates of return from D.P.U. 15-50 beginning in 9 November 2015 corresponds to the effective date of base rates. The use of the 10 11 Q. Are there any additional cost categories included in the 2018 GSEP Revenue Requirement? 12 A. Yes. As previously mentioned, the 2018 GSEP revenue requirement for program 13 year 2018 includes a projected annual total of $496,050 for the expenses 14 associated with environmentally significant Grade 3 leak repairs. 15 16 Q. What is the basis of the calculation of the Grade 3 leak repairs cost estimate reflected in the 2018 GSEP Revenue Requirement? 17 A. The Grade 3 leak repairs costs are based on an estimate of 150 repairs and an 18 average cost of $3,307 per repair. 19 Q. Please describe the basis of the average cost per Grade 3 leak repairs. 20 A. The average Grade 3 leak repairs cost is based on the actual average cost incurred 21 for 2017 for Grade 3 leak repairs (average cost is based upon nine months of 22 activity through September 30, 2017). The Grade 3 leak repairs included in the Testimony of Ronald D. Gibbons Columbia Gas of Massachusetts D.P.U. 17-GSEP-05 Exhibit CMA/RDG-1 October 31, 2017 Page 20 of 39 1 estimate were those identified in the Bay State Gas Company d/b/a Columbia Gas 2 of Massachusetts Plan to Address Leaks Existing Prior to January 1, 2017 (“CMA 3 Existing Grade 3 Leak Plan”), filed with the Department on January 13, 2017. 4 Prior to repair, a number of these were reclassified as Grade 1 or Grade 2 leaks. 5 Q. Why would a Grade 3 leak be reclassified to a Grade 1 or Grade 2 leak? 6 A. The leaks are re-evaluated either as part of planning for the Grade 3 leak repair, or 7 as part of a routine re-evaluation. At the time of re-evaluation, a technician will 8 determine if a leak represents an existing or probable hazard to persons or 9 property (Grade 1) or one that posed a probable future hazard (Grade 2). 10 Q. What is the basis of the estimate of the 150 of Grade 3 leak repairs? 11 A. At the time of this filing, the Department has not finalized its rulemaking in 12 D.P.U. 16-31-B. The final regulations will describe the methodology for 13 identifying an environmentally significant Grade 3 leak repair and the required 14 time frames for each LDC to repair or eliminate the leak. In an effort to support 15 the rulemaking in 2017, CMA, along with National Grid and Eversource, as well 16 as environmental activists Home Energy Efficiency Team (“HEET”) and Mothers 17 Out Front, conducted a pilot program to attempt to measure the emissions from 18 certain Grade 3 leaks selected for repair. 19 supported the existing CMA Grade 3 Leak Plan. The current analysis of the 20 findings of the pilot program indicate that the method of identifying 21 environmentally significant Grade 3 leaks included in the draft rulemaking, and CMA’s participation in the pilot Testimony of Ronald D. Gibbons Columbia Gas of Massachusetts D.P.U. 17-GSEP-05 Exhibit CMA/RDG-1 October 31, 2017 Page 21 of 39 1 previously agreed to by the LDCs in joint comments, is no longer the best 2 available method of identifying environmentally significant leaks. Although the 3 D.P.U. 16-31-B rulemaking has not been finalized, the Company, in recognition 4 of the importance of classifying and repairing Grade 3 leaks that are identified as 5 having a significant impact on the environment, seeks to commence its efforts to 6 meet the directives of the Energy Diversity Act. 7 classification regulations are not yet final, the Company decided that the best 8 estimate of environmentally significant Grade 3 leaks to be repaired for inclusion 9 in this GSEP filing should be based on 2017 actual activity. The to-date calendar 10 year 2017 experience is the most representative considering since the beginning 11 of 2017, in connection with the Department’s rulemaking, the Company has 12 instituted as part of its pilot program a process by which selected Grade 3 leaks 13 were identified and repaired. Based on the number of repairs completed as of this 14 filing, the Company anticipates that the number of repairs completed by the end 15 of 2017 will be 150. Given that the gas leaks 16 17 18 Q. What is the basis of the Capital Repairs and Section 263A Mixed Services percentages shown on Line 4 of each Schedule 3-2015 in 2015, Schedule 32016 in 2016, Schedule 3-2017 in 2017 and Schedule 3-2018 in 2018? 19 A. The 2015 investment year percentage is based on the Company’s deduction 20 included in its 2015 Federal tax return, which was also used to estimate the 2016, 21 2017 and 2018 deductions. The actual repairs deduction rate for calendar year 22 2016 investments will be updated in the calendar year 2017 GREC filing to be Testimony of Ronald D. Gibbons Columbia Gas of Massachusetts D.P.U. 17-GSEP-05 Exhibit CMA/RDG-1 October 31, 2017 Page 22 of 39 1 made by May 1, 2018. The 2015 percentage reflects the actual percentage from 2 the 2015 GREC filed and approved in D.P.U. 16-GREC-05 and also filed in 3 D.P.U. 17-GREC-05. 4 5 Q. Have you reflected bonus depreciation in your calculation of tax depreciation in Schedule 3? 6 A. Yes, I have. 7 8 Q. Does Schedule 4 reflect the current 8 percent Massachusetts Franchise tax rate that was effective January 1, 2014? 9 A. Yes, it does. The gross-up factor of 59.8 percent shown in Column 5, Lines 2 and 10 5 of the schedule reflects a 35 percent Federal tax rate and an 8 percent State 11 Franchise rate. 12 Q. What rate did you utilize to calculate property tax expense? 13 A. The property tax expense is based on the composite property tax ratio in the 14 Company’s most recent base distribution rate case, D.P.U. 15-50. One half of a 15 full year of property tax was included in the 2018 GSEP revenue requirement for 16 GSEP program year 2017 based on the forecasted GSEP Plant-in-Service 17 investments. A full year of property tax is included in the 2018 GSEP revenue 18 requirement for the 2016 and 2015 GSEP program years based upon actual GSEP 19 Plant-in-Service investments. Testimony of Ronald D. Gibbons Columbia Gas of Massachusetts D.P.U. 17-GSEP-05 Exhibit CMA/RDG-1 October 31, 2017 Page 23 of 39 1 Q. Could you summarize the Company’s GSEP revenue requirement? 2 A. The Company’s 2018 projected GSEP revenue requirement totals $26,839,882. 3 As described above, most of the components of the revenue requirement are based 4 on projected data. The Company will update the revenue requirement calculation 5 for actual data in future annual GREC filings. 6 7 8 Q. Please address the Overhead and Burden Adjustments as referenced in in the GSEP provisions, specifically Section 8.5, of the Company’s LDAC tariff, M.D.P.U. No. 216. 9 A. The GSEP recovery is subject to a two-part test demonstrating that (1) there has 10 not been a shifting of overheads and burdens expensed in the Company’s most 11 recent general rate case into capitalized GSEP costs, and (2) overheads and 12 burdens capitalized on actual GSEP projects are proportional to overheads and 13 burdens capitalized on all capital projects that are subject to overheads and 14 burdens. This two-part test is the same test that was utilized in the Company’s 15 TIRF filings, as well as the Company’s 2015, 2016 and 2017 GSEPs, D.P.U. 14- 16 134, D.P.U. 15-GSEP-05 and D.P.U. 16-GSEP-05, respectively. 17 In future GREC filings, as the actual GSEP investment year information is 18 provided to the Department for its review and approval subject to Section 145, a 19 separate Schedule formatted in a similar manner as the TIRF Overhead and 20 Burden tests will be provided for the Department’s review and approval. The net 21 adjustment required by the Overhead and Burden tests for a given GSEP program Testimony of Ronald D. Gibbons Columbia Gas of Massachusetts D.P.U. 17-GSEP-05 Exhibit CMA/RDG-1 October 31, 2017 Page 24 of 39 1 year will be included in the reconciliation of the GSEP revenue requirement filed 2 annually in May. 3 4 IV. 5 CALCULATION OF THE GSEAF AND TYPICAL BILL IMPACT ANALYSES A. CALCULATION OF THE GSEAF 6 Q. Please explain the calculation of the GSEAF rates. 7 A. Referring to Exhibit CMA/RDG-2, Schedule 8, the GSEAF rates are calculated 8 by: (1) allocating the 2018 annual GSEP revenue requirement of $26,839,882, 9 presented in Exhibit CMA/RDG-2, Schedule 1, Line 26, between the Rate Class 10 Sectors established pursuant to D.P.U. 12-126-A; and (2) dividing the allocated 11 allowable annual recovery of revenue requirement by the May 2018 – April 2019 12 forecast firm sales and transportation volumes of the respective Rate Class 13 Sectors to derive each Rate Class Sector GSEAF. 14 15 Q. Does the annual 2018 GSEP revenue requirement recovery exceed the 1.5 percent cap on the annual billing of GSEAF charges? 16 A. Yes, the 2018 GSEP incremental revenue requirement exceeds the Cap Limitation 17 when utilizing the traditional method of calculating the prior year’s (2016) 18 revenues. However, under the Company’s alternate calculation of the prior year’s 19 revenues, the incremental 2018 GSEP revenue requirement does not exceed the 20 Cap Limitation as described in further detail below. Testimony of Ronald D. Gibbons Columbia Gas of Massachusetts D.P.U. 17-GSEP-05 Exhibit CMA/RDG-1 October 31, 2017 Page 25 of 39 1 Q. Please explain the cap test of 1.5 percent of total revenue. 2 A. As shown on Exhibit CMA/RDG-2, Schedule 1, a rate cap limit is established 3 based on the incremental revenue requirement, which is represented by the 4 difference between the upcoming year’s annual GSEP revenue requirement, less 5 the incremental revenue requirement related to environmentally significant Grade 6 3 leak repairs, and the previous year’s annual GSEP revenue requirement. This 7 incremental amount is compared to 1.5 percent of the Company’s total annual 8 revenues of the most recent calendar year, consisting of total firm sales revenue 9 and total revenue from firm transportation customers, which are adjusted to 10 include imputed cost of gas charges. This test ensures that, in any one year, the 11 GSEAF charged to all customers will not exceed 1.5 percent of the Company’s 12 total annual revenues absent the Company requesting the Department to review 13 and approve a proposed alternate revenue calculation, or by applying for, and the 14 Department approving, a waiver from the 1.5 percent cap limitation. Considering 15 that this total revenue amount represents the imputed total billed sales revenues 16 and transportation revenues during the year, this cap test serves as a proxy for a 17 capped 1.5 percent total bill impact on the total firm customer base of the 18 Company. 19 20 Q. Please explain the allocation of the allowable billing of the GSEAF within one year by Rate Class Sector. 21 A. As established in D.P.U. 12-126-A, the Company has five Rate Class Sectors – 22 (1) Residential, (2) Low Annual Use commercial and industrial (“C&I”), Testimony of Ronald D. Gibbons Columbia Gas of Massachusetts D.P.U. 17-GSEP-05 Exhibit CMA/RDG-1 October 31, 2017 Page 26 of 39 1 (3) Medium Annual Use C&I, (4) High Annual Use C&I, and (5) Extra High 2 Annual Use C&I. Also pursuant to D.P.U. 12-126-A, infrastructure replacement 3 program costs, such as those associated with the Company’s GSEP costs, are 4 allocated using a Rate Base Allocator from the Allocated Cost of Service 5 (“ACOS”) study from the Company’s most recent base rate case in which the 6 ACOS was used to develop base rates and approved by the Department. The 7 GSEAF rates by Rate Class Sector for this filing are calculated using the 8 Company’s ACOS study from D.P.U. 13-75, the Company’s most recently 9 litigated base rate case in which the ACOS was approved by the Department and 10 used to design base rates. 11 Due to the approved Settlement Agreement between the Company, the Office of 12 the Attorney General and the Low-Income Network in the Company’s most 13 recent base rate case, D.P.U. 15-50, an updated ACOS was not adopted nor used 14 to develop base rates. The Rate Base Allocation percentages used to develop the 15 proposed GSEAF rates for the 2017 GSEP are presented at the bottom of Exhibit 16 CMA/RDG-2, Schedule 8. These percentages are applied to the total annual 17 amount intended to be recovered over the annual period of May 2018 through 18 April 2019 and divided by the respective Rate Class Sector forecast sales and 19 transportation volumes to derive the GSEAF rates by Rate Class Sector. The 20 resulting GSEAF rates are as follows: Testimony of Ronald D. Gibbons Columbia Gas of Massachusetts D.P.U. 17-GSEP-05 Exhibit CMA/RDG-1 October 31, 2017 Page 27 of 39 GSEAF Calculation by Rate Class Sector for Effect May 1, 2018     RB Allocation ‐ 2018 Rev Requirement     Rate Class Sectors   May 18 ‐ Apr 19  Per Unit  $$  Fcst Therms  $/Therm  Residential   $              16,616,661  265,263,802  0.0626  C&I ‐ Low Annual Use   $                2,371,970  36,389,856  0.0652  C&I ‐ Medium Annual Use   $                3,376,021  81,014,539  0.0417  C&I ‐ High Annual Use   $                2,304,832  63,203,869  0.0365  C&I ‐ Extra High Annual Use   $                2,170,399  81,176,786  0.0267        Total   $              26,839,882    1 2 3 Allocated Cost            527,048,852          B. CAP LIMITATION Q. Is the Company requesting a waiver of the Department for the cap limitation on the 2018 incremental GSEP revenue requirement with this proceeding? A. No, the Company is not initially requesting a waiver of the cap limitation in this 4 5 6 instant filing. Rather, the Company is proposing, as described in greater detail 7 below, an alternative calculation of the revenue cap designed to maintain the 8 customer protections inherent in the Section 145 cap limitation while enabling the 9 Company to continue to accelerate the replacement of leak-prone infrastructure 10 consistent with the intent and directives of Section 145. However, in the event 11 that the Department does not approve the Company’s proposed alternate 12 calculation of 2016 calendar year revenues, the Company is requesting a waiver 13 of the 1.5 percent cap in relation to its 2018 GSEP. The Company’s proposal of Testimony of Ronald D. Gibbons Columbia Gas of Massachusetts D.P.U. 17-GSEP-05 Exhibit CMA/RDG-1 October 31, 2017 Page 28 of 39 1 an alternate method for the calculation of the 2016 calendar year revenues 2 applicable to the 2018 GSEP incremental revenue requirement cap limitation has 3 been designed to specifically address the volatility of the cap calculation. If 4 approved, the alternate calculation is anticipated to mitigate the constraints of the 5 1.5 percent cap and the attendant impacts on the acceleration of leak-prone 6 infrastructure under the GSEP. However, given the nature of the GSEP, the 7 requirement to continue to accelerate the replacement of leak-prone infrastructure 8 on the Company’s system, and the mandates encompassed by other regulatory 9 requirements, the Company anticipates that the cap constraint will continue to 10 negatively affect the GSEP in the years to come. 11 12 Q. What modifications to the calendar year 2016 revenues utilized for the cap limitation calculation is the Company proposing? 13 A. The Company is proposing to weather normalize the base rate and reconciling 14 mechanism revenues at calendar year rates with the exception of gas costs that 15 have been priced at the 2014 average gas cost rate which is representative of the 16 year Section 145 was signed into law. 17 As demonstrated in the table below, basing the revenue cap limitation on a 18 percentage of total prior year revenues is creating volatility that negatively 19 impacts the GSEP and the Company’s ability to recover its GSEP investments, 20 even though the factors influencing the cap are outside of the Company’s control. 21 The volatility of revenues is greatly influenced by the cost of gas and, to a lesser Testimony of Ronald D. Gibbons Columbia Gas of Massachusetts D.P.U. 17-GSEP-05 Exhibit CMA/RDG-1 October 31, 2017 Page 29 of 39 1 extent, weather. The Company has experienced a sharp decline in total revenue in 2 recent years and its projected total revenues for calendar year 2017 are likely to be 3 less than the historical trend. 4 The table presented below provides a demonstration of the volatility of the annual 5 revenues inclusive of gas cost, as well as the average gas cost rate since 2009, the 6 year the Company’s TIRF program began. Year‐over‐ Year‐over‐ Actual /  Year  Average Gas Cost  Year  Year  Projected Annual Revenues  Inc/Dec  Rate  Inc/Dec  Actual  2009*  $586 million  $8.68/dth  Actual  2010  $534 million  (8.87%)  $7.05/dth  (18.78%)  Actual  2011  $558 million  4.49%  $6.64/dth   (5.82%)  Actual  2012  $452 million  (19.00%)  $5.86/dth  (11.75%)  Actual  2013  $546 million  20.80%  $5.92/dth  1.02%  Actual  2014*  $706 million  29.30%  $8.60/dth  45.27%  Actual  2015*  $584 million  (17.28%)  $4.94/dth  (42.56%)  Actual  2016  $406 million  (30.48%)  $3.41/dth  (30.97%)  Projected 2017**  $513 million  26.35%  $4.55/dth  33.43%    *Reflects a year in which new base rates became effective.  **Calendar year 2017 figures represent 9 months actual and 3 months projected.              7 While it is possible that future years’ total revenues could increase, such an 8 increase would primarily be the result of increasing gas costs and potentially 9 colder than normal weather. The instability and volatility of the cap limitation as 10 currently based on the Company’s total unadjusted revenues is not appropriate for 11 a program as significant as the GSEP in that the volatility will frustrate the 12 Section 145 directive to accelerate the replacement of leak-prone infrastructure. Testimony of Ronald D. Gibbons Columbia Gas of Massachusetts D.P.U. 17-GSEP-05 Exhibit CMA/RDG-1 October 31, 2017 Page 30 of 39 1 2 Q. Has the Department previously addressed gas cost volatility and its impact on infrastructure replacement programs? 3 A. Yes. The Department has approved similar proposals in the Company’s TIRF 4 program. In D.P.U. 13-75, its 2013 base distribution rate case, the Company 5 proposed to replace the one percent total revenues TIRF cap with a 3.75 percent 6 cap based on distribution revenues. Bay State Gas Company d/b/a Columbia Gas 7 of Massachusetts, D.P.U. 13-75, at 30 (2014). The Company’s proposal was 8 driven by a substantial decline in gas revenues, which decreased the amount of 9 revenues under the TIRF cap. Id., at 22. The decline in gas revenues, as well as a 10 required annual replacement schedule, reduced the revenues under the TIRF cap 11 to an unworkable level. Id., at 22-23. The Company proposed to calculate the 12 cap using distribution, not total, revenues provided more stability in terms of the 13 level of TIRF investment, resulted in a predictable level of recovery through the 14 TIRF and limited bill impacts to customers. Id., at 29. 15 The Department, in approving the Company’s TIRF proposal, focused on the 16 establishment of a reasonable cap that provided sufficient protection for 17 customers. Id., at 31. The Department found that the fluctuations in gas prices 18 were more likely to weaken the value of the TIRF cap than basing the cap 19 calculation on the Company’s relatively stable distribution revenues. Id. Testimony of Ronald D. Gibbons Columbia Gas of Massachusetts D.P.U. 17-GSEP-05 Exhibit CMA/RDG-1 October 31, 2017 Page 31 of 39 1 Accordingly, the Department approved the proposal, finding that it did not 2 undermine the customer protections inherent in the cap.1 Id., 3 If approved, the Company’s proposed prior year total revenue modification would 4 provide the Company with revenue recovery stability for the GSEP in the near- 5 term. As noted above, the Company anticipates that the constraints under the 6 revenue cap will continue into the future and, eventually, it is likely that the 7 Company’s proposed alternative cap calculation will no longer provide the 8 necessary flexibility to administer the GSEP consistent with the directives of 9 Section 145. Approval of the Company’s proposed alternative calculation will 10 enable the Company, the other LDCs with GSEPs and the Department time to 11 develop a more permanent solution. 12 As the Company has demonstrated, the volatility introduced by fluctuating gas 13 costs and the negative impact on the GSEP revenue cap must be addressed. The 14 Company, through its proposed alternate calculation, is seeking full recovery of 15 the proposed 2018 GSEP revenue requirement of $26,839,882 effective May 1, 16 2018. In the event that the Department does not approve the alternate calculation 17 proposal, the Company is requesting a waiver of the 1.5 percent cap for the 2018 18 GSEP. 1 Similarly, the Department, in approving Liberty Utilities’ proposal to adjust its ADIT to mitigate the fluctuations in its deferred gas cost balance, found that disallowing the proposed adjustment would introduce an element of volatility into the GSEP that was unnecessary and not beneficial to customers. Liberty Utilities (New England Natural Gas Company) Corp. d/b/a Liberty Utilities, D.P.U. 16-GREC-04, at 22 (2016). Testimony of Ronald D. Gibbons Columbia Gas of Massachusetts D.P.U. 17-GSEP-05 Exhibit CMA/RDG-1 October 31, 2017 Page 32 of 39 1 2 Q. Please explain the reasons for the Company’s waiver request for the 2018 GSEP revenue recovery. 3 A. The reasons for requesting a waiver in the event that the Department does not 4 approve the alternate cap calculation are substantially the same reasons that led 5 the Company to develop and propose the alternate cap calculation. As described 6 above, the Company’s incremental 2018 GSEP revenue requirement has exceeded 7 the 1.5 percent legislative revenue cap limitation due in large part to the 8 substantial decline in gas revenues contained in the Company’s total distribution 9 revenue in the most recent calendar year (2016) upon which the cap limitation is 10 based. This decline in gas revenues, in combination with the acceleration of the 11 replacement mileage threshold, has reduced the revenues under the cap to an 12 unworkable level in the context of replacement of infrastructure under the GSEP 13 program. The fluctuation in gas revenues creates a high level of unpredictability 14 within the GSEP program relative to the level of investment to be recoverable in a 15 given year. 16 While one of the primary goals of the GSEP legislation is to accelerate priority 17 pipe replacement while reducing regulatory lag in associated cost recovery, the 18 current defined revenue cap limitation can be very restrictive in allowed 19 recoveries. 20 replacement, there are two potential possibilities in which the Company could 21 obtain recovery of over-the-cap revenue requirement in future GSEP Plans: (1) a Absent a waiver of the cap limitation for 2018 priority pipe Testimony of Ronald D. Gibbons Columbia Gas of Massachusetts D.P.U. 17-GSEP-05 Exhibit CMA/RDG-1 October 31, 2017 Page 33 of 39 1 significant increase in the next (2017) calendar year’s revenues which would 2 provide an increase in the allowable revenue requirement to be recovered in a 3 future a GSEP filing, or (2) a substantial decrease in the GSEP infrastructure 4 investment in a given year. A substantial decrease in investment is unacceptable 5 as it is counter to the annual replacement mileage targets under the GSEP, gas 6 emissions compliance standards and ultimately the timeline of the 20-year GSEP 7 program completion. 8 In addition to the impact the cap restriction has on the accelerated removal of 9 leak-prone infrastructure, the cap in its current form will also negatively impact 10 other regulatory frameworks. Recently, the Massachusetts Department of 11 Environmental Protection (“DEP”) issued methane emissions regulations, 12 contained in 310 C.M.R. § 7.73, which are designed to assist in the achievement 13 of emissions reductions consistent with the Global Warming Solutions Act 14 (“GWSA”) and other important Massachusetts environmental policies. 15 methane emissions regulations contain a cap on allowable methane emissions 16 from the Company’s distribution system. The DEP regulatory cap was developed 17 using the Company’s projected annual leak-prone infrastructure replacement 18 under the GSEP. In order to remain under the cap set out in the DEP regulations, 19 continue to curb methane emissions and avoid financial penalties, the Company 20 must keep pace with its accelerated replacement of leak-prone infrastructure. If 21 the current GSEP cap limitations remain unchanged and the accelerated The Testimony of Ronald D. Gibbons Columbia Gas of Massachusetts D.P.U. 17-GSEP-05 Exhibit CMA/RDG-1 October 31, 2017 Page 34 of 39 1 replacement under the GSEP is affected, the Company faces the prospect of 2 failing to meet the requirements of the DEP methane emissions regulations. 3 Further, based upon current forecasted GSEP investments for calendar year 2019 4 and forecasted 2017 revenues), the Company anticipates that it will exceed the 5 incremental revenue requirement increase in its annual 2018 GSEP filing for 6 calendar year 2019 based upon the current cap limitations. As demonstrated, the 7 Company is facing a host of factors that necessitate a waiver from the 1.5 percent 8 cap, in the event that the Department does not approve its alternate cap 9 calculation, in order to ensure that it is able to administer the GSEP in a manner 10 that continues to meet the directives of Section 145, as well as other regulatory 11 mandates. 12 13 Q. Is it possible that the cap limitation may affect any periods prior to the calendar year 2018 GSEP as filed in the instant proceeding? 14 A. Yes. The Company’s reconciliation of the 2017 calendar year GSEP which will 15 be filed on or about May 1, 2018 is subject to the cap limitation allowed in D.P.U. 16 17-GSEP-05. While it is too early to know the exact amount of an under- or over- 17 calculation for the calendar year 2017 GSEP, it certainly would not be a surprise 18 for that reconciliation to reflect an under-collection when the warmer than normal 19 weather in early 2017 is considered. Absent a waiver in the instant case, an 20 under-collection would be subject to the cap limitations established in D.P.U. 17- 21 GSEP-05. Testimony of Ronald D. Gibbons Columbia Gas of Massachusetts D.P.U. 17-GSEP-05 Exhibit CMA/RDG-1 October 31, 2017 Page 35 of 39 1 C. TYPICAL BILL IMPACT ANALYSES 2 Q. What will be the effect of the proposed GSEAFs on customers’ bills? 3 A. Exhibit CMA/RDG-3, pages 1 – 12, presents the typical bill impact analyses for 4 every rate class, isolating the impact on the total bill of charging the current 5 GSEAF, as approved in D.P.U. 16-GSEP-05, as compared to the proposed 6 GSEAF for effect May 1, 2018. This analysis uses for each rate class, the average 7 normalized usage by month determined for the test year (CY 2014) of the 8 Company’s most recent base rate case, D.P.U. 15-50. The rates used in the 9 analysis reflect the Company’s most current rates being charged, or to be charged, 10 11 12 13 14 15 16 17 18 19 20 and are as follows:  Off-peak Period (May – October) - base rates effective November 1, 2016 pursuant to D.P.U. 15-50 (Step Adjustment), Gas Adjustment Factors (“GAFs”), Local Distribution Adjustment Factors (“LDAFs”) and Revenue Decoupling Adjustment Factors (“RDAFs”) that have been charged during this 2017 Off-peak season; and  Peak Period (November – April) - base rates effective November 1, 2016 pursuant to D.P.U. 15-50 (Step Adjustment), as well as the forecast/expected GAFs, RDAFs and the LDAFs on file with the Department to become effective November 1, 2017. 21 The resulting annual impact on the typical customer for all rate classes falls 22 within a range of 1.01 percent to 2.16 percent. Of note, as shown on page 1 of 23 Exhibit CMA/RDG-3, the implementation of the Residential Rate Class Sector 24 GSEAF of $0.0626 per therm impacts the annual bill of the average Residential Testimony of Ronald D. Gibbons Columbia Gas of Massachusetts D.P.U. 17-GSEP-05 Exhibit CMA/RDG-1 October 31, 2017 Page 36 of 39 1 Heating, R-3, customer using 965 therms annually, by 1.53 percent, or a monthly 2 increase of $1.69. 3 V. CMA’S PROPOSED GSEP TARIFF REVISIONS 4 Q. Has the Company prepared a revised GSEP tariff? 5 A. Yes. Exhibit CMA/RDG-5 presents the Company’s GSEP tariff, Section 8.0 of 6 its LDAC tariff, marked with redline revisions associated with incorporating 7 CMA’s proposed revisions, while Exhibit CMA/RDG-4 provides the 8 Company’s clean GSEP tariff incorporating the proposed red-line revisions. 9 The Company’s proposed revisions are based on the Department’s directive in 10 D.P.U. 16-GSEP-05 to work with the other GSEP-eligible LDCs to propose 11 amended tariff provision(s) to address using estimated beginning and end-of- 12 month plant balances to calculate a monthly average rate base rather than using 13 estimated beginning and end-of-year plant balances to calculate an annual 14 average rate base for the annual revenue requirement for the year in which the 15 eligible GSEP investments are placed into service. D.P.U. 16-GSEP-05, at 15-16. 16 The Company has worked collaboratively with the other LDCs in developing 17 the proposed amendments to the GSEP provisions of the LDAC. Most notably, 18 the proposed GSEP tariff revisions include definition and formula changes for 19 the shift to a monthly average rate base methodology in the annual projected 20 GSEP filings as opposed to the annual average rate base methodology for the 21 annual revenue requirement as discussed in detail earlier in my testimony. The Testimony of Ronald D. Gibbons Columbia Gas of Massachusetts D.P.U. 17-GSEP-05 Exhibit CMA/RDG-1 October 31, 2017 Page 37 of 39 1 Company has also made revisions to the GSEP tariff, as contained in Exhibit 2 CMA/RDG-4 and 5 for (1) the Rate Base (“RB”) formula in Section 8.3, (2) the 3 RB definition in Section 8.3(1) (3) the Depreciation Expense (“DEPR”) 4 definition in Section 8.3(1) (4) the “current c” definition and (5) the “current p” 5 definition in Section 8.3(1) as directed in the Order of D.P.U. 16-GSEP-05, at 6 16, footnote 15. Other changes to the GSEP Section 8.0 provisions include the 7 following: 8  Revised language for definitions of: (1) Existing Infrastructure in Section 9 8.2(6) (2) GSERAF in Section 8.2(10) (3) GSEP Revenue Requirement in 10 Section 8.2(15) (4) Gross Plant (“GP”) in Section 8.3(1), (5) Accumulated 11 Reserve for Depreciation (“ARD”) and Accumulated Deferred Income Tax 12 (“ADIT”) in Section 8.3(1); and 13  Revised language of Section 8.4-Limitations on Annual GSEAF and 14 GSERAF Charges in Section 8.4(1), Section 8.5-Overheads and Burdens 15 Adjustments, and Section 8.7-Information to be Filed with the Department.. 16 Company Witness Mueller, in his pre-filed testimony, provides the operational 17 basis for the proposed additions to the definition for Existing Infrastructure. The 18 revised language included in Section 8.4-Limitations on Annual GSEAF and 19 GSERAF Charges was included in response to Department cross-examination of 20 Company witnesses during the D.P.U. 17-GREC-05 evidentiary hearing. Testimony of Ronald D. Gibbons Columbia Gas of Massachusetts D.P.U. 17-GSEP-05 Exhibit CMA/RDG-1 October 31, 2017 Page 38 of 39 1 Additionally, the proposed changes to Section 8.5-Overheads and Burdens 2 Adjustments are being proposed as the Company does not recover any of its 3 pension/Post-retirement Benefits Other than Pensions (“PBOP”) costs through its 4 base rates; rather, all of these costs are recovered through the Pension/PBOP 5 Expense Factor (“PEF”). 6 7 Q. Please explain the addition of Appendix A to the GSEP Provisions of the LDAC. 8 A. Section 13 of the Energy Diversity Act requires the Department to establish 9 specific criteria to identify Grade 3 gas leaks (classified pursuant to G.L. c. 164, § 10 144) that have significant environmental impact, and to establish a plan to repair 11 leaks that are determined to have a significant environmental impact. Section 13 12 of the Energy Diversity Act also states that Department shall provide for the 13 recovery of costs incurred for the repair of Grade 3 gas leaks determined to have a 14 significant environmental impact as part of the most cost-effective timeline for 15 repairs under a plan submitted under G.L. c. 164, § 145, without a reduction to the 16 recovery for eligible leak prone pipe replacement. 17 As discussed above, the proceeding to establish the regulations associated with 18 the classification of gas leaks, including environmentally significant Grade 3 19 leaks is ongoing. 20 environmentally significant Grade 3 leaks in reducing methane emissions and 21 advancing the objectives of the GWSA, the Company has included an estimate of Given the importance of classifying and repairing Testimony of Ronald D. Gibbons Columbia Gas of Massachusetts D.P.U. 17-GSEP-05 Exhibit CMA/RDG-1 October 31, 2017 Page 39 of 39 1 the number of these leaks it intends to repair during the 2018 GSEP Investment 2 Year. The Company collaborated with the other LDCs to develop Appendix A to 3 the GSEP provisions of the LDAC tariff in order to memorialize the requirements 4 set out in Section 13 of the Energy Diversity Act, including those associated with 5 the cost recovery associated with repair of environmentally significant Grade 3 6 leaks. Appendix A is contained Exhibit CMA/RDG-4 and 5 as the new Section 7 8.8 of the Company’s GSEP Tariff. 8 Q. Does this conclude your testimony? 9 A. Yes. Columbia Gas of Massachusetts D.P.U 17-GSEP-05 Exhibit CMA/RDG-1 Attachement A Page 1 of 2 Columbia Gas of Massachusetts GSEP Spend Forecast 2018 (000)'s Gross Plant, Retirements, Cost of Removal Estimated Costs Jan-Dec. 2018 Gross Plant Additions by Amount Per Utility Account % of Total Cap GPA 376 380 Desc 2 Mains GSEP Distribution Services GSEP 63.83% 36.17% GPA 376 380 Desc 2 Mains GSEP Distribution Services GSEP Avg Rate of Ret/Add 3.05% 11.13% GPA 376 380 Desc 2 Mains GSEP Distribution Services GSEP Estimated Cost of Removal by Account Per Utility Account GPA 376 380 Grand Total Desc 2 Mains GSEP Distribution Services GSEP Grand Total Estimated Retirements by Account Per Utility Account Grand Total Net Plant Values by Account Per Utility Account Total 2018 51,066 28,934 80,000 Total 2018 1,560 3,221 4,781 Total 2018 49,506 25,713 75,219 Grand Total Neg Sal Rate Total 2018 20.00% 110.00% 312 3,543 3,855 Columbia Gas of Massachusetts D.P.U 17-GSEP-05 Exhibit CMA/RDG-1 Attachement A Page 2 of 2 CMA GSEP Program Historical Additions and Retirements Three Year Average (2014-2016) Ln. No. Description Acct. Number 2014 Additions - 2015 Additions - 2015 Retirements - 2016 Additions - 2016 Retirements 1 Transmission Mains 367.00 2 3 4 5 6 7 8 Distribution Mains: Coated Steel Bare Steel Plastic Joint Seal Cathodic Protection Cast Iron 376.20 376.30 376.40 376.50 376.60 376.80 21,012,512 12,021,640 - (586,487) (138,396) (139,555) 16,278,309 16,857,892 - (228,091) (37,706) (929,239) (11,900) 1,664,134 41,928,148 - (276,905) (51,886) (810,891) (141,091) 9 10 11 12 13 Distribution Services Meters Meter Installations House Regulators Industrial M & R Equipment 380.20 381.20 382.20 383.20 385.00 18,824,971 - (2,542,417) - 17,521,446 - (1,421,055) - 23,717,180 - (2,723,389) - 51,859,124 (3,406,855) 50,657,648 (2,627,993) 67,309,462 (4,004,162) 14 Total GSEP Investments - 2014 Retirements 3-Year Average - 15 Ratios: 16 Ratio of retirements to additions - Mains 17 Ratio of retirements to additions - Services 18 Ratio of retirements to additions - Total 2.62% 3.64% 2.94% 3.05% 13.51% 8.11% 11.48% 11.13% 6.57% 5.19% 5.95% 5.91% Columbia Gas of Massachusetts Witness: R. D. Gibbons D.P.U. 17-GSEP-05 Exh. CMA/RDG-2 Table of Contents 2018 Gas System Enhancement Program TABLE OF CONTENTS Schedule # Calculation of Total GSEP Recovery 1 Calculation of Monthly Average Rate Base Revenue Requirement 2 Calculation of Deferred Taxes 3 Calculation of Pre Tax Rate of Return 4 Calculation of Property Taxes 5 Calculation of GSEP Offsets 6 Calculation of Overheads and Burdens Adjustment 7 Gas System Enhancement Adjustment Factor (GSEAF) by Rate Class Sectors 8 Columbia Gas of Massachusetts Witness: R. D. Gibbons D.P.U. 17-GSEP-05 Exh. CMA/RDG-2 Schedule - 1 2018 Gas System Enhancement Program Calculation of Total GSEP Recovery Line Reference (1) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Total GSEP Plant Investment 25 Amount of Incremental Revenue Requirement related to Grade 3 Leak Repairs 26 Total GSEP Revenue Requirement Allowable For Billing Cumulative GSEP Recovery Before Adjustments 2015 Gas System Enhancement Program 2016 Gas System Enhancement Program 2017 Gas System Enhancement Program 2018 Gas System Enhancement Program Total CY 2017 Rev Req on Cumulative Increase in Net Plant at 12/31/17 ** (4) CY 2018 Rev Req on Cumulative Increase in Net Plant at 12/31/18 (5) Exh. 2 Sch. 2 Ln. 55 (2015, 2016, 2017 & 2018) $ 50,175,713 $ 116,434,914 $ 189,395,324 $ 273,250,575 Exh. 2 Sch 2. Ln. 83 (2015 in 2018) Exh. 2 Sch 2. Ln. 83 (2016 in 2018) Exh. 2 Sch 2. Ln. 83 (2017 in 2018) Exh. 2 Sch 2. Ln. 137 (2018 in 2018) $ $ $ $ 1,477,549 - $ $ $ $ 5,909,137 2,338,912 - $ $ $ $ 6,150,942 6,775,506 4,240,515 - $ $ $ $ 6,215,708 8,279,351 8,753,346 3,591,477 Ln. 4 + Ln. 5 + Ln. 6 + Ln. 7 $ 1,477,549 $ 8,248,048 $ 17,166,963 $ 26,839,882 Recovery of prior year Revenue Requirement above the Cap Amount of Incremental Revenue Requirement related to Grade 3 Leak Repairs CY 2016 Rev Req on Cumulative Increase in Net Plant at 12/31/16 * (3) 2015 GSEP Revenue Requirement * (2) $ Exh. 2 Sch. 2 Ln. 136 (2018 in 2018) - $ n/a $ 6,770,499 $ - $ n/a $ 496,050 8,918,915 $ 9,176,869 (Ln. 9 + Ln. 11 - Ln 13) - (Ln. 9 & Ln. 11 from Previous Year) Cap Limitation Revenue for Cap Calculation (2016 Revenue) (NOTE 1) Cap Rate 1.5% Cap on 2016 Revenue Ln. 18 * Ln. 19 $ If Ln. 15 > Ln. 20, Then Ln. 20 less Line 15, Else 0 $ Ln. 15 + Ln. 22 Ln. 13 $ Total Incremental GSEP Recovery Allowable Per Rate Cap 1,477,549 $ n/a Total Additional Revenue Requirement Before Cap Limitation Revenue Requirement above the cap/deferred for future recovery $ - $ Ln15 Col 2 + Ln 15 Col 3 + Ln 15 Col 4 + Ln 24 Col 5 + Ln 25 Col 5 *--As filed in D.P.U. 17-GREC-05 for 2015 & 2016 actual investments. **--As filed and approved in D. P.U. 17-GSEP-05 for 2015 & 2016 actual investments and projected investments for 2017. NOTE 1: 2016 Revenues as determined by the proposed new methology discussed in Exhibit CMA/RDG-1, beginning on page 28. - 714,172,026 1.50% 10,712,580 9,176,869 $ 496,050 $ 26,839,882 Columbia Gas of Massachusetts Witness: R. D. Gibbons D.P.U. 17-GSEP-05 Exh. CMA/RDG-2 Schedule 2 - 2018 in 2018 2018 Gas System Enhancement Program Calculation of Monthly Average Rate Base Revenue Requirement Line No. Description 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 Depreciable Plant Additions Monthly Plant Additions - Mains: Plant Additions - Mains - Coated Steel Plant Additions - Mains - Bare Steel Plant Additions - Mains - Plastic Plant Additions - Mains - Cast Iron Total monthly Plant Additions - Mains Total monthly Plant Additions - Services Total monthly Depreciable Additions Monthly Plant Additions Allocations-Mains: Plant Additions - Mains - Coated Steel Plant Additions - Mains - Bare Steel Plant Additions - Mains - Plastic Plant Additions - Mains - Cast Iron Monthly Plant Additions Allocations- Services Overheads Burdens Adjustment-Mains: Plant Additions - Mains - Coated Steel Plant Additions - Mains - Bare Steel Plant Additions - Mains - Plastic Plant Additions - Mains - Cast Iron Overheads Burdens Adjustment-Mains Total Overheads Burdens Adjustment-Services Overheads Burdens Adjustment-Total Reference NOTE 1 NOTE 1 NOTE 1 NOTE 1 (Sum of Lines 2 thru 5) NOTE 1 (Line 6 + Line 7) GPA - 376.20 GPA - 373.30 GPA - 376.40 GPA - 376.80 GPA - 380.00 (Line 2 divided by Line, 27 Column L) (Line 3 divided by Line, 28 Column L) (Line 4 divided by Line, 29 Column L) (Line 5 divided by Line, 30 Column L) (Line 7 divided by Line, 32 Column L) (Sch. 7, Col. 4, Line 19) (Sch. 7, Col. 4, Line 20) (Sch. 7, Col. 4, Line 21) (Sch. 7, Col. 4, Line 22) (Sum of Lines 18 thru 21) (Sch. 7, Col. 4, Line 24) January (a) February (b) ($267,109) $0 $100,580 $0 ($166,529) $440,027 $273,498 -2.23% 0.00% 0.26% 0.00% 1.52% $0 $0 $0 $0 $0 $0 $0 $83,651 $0 $320,186 $0 $403,837 $660,398 $1,064,235 0.70% 0.00% 0.82% 0.00% 2.28% $0 $0 $0 $0 $0 $0 $0 March (c) April (d) $87,860 $0 $273,567 $0 $361,427 $969,511 $1,330,938 0.73% 0.00% 0.70% 0.00% 3.35% $0 $0 $0 $0 $0 $0 $0 2018 Investments (NOTE 1) June July (f) (g) May (e) $359,585 $0 $1,083,935 $0 $1,443,520 $1,212,146 $2,655,666 3.01% 0.00% 2.77% 0.00% 4.19% $266,284 $0 $1,873,407 $0 $2,139,690 $2,931,406 $5,071,097 2.23% 0.00% 4.79% 0.00% 10.13% $157,378 $0 $2,854,547 $0 $3,011,925 $3,823,328 $6,835,253 1.32% 0.00% 7.30% 0.00% 13.21% $694,643 $0 $2,209,018 $0 $2,903,661 $2,853,966 $5,757,627 5.81% 0.00% 5.65% 0.00% 9.86% 2018 Revenue Requirement August (h) September (i) $1,255,845 $0 $5,655,569 $0 $6,911,414 $3,732,252 $10,643,666 10.50% 0.00% 14.46% 0.00% 12.90% $32,467 $0 $5,467,510 $0 $5,499,977 $3,548,218 $9,048,195 0.27% 0.00% 13.98% 0.00% 12.26% October (j) November (k) December (l) $2,184,764 $0 $1,905,597 $0 $4,090,361 $3,378,891 $7,469,252 $3,368,891 $0 $11,133,616 $0 $14,502,507 $3,023,276 $17,525,783 $3,731,532 $0 $6,232,632 $0 $9,964,164 $2,360,626 $12,324,790 18.27% 0.00% 4.87% 0.00% 11.68% 28.18% 0.00% 28.47% 0.00% 10.45% (m) $11,955,791 $0 $39,110,164 $0 $51,065,955 $28,934,045 $80,000,000 31.21% 0.00% 15.94% 0.00% 8.16% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Cumulative Before Adjustment Plant Additions - Mains: Plant Additions - Mains - Coated Steel Plant Additions - Mains - Bare Steel Plant Additions - Mains - Plastic Plant Additions - Mains - Cast Iron Cumulative Before Adjustment Plant Additions - Mains Cumulative Before Adjustment Plant Additions - Services Cumulative Before Adjustment Depreciable Additions (Prior Mo. Line 27 + Current Mo. Line 2) (Prior Mo. Line 28 + Current Mo. Line 3) (Prior Mo. Line 29 + Current Mo. Line 4) (Prior Mo. Line 30 + Current Mo. Line 5) (Sum of Lines 27 thru 30) (Prior Mo. Line 32 + Current Mo. Line 7) (Line 31 + Line 32) ($267,109) $0 $100,580 $0 ($166,529) $440,027 $273,498 ($183,458) $0 $420,766 $0 $237,308 $1,100,425 $1,337,733 ($95,598) $0 $694,333 $0 $598,735 $2,069,936 $2,668,671 $263,986 $0 $1,778,269 $0 $2,042,255 $3,282,082 $5,324,337 $530,270 $0 $3,651,675 $0 $4,181,945 $6,213,488 $10,395,434 $687,649 $0 $6,506,222 $0 $7,193,871 $10,036,816 $17,230,687 $1,382,292 $0 $8,715,240 $0 $10,097,532 $12,890,782 $22,988,314 $2,638,137 $0 $14,370,809 $0 $17,008,946 $16,623,034 $33,631,980 $2,670,604 $0 $19,838,319 $0 $22,508,923 $20,171,252 $42,680,175 $4,855,368 $0 $21,743,916 $0 $26,599,284 $23,550,144 $50,149,428 $8,224,259 $0 $32,877,532 $0 $41,101,791 $26,573,419 $67,675,210 $11,955,791 $0 $39,110,164 $0 $51,065,955 $28,934,045 $80,000,000 Cumulative After Adjustment Plant Additions - Mains: Plant Additions - Mains - Coated Steel Plant Additions - Mains - Bare Steel Plant Additions - Mains - Plastic Plant Additions - Mains - Cast Iron Cumulative After Adjustment Plant Additions - Mains Cumulative After Adjustment Plant Additions - Services Cumulative After Adjustment Depreciable Additions (Prior Mo. Line 36 + Current Mo. Line 2 and 18) (Prior Mo. Line 37 + Current Mo. Line 3 and 19) (Prior Mo. Line 38 + Current Mo. Line 4 and 20) (Prior Mo. Line 39 + Current Mo. Line 5 and 21) (Sum of Lines 36 thru 39) (Prior Mo. Line 41 + Current Mo. Line 7 and 23) (Line 40 + Line 41) ($267,109) $0 $100,580 $0 ($166,529) $440,027 $273,498 ($183,458) $0 $420,766 $0 $237,308 $1,100,425 $1,337,733 ($95,598) $0 $694,333 $0 $598,735 $2,069,936 $2,668,671 $263,986 $0 $1,778,269 $0 $2,042,255 $3,282,082 $5,324,337 $530,270 $0 $3,651,675 $0 $4,181,945 $6,213,488 $10,395,434 $687,649 $0 $6,506,222 $0 $7,193,871 $10,036,816 $17,230,687 $1,382,292 $0 $8,715,240 $0 $10,097,532 $12,890,782 $22,988,314 $2,638,137 $0 $14,370,809 $0 $17,008,946 $16,623,034 $33,631,980 $2,670,604 $0 $19,838,319 $0 $22,508,923 $20,171,252 $42,680,175 $4,855,368 $0 $21,743,916 $0 $26,599,284 $23,550,144 $50,149,428 $8,224,259 $0 $32,877,532 $0 $41,101,791 $26,573,419 $67,675,210 $11,955,791 $0 $39,110,164 $0 $51,065,955 $28,934,045 $80,000,000 (Line 49 + Line 50) $91,395 $51,015 $11,358 $22,552 $176,320 $1 $176,321 $211,821 $22,025 -$248 $168,703 $402,302 $2,539 $404,841 $7,018 $72,117 $353,390 $77,853 $510,379 $5,373 $515,752 Cumulative Cost of Removal (Prior Mo. Line 53 + Current Mo. Line 51) $176,321 $581,162 $1,096,914 $1,117,412 $1,399,174 $1,720,146 $1,828,707 $2,031,210 $2,234,909 $2,590,194 $2,765,826 $3,855,251 Total GSEP Plant Investment (Line 42 + Line 53) $449,819 $1,918,895 $3,765,585 $6,441,749 $11,794,608 $18,950,833 $24,817,021 $35,663,190 $44,915,085 $52,739,622 $70,441,037 $83,855,251 Cost of Removal: Plant Additions - Mains - Coated Steel Plant Additions - Mains - Bare Steel Plant Additions - Mains - Plastic Plant Additions - Mains - Cast Iron Total monthly Cost of Removal - Mains Total monthly Cost of Removal - Services Total monthly Cost of Removal GPA - 376.20 GPA - 373.30 GPA - 376.40 GPA - 376.80 (Sum of Lines 45 thru 48) GPA - 380.00 $21,274 $0 -$1,088 $312 $20,498 $0 $20,498 $99,481 $1,352 $23,571 $155,910 $280,314 $1,448 $281,762 $13,115 $139,002 $0 $168,855 $320,972 $0 $320,972 $12,008 $40,631 $19,544 $36,378 $108,561 $0 $108,561 $48,189 $82,446 $28,350 $3,669 $162,653 $39,850 $202,503 $34,103 $21,725 $304 $147,567 $203,700 $0 $203,700 $154,092 $12,215 $99,179 $89,800 $355,285 $0 $355,285 $63,528 $40,023 $4,315 $67,766 $175,632 $0 $175,632 $470,741 $231,419 $271,632 $115,632 $1,089,424 $0 $1,089,424 $1,226,765 $713,970 $810,308 $1,054,997 $3,806,040 $49,211 $3,855,251 Columbia Gas of Massachusetts Witness: R. D. Gibbons D.P.U. 17-GSEP-05 Exh. CMA/RDG-2 Schedule 2 - 2018 in 2018 2018 Gas System Enhancement Program Calculation of Monthly Average Rate Base Revenue Requirement Line No. Description 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 GP 121 ARD 122 123 ADIT 124 ADIT 125 126 127 128 RB 129 PTRR 130 131 132 133 DEPR 134 PTMS 135 OFF 136 137 GSEP_RECc Reference January (a) February (b) March (c) April (d) May (e) 2018 Investments (NOTE 1) June July (f) (g) 2018 Revenue Requirement August (h) September (i) October (j) November (k) December (l) (m) Depreciable Retirements Plant Retirements - Mains: Plant Additions - Mains - Coated Steel Plant Additions - Mains - Bare Steel Plant Additions - Mains - Plastic Plant Additions - Mains - Cast Iron Total monthly Plant Retirements - Mains Total monthly Plant Retirements - Services Total Depreciable Retirements Cumulative Plant Retirements - Mains: Plant Additions - Mains - Coated Steel Plant Additions - Mains - Bare Steel Plant Additions - Mains - Plastic Plant Additions - Mains - Cast Iron Total Cumulative Plant Retirements - Mains Total Cumulative Plant Retirements - Services Cumulative Net Depreciable Retirements GPA - 376.20 GPA - 373.30 GPA - 376.40 GPA - 376.80 (Line 63 + Line 64) ($10,504) ($18) ($5,333) $0 ($15,855) ($47,762) ($63,617) $763 ($1,178) ($7,993) ($7,289) ($15,697) ($42,254) ($57,951) ($2,237) ($2,327) ($5,034) ($412) ($10,010) ($130,634) ($140,644) ($1,105) ($184) ($5,626) $0 ($6,916) ($173,938) ($180,854) ($2,020) ($931) ($95,362) ($8,066) ($106,380) ($278,753) ($385,133) ($2,144) ($2,847) ($8,305) ($2,143) ($15,440) ($395,014) ($410,454) ($21,553) ($4,609) ($67,187) ($7,489) ($100,838) ($373,189) ($474,027) ($16,519) ($5,708) ($69,196) ($6,229) ($97,652) ($427,512) ($525,164) ($25,585) ($3,240) ($78,959) ($13,637) ($121,421) ($365,212) ($486,633) ($44,455) ($8,409) ($167,598) ($2,833) ($223,295) ($377,353) ($600,648) ($68,194) ($15,467) ($197,245) ($21,756) ($302,662) ($394,308) ($696,970) ($135,703) ($13,590) ($350,595) ($43,499) ($543,387) ($215,290) ($758,677) (Prior Mo. Line 68 + Current Mo. Line 59) (Prior Mo. Line 69 + Current Mo. Line 60) (Prior Mo. Line 70 + Current Mo. Line 61) (Prior Mo. Line 71 + Current Mo. Line 62) (Sum of Lines 68 thru 71) (Prior Mo. Line 73 + Current Mo. Line 64) (Line 72 + Line 73) ($10,504) ($18) ($5,333) $0 ($15,855) ($47,762) ($63,617) ($9,741) ($1,196) ($13,326) ($7,289) ($31,552) ($90,015) ($121,567) ($11,978) ($3,523) ($18,361) ($7,701) ($41,562) ($220,649) ($262,211) ($13,083) ($3,707) ($23,987) ($7,701) ($48,478) ($394,587) ($443,065) ($15,104) ($4,638) ($119,349) ($15,767) ($154,858) ($673,340) ($828,199) ($17,248) ($7,486) ($127,654) ($17,911) ($170,298) ($1,068,354) ($1,238,653) ($38,801) ($12,094) ($194,841) ($25,400) ($271,136) ($1,441,543) ($1,712,679) ($55,320) ($17,803) ($264,037) ($31,629) ($368,788) ($1,869,055) ($2,237,843) ($80,904) ($21,043) ($342,996) ($45,266) ($490,209) ($2,234,267) ($2,724,477) ($125,359) ($29,452) ($510,594) ($48,099) ($713,504) ($2,611,620) ($3,325,125) ($193,553) ($44,919) ($707,839) ($69,854) ($1,016,166) ($3,005,928) ($4,022,094) ($329,256) ($58,510) ($1,058,434) ($113,353) ($1,559,553) ($3,221,218) ($4,780,771) 2.61% 6.00% 2.02% 2.96% 3.52% 2.61% 6.00% 2.02% 2.96% 3.52% 2.61% 6.00% 2.02% 2.96% 3.52% 2.61% 6.00% 2.02% 2.96% 3.52% 2.61% 6.00% 2.02% 2.96% 3.52% 2.61% 6.00% 2.02% 2.96% 3.52% 2.61% 6.00% 2.02% 2.96% 3.52% 2.61% 6.00% 2.02% 2.96% 3.52% 2.61% 6.00% 2.02% 2.96% 3.52% 2.61% 6.00% 2.02% 2.96% 3.52% 2.61% 6.00% 2.02% 2.96% 3.52% 2.61% 6.00% 2.02% 2.96% 3.52% (Sum of Lines 59 thru 62) GPA - 380.00 ($329,256) ($58,510) ($1,058,434) ($113,353) ($1,559,553) ($3,221,218) ($4,780,771) Book Depreciation Mains - Book Depreciation Plant Additions - Mains - Coated Steel Plant Additions - Mains - Bare Steel Plant Additions - Mains - Plastic Plant Additions - Mains - Cast Iron Services - Book Depreciation As Approved at DPU 12-25 As Approved at DPU 12-25 As Approved at DPU 12-25 As Approved at DPU 12-25 As Approved at DPU 12-25 Book Depreciation relating to Additions: Cumulative Book Deprec - Mains - Coated Steel Cumulative Book Deprec - Mains - Plastic Total Cumulative Book Deprec - Mains Additions Cumulative Book Deprec - Services Additions Total Cumulative Book Depreciation Additions (Average of Current and Prior Mo. Line 36 * Line 78/12) (Average of Current and Prior Mo. Line 38 * Line 80/12) (Line 85 + Line 86) (Average of Current and Prior Mo. Line 41 * Line 82/12) (Line 87 + Line 88) ($290) $85 ($206) $645 $440 ($780) $523 ($257) $2,905 $2,648 ($1,084) $1,462 $378 $7,555 $7,933 ($901) $3,543 $2,642 $15,404 $18,046 ($37) $8,113 $8,076 $29,331 $37,407 $1,287 $16,663 $17,950 $53,165 $71,115 $3,538 $29,474 $33,013 $86,792 $119,805 $7,911 $48,905 $56,816 $130,079 $186,895 $13,684 $77,698 $91,382 $184,044 $275,425 $21,868 $112,696 $134,565 $248,169 $382,733 $36,093 $158,669 $194,762 $321,683 $516,445 $58,038 $219,259 $277,297 $403,094 $680,391 Book Depreciation Relating to Retirements: Cumulative Book Deprec - Mains - Coated Steel Cumulative Book Deprec - Mains - Bare Steel Cumulative Book Deprec - Mains - Plastic Cumulative Book Deprec - Mains - Cast Iron Total Cumulative Book Deprec - Mains Retirements Cumulative Book Deprec - Services Retirements Total Cumulative Book Depreciation Retirements (Average of Current and Prior Mo. Line 59 * Line 78/12) (Average of Current and Prior Mo. Line 37 * Line 79/12) (Average of Current and Prior Mo. Line 38 * Line 80/12) (Average of Current and Prior Mo. Line 39 * Line 81/12) (Sum of Lines 92 thru 95) (Average of Current and Prior Mo. Line 73 * Line 82/12) ($11) ($0) ($4) $0 ($16) ($70) ($86) ($33) ($3) ($20) ($9) ($66) ($272) ($338) ($57) ($15) ($47) ($27) ($146) ($728) ($874) ($84) ($33) ($83) ($46) ($246) ($1,630) ($1,876) ($115) ($54) ($203) ($75) ($447) ($3,196) ($3,644) ($150) ($84) ($411) ($117) ($762) ($5,751) ($6,513) ($211) ($133) ($682) ($170) ($1,197) ($9,432) ($10,629) ($313) ($208) ($1,069) ($241) ($1,831) ($14,288) ($16,118) ($462) ($305) ($1,580) ($336) ($2,682) ($20,306) ($22,988) ($686) ($431) ($2,298) ($451) ($3,866) ($27,413) ($31,279) ($1,033) ($617) ($3,324) ($596) ($5,570) ($35,652) ($41,222) ($1,601) ($876) ($4,810) ($822) ($8,109) ($44,785) ($52,895) Cumulative Book Depreciation Line 89 + Line 98 $354 $2,310 $7,059 $16,170 $33,764 $64,602 $109,176 $170,776 $252,438 $351,454 $475,223 $627,497 Sch 3 - 2018 in 2018, Line 39 (Prior Mo. Line 104 + Current Mo. Line 103) $344,332 $344,332 $1,059,053 $1,403,385 $1,335,410 $2,738,795 $1,656,622 $4,395,416 $3,407,972 $7,803,388 $4,542,945 $12,346,333 $3,683,770 $16,030,103 $6,804,205 $22,834,308 $5,860,046 $28,694,354 $5,079,712 $33,774,066 $11,192,812 $44,966,878 $9,096,718 $54,063,596 State Tax Depreciation and Repairs Deduction Cumulative State Tax Depreciation Sch 3 - 2018 in 2018, Line 72 (Prior Mo. Line 107 + Current Mo. Line 106) $274,007 $274,007 $785,705 $1,059,712 $994,556 $2,054,268 $976,926 $3,031,194 $2,111,381 $5,142,575 $2,800,759 $7,943,334 $2,228,824 $10,172,158 $4,109,563 $14,281,721 $3,598,813 $17,880,534 $3,249,829 $21,130,363 $6,853,743 $27,984,106 $6,218,388 $34,202,494 Federal Book/Tax Timing Difference Federal Tax Rate Deferred Federal Tax Reserve (Line 104 - Line 100) $343,978 35.0% $120,392 $1,401,075 35.0% $490,376 $2,731,736 35.0% $956,108 $4,379,246 35.0% $1,532,736 $7,769,624 35.0% $2,719,369 $12,281,731 35.0% $4,298,606 $15,920,927 35.0% $5,572,324 $22,663,532 35.0% $7,932,236 $28,441,916 35.0% $9,954,671 $33,422,612 35.0% $11,697,914 $44,491,655 35.0% $15,572,079 $53,436,100 35.0% $18,702,635 State Book/Tax Timing Difference State Tax Rate Deferred State Tax Reserve (Line 107 - Line 100) (Line 113 * Line 114) $273,653 5.2% $14,230 $1,057,402 5.2% $54,985 $2,047,209 5.2% $106,455 $3,015,024 5.2% $156,781 $5,108,812 5.2% $265,658 $7,878,732 5.2% $409,694 $10,062,982 5.2% $523,275 $14,110,945 5.2% $733,769 $17,628,096 5.2% $916,661 $20,778,909 5.2% $1,080,503 $27,508,883 5.2% $1,430,462 $33,574,997 5.2% $1,745,900 Net Operating Loss (NOL) Carryforward Offset Sch 3 - 2018 in 2018, Line 83 ($17,566) ($85,920) ($171,404) ($341,974) ($667,682) ($1,106,700) ($1,476,503) ($2,160,129) ($2,741,280) ($3,221,018) ($4,346,671) ($5,138,273) $449,819 ($354) $449,465 ($117,056) $0 $332,409 $1,918,895 ($2,310) $1,916,585 ($459,441) $0 $1,457,144 $3,765,585 ($7,059) $3,758,526 ($891,158) $0 $2,867,368 $6,441,749 ($16,170) $6,425,579 ($1,347,544) $0 $5,078,035 $11,794,608 ($33,764) $11,760,844 ($2,317,345) $160,751 $9,604,250 $18,950,833 ($64,602) $18,886,231 ($3,601,600) $477,067 $15,761,698 $24,817,021 ($109,176) $24,707,845 ($4,619,097) $954,135 $21,042,884 $35,663,190 ($170,776) $35,492,414 ($6,505,877) $1,591,954 $30,578,491 $44,915,085 ($252,438) $44,662,647 ($8,130,052) $2,385,338 $38,917,933 $52,739,622 ($351,454) $52,388,167 ($9,557,399) $3,339,474 $46,170,242 $70,441,037 ($475,223) $69,965,814 ($12,655,870) $4,449,175 $61,759,118 $83,855,251 ($627,497) $83,227,754 ($15,310,262) $5,719,626 $73,637,119 $166,205 11.19% 31 0.95% $1,580 $354 $0 ($235) $0 $1,698 $894,777 11.19% 28 0.86% $7,681 $1,956 $0 ($913) $0 $8,724 $2,162,256 11.19% 31 0.95% $20,550 $4,749 $0 ($1,142) $0 $24,156 $3,972,702 11.19% 30 0.92% $36,538 $9,112 $0 ($2,279) $33,070 $76,440 $7,341,143 11.19% 31 0.95% $69,769 $17,593 $0 ($4,353) $66,140 $149,150 $12,682,974 11.19% 30 0.92% $116,649 $30,838 $0 ($5,867) $66,140 $207,760 $18,402,291 11.19% 31 0.95% $174,892 $44,574 $0 ($4,942) $66,140 $280,664 $25,810,687 11.19% 31 0.95% $245,301 $61,601 $0 ($9,136) $66,140 $363,905 $34,748,212 11.19% 30 0.92% $319,588 $81,662 $0 ($7,766) $82,675 $476,159 $42,544,088 11.19% 31 0.95% $404,332 $99,016 $0 ($6,411) $66,140 $563,077 $53,964,680 11.19% 30 0.92% $496,327 $123,769 $0 ($15,043) $49,605 $654,658 $67,698,119 11.19% 31 0.95% $643,392 $152,274 $0 ($10,579) $0 $785,086 Deferred Tax Calculation Federal Tax Depreciation and Repairs Deduction Cumulative Federal Tax Depreciation Rate Base Calculation: Total Cumulative GSEP Plant Investment Accumulated Reserve for Depreciation Cumulative Net Plant Deferred Tax Reserve Other ADIT Adjustments (NOTE 2) Cumulative Month End Rate Base Revenue Requirement Calculation: Average Rate Base Pre-Tax ROR Number of Days in the Month Monthly Applicable Pre-Tax ROR Return and Taxes Monthly Book Depreciation Property Taxes O&M Offset Grade 3 Leaks Expense Monthly Revenue Requirement before Adjustments GPA - 376.20 GPA - 373.30 GPA - 376.40 GPA - 376.80 GPA - 380.00 (Line 109 * Line 110) Line 55 Line 100 * -1 (Line 120 + Line 121) ((Line 115 + Line 111 + Line 117) * -1) Sch. 3-2018 in 2018, Line 85 (Lines 122 through 124) Mo. 1 = Line 125/ 2, then (Prior Mo. & Cur Mo. Line 125/ 2) Schedule 4 Line 129 * (Line 130/ 365) Line 128 * Line 131 Line 100 - Prior Mo. Line 100 Schedule 5 Schedule 6, Line 11, Column 2 *.5, Spread Proportionately to Ln. 8 Line 132 thru 136 NOTE 1 - Projected Investments are allocated monthly using the composite historical allocations of 2015 and 2016 Investments. NOTE 2 - Proforma Deferred Tax Normalization per Sch 3-2018 in 2018, Line 85 as calculated on Sch. 3A-2018 in 2018. Calendar Year 2018 in 2018 $2,536,598 $627,497 $0 ($68,667) $496,050 $3,591,477 Columbia Gas of Massachusetts Witness: R. D. Gibbons D.P.U. 17-GSEP-05 Exh. CMA/RDG-2 Schedule 2 - 2017 in 2017 2018 Gas System Enhancement Program Calculation of Monthly Average Rate Base Revenue Requirement Line No. Description 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 Depreciable Plant Additions Monthly Plant Additions - Mains: Plant Additions - Mains - Coated Steel Plant Additions - Mains - Bare Steel Plant Additions - Mains - Plastic Plant Additions - Mains - Cast Iron Total monthly Plant Additions - Mains Total monthly Plant Additions - Services Total monthly Depreciable Additions Monthly Plant Additions Allocations-Mains: Plant Additions - Mains - Coated Steel Plant Additions - Mains - Bare Steel Plant Additions - Mains - Plastic Plant Additions - Mains - Cast Iron Monthly Plant Additions Allocations- Services Overheads Burdens Adjustment-Mains: Plant Additions - Mains - Coated Steel Plant Additions - Mains - Bare Steel Plant Additions - Mains - Plastic Plant Additions - Mains - Cast Iron Overheads Burdens Adjustment-Mains Total Overheads Burdens Adjustment-Services Overheads Burdens Adjustment-Total Reference NOTE 1 NOTE 1 NOTE 1 NOTE 1 (Sum of Lines 2 thru 5) NOTE 1 (Line 6 + Line 7) GPA - 376.20 GPA - 373.30 GPA - 376.40 GPA - 376.80 GPA - 380.00 (Line 2 divided by Line, 27 Column L) (Line 3 divided by Line, 28 Column L) (Line 4 divided by Line, 29 Column L) (Line 5 divided by Line, 30 Column L) (Line 7 divided by Line, 32 Column L) (Sch. 7, Col. 4, Line 13) (Sch. 7, Col. 4, Line 14) (Sch. 7, Col. 4, Line 15) (Sch. 7, Col. 4, Line 16) (Sum of Lines 18 thru 21) (Sch. 7, Col. 4, Line 18) January (a) February (b) ($225,014) $0 $84,729 $0 ($140,284) $399,677 $259,392 -2.23% 0.00% 0.26% 0.00% 1.52% $0 $0 $0 $0 $0 $0 $0 $70,468 $0 $269,726 $0 $340,194 $599,840 $940,034 0.70% 0.00% 0.82% 0.00% 2.28% $0 $0 $0 $0 $0 $0 $0 March (c) April (d) $74,013 $0 $230,454 $0 $304,468 $880,607 $1,185,075 0.73% 0.00% 0.70% 0.00% 3.35% $0 $0 $0 $0 $0 $0 $0 2017 Investments (NOTE 1) June July (f) (g) May (e) $302,916 $0 $913,112 $0 $1,216,028 $1,100,993 $2,317,021 3.01% 0.00% 2.77% 0.00% 4.19% $224,319 $0 $1,578,166 $0 $1,802,485 $2,662,598 $4,465,083 2.23% 0.00% 4.79% 0.00% 10.13% $132,576 $0 $2,404,683 $0 $2,537,259 $3,472,732 $6,009,991 1.32% 0.00% 7.30% 0.00% 13.21% $585,171 $0 $1,860,886 $0 $2,446,057 $2,592,259 $5,038,316 5.81% 0.00% 5.65% 0.00% 9.86% 2017 Revenue Requirement August (h) September (i) $1,057,929 $0 $4,764,276 $0 $5,822,206 $3,390,007 $9,212,213 10.50% 0.00% 14.46% 0.00% 12.90% $27,350 $0 $4,605,855 $0 $4,633,205 $3,222,849 $7,856,054 0.27% 0.00% 13.98% 0.00% 12.26% October (j) November (k) December (l) $1,840,455 $0 $1,605,283 $0 $3,445,738 $3,069,049 $6,514,787 $2,837,969 $0 $9,379,007 $0 $12,216,976 $2,746,043 $14,963,020 $3,143,459 $0 $5,250,397 $0 $8,393,856 $2,144,158 $10,538,014 18.27% 0.00% 4.87% 0.00% 11.68% 28.18% 0.00% 28.47% 0.00% 10.45% (m) $10,071,611 $0 $32,946,576 $0 $43,018,187 $26,280,813 $69,299,000 31.21% 0.00% 15.94% 0.00% 8.16% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Cumulative Before Adjustment Plant Additions - Mains: Plant Additions - Mains - Coated Steel Plant Additions - Mains - Bare Steel Plant Additions - Mains - Plastic Plant Additions - Mains - Cast Iron Cumulative Before Adjustment Plant Additions - Mains Cumulative Before Adjustment Plant Additions - Services Cumulative Before Adjustment Depreciable Additions (Prior Mo. Line 27 + Current Mo. Line 2) (Prior Mo. Line 28 + Current Mo. Line 3) (Prior Mo. Line 29 + Current Mo. Line 4) (Prior Mo. Line 30 + Current Mo. Line 5) (Sum of Lines 27 thru 30) (Prior Mo. Line 32 + Current Mo. Line 7) (Line 31 + Line 32) ($225,014) $0 $84,729 $0 ($140,284) $399,677 $259,392 ($154,546) $0 $354,455 $0 $199,909 $999,517 $1,199,426 ($80,532) $0 $584,910 $0 $504,377 $1,880,124 $2,384,501 $222,383 $0 $1,498,021 $0 $1,720,405 $2,981,117 $4,701,522 $446,702 $0 $3,076,187 $0 $3,522,889 $5,643,716 $9,166,605 $579,278 $0 $5,480,870 $0 $6,060,149 $9,116,447 $15,176,596 $1,164,449 $0 $7,341,757 $0 $8,506,206 $11,708,707 $20,214,912 $2,222,378 $0 $12,106,033 $0 $14,328,412 $15,098,714 $29,427,125 $2,249,729 $0 $16,711,888 $0 $18,961,617 $18,321,562 $37,283,179 $4,090,183 $0 $18,317,172 $0 $22,407,355 $21,390,612 $43,797,966 $6,928,152 $0 $27,696,179 $0 $34,624,331 $24,136,655 $58,760,986 $10,071,611 $0 $32,946,576 $0 $43,018,187 $26,280,813 $69,299,000 Cumulative After Adjustment Plant Additions - Mains: Plant Additions - Mains - Coated Steel Plant Additions - Mains - Bare Steel Plant Additions - Mains - Plastic Plant Additions - Mains - Cast Iron Cumulative After Adjustment Plant Additions - Mains Cumulative After Adjustment Plant Additions - Services Cumulative After Adjustment Depreciable Additions (Prior Mo. Line 36 + Current Mo. Line 2) (Prior Mo. Line 37 + Current Mo. Line 3) (Prior Mo. Line 38 + Current Mo. Line 4) (Prior Mo. Line 39 + Current Mo. Line 5) (Sum of Lines 36 thru 39) (Prior Mo. Line 41 + Current Mo. Line 7) (Line 40 + Line 41) ($225,014) $0 $84,729 $0 ($140,284) $399,677 $259,392 ($154,546) $0 $354,455 $0 $199,909 $999,517 $1,199,426 ($80,532) $0 $584,910 $0 $504,377 $1,880,124 $2,384,501 $222,383 $0 $1,498,021 $0 $1,720,405 $2,981,117 $4,701,522 $446,702 $0 $3,076,187 $0 $3,522,889 $5,643,716 $9,166,605 $579,278 $0 $5,480,870 $0 $6,060,149 $9,116,447 $15,176,596 $1,164,449 $0 $7,341,757 $0 $8,506,206 $11,708,707 $20,214,912 $2,222,378 $0 $12,106,033 $0 $14,328,412 $15,098,714 $29,427,125 $2,249,729 $0 $16,711,888 $0 $18,961,617 $18,321,562 $37,283,179 $4,090,183 $0 $18,317,172 $0 $22,407,355 $21,390,612 $43,797,966 $6,928,152 $0 $27,696,179 $0 $34,624,331 $24,136,655 $58,760,986 $10,071,611 $0 $32,946,576 $0 $43,018,187 $26,280,813 $69,299,000 $94,479 $1,284 $22,386 $148,071 $266,220 $1,375 $267,595 $12,455 $132,013 $0 $160,365 $304,833 $0 $304,833 $11,405 $38,588 $18,562 $34,549 $103,103 $0 $103,103 $45,766 $78,300 $26,925 $3,484 $154,475 $37,846 $192,321 $32,388 $20,633 $289 $140,148 $193,458 $0 $193,458 $146,344 $11,601 $94,192 $85,285 $337,421 $0 $337,421 $60,334 $38,011 $4,098 $64,359 $166,801 $0 $166,801 $447,072 $219,784 $257,974 $109,818 $1,034,648 $0 $1,034,648 Cost of Removal: Plant Additions - Mains - Coated Steel Plant Additions - Mains - Bare Steel Plant Additions - Mains - Plastic Plant Additions - Mains - Cast Iron Total monthly Cost of Removal - Mains Total monthly Cost of Removal - Services Total monthly Cost of Removal GPA - 376.20 GPA - 373.30 GPA - 376.40 GPA - 376.80 (Line 49 + Line 50) $86,800 $48,450 $10,787 $21,418 $167,455 $1 $167,455 Cumulative Cost of Removal (Prior Mo. Line 53 + Current Mo. Line 51) $167,455 $551,941 $1,041,761 $1,061,229 $1,328,824 $1,633,657 $1,736,760 $1,929,081 $2,122,539 $2,459,960 $2,626,762 $3,661,410 Total GSEP Plant Investment (Line 42 + Line 53) $426,847 $1,751,367 $3,426,263 $5,762,751 $10,495,429 $16,810,253 $21,951,672 $31,356,206 $39,405,718 $46,257,926 $61,387,748 $72,960,410 (Sum of Lines 45 thru 48) GPA - 380.00 $201,171 $20,918 ($235) $160,220 $382,074 $2,411 $384,486 $6,665 $68,491 $335,622 $73,938 $484,717 $5,103 $489,820 $20,204 $0 ($1,033) $296 $19,467 $0 $19,467 $1,165,084 $678,072 $769,566 $1,001,952 $3,614,673 $46,736 $3,661,410 Columbia Gas of Massachusetts Witness: R. D. Gibbons D.P.U. 17-GSEP-05 Exh. CMA/RDG-2 Schedule 2 - 2017 in 2017 2018 Gas System Enhancement Program Calculation of Monthly Average Rate Base Revenue Requirement Line No. Description 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 GP 121 ARD 122 123 ADIT 124 125 126 127 RB 128 PTRR 129 130 131 132 DEPR 133 PTMS 134 OFF 135 GSEP_RECc Reference January (a) February (b) March (c) April (d) May (e) 2017 Investments (NOTE 1) June July (f) (g) 2017 Revenue Requirement August (h) September (i) October (j) November (k) December (l) (m) Depreciable Retirements Plant Retirements - Mains: Plant Additions - Mains - Coated Steel Plant Additions - Mains - Bare Steel Plant Additions - Mains - Plastic Plant Additions - Mains - Cast Iron Total monthly Plant Retirements - Mains Total monthly Plant Retirements - Services Total Depreciable Retirements Cumulative Plant Retirements - Mains: Plant Additions - Mains - Coated Steel Plant Additions - Mains - Bare Steel Plant Additions - Mains - Plastic Plant Additions - Mains - Cast Iron Total Cumulative Plant Retirements - Mains Total Cumulative Plant Retirements - Services Cumulative Net Depreciable Retirements GPA - 376.20 GPA - 373.30 GPA - 376.40 GPA - 376.80 (Line 63 + Line 64) ($6,867) ($12) ($3,486) $0 ($10,365) ($46,605) ($56,970) $499 ($770) ($5,226) ($4,765) ($10,262) ($41,230) ($51,492) ($1,463) ($1,521) ($3,291) ($269) ($6,544) ($127,469) ($134,013) ($722) ($121) ($3,678) $0 ($4,521) ($169,724) ($174,246) ($1,321) ($609) ($62,342) ($5,273) ($69,544) ($272,001) ($341,545) ($1,402) ($1,861) ($5,429) ($1,401) ($10,094) ($385,445) ($395,538) ($14,090) ($3,013) ($43,922) ($4,896) ($65,921) ($364,148) ($430,069) ($10,799) ($3,732) ($45,236) ($4,072) ($63,838) ($417,156) ($480,994) ($16,725) ($2,118) ($51,618) ($8,915) ($79,377) ($356,365) ($435,742) ($29,062) ($5,497) ($109,564) ($1,852) ($145,975) ($368,212) ($514,187) ($44,581) ($10,112) ($128,945) ($14,222) ($197,860) ($384,756) ($582,616) ($88,713) ($8,884) ($229,196) ($28,437) ($355,230) ($210,074) ($565,304) (Prior Mo. Line 68 + Current Mo. Line 59) (Prior Mo. Line 69 + Current Mo. Line 60) (Prior Mo. Line 70 + Current Mo. Line 61) (Prior Mo. Line 71 + Current Mo. Line 62) (Sum of Lines 68 thru 71) (Prior Mo. Line 73 + Current Mo. Line 64) (Line 72 + Line 73) ($6,867) ($12) ($3,486) $0 ($10,365) ($46,605) ($56,970) ($6,368) ($782) ($8,712) ($4,765) ($20,626) ($87,835) ($108,461) ($7,830) ($2,303) ($12,003) ($5,034) ($27,171) ($215,304) ($242,475) ($8,553) ($2,423) ($15,681) ($5,034) ($31,692) ($385,028) ($416,720) ($9,874) ($3,032) ($78,023) ($10,308) ($101,236) ($657,029) ($758,265) ($11,276) ($4,894) ($83,452) ($11,709) ($111,330) ($1,042,474) ($1,153,803) ($25,366) ($7,907) ($127,374) ($16,605) ($177,251) ($1,406,622) ($1,583,873) ($36,164) ($11,638) ($172,610) ($20,677) ($241,089) ($1,823,778) ($2,064,867) ($52,890) ($13,756) ($224,228) ($29,592) ($320,466) ($2,180,143) ($2,500,609) ($81,951) ($19,254) ($333,792) ($31,444) ($466,441) ($2,548,355) ($3,014,796) ($126,532) ($29,365) ($462,738) ($45,666) ($664,301) ($2,933,111) ($3,597,412) ($215,245) ($38,250) ($691,933) ($74,103) ($1,019,531) ($3,143,185) ($4,162,716) 2.61% 6.00% 2.02% 2.96% 3.52% 2.61% 6.00% 2.02% 2.96% 3.52% 2.61% 6.00% 2.02% 2.96% 3.52% 2.61% 6.00% 2.02% 2.96% 3.52% 2.61% 6.00% 2.02% 2.96% 3.52% 2.61% 6.00% 2.02% 2.96% 3.52% 2.61% 6.00% 2.02% 2.96% 3.52% 2.61% 6.00% 2.02% 2.96% 3.52% 2.61% 6.00% 2.02% 2.96% 3.52% 2.61% 6.00% 2.02% 2.96% 3.52% 2.61% 6.00% 2.02% 2.96% 3.52% 2.61% 6.00% 2.02% 2.96% 3.52% (Sum of Lines 59 thru 62) GPA - 380.00 ($215,245) ($38,250) ($691,933) ($74,103) ($1,019,531) ($3,143,185) ($4,162,716) Book Depreciation Mains - Book Depreciation Plant Additions - Mains - Coated Steel Plant Additions - Mains - Bare Steel Plant Additions - Mains - Plastic Plant Additions - Mains - Cast Iron Services - Book Depreciation As Approved at DPU 12-25 As Approved at DPU 12-25 As Approved at DPU 12-25 As Approved at DPU 12-25 As Approved at DPU 12-25 Book Depreciation relating to Additions: Cumulative Book Deprec - Mains - Coated Steel Cumulative Book Deprec - Mains - Plastic Total Cumulative Book Deprec - Mains Additions Cumulative Book Deprec - Services Additions Total Cumulative Book Depreciation Additions (Average of Current and Prior Mo. Line 36 * Line 78/12) (Average of Current and Prior Mo. Line 38 * Line 80/12) (Line 85 + Line 86) (Average of Current and Prior Mo. Line 41 * Line 82/12) (Line 87 + Line 88) ($245) $71 ($173) $586 $413 ($657) $441 ($217) $2,638 $2,422 ($913) $1,232 $318 $6,862 $7,180 ($759) $2,985 $2,226 $13,992 $16,218 ($31) $6,835 $6,803 $26,641 $33,445 $1,085 $14,037 $15,121 $48,290 $63,411 Book Depreciation Relating to Retirements: Cumulative Book Deprec - Mains - Coated Steel Cumulative Book Deprec - Mains - Bare Steel Cumulative Book Deprec - Mains - Plastic Cumulative Book Deprec - Mains - Cast Iron Total Cumulative Book Deprec - Mains Retirements Cumulative Book Deprec - Services Retirements Total Cumulative Book Depreciation Retirements (Average of Current and Prior Mo. Line 59 * Line 78/12) (Average of Current and Prior Mo. Line 37 * Line 79/12) (Average of Current and Prior Mo. Line 38 * Line 80/12) (Average of Current and Prior Mo. Line 39 * Line 81/12) (Sum of Lines 92 thru 95) (Average of Current and Prior Mo. Line 73 * Line 82/12) ($7) ($0) ($3) $0 ($10) ($68) ($79) ($22) ($2) ($13) ($6) ($43) ($266) ($308) ($37) ($10) ($31) ($18) ($96) ($710) ($806) ($55) ($22) ($54) ($30) ($161) ($1,591) ($1,752) ($75) ($35) ($133) ($49) ($292) ($3,119) ($3,411) ($98) ($55) ($269) ($76) ($498) ($5,612) ($6,110) Cumulative Book Depreciation Line 89 + Line 98 $334 $2,113 $6,375 $14,466 $30,033 Sch 3 - 2017 in 2017, Line 39 (Prior Mo. Line 104 + Current Mo. Line 103) $343,475 $343,475 $1,022,728 $1,366,204 $1,295,530 $2,661,734 $1,595,274 $4,257,007 State Tax Depreciation and Repairs Deduction Cumulative State Tax Depreciation Sch 3 - 2017 in 2017, Line 72 (Prior Mo. Line 107 + Current Mo. Line 106) $260,103 $260,103 $720,937 $981,040 $916,165 $1,897,205 Federal Book/Tax Timing Difference Federal Tax Rate Deferred Federal Tax Reserve (Line 104 - Line 100) $343,141 35.0% $120,099 $1,364,090 35.0% $477,432 State Book/Tax Timing Difference State Tax Rate Deferred State Tax Reserve (Line 107 - Line 100) $259,769 5.2% $13,508 Net Operating Loss (NOL) Carryforward Offset Sch 3 - 2017 in 2017, Line 83 Deferred Tax Calculation Federal Tax Depreciation and Repairs Deduction Cumulative Federal Tax Depreciation Rate Base Calculation: Total Cumulative GSEP Plant Investment Accumulated Reserve for Depreciation Cumulative Net Plant Deferred Tax Reserve Cumulative Month End Rate Base Revenue Requirement Calculation: Average Rate Base Pre-Tax ROR Number of Days in the Month Monthly Applicable Pre-Tax ROR Return and Taxes Monthly Book Depreciation Property Taxes O&M Offset Monthly Revenue Requirement before Adjustments GPA - 376.20 GPA - 373.30 GPA - 376.40 GPA - 376.80 GPA - 380.00 (Line 109 * Line 110) (Line 113 * Line 114) Line 55 Line 100 * -1 (Line 120 + Line 121) ((Line 115 + Line 111 + Line 117) * -1) (Line 122 + Line 123) Mo. 1 = Line 124/ 2, then (Prior Mo. & Cur Mo. Line 124/ 2) Schedule 4 Line 128 * (Line 129/ 365) Line 127 * Line 130 Line 100 - Prior Mo. Line 100 Schedule 5 Schedule 6, Line 10, Column 2 *.5, Spread Proportionately to Ln. 8 Line 131 thru 134 Calendar Year 2017 in 2017 NOTE 1 - Projected Investments are allocated monthly using the composite historical allocations of 2015 and 2016 Investments. $2,981 $24,829 $27,810 $78,833 $106,643 $6,664 $41,198 $47,862 $118,151 $166,013 $11,527 $65,453 $76,980 $167,167 $244,147 $18,422 $94,936 $113,358 $225,412 $338,769 $30,405 $133,664 $164,068 $292,185 $456,253 $48,892 $184,705 $233,596 $366,131 $599,727 ($138) ($87) ($446) ($111) ($783) ($9,204) ($9,986) ($205) ($136) ($699) ($157) ($1,197) ($13,942) ($15,138) ($302) ($199) ($1,033) ($219) ($1,753) ($19,814) ($21,567) ($448) ($282) ($1,502) ($295) ($2,527) ($26,749) ($29,276) ($675) ($403) ($2,173) ($390) ($3,641) ($34,789) ($38,430) ($1,047) ($572) ($3,145) ($537) ($5,301) ($43,700) ($49,002) $57,301 $96,657 $150,874 $222,580 $309,493 $417,824 $550,725 $3,305,632 $7,562,639 $4,400,049 $11,962,688 $3,550,084 $15,512,773 $6,489,726 $22,002,499 $5,595,704 $27,598,203 $4,857,109 $32,455,311 $10,501,295 $42,956,607 $8,498,262 $51,454,868 $854,059 $2,751,264 $1,878,586 $4,629,850 $2,485,274 $7,115,124 $1,958,750 $9,073,874 $3,574,919 $12,648,792 $3,141,896 $15,790,688 $2,862,009 $18,652,697 $5,872,770 $24,525,466 $5,423,861 $29,949,327 $2,655,359 35.0% $929,376 $4,242,542 35.0% $1,484,890 $7,532,606 35.0% $2,636,412 $11,905,387 35.0% $4,166,886 $15,416,115 35.0% $5,395,640 $21,851,625 35.0% $7,648,069 $27,375,622 35.0% $9,581,468 $32,145,818 35.0% $11,251,036 $42,538,783 35.0% $14,888,574 $50,904,143 35.0% $17,816,450 $978,927 5.2% $50,904 $1,890,831 5.2% $98,323 $2,736,798 5.2% $142,314 $4,599,817 5.2% $239,190 $7,057,823 5.2% $367,007 $8,977,217 5.2% $466,815 $12,497,918 5.2% $649,892 $15,568,107 5.2% $809,542 $18,343,204 5.2% $953,847 $24,107,643 5.2% $1,253,597 $29,398,602 5.2% $1,528,727 (12,418) (57,421) (114,155) (225,079) (438,840) (726,561) (967,764) (1,408,787) (1,784,885) (2,096,773) (2,813,109) (3,317,603) $426,847 ($334) $426,513 ($121,189) $305,324 $1,751,367 ($2,113) $1,749,254 ($470,915) $1,278,339 $3,426,263 ($6,375) $3,419,888 ($913,544) $2,506,344 $5,762,751 ($14,466) $5,748,285 ($1,402,124) $4,346,161 $10,495,429 ($30,033) $10,465,396 ($2,436,763) $8,028,633 $16,810,253 ($57,301) $16,752,952 ($3,807,332) $12,945,620 $21,951,672 ($96,657) $21,855,015 ($4,894,692) $16,960,323 $31,356,206 ($150,874) $31,205,332 ($6,889,174) $24,316,158 $39,405,718 ($222,580) $39,183,137 ($8,606,124) $30,577,014 $46,257,926 ($309,493) $45,948,433 ($10,108,110) $35,840,323 $61,387,748 ($417,824) $60,969,924 ($13,329,063) $47,640,861 $72,960,410 ($550,725) $72,409,685 ($16,027,575) $56,382,110 $152,662 11.19% 31 0.95% $1,451 $334 $0 ($220) $1,565 $791,832 11.19% 28 0.86% $6,797 $1,779 $0 ($798) $7,779 $1,892,342 11.19% 31 0.95% $17,985 $4,261 $0 ($1,006) $21,240 $3,426,253 11.19% 30 0.92% $31,512 $8,091 $0 ($1,966) $37,638 $6,187,397 11.19% 31 0.95% $58,804 $15,568 $0 ($3,789) $70,583 $10,487,126 11.19% 30 0.92% $96,453 $27,268 $0 ($5,099) $118,621 $14,952,972 11.19% 31 0.95% $142,111 $39,356 $0 ($4,275) $177,192 $20,638,241 11.19% 31 0.95% $196,142 $54,217 $0 ($7,817) $242,543 $27,446,586 11.19% 30 0.92% $252,433 $71,706 $0 ($6,666) $317,474 $33,208,668 11.19% 31 0.95% $315,610 $86,913 $0 ($5,528) $396,995 $41,740,592 11.19% 30 0.92% $383,899 $108,330 $0 ($12,696) $479,533 $52,011,486 11.19% 31 0.95% $494,309 $132,902 $0 ($8,941) $618,269 $1,997,505 $550,725 $0 ($58,800) $2,489,431 Columbia Gas of Massachusetts Witness: R. D. Gibbons D.P.U. 17-GSEP-05 Exh. CMA/RDG-2 Schedule 2 - 2017 in 2018 2018 Gas System Enhancement Program Calculation of Monthly Average Rate Base Revenue Requirement Line No. Description 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 Depreciable Plant Additions Cumulative Plant Additions - Mains: Plant Additions - Mains - Coated Steel Plant Additions - Mains - Bare Steel Plant Additions - Mains - Plastic Plant Additions - Mains - Cast Iron Cumulative Plant Additions - Mains Cumulative Plant Additions - Services Cumulative Depreciable Additions Reference (Sch. 2-2017 in 2017, Col. (l), Line 36) (Sch. 2-2017 in 2017, Col. (l), Line 37) (Sch. 2-2017 in 2017, Col. (l), Line 38) (Sch. 2-2017 in 2017, Col. (l), Line 39) (Sum of Lines 2 thru 5) (Sch. 2-2017 in 2017, Col. (l), Line 41) (Line 6 + Line 7) Cumulative Cost of Removal (Sch. 2-2017 in 2017, Col. (l), Line 53) Total GSEP Plant Investment (Line 8 + Line 10) Depreciable Retirements Cumulative Plant Retirements - Mains: Plant Additions - Mains - Coated Steel Plant Additions - Mains - Bare Steel Plant Additions - Mains - Plastic Plant Additions - Mains - Cast Iron Total Cumulative Plant Retirements - Mains Total Cumulative Plant Retirements - Services Cumulative Net Depreciable Retirements GPA - 376.20 GPA - 373.30 GPA - 376.40 GPA - 376.80 GPA - 380.00 2017 December (a) $10,071,611 $0 $32,946,576 $0 $43,018,187 $26,280,813 $69,299,000 $3,661,410 (Sch. 2-2017 in 2017, Col. (l), Line 68) (Sch. 2-2017 in 2017, Col. (l), Line 69) (Sch. 2-2017 in 2017, Col. (l), Line 70) (Sch. 2-2017 in 2017, Col. (l), Line 71) (Sum of Lines 16 thru 19) (Sch. 2-2017 in 2017, Col. (l), Line 72) (Line 20 + Line 21) ($215,245) ($38,250) ($691,933) ($74,103) ($1,019,531) ($3,143,185) ($4,162,716) January (b) $10,071,611 $0 $32,946,576 $0 $43,018,187 $26,280,813 $69,299,000 February (c) $10,071,611 $0 $32,946,576 $0 $43,018,187 $26,280,813 $69,299,000 March (d) $10,071,611 $0 $32,946,576 $0 $43,018,187 $26,280,813 $69,299,000 April (e) $10,071,611 $0 $32,946,576 $0 $43,018,187 $26,280,813 $69,299,000 May (f) 2017 Investments in Calendar Year 2018 June July August (g) (h) (i) $10,071,611 $0 $32,946,576 $0 $43,018,187 $26,280,813 $69,299,000 $10,071,611 $0 $32,946,576 $0 $43,018,187 $26,280,813 $69,299,000 $10,071,611 $0 $32,946,576 $0 $43,018,187 $26,280,813 $69,299,000 $10,071,611 $0 $32,946,576 $0 $43,018,187 $26,280,813 $69,299,000 2018 Revenue Requirement September (j) $10,071,611 $0 $32,946,576 $0 $43,018,187 $26,280,813 $69,299,000 October (k) $10,071,611 $0 $32,946,576 $0 $43,018,187 $26,280,813 $69,299,000 November (l) December (m) $10,071,611 $0 $32,946,576 $0 $43,018,187 $26,280,813 $69,299,000 $10,071,611 $0 $32,946,576 $0 $43,018,187 $26,280,813 $69,299,000 $3,661,410 $3,661,410 $3,661,410 $3,661,410 $3,661,410 $3,661,410 $3,661,410 $3,661,410 $3,661,410 $3,661,410 $3,661,410 $3,661,410 $72,960,410 $72,960,410 $72,960,410 $72,960,410 $72,960,410 $72,960,410 $72,960,410 $72,960,410 $72,960,410 $72,960,410 $72,960,410 $72,960,410 ($215,245) ($38,250) ($691,933) ($74,103) ($1,019,531) ($3,143,185) ($4,162,716) ($215,245) ($38,250) ($691,933) ($74,103) ($1,019,531) ($3,143,185) ($4,162,716) ($215,245) ($38,250) ($691,933) ($74,103) ($1,019,531) ($3,143,185) ($4,162,716) ($215,245) ($38,250) ($691,933) ($74,103) ($1,019,531) ($3,143,185) ($4,162,716) ($215,245) ($38,250) ($691,933) ($74,103) ($1,019,531) ($3,143,185) ($4,162,716) ($215,245) ($38,250) ($691,933) ($74,103) ($1,019,531) ($3,143,185) ($4,162,716) ($215,245) ($38,250) ($691,933) ($74,103) ($1,019,531) ($3,143,185) ($4,162,716) ($215,245) ($38,250) ($691,933) ($74,103) ($1,019,531) ($3,143,185) ($4,162,716) ($215,245) ($38,250) ($691,933) ($74,103) ($1,019,531) ($3,143,185) ($4,162,716) ($215,245) ($38,250) ($691,933) ($74,103) ($1,019,531) ($3,143,185) ($4,162,716) ($215,245) ($38,250) ($691,933) ($74,103) ($1,019,531) ($3,143,185) ($4,162,716) ($215,245) ($38,250) ($691,933) ($74,103) ($1,019,531) ($3,143,185) ($4,162,716) 2.61% 6.00% 2.02% 2.96% 3.52% 2.61% 6.00% 2.02% 2.96% 3.52% 2.61% 6.00% 2.02% 2.96% 3.52% 2.61% 6.00% 2.02% 2.96% 3.52% 2.61% 6.00% 2.02% 2.96% 3.52% 2.61% 6.00% 2.02% 2.96% 3.52% 2.61% 6.00% 2.02% 2.96% 3.52% 2.61% 6.00% 2.02% 2.96% 3.52% 2.61% 6.00% 2.02% 2.96% 3.52% 2.61% 6.00% 2.02% 2.96% 3.52% 2.61% 6.00% 2.02% 2.96% 3.52% 2.61% 6.00% 2.02% 2.96% 3.52% (n) Book Depreciation Mains - Book Depreciation Plant Additions - Mains - Coated Steel Plant Additions - Mains - Bare Steel Plant Additions - Mains - Plastic Plant Additions - Mains - Cast Iron Services - Book Depreciation As Approved at DPU 12-25 As Approved at DPU 12-25 As Approved at DPU 12-25 As Approved at DPU 12-25 As Approved at DPU 12-25 Book Depreciation relating to Additions: Cumulative Book Deprec - Mains - Coated Steel Cumulative Book Deprec - Mains - Plastic Total Cumulative Book Deprec - Mains Additions Cumulative Book Deprec - Services Additions Total Cumulative Book Depreciation Additions (Average of Current and Prior Mo. Line 2 * Line 26/12) (Average of Current and Prior Mo. Line 4 * Line 28/12) (Line 33 + Line 34) (Average of Current and Prior Mo. Line 7 * Line 30/12) (Line 35 + Line 36) $48,892 $184,705 $233,596 $366,131 $599,727 $70,798 $240,165 $310,962 $443,221 $754,183 $92,703 $295,625 $388,328 $520,311 $908,639 Book Depreciation Relating to Retirements: Cumulative Book Deprec - Mains - Coated Steel Cumulative Book Deprec - Mains - Bare Steel Cumulative Book Deprec - Mains - Plastic Cumulative Book Deprec - Mains - Cast Iron Total Cumulative Book Deprec - Mains Retirements Cumulative Book Deprec - Services Retirements Total Cumulative Book Depreciation Retirements (Average of Current and Prior Mo. Line 16 * Line 26/12) (Average of Current and Prior Mo. Line 17 * Line 27/12) (Average of Current and Prior Mo. Line 18 * Line 28/12) (Average of Current and Prior Mo. Line 19 * Line 29/12) (Sum of Lines 40 thru 43) (Average of Current and Prior Mo. Line 21 * Line 30/12) ($1,047) ($572) ($3,145) ($537) ($5,301) ($43,700) ($49,002) ($1,515) ($764) ($4,309) ($720) ($7,308) ($52,920) ($60,229) ($1,983) ($955) ($5,474) ($903) ($9,315) ($62,140) ($71,456) ($2,451) ($1,146) ($6,639) ($1,086) ($11,322) ($71,360) ($82,683) Cumulative Book Depreciation Line 37 + Line 46 $550,725 $693,954 $837,184 $980,413 $1,123,642 $1,266,871 $1,410,101 $1,553,330 $1,696,559 $1,839,788 $1,983,018 $2,126,247 $2,269,476 $51,454,868 $134,414 $51,589,282 $134,414 $51,723,697 $134,414 $51,858,111 $134,414 $51,992,525 $134,414 $52,126,939 $134,414 $52,261,354 $134,414 $52,395,768 $134,414 $52,530,182 $134,414 $52,664,596 $134,414 $52,799,011 $134,414 $52,933,425 $134,414 $53,067,839 $29,949,327 $268,829 $30,218,156 $268,829 $30,486,985 $268,829 $30,755,814 $268,829 $31,024,643 $268,829 $31,293,472 $268,829 $31,562,301 $268,829 $31,831,130 $268,829 $32,099,959 $268,829 $32,368,788 $268,829 $32,637,617 $268,829 $32,906,446 $268,829 $33,175,275 $50,895,328 35.0% $17,813,365 $50,886,513 35.0% $17,810,280 $50,877,698 35.0% $17,807,194 $50,868,883 35.0% $17,804,109 $50,860,068 35.0% $17,801,024 $50,851,253 35.0% $17,797,939 $50,842,438 35.0% $17,794,853 $50,833,623 35.0% $17,791,768 $50,824,808 35.0% $17,788,683 $50,815,993 35.0% $17,785,598 $50,807,178 35.0% $17,782,512 $50,798,363 35.0% $17,779,427 $29,524,201 5.2% $1,535,258 $29,649,801 5.2% $1,541,790 $29,775,401 5.2% $1,548,321 $29,901,001 5.2% $1,554,852 $30,026,600 5.2% $1,561,383 $30,152,200 5.2% $1,567,914 $30,277,800 5.2% $1,574,446 $30,403,400 5.2% $1,580,977 $30,528,999 5.2% $1,587,508 $30,654,599 5.2% $1,594,039 $30,780,199 5.2% $1,600,570 $30,905,799 5.2% $1,607,102 ($3,317,603) ($3,317,603) ($3,317,603) ($3,317,603) ($3,317,603) ($3,317,603) ($3,317,603) ($3,317,603) ($3,317,603) ($3,317,603) ($3,317,603) ($3,317,603) ($3,317,603) $56,382,110 $72,960,410 ($693,954) $72,266,455 ($16,031,021) $56,235,435 $72,960,410 ($837,184) $72,123,226 ($16,034,466) $56,088,760 $72,960,410 ($980,413) $71,979,997 ($16,037,912) $55,942,085 $72,960,410 ($1,123,642) $71,836,768 ($16,041,358) $55,795,409 $72,960,410 ($1,266,871) $71,693,538 ($16,044,804) $55,648,734 $72,960,410 ($1,410,101) $71,550,309 ($16,048,250) $55,502,059 $72,960,410 ($1,553,330) $71,407,080 ($16,051,696) $55,355,384 $72,960,410 ($1,696,559) $71,263,851 ($16,055,142) $55,208,709 $72,960,410 ($1,839,788) $71,120,621 ($16,058,588) $55,062,033 $72,960,410 ($1,983,018) $70,977,392 ($16,062,034) $54,915,358 $72,960,410 ($2,126,247) $70,834,163 ($16,065,480) $54,768,683 $72,960,410 ($2,269,476) $70,690,934 ($16,068,926) $54,622,008 $56,308,773 11.19% 31 0.95% $535,149 $143,229 $0 ($9,800) $668,579 $56,162,097 11.19% 28 0.86% $482,102 $143,229 $0 ($9,800) $615,531 $56,015,422 11.19% 31 0.95% $532,361 $143,229 $0 ($9,800) $665,791 $55,868,747 11.19% 30 0.92% $513,839 $143,229 $0 ($9,800) $647,269 $55,722,072 11.19% 31 0.95% $529,573 $143,229 $0 ($9,800) $663,003 $55,575,397 11.19% 30 0.92% $511,141 $143,229 $0 ($9,800) $644,571 $55,428,721 11.19% 31 0.95% $526,785 $143,229 $156,990 ($9,800) $817,205 $55,282,046 11.19% 31 0.95% $525,391 $143,229 $156,990 ($9,800) $815,811 $55,135,371 11.19% 30 0.92% $507,094 $143,229 $156,990 ($9,800) $797,514 $54,988,696 11.19% 31 0.95% $522,604 $143,229 $156,990 ($9,800) $813,023 $54,842,021 11.19% 30 0.92% $504,396 $143,229 $156,990 ($9,800) $794,816 $54,695,346 11.19% 31 0.95% $519,816 $143,229 $156,990 ($9,800) $810,235 Deferred Tax Calculation Federal Tax Depreciation and Repairs Deduction Cumulative Federal Tax Depreciation GP ARD ADIT Sch 3 - 2017 in 2018, Line 7 (Prior Mo. Line 52 + Current Mo. Line 51) State Tax Depreciation and Repairs Deduction Cumulative State Tax Depreciation Sch 3 - 2017 in 2018, Line 15 (Prior Mo. Line 55 + Current Mo. Line 54) Federal Book/Tax Timing Difference Federal Tax Rate Deferred Federal Tax Reserve (Line 52 - Line 48) State Book/Tax Timing Difference State Tax Rate Deferred State Tax Reserve (Line 55 - Line 48) Net Operating Loss (NOL) Carryforward Offset Sch 2-2017 in 2017, Col. (l), Line 117 Rate Base Calculation: Total Cumulative GSEP Plant Investment Accumulated Reserve for Depreciation Cumulative Net Plant Deferred Tax Reserve Cumulative Month End Rate Base Revenue Requirement Calculation: RB Average Rate Base PTRR Pre-Tax ROR Number of Days in the Month Monthly Applicable Pre-Tax ROR Return and Taxes DEPR Monthly Book Depreciation PTMS Property Taxes OFF O&M Offset GSEP_RECc Monthly Revenue Requirement before Adjustments GPA - 376.20 GPA - 373.30 GPA - 376.40 GPA - 376.80 GPA - 380.00 (Line 57 * Line 58) (Line 61 * Line 62) Line 12 Line 48 * -1 (Line 68 + Line 69) ((Line 63 + Line 59 + Line 65) * -1) (Line 70 + Line 71) Prior Mo. & Cur Mo. Line 72/ 2 Schedule 4 Line 76 * (Line 77/ 365) Line 75 * Line 78 Line 48 - Prior Mo. Line 48 Schedule 5 Schedule 6, Line 10, Column 2 / 12 Line 79 thru 82 Calendar Year 2017 in 2018 $114,609 $351,085 $465,694 $597,402 $1,063,096 $136,515 $406,545 $543,060 $674,492 $1,217,552 ($2,919) ($1,337) ($7,804) ($1,269) ($13,329) ($80,580) ($93,910) $158,421 $462,005 $620,425 $751,583 $1,372,008 ($3,388) ($1,529) ($8,968) ($1,451) ($15,336) ($89,800) ($105,137) $180,326 $517,465 $697,791 $828,673 $1,526,464 ($3,856) ($1,720) ($10,133) ($1,634) ($17,343) ($99,020) ($116,363) $202,232 $572,925 $775,157 $905,763 $1,680,920 ($4,324) ($1,911) ($11,298) ($1,817) ($19,350) ($108,241) ($127,590) $224,138 $628,385 $852,523 $982,854 $1,835,377 ($4,792) ($2,102) ($12,463) ($2,000) ($21,357) ($117,461) ($138,817) $246,044 $683,845 $929,889 $1,059,944 $1,989,833 ($5,260) ($2,294) ($13,627) ($2,183) ($23,364) ($126,681) ($150,044) $267,949 $739,305 $1,007,255 $1,137,034 $2,144,289 ($5,728) ($2,485) ($14,792) ($2,365) ($25,371) ($135,901) ($161,271) $289,855 $794,765 $1,084,620 $1,214,125 $2,298,745 ($6,197) ($2,676) ($15,957) ($2,548) ($27,378) ($145,121) ($172,498) $311,761 $850,225 $1,161,986 $1,291,215 $2,453,201 ($6,665) ($2,867) ($17,122) ($2,731) ($29,385) ($154,341) ($183,725) $262,869 $665,521 $928,390 $925,085 $1,853,475 ($5,618) ($2,295) ($13,977) ($2,193) ($24,083) ($110,640) ($134,723) $1,718,751 $6,210,253 $1,718,751 $941,941 ($117,600) $8,753,346 Columbia Gas of Massachusetts Witness: R. D. Gibbons D.P.U. 17-GSEP-05 Exh. CMA/RDG-2 Schedule 2 - 2016 in 2016 2018 Gas System Enhancement Program Calculation of Monthly Average Rate Base Revenue Requirement Line No. Description 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 Depreciable Plant Additions Monthly Plant Additions - Mains: Plant Additions - Mains - Coated Steel Plant Additions - Mains - Bare Steel Plant Additions - Mains - Plastic Plant Additions - Mains - Cast Iron Total monthly Plant Additions - Mains Total monthly Plant Additions - Services Total monthly Depreciable Additions Monthly Plant Additions Allocations-Mains: Plant Additions - Mains - Coated Steel Plant Additions - Mains - Bare Steel Plant Additions - Mains - Plastic Plant Additions - Mains - Cast Iron Monthly Plant Additions Allocations- Services Overheads Burdens Adjustment-Mains: Plant Additions - Mains - Coated Steel Plant Additions - Mains - Bare Steel Plant Additions - Mains - Plastic Plant Additions - Mains - Cast Iron Overheads Burdens Adjustment-Mains Total Overheads Burdens Adjustment-Services Overheads Burdens Adjustment-Total Reference GPA - 376.20 GPA - 373.30 GPA - 376.40 GPA - 376.80 (Sum of Lines 2 thru 5) GPA - 380.00 (Line 6 + Line 7) (Line 2 divided by Line, 27 Column L) (Line 3 divided by Line, 28 Column L) (Line 4 divided by Line, 29 Column L) (Line 5 divided by Line, 30 Column L) (Line 7 divided by Line, 32 Column L) (Sch. 7, Col. 4, Line 8) (Sch. 7, Col. 4, Line 9) (Sch. 7, Col. 4, Line 10) (Sch. 7, Col. 4, Line 11) (Sum of Lines 18 thru 21) (Sch. 7, Col. 4, Line 12) January (a) ($391,940) $0 $147,586 $0 ($244,354) $358,561 $114,207 February (b) $122,745 $0 $469,822 $0 $592,567 $598,533 $1,191,099 March (c) $116,362 $0 $256,743 $0 $373,104 $1,016,551 $1,389,655 April (d) $63,162 $0 $1,192,140 $0 $1,255,302 $1,158,702 $2,414,003 May (e) $231,814 $0 $2,251,914 $0 $2,483,728 $2,773,520 $5,257,248 2016 Investments June July (f) (g) $20,308 $0 $2,093,028 $0 $2,113,337 $3,295,103 $5,408,440 $6,114 $0 $2,250,198 $0 $2,256,311 $2,363,871 $4,620,182 2016 Revenue Requirement August (h) $370,989 $0 $7,453,493 $0 $7,824,482 $3,621,403 $11,445,885 September (i) $23,147 $0 $4,994,023 $0 $5,017,170 $2,712,357 $7,729,527 October (j) November (k) $352,053 $0 $2,027,964 $0 $2,380,018 $2,959,614 $5,339,632 $15,650 $0 $12,390,420 $0 $12,406,070 $2,079,550 $14,485,620 December (l) $486,859 $0 $6,326,271 $0 $6,813,130 $729,489 $7,542,619 -27.65% 0.00% 0.35% 0.00% 1.52% 8.66% 0.00% 1.12% 0.00% 2.53% 8.21% 0.00% 0.61% 0.00% 4.30% 4.46% 0.00% 2.85% 0.00% 4.90% 16.36% 0.00% 5.38% 0.00% 11.72% 1.43% 0.00% 5.00% 0.00% 13.92% 0.43% 0.00% 5.38% 0.00% 9.99% 26.18% 0.00% 17.81% 0.00% 15.30% 1.63% 0.00% 11.93% 0.00% 11.46% 24.84% 0.00% 4.85% 0.00% 12.51% 1.10% 0.00% 29.60% 0.00% 8.79% 34.35% 0.00% 15.12% 0.00% 3.08% $17,790 $0 ($6,698) $0 $11,092 ($16,275) ($5,183) ($5,571) $0 ($21,324) $0 ($26,895) ($27,166) ($54,061) ($5,282) $0 ($11,653) $0 ($16,935) ($46,141) ($63,076) ($2,867) $0 ($54,111) $0 ($56,978) ($52,593) ($109,571) ($10,522) $0 ($102,214) $0 ($112,736) ($125,888) ($238,624) ($922) $0 ($95,000) $0 ($95,922) ($149,562) ($245,484) ($278) $0 ($102,136) $0 ($102,414) ($107,294) ($209,708) ($16,839) $0 ($338,309) $0 ($355,148) ($164,373) ($519,521) ($1,051) $0 ($226,675) $0 ($227,726) ($123,112) ($350,838) ($15,979) $0 ($92,048) $0 ($108,027) ($134,335) ($242,362) ($710) $0 ($562,392) $0 ($563,102) ($94,389) ($657,491) ($22,098) $0 ($287,144) $0 ($309,242) ($33,111) ($342,353) Cumulative Before Adjustment Plant Additions - Mains: Plant Additions - Mains - Coated Steel Plant Additions - Mains - Bare Steel Plant Additions - Mains - Plastic Plant Additions - Mains - Cast Iron Cumulative Before Adjustment Plant Additions - Mains Cumulative Before Adjustment Plant Additions - Services Cumulative Before Adjustment Depreciable Additions (Prior Mo. Line 27 + Current Mo. Line 2) (Prior Mo. Line 28 + Current Mo. Line 3) (Prior Mo. Line 29 + Current Mo. Line 4) (Prior Mo. Line 30 + Current Mo. Line 5) (Sum of Lines 27 thru 30) (Prior Mo. Line 32 + Current Mo. Line 7) (Line 31 + Line 32) ($391,940) $0 $147,586 $0 ($244,354) $358,561 $114,207 ($269,196) $0 $617,408 $0 $348,212 $957,094 $1,305,306 ($152,834) $0 $874,150 $0 $721,317 $1,973,645 $2,694,961 ($89,672) $0 $2,066,290 $0 $1,976,618 $3,132,347 $5,108,965 $142,142 $0 $4,318,204 $0 $4,460,346 $5,905,867 $10,366,213 $162,450 $0 $6,411,233 $0 $6,573,683 $9,200,970 $15,774,653 $168,564 $0 $8,661,430 $0 $8,829,994 $11,564,841 $20,394,835 $539,553 $0 $16,114,923 $0 $16,654,476 $15,186,244 $31,840,720 $562,700 $0 $21,108,946 $0 $21,671,646 $17,898,601 $39,570,247 $914,753 $0 $23,136,911 $0 $24,051,664 $20,858,215 $44,909,879 $930,403 $0 $35,527,330 $0 $36,457,734 $22,937,765 $59,395,498 $1,417,262 $0 $41,853,602 $0 $43,270,864 $23,667,254 $66,938,118 Cumulative After Adjustment Plant Additions - Mains: Plant Additions - Mains - Coated Steel Plant Additions - Mains - Bare Steel Plant Additions - Mains - Plastic Plant Additions - Mains - Cast Iron Cumulative After Adjustment Plant Additions - Mains Cumulative After Adjustment Plant Additions - Services Cumulative After Adjustment Depreciable Additions (Prior Mo. Line 36 + Current Mo. Line 2) (Prior Mo. Line 37 + Current Mo. Line 3) (Prior Mo. Line 38 + Current Mo. Line 4) (Prior Mo. Line 39 + Current Mo. Line 5) (Sum of Lines 36 thru 39) (Prior Mo. Line 41 + Current Mo. Line 7) (Line 40 + Line 41) ($374,150) $0 $140,888 $0 ($233,262) $342,286 $109,024 ($256,977) $0 $589,386 $0 $332,409 $913,653 $1,246,062 ($145,897) $0 $834,475 $0 $688,579 $1,884,063 $2,572,641 ($85,602) $0 $1,972,504 $0 $1,886,902 $2,990,172 $4,877,074 $135,690 $0 $4,122,204 $0 $4,257,894 $5,637,804 $9,895,698 $155,076 $0 $6,120,233 $0 $6,275,309 $8,783,345 $15,058,654 $160,912 $0 $8,268,294 $0 $8,429,206 $11,039,922 $19,469,128 $515,062 $0 $15,383,478 $0 $15,898,540 $14,496,952 $30,395,492 $537,158 $0 $20,150,826 $0 $20,687,984 $17,086,197 $37,774,181 $873,232 $0 $22,086,743 $0 $22,959,975 $19,911,476 $42,871,451 $888,172 $0 $33,914,770 $0 $34,802,943 $21,896,637 $56,699,579 $1,352,933 $0 $39,953,898 $0 $41,306,831 $22,593,015 $63,899,846 $18,504 $0 ($946) $271 $17,829 $0 $17,829 $86,527 $1,176 $20,502 $135,609 $243,814 $1,240 $245,054 $11,407 $120,903 $0 $146,868 $279,178 $0 $279,178 $10,445 $35,340 $1,492 $31,641 $78,917 $0 $78,917 $41,914 $71,710 $5,356 $3,191 $122,171 $34,661 $156,832 $5,085 $18,896 $2,496 $107,219 $133,697 $0 $133,697 $6 $10,624 $0 $47,863 $58,492 $0 $58,492 $2,895 $18,414 $0 $42,870 $64,178 $0 $64,178 $103,045 $140,180 $40,419 $87,451 $371,094 $0 $371,094 (m) $1,417,262 $0 $41,853,602 $0 $43,270,864 $23,667,254 $66,938,119 Cost of Removal: Plant Additions - Mains - Coated Steel Plant Additions - Mains - Bare Steel Plant Additions - Mains - Plastic Plant Additions - Mains - Cast Iron Total monthly Cost of Removal - Mains Total monthly Cost of Removal - Services Total monthly Cost of Removal GPA - 376.20 GPA - 373.30 GPA - 376.40 GPA - 376.80 (Line 49 + Line 50) $79,495 $44,372 $9,879 $19,616 $153,361 $1 $153,362 Cumulative Cost of Removal (Prior Mo. Line 53 + Current Mo. Line 51) $153,362 $505,488 $954,084 $971,913 $1,216,967 $1,496,144 $1,575,062 $1,731,894 $1,865,591 $1,924,083 $1,988,261 $2,359,355 Total GSEP Plant Investment (Line 42 + Line 53) $262,386 $1,751,550 $3,526,725 $5,848,987 $11,112,665 $16,554,799 $21,044,190 $32,127,385 $39,639,771 $44,795,534 $58,687,841 $66,259,201 (Sum of Lines 45 thru 48) GPA - 380.00 $184,240 $19,158 ($216) $146,736 $349,918 $2,209 $352,126 $6,104 $62,727 $307,375 $67,715 $443,922 $4,674 $448,596 $549,666 $543,499 $386,357 $837,050 $2,316,572 $42,783 $2,359,355 Columbia Gas of Massachusetts Witness: R. D. Gibbons D.P.U. 17-GSEP-05 Exh. CMA/RDG-2 Schedule 2 - 2016 in 2016 2018 Gas System Enhancement Program Calculation of Monthly Average Rate Base Revenue Requirement Line No. Description 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 GP 121 ARD 122 123 ADIT 124 125 126 127 RB 128 PTRR 129 130 131 132 DEPR 133 PTMS 134 OFF 135 GSEP_RECc Reference January (a) February (b) March (c) April (d) May (e) 2016 Investments June July (f) (g) 2016 Revenue Requirement August (h) September (i) October (j) November (k) December (l) (m) Depreciable Retirements Plant Retirements - Mains: Plant Additions - Mains - Coated Steel Plant Additions - Mains - Bare Steel Plant Additions - Mains - Plastic Plant Additions - Mains - Cast Iron Total monthly Plant Retirements - Mains Total monthly Plant Retirements - Services Total Depreciable Retirements Cumulative Plant Retirements - Mains: Plant Additions - Mains - Coated Steel Plant Additions - Mains - Bare Steel Plant Additions - Mains - Plastic Plant Additions - Mains - Cast Iron Total Cumulative Plant Retirements - Mains Total Cumulative Plant Retirements - Services Cumulative Net Depreciable Retirements GPA - 376.20 GPA - 373.30 GPA - 376.40 GPA - 376.80 (Line 63 + Line 64) ($17,044) ($29) ($8,654) $0 ($25,727) ($48,748) ($74,475) $1,238 ($1,911) ($12,971) ($11,828) ($25,471) ($48,714) ($74,185) ($3,630) ($3,753) ($8,169) ($668) ($16,221) ($170,011) ($186,232) ($139) ($151) ($3,114) $0 ($3,404) ($181,067) ($184,472) ($2,949) ($490) ($140,345) ($12,810) ($156,594) ($275,768) ($432,362) ($107) ($4,325) ($11,261) ($2,926) ($18,620) ($357,719) ($376,339) ($23,510) ($6,340) ($74,895) ($6,441) ($111,186) ($321,599) ($432,785) ($14,841) ($5,972) ($108,392) ($10,072) ($139,277) ($401,104) ($540,381) ($35,672) ($2,445) ($93,601) ($20,576) ($152,294) ($249,090) ($401,385) ($44,697) ($9,118) ($101,152) ($1,262) ($156,230) ($294,390) ($450,620) ($13,100) ($13,199) ($16,245) ($32,314) ($74,857) ($309,405) ($384,262) ($114,854) ($1,938) ($208,026) ($39,173) ($363,991) ($65,773) ($429,764) (Prior Mo. Line 68 + Current Mo. Line 59) (Prior Mo. Line 69 + Current Mo. Line 60) (Prior Mo. Line 70 + Current Mo. Line 61) (Prior Mo. Line 71 + Current Mo. Line 62) (Sum of Lines 68 thru 71) (Prior Mo. Line 73 + Current Mo. Line 64) (Line 72 + Line 73) ($17,044) ($29) ($8,654) $0 ($25,727) ($48,748) ($74,475) ($15,806) ($1,940) ($21,624) ($11,828) ($51,198) ($97,463) ($148,661) ($19,436) ($5,693) ($29,793) ($12,496) ($67,419) ($267,474) ($334,893) ($19,575) ($5,845) ($32,907) ($12,496) ($70,823) ($448,541) ($519,364) ($22,524) ($6,334) ($173,252) ($25,306) ($227,417) ($724,309) ($951,726) ($22,631) ($10,660) ($184,514) ($28,233) ($246,038) ($1,082,027) ($1,328,065) ($46,142) ($17,000) ($259,408) ($34,674) ($357,224) ($1,403,626) ($1,760,850) ($60,983) ($22,972) ($367,801) ($44,745) ($496,500) ($1,804,731) ($2,301,231) ($96,655) ($25,417) ($461,402) ($65,321) ($648,795) ($2,053,821) ($2,702,616) ($141,352) ($34,535) ($562,554) ($66,584) ($805,025) ($2,348,210) ($3,153,235) ($154,452) ($47,734) ($578,799) ($98,898) ($879,882) ($2,657,616) ($3,537,497) ($269,306) ($49,671) ($786,825) ($138,070) ($1,243,872) ($2,723,389) ($3,967,261) 2.61% 6.00% 2.02% 2.96% 3.52% 2.61% 6.00% 2.02% 2.96% 3.52% 2.61% 6.00% 2.02% 2.96% 3.52% 2.61% 6.00% 2.02% 2.96% 3.52% 2.61% 6.00% 2.02% 2.96% 3.52% 2.61% 6.00% 2.02% 2.96% 3.52% 2.61% 6.00% 2.02% 2.96% 3.52% 2.61% 6.00% 2.02% 2.96% 3.52% 2.61% 6.00% 2.02% 2.96% 3.52% 2.61% 6.00% 2.02% 2.96% 3.52% 2.61% 6.00% 2.02% 2.96% 3.52% 2.61% 6.00% 2.02% 2.96% 3.52% (Sum of Lines 59 thru 62) GPA - 380.00 ($269,306) ($49,671) ($786,825) ($138,070) ($1,243,872) ($2,723,389) ($3,967,261) Book Depreciation Mains - Book Depreciation Plant Additions - Mains - Coated Steel Plant Additions - Mains - Bare Steel Plant Additions - Mains - Plastic Plant Additions - Mains - Cast Iron Services - Book Depreciation As Approved at DPU 12-25 As Approved at DPU 12-25 As Approved at DPU 12-25 As Approved at DPU 12-25 As Approved at DPU 12-25 Book Depreciation relating to Additions: Cumulative Book Deprec - Mains - Coated Steel Cumulative Book Deprec - Mains - Plastic Total Cumulative Book Deprec - Mains Additions Cumulative Book Deprec - Services Additions Total Cumulative Book Depreciation Additions (Average of Current and Prior Mo. Line 36 * Line 78/12) (Average of Current and Prior Mo. Line 38 * Line 80/12) (Line 85 + Line 86) (Average of Current and Prior Mo. Line 41 * Line 82/12) (Line 87 + Line 88) ($407) $119 ($288) $502 $214 ($1,093) $733 ($360) $2,344 $1,984 ($1,531) $1,932 $400 $6,447 $6,848 ($1,783) $4,294 $2,511 $13,596 $16,107 ($1,729) $9,424 $7,695 $26,251 $33,946 ($1,412) $18,045 $16,632 $47,402 $64,034 ($1,069) $30,155 $29,086 $76,476 $105,562 ($334) $50,062 $49,728 $113,930 $163,658 $811 $79,970 $80,781 $160,252 $241,032 $2,344 $115,520 $117,864 $214,515 $332,379 $4,260 $162,654 $166,914 $275,834 $442,748 $6,697 $224,827 $231,524 $341,085 $572,610 Book Depreciation Relating to Retirements: Cumulative Book Deprec - Mains - Coated Steel Cumulative Book Deprec - Mains - Bare Steel Cumulative Book Deprec - Mains - Plastic Cumulative Book Deprec - Mains - Cast Iron Total Cumulative Book Deprec - Mains Retirements Cumulative Book Deprec - Services Retirements Total Cumulative Book Depreciation Retirements (Average of Current and Prior Mo. Line 68 * Line 78/12) (Average of Current and Prior Mo. Line 69 * Line 79/12) (Average of Current and Prior Mo. Line 70 * Line 80/12) (Average of Current and Prior Mo. Line 71 * Line 81/12) (Sum of Lines 92 thru 95) (Average of Current and Prior Mo. Line 73 * Line 82/12) ($19) ($0) ($7) $0 ($26) ($71) ($97) ($54) ($5) ($33) ($15) ($107) ($286) ($393) ($93) ($24) ($76) ($45) ($237) ($821) ($1,058) ($135) ($53) ($129) ($75) ($392) ($1,871) ($2,263) ($181) ($83) ($302) ($122) ($689) ($3,592) ($4,280) ($230) ($126) ($603) ($188) ($1,147) ($6,241) ($7,388) ($305) ($195) ($977) ($266) ($1,742) ($9,886) ($11,629) ($421) ($295) ($1,505) ($364) ($2,585) ($14,592) ($17,177) ($593) ($416) ($2,203) ($499) ($3,711) ($20,251) ($23,962) ($851) ($566) ($3,065) ($662) ($5,144) ($26,708) ($31,852) ($1,173) ($771) ($4,025) ($866) ($6,836) ($34,049) ($40,886) ($1,634) ($1,015) ($5,175) ($1,158) ($8,982) ($41,942) ($50,924) Cumulative Book Depreciation Line 89 + Line 98 $116 $1,592 $5,789 $13,844 $29,666 $56,646 $93,933 $146,481 $217,070 $300,528 $401,863 $521,686 Sch 3 - 2016 in 2016, Line 39 (Prior Mo. Line 104 + Current Mo. Line 103) $227,344 $227,344 $1,123,920 $1,351,264 $1,350,422 $2,701,686 $1,585,325 $4,287,011 $3,659,215 $7,946,226 $3,800,053 $11,746,278 $3,098,814 $14,845,092 $7,618,183 $22,463,275 $5,213,520 $27,676,795 $3,613,016 $31,289,811 $9,618,149 $40,907,960 $5,521,218 $46,429,179 State Tax Depreciation and Repairs Deduction Cumulative State Tax Depreciation Sch 3 - 2016 in 2016, Line 72 (Prior Mo. Line 107 + Current Mo. Line 106) $192,303 $192,303 $758,675 $950,977 $925,670 $1,876,647 $848,388 $2,725,035 $2,054,752 $4,779,787 $2,157,972 $6,937,759 $1,708,237 $8,645,995 $4,153,170 $12,799,166 $2,914,655 $15,713,820 $2,070,270 $17,784,090 $5,343,991 $23,128,081 $3,471,076 $26,599,156 Federal Book/Tax Timing Difference Federal Tax Rate Deferred Federal Tax Reserve (Line 104 - Line 100) $227,228 35.0% $79,530 $1,349,672 35.0% $472,385 $2,695,897 35.0% $943,564 $4,273,167 35.0% $1,495,608 $7,916,560 35.0% $2,770,796 $11,689,633 35.0% $4,091,371 $14,751,159 35.0% $5,162,906 $22,316,794 35.0% $7,810,878 $27,459,725 35.0% $9,610,904 $30,989,284 35.0% $10,846,249 $40,506,098 35.0% $14,177,134 $45,907,493 35.0% $16,067,622 State Book/Tax Timing Difference State Tax Rate Deferred State Tax Reserve (Line 107 - Line 100) $192,186 5.2% $9,994 $949,386 5.2% $49,368 $1,870,858 5.2% $97,285 $2,711,191 5.2% $140,982 $4,750,121 5.2% $247,006 $6,881,113 5.2% $357,818 $8,552,062 5.2% $444,707 $12,652,684 5.2% $657,940 $15,496,750 5.2% $805,831 $17,483,562 5.2% $909,145 $22,726,218 5.2% $1,181,763 $26,077,470 5.2% $1,356,028 Net Operating Loss (NOL) Carryforward Offset Sch 3-2016 in 2016, Line 83 * -1 (867) (9,911) (20,462) (38,791) (78,708) (119,773) (154,853) (241,759) (300,448) (340,991) (450,977) (508,246) $262,386 ($116) $262,269 ($88,656) $173,613 $1,751,550 ($1,592) $1,749,959 ($511,842) $1,238,116 $3,526,725 ($5,789) $3,520,936 ($1,020,386) $2,500,550 $5,848,987 ($13,844) $5,835,143 ($1,597,799) $4,237,344 $11,112,665 ($29,666) $11,082,999 ($2,939,094) $8,143,905 $16,554,799 ($56,646) $16,498,153 ($4,329,416) $12,168,737 $21,044,190 ($93,933) $20,950,257 ($5,452,760) $15,497,497 $32,127,385 ($146,481) $31,980,904 ($8,227,058) $23,753,846 $39,639,771 ($217,070) $39,422,701 ($10,116,287) $29,306,414 $44,795,534 ($300,528) $44,495,006 ($11,414,404) $33,080,602 $58,687,841 ($401,863) $58,285,978 ($14,907,921) $43,378,057 $66,259,201 ($521,686) $65,737,515 ($16,915,405) $48,822,110 $86,807 11.19% 31 0.95% $823 $116 $0 ($17) $922 $705,865 11.19% 29 0.89% $6,258 $1,475 $0 ($124) $7,609 $1,869,333 11.19% 31 0.95% $17,717 $4,198 $0 ($319) $21,596 $3,368,947 11.19% 30 0.92% $30,900 $8,055 $0 ($499) $38,456 $6,190,625 11.19% 31 0.95% $58,674 $15,822 $0 ($783) $73,713 $10,156,321 11.19% 30 0.92% $93,155 $26,980 $0 ($1,380) $118,755 $13,833,117 11.19% 31 0.95% $131,108 $37,287 $0 ($2,273) $166,123 $19,625,672 11.19% 31 0.95% $186,010 $52,548 $0 ($3,475) $235,083 $26,530,130 11.19% 30 0.92% $243,338 $70,589 $0 ($4,490) $309,437 $31,193,508 11.19% 31 0.95% $295,648 $83,457 $0 ($5,524) $373,582 $38,229,330 11.19% 30 0.92% $350,644 $101,335 $0 ($6,938) $445,041 $46,100,084 11.19% 31 0.95% $436,931 $119,823 $0 ($8,159) $548,595 Deferred Tax Calculation Federal Tax Depreciation and Repairs Deduction Cumulative Federal Tax Depreciation Rate Base Calculation: Total Cumulative GSEP Plant Investment Accumulated Reserve for Depreciation Cumulative Net Plant Deferred Tax Reserve Cumulative Month End Rate Base Revenue Requirement Calculation: Average Rate Base Pre-Tax ROR Number of Days in the Month Monthly Applicable Pre-Tax ROR Return and Taxes Monthly Book Depreciation Property Taxes O&M Offset Monthly Revenue Requirement before Adjustments GPA - 376.20 GPA - 373.30 GPA - 376.40 GPA - 376.80 GPA - 380.00 (Line 109 * Line 110) (Line 113 * Line 114) Line 55 Line 100 * -1 (Line 120 + Line 121) ((Line 115 + Line 111 + Line 117) * -1) (Line 122 + Line 123) Mo. 1 = Line 124/ 2, then (Prior Mo. & Cur Mo. Line 124/ 2) Schedule 4 Line 128 * (Line 129/ 366) Line 127 * Line 130 Line 100 - Prior Mo. Line 100 Schedule 5 As filed per D.P.U. 17-GREC-05 Line 131 thru 134 Calendar Year 2016 in 2016 $1,851,207 $521,686 $0 ($33,981) $2,338,912 Columbia Gas of Massachusetts Witness: R. D. Gibbons D.P.U. 17-GSEP-05 Exh. CMA/RDG-2 Schedule 2 - 2016 in 2017 2018 Gas System Enhancement Program Calculation of Monthly Average Rate Base Revenue Requirement Line No. Description 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 Depreciable Plant Additions Cumulative Plant Additions - Mains: Plant Additions - Mains - Coated Steel Plant Additions - Mains - Bare Steel Plant Additions - Mains - Plastic Plant Additions - Mains - Cast Iron Cumulative Plant Additions - Mains Cumulative Plant Additions - Services Cumulative Depreciable Additions Reference (Sch. 2-2016 in 2016, Col. (l), Line 36) (Sch. 2-2016 in 2016, Col. (l), Line 37) (Sch. 2-2016 in 2016, Col. (l), Line 38) (Sch. 2-2016 in 2016, Col. (l), Line 39) (Sum of Lines 2 thru 5) (Sch. 2-2016 in 2016, Col. (l), Line 41) (Line 6 + Line 7) Cumulative Cost of Removal (Sch. 2-2016 in 2016, Col. (l), Line 53) Total GSEP Plant Investment (Line 8 + Line 10) Depreciable Retirements Cumulative Plant Retirements - Mains: Plant Additions - Mains - Coated Steel Plant Additions - Mains - Bare Steel Plant Additions - Mains - Plastic Plant Additions - Mains - Cast Iron Total Cumulative Plant Retirements - Mains Total Cumulative Plant Retirements - Services Cumulative Net Depreciable Retirements GPA - 376.20 GPA - 373.30 GPA - 376.40 GPA - 376.80 GPA - 380.00 2016 December (a) $1,352,933 $0 $39,953,898 $0 $41,306,831 $22,593,015 $63,899,846 $2,359,355 (Sch. 2-2016 in 2016, Col. (l), Line 68) (Sch. 2-2016 in 2016, Col. (l), Line 69) (Sch. 2-2016 in 2016, Col. (l), Line 70) (Sch. 2-2016 in 2016, Col. (l), Line 71) (Sum of Lines 16 thru 19) (Sch. 2-2016 in 2016, Col. (l), Line 72) (Line 20 + Line 21) ($269,306) ($49,671) ($786,825) ($138,070) ($1,243,872) ($2,723,389) ($3,967,261) January (b) $1,352,933 $0 $39,953,898 $0 $41,306,831 $22,593,015 $63,899,846 February (c) $1,352,933 $0 $39,953,898 $0 $41,306,831 $22,593,015 $63,899,846 March (d) $1,352,933 $0 $39,953,898 $0 $41,306,831 $22,593,015 $63,899,846 April (e) $1,352,933 $0 $39,953,898 $0 $41,306,831 $22,593,015 $63,899,846 May (f) 2016 Investments in Calendar Year 2017 June July August (g) (h) (i) $1,352,933 $0 $39,953,898 $0 $41,306,831 $22,593,015 $63,899,846 $1,352,933 $0 $39,953,898 $0 $41,306,831 $22,593,015 $63,899,846 $1,352,933 $0 $39,953,898 $0 $41,306,831 $22,593,015 $63,899,846 $1,352,933 $0 $39,953,898 $0 $41,306,831 $22,593,015 $63,899,846 2017 Revenue Requirement September (j) $1,352,933 $0 $39,953,898 $0 $41,306,831 $22,593,015 $63,899,846 October (k) $1,352,933 $0 $39,953,898 $0 $41,306,831 $22,593,015 $63,899,846 November (l) December (m) $1,352,933 $0 $39,953,898 $0 $41,306,831 $22,593,015 $63,899,846 $1,352,933 $0 $39,953,898 $0 $41,306,831 $22,593,015 $63,899,846 $2,359,355 $2,359,355 $2,359,355 $2,359,355 $2,359,355 $2,359,355 $2,359,355 $2,359,355 $2,359,355 $2,359,355 $2,359,355 $2,359,355 $66,259,201 $66,259,201 $66,259,201 $66,259,201 $66,259,201 $66,259,201 $66,259,201 $66,259,201 $66,259,201 $66,259,201 $66,259,201 $66,259,201 ($269,306) ($49,671) ($786,825) ($138,070) ($1,243,872) ($2,723,389) ($3,967,261) ($269,306) ($49,671) ($786,825) ($138,070) ($1,243,872) ($2,723,389) ($3,967,261) ($269,306) ($49,671) ($786,825) ($138,070) ($1,243,872) ($2,723,389) ($3,967,261) ($269,306) ($49,671) ($786,825) ($138,070) ($1,243,872) ($2,723,389) ($3,967,261) ($269,306) ($49,671) ($786,825) ($138,070) ($1,243,872) ($2,723,389) ($3,967,261) ($269,306) ($49,671) ($786,825) ($138,070) ($1,243,872) ($2,723,389) ($3,967,261) ($269,306) ($49,671) ($786,825) ($138,070) ($1,243,872) ($2,723,389) ($3,967,261) ($269,306) ($49,671) ($786,825) ($138,070) ($1,243,872) ($2,723,389) ($3,967,261) ($269,306) ($49,671) ($786,825) ($138,070) ($1,243,872) ($2,723,389) ($3,967,261) ($269,306) ($49,671) ($786,825) ($138,070) ($1,243,872) ($2,723,389) ($3,967,261) ($269,306) ($49,671) ($786,825) ($138,070) ($1,243,872) ($2,723,389) ($3,967,261) ($269,306) ($49,671) ($786,825) ($138,070) ($1,243,872) ($2,723,389) ($3,967,261) 2.61% 6.00% 2.02% 2.96% 3.52% 2.61% 6.00% 2.02% 2.96% 3.52% 2.61% 6.00% 2.02% 2.96% 3.52% 2.61% 6.00% 2.02% 2.96% 3.52% 2.61% 6.00% 2.02% 2.96% 3.52% 2.61% 6.00% 2.02% 2.96% 3.52% 2.61% 6.00% 2.02% 2.96% 3.52% 2.61% 6.00% 2.02% 2.96% 3.52% 2.61% 6.00% 2.02% 2.96% 3.52% 2.61% 6.00% 2.02% 2.96% 3.52% 2.61% 6.00% 2.02% 2.96% 3.52% 2.61% 6.00% 2.02% 2.96% 3.52% (n) Book Depreciation Mains - Book Depreciation Plant Additions - Mains - Coated Steel Plant Additions - Mains - Bare Steel Plant Additions - Mains - Plastic Plant Additions - Mains - Cast Iron Services - Book Depreciation As Approved at DPU 12-25 As Approved at DPU 12-25 As Approved at DPU 12-25 As Approved at DPU 12-25 As Approved at DPU 12-25 Book Depreciation relating to Additions: Cumulative Book Deprec - Mains - Coated Steel Cumulative Book Deprec - Mains - Plastic Total Cumulative Book Deprec - Mains Additions Cumulative Book Deprec - Services Additions Total Cumulative Book Depreciation Additions (Average of Current and Prior Mo. Line 2 * Line 26/12) (Average of Current and Prior Mo. Line 4 * Line 28/12) (Line 33 + Line 34) (Average of Current and Prior Mo. Line 7 * Line 30/12) (Line 35 + Line 36) $6,697 $224,827 $231,524 $341,085 $572,610 $9,640 $292,083 $301,723 $407,358 $709,081 $12,582 $359,339 $371,921 $473,631 $845,552 $15,525 $426,594 $442,119 $539,904 $982,023 Book Depreciation Relating to Retirements: Cumulative Book Deprec - Mains - Coated Steel Cumulative Book Deprec - Mains - Bare Steel Cumulative Book Deprec - Mains - Plastic Cumulative Book Deprec - Mains - Cast Iron Total Cumulative Book Deprec - Mains Retirements Cumulative Book Deprec - Services Retirements Total Cumulative Book Depreciation Retirements (Average of Current and Prior Mo. Line 26 * Line 26/12) (Average of Current and Prior Mo. Line 27 * Line 27/12) (Average of Current and Prior Mo. Line 28 * Line 28/12) (Average of Current and Prior Mo. Line 29 * Line 29/12) (Sum of Lines 40 thru 43) (Average of Current and Prior Mo. Line 30 * Line 30/12) ($1,634) ($1,015) ($5,175) ($1,158) ($8,982) ($41,942) ($50,924) ($2,220) ($1,263) ($6,499) ($1,499) ($11,481) ($49,930) ($61,411) ($2,805) ($1,512) ($7,824) ($1,840) ($13,980) ($57,919) ($71,899) ($3,391) ($1,760) ($9,148) ($2,180) ($16,480) ($65,907) ($82,387) Cumulative Book Depreciation Line 37 + Line 46 $521,686 $647,669 $773,653 $899,636 $1,025,620 $1,151,603 $1,277,586 $1,403,570 $1,529,553 $1,655,537 $1,781,520 $1,907,504 $2,033,487 $46,429,179 $123,942 $46,553,121 $123,942 $46,677,062 $123,942 $46,801,004 $123,942 $46,924,946 $123,942 $47,048,888 $123,942 $47,172,830 $123,942 $47,296,772 $123,942 $47,420,714 $123,942 $47,544,656 $123,942 $47,668,598 $123,942 $47,792,540 $123,942 $47,916,482 $26,599,156 $247,884 $26,847,040 $247,884 $27,094,924 $247,884 $27,342,808 $247,884 $27,590,692 $247,884 $27,838,576 $247,884 $28,086,460 $247,884 $28,334,344 $247,884 $28,582,228 $247,884 $28,830,112 $247,884 $29,077,996 $247,884 $29,325,880 $247,884 $29,573,764 $45,905,451 35.0% $16,066,908 $45,903,410 35.0% $16,066,193 $45,901,368 35.0% $16,065,479 $45,899,327 35.0% $16,064,764 $45,897,285 35.0% $16,064,050 $45,895,244 35.0% $16,063,335 $45,893,202 35.0% $16,062,621 $45,891,161 35.0% $16,061,906 $45,889,119 35.0% $16,061,192 $45,887,078 35.0% $16,060,477 $45,885,036 35.0% $16,059,763 $45,882,995 35.0% $16,059,048 $26,199,371 5.2% $1,362,367 $26,321,272 5.2% $1,368,706 $26,443,172 5.2% $1,375,045 $26,565,073 5.2% $1,381,384 $26,686,973 5.2% $1,387,723 $26,808,874 5.2% $1,394,061 $26,930,774 5.2% $1,400,400 $27,052,675 5.2% $1,406,739 $27,174,575 5.2% $1,413,078 $27,296,476 5.2% $1,419,417 $27,418,377 5.2% $1,425,756 $27,540,277 5.2% $1,432,094 ($508,246) ($508,246) ($508,246) ($508,246) ($508,246) ($508,246) ($508,246) ($508,246) ($508,246) ($508,246) ($508,246) ($508,246) $66,259,201 ($647,669) $65,611,532 ($16,921,029) $48,690,503 $66,259,201 ($773,653) $65,485,548 ($16,926,653) $48,558,895 $66,259,201 ($899,636) $65,359,565 ($16,932,278) $48,427,287 $66,259,201 ($1,025,620) $65,233,581 ($16,937,902) $48,295,679 $66,259,201 ($1,151,603) $65,107,598 ($16,943,526) $48,164,072 $66,259,201 ($1,277,586) $64,981,614 ($16,949,150) $48,032,464 $66,259,201 ($1,403,570) $64,855,631 ($16,954,775) $47,900,856 $66,259,201 ($1,529,553) $64,729,648 ($16,960,399) $47,769,248 $66,259,201 ($1,655,537) $64,603,664 ($16,966,023) $47,637,641 $66,259,201 ($1,781,520) $64,477,681 ($16,971,648) $47,506,033 $66,259,201 ($1,907,504) $64,351,697 ($16,977,272) $47,374,425 $66,259,201 ($2,033,487) $64,225,714 ($16,982,896) $47,242,818 $48,756,307 11.19% 31 0.95% $463,372 $125,983 $0 ($8,680) $580,675 $48,624,699 11.19% 28 0.86% $417,400 $125,983 $0 ($8,680) $534,703 $48,493,091 11.19% 31 0.95% $460,870 $125,983 $0 ($8,680) $578,174 $48,361,483 11.19% 30 0.92% $444,793 $125,983 $0 ($8,680) $562,096 $48,229,876 11.19% 31 0.95% $458,369 $125,983 $0 ($8,680) $575,672 $48,098,268 11.19% 30 0.92% $442,372 $125,983 $0 ($8,680) $559,676 $47,966,660 11.19% 31 0.95% $455,867 $125,983 $142,524 ($8,680) $715,695 $47,835,052 11.19% 31 0.95% $454,616 $125,983 $142,524 ($8,680) $714,444 $47,703,445 11.19% 30 0.92% $438,741 $125,983 $142,524 ($8,680) $698,569 $47,571,837 11.19% 31 0.95% $452,115 $125,983 $142,524 ($8,680) $711,943 $47,440,229 11.19% 30 0.92% $436,320 $125,983 $142,524 ($8,680) $696,148 $47,308,621 11.19% 31 0.95% $449,613 $125,983 $142,524 ($8,680) $709,441 Deferred Tax Calculation Federal Tax Depreciation and Repairs Deduction Cumulative Federal Tax Depreciation GP ARD ADIT Sch 3 - 2016 in 2017, Line 15 (Prior Mo. Line 55 + Current Mo. Line 54) Federal Book/Tax Timing Difference Federal Tax Rate Deferred Federal Tax Reserve (Line 57 * Line 58) State Book/Tax Timing Difference State Tax Rate Deferred State Tax Reserve (Line 61 * Line 62) Net Operating Loss (NOL) Carryforward Offset Sch 2-2016 in 2016, Col. (l), Line 117 Revenue Requirement Calculation: Average Rate Base Pre-Tax ROR Number of Days in the Month Monthly Applicable Pre-Tax ROR Return and Taxes DEPR Monthly Book Depreciation PTMS Property Taxes OFF O&M Offset GSEP_RECc Monthly Revenue Requirement before Adjustments RB PTRR Sch 3 2016 in 2017, Line 7 (Prior Mo. Line 52 + Current Mo. Line 51) State Tax Depreciation and Repairs Deduction Cumulative State Tax Depreciation Rate Base Calculation: Total Cumulative GSEP Plant Investment Accumulated Reserve for Depreciation Cumulative Net Plant Deferred Tax Reserve Cumulative Month End Rate Base GPA - 376.20 GPA - 373.30 GPA - 376.40 GPA - 376.80 GPA - 380.00 (Line 52 - Line 48) (Line 55 - Line 48) ($508,246) Line 12 Line 48 * -1 (Line 68 + Line 69) ((Line 63 + Line 59 + Line 65) * -1) (Line 70 + Line 71) $48,822,110 Prior Mo. & Cur Mo. Line 72/ 2 Schedule 4 Line 76 * (Line 77/ 366) Line 75 * Line 78 Line 48 - Prior Mo. Line 48 Schedule 5 Schedule 6, Line 9, Column 2 / 12 Line 79 thru 82 Calendar Year 2016 in 2017 $18,468 $493,850 $512,318 $606,176 $1,118,494 ($3,977) ($2,008) ($10,473) ($2,521) ($18,979) ($73,896) ($92,875) $21,410 $561,106 $582,516 $672,449 $1,254,966 ($4,563) ($2,257) ($11,797) ($2,861) ($21,478) ($81,885) ($103,362) $24,353 $628,362 $652,715 $738,722 $1,391,437 ($5,148) ($2,505) ($13,122) ($3,202) ($23,977) ($89,873) ($113,850) $27,296 $695,617 $722,913 $804,995 $1,527,908 ($5,734) ($2,753) ($14,446) ($3,542) ($26,476) ($97,862) ($124,338) $30,238 $762,873 $793,111 $871,268 $1,664,379 ($6,320) ($3,002) ($15,771) ($3,883) ($28,975) ($105,850) ($134,826) $33,181 $830,129 $863,310 $937,541 $1,800,850 ($6,906) ($3,250) ($17,095) ($4,224) ($31,475) ($113,839) ($145,314) $36,123 $897,385 $933,508 $1,003,814 $1,937,322 ($7,491) ($3,499) ($18,420) ($4,564) ($33,974) ($121,828) ($155,801) $39,066 $964,640 $1,003,706 $1,070,086 $2,073,793 ($8,077) ($3,747) ($19,744) ($4,905) ($36,473) ($129,816) ($166,289) $42,009 $1,031,896 $1,073,905 $1,136,359 $2,210,264 ($8,663) ($3,995) ($21,069) ($5,245) ($38,972) ($137,805) ($176,777) $35,312 $807,069 $842,380 $795,274 $1,637,654 ($7,029) ($2,980) ($15,894) ($4,087) ($29,990) ($95,863) ($125,853) $1,511,801 $5,374,449 $1,511,801 $855,146 ($104,162) $7,637,235 Columbia Gas of Massachusetts Witness: R. D. Gibbons D.P.U. 17-GSEP-05 Exh. CMA/RDG-2 Schedule 2 - 2016 in 2018 2018 Gas System Enhancement Program Calculation of Monthly Average Rate Base Revenue Requirement Line No. Description 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 Depreciable Plant Additions Cumulative Plant Additions - Mains: Plant Additions - Mains - Coated Steel Plant Additions - Mains - Bare Steel Plant Additions - Mains - Plastic Plant Additions - Mains - Cast Iron Cumulative Plant Additions - Mains Cumulative Plant Additions - Services Cumulative Depreciable Additions Reference (Sch. 2-2016 in 2016, Col. (l), Line 36) (Sch. 2-2016 in 2016, Col. (l), Line 37) (Sch. 2-2016 in 2016, Col. (l), Line 38) (Sch. 2-2016 in 2016, Col. (l), Line 39) (Sum of Lines 2 thru 5) (Sch. 2-2016 in 2016, Col. (l), Line 41) (Line 6 + Line 7) Cumulative Cost of Removal (Sch. 3-2016, Col. (L), Line 53) Total GSEP Plant Investment (Line 8 + Line 10) Depreciable Retirements Cumulative Plant Retirements - Mains: Plant Additions - Mains - Coated Steel Plant Additions - Mains - Bare Steel Plant Additions - Mains - Plastic Plant Additions - Mains - Cast Iron Total Cumulative Plant Retirements - Mains Total Cumulative Plant Retirements - Services Cumulative Net Depreciable Retirements GPA - 376.20 GPA - 373.30 GPA - 376.40 GPA - 376.80 GPA - 380.00 2016 December (a) $1,352,933 $0 $39,953,898 $0 $41,306,831 $22,593,015 $63,899,846 $2,359,355 (Sch. 2-2016 in 2016, Col. (l), Line 68) (Sch. 2-2016 in 2016, Col. (l), Line 69) (Sch. 2-2016 in 2016, Col. (l), Line 70) (Sch. 2-2016 in 2016, Col. (l), Line 71) (Sum of Lines 16 thru 19) (Sch. 2-2016 in 2016, Col. (l), Line 72) (Line 20 + Line 21) ($269,306) ($49,671) ($786,825) ($138,070) ($1,243,872) ($2,723,389) ($3,967,261) January (b) $1,352,933 $0 $39,953,898 $0 $41,306,831 $22,593,015 $63,899,846 February (c) $1,352,933 $0 $39,953,898 $0 $41,306,831 $22,593,015 $63,899,846 March (d) $1,352,933 $0 $39,953,898 $0 $41,306,831 $22,593,015 $63,899,846 April (e) $1,352,933 $0 $39,953,898 $0 $41,306,831 $22,593,015 $63,899,846 May (f) 2016 Investments in Calendar Year 2018 June July August (g) (h) (i) $1,352,933 $0 $39,953,898 $0 $41,306,831 $22,593,015 $63,899,846 $1,352,933 $0 $39,953,898 $0 $41,306,831 $22,593,015 $63,899,846 $1,352,933 $0 $39,953,898 $0 $41,306,831 $22,593,015 $63,899,846 $1,352,933 $0 $39,953,898 $0 $41,306,831 $22,593,015 $63,899,846 2018 Revenue Requirement September (j) $1,352,933 $0 $39,953,898 $0 $41,306,831 $22,593,015 $63,899,846 October (k) $1,352,933 $0 $39,953,898 $0 $41,306,831 $22,593,015 $63,899,846 November (l) December (m) $1,352,933 $0 $39,953,898 $0 $41,306,831 $22,593,015 $63,899,846 $1,352,933 $0 $39,953,898 $0 $41,306,831 $22,593,015 $63,899,846 $2,359,355 $2,359,355 $2,359,355 $2,359,355 $2,359,355 $2,359,355 $2,359,355 $2,359,355 $2,359,355 $2,359,355 $2,359,355 $2,359,355 $66,259,201 $66,259,201 $66,259,201 $66,259,201 $66,259,201 $66,259,201 $66,259,201 $66,259,201 $66,259,201 $66,259,201 $66,259,201 $66,259,201 ($269,306) ($49,671) ($786,825) ($138,070) ($1,243,872) ($2,723,389) ($3,967,261) ($269,306) ($49,671) ($786,825) ($138,070) ($1,243,872) ($2,723,389) ($3,967,261) ($269,306) ($49,671) ($786,825) ($138,070) ($1,243,872) ($2,723,389) ($3,967,261) ($269,306) ($49,671) ($786,825) ($138,070) ($1,243,872) ($2,723,389) ($3,967,261) ($269,306) ($49,671) ($786,825) ($138,070) ($1,243,872) ($2,723,389) ($3,967,261) ($269,306) ($49,671) ($786,825) ($138,070) ($1,243,872) ($2,723,389) ($3,967,261) ($269,306) ($49,671) ($786,825) ($138,070) ($1,243,872) ($2,723,389) ($3,967,261) ($269,306) ($49,671) ($786,825) ($138,070) ($1,243,872) ($2,723,389) ($3,967,261) ($269,306) ($49,671) ($786,825) ($138,070) ($1,243,872) ($2,723,389) ($3,967,261) ($269,306) ($49,671) ($786,825) ($138,070) ($1,243,872) ($2,723,389) ($3,967,261) ($269,306) ($49,671) ($786,825) ($138,070) ($1,243,872) ($2,723,389) ($3,967,261) ($269,306) ($49,671) ($786,825) ($138,070) ($1,243,872) ($2,723,389) ($3,967,261) 2.61% 6.00% 2.02% 2.96% 3.52% 2.61% 6.00% 2.02% 2.96% 3.52% 2.61% 6.00% 2.02% 2.96% 3.52% 2.61% 6.00% 2.02% 2.96% 3.52% 2.61% 6.00% 2.02% 2.96% 3.52% 2.61% 6.00% 2.02% 2.96% 3.52% 2.61% 6.00% 2.02% 2.96% 3.52% 2.61% 6.00% 2.02% 2.96% 3.52% 2.61% 6.00% 2.02% 2.96% 3.52% 2.61% 6.00% 2.02% 2.96% 3.52% 2.61% 6.00% 2.02% 2.96% 3.52% 2.61% 6.00% 2.02% 2.96% 3.52% (n) Book Depreciation Mains - Book Depreciation Plant Additions - Mains - Coated Steel Plant Additions - Mains - Bare Steel Plant Additions - Mains - Plastic Plant Additions - Mains - Cast Iron Services - Book Depreciation As Approved at DPU 12-25 As Approved at DPU 12-25 As Approved at DPU 12-25 As Approved at DPU 12-25 As Approved at DPU 12-25 Book Depreciation relating to Additions: Cumulative Book Deprec - Mains - Coated Steel Cumulative Book Deprec - Mains - Plastic Total Cumulative Book Deprec - Mains Additions Cumulative Book Deprec - Services Additions Total Cumulative Book Depreciation Additions (Average of Current and Prior Mo. Line 2 * Line 26/12) (Average of Current and Prior Mo. Line 4 * Line 28/12) (Line 33 + Line 34) (Average of Current and Prior Mo. Line 7 * Line 30/12) (Line 35 + Line 36) Book Depreciation Relating to Retirements: Cumulative Book Deprec - Mains - Coated Steel Cumulative Book Deprec - Mains - Bare Steel Cumulative Book Deprec - Mains - Plastic Cumulative Book Deprec - Mains - Cast Iron Total Cumulative Book Deprec - Mains Retirements Cumulative Book Deprec - Services Retirements Total Cumulative Book Depreciation Retirements (Average of Current and Prior Mo. Line 16 * Line 26/12) (Average of Current and Prior Mo. Line 17 * Line 27/12) (Average of Current and Prior Mo. Line 18 * Line 28/12) (Average of Current and Prior Mo. Line 19 * Line 29/12) (Sum of Lines 40 thru 43) (Average of Current and Prior Mo. Line 21 * Line 30/12) Cumulative Book Depreciation Line 37 + Line 46 Deferred Tax Calculation Federal Tax Depreciation and Repairs Deduction Cumulative Federal Tax Depreciation GP ARD ADIT GPA - 376.20 GPA - 373.30 GPA - 376.40 GPA - 376.80 GPA - 380.00 Sch 3 2016 in 2018, Line 7 (Prior Mo. Line 52 + Current Mo. Line 51) State Tax Depreciation and Repairs Deduction Cumulative State Tax Depreciation Sch 3 2016 in 2018, Line 15 (Prior Mo. Line 55 + Current Mo. Line 54) Federal Book/Tax Timing Difference Federal Tax Rate Deferred Federal Tax Reserve (Line 52 - Line 48) State Book/Tax Timing Difference State Tax Rate Deferred State Tax Reserve (Line 55 - Line 48) Net Operating Loss (NOL) Carryforward Offset Sch 2-2016 in 2017, Col. (l), Line 65 Rate Base Calculation: Total Cumulative GSEP Plant Investment Accumulated Reserve for Depreciation Cumulative Net Plant Deferred Tax Reserve Cumulative Month End Rate Base Revenue Requirement Calculation: RB Average Rate Base PTRR Pre-Tax ROR Number of Days in the Month Monthly Applicable Pre-Tax ROR Return and Taxes DEPR Monthly Book Depreciation PTMS Property Taxes OFF O&M Offset GSEP_RECc Monthly Revenue Requirement before Adjustments $42,009 $1,031,896 $1,073,905 $1,136,359 $2,210,264 ($8,663) ($3,995) ($21,069) ($5,245) ($38,972) ($137,805) ($176,777) Line 76 * (Line 77/ 366) Line 75 * Line 78 Line 48 - Prior Mo. Line 48 Schedule 5 Schedule 6, Line 9, Column 2 / 12 Line 79 thru 82 ($10,420) ($4,740) ($25,042) ($6,267) ($46,469) ($161,771) ($208,240) $53,779 $1,300,919 $1,354,698 $1,401,451 $2,756,149 ($11,006) ($4,989) ($26,367) ($6,608) ($48,969) ($169,759) ($218,728) $56,722 $1,368,175 $1,424,896 $1,467,723 $2,892,620 ($11,592) ($5,237) ($27,691) ($6,948) ($51,468) ($177,748) ($229,216) $59,664 $1,435,430 $1,495,095 $1,533,996 $3,029,091 ($12,177) ($5,485) ($29,016) ($7,289) ($53,967) ($185,736) ($239,703) $62,607 $1,502,686 $1,565,293 $1,600,269 $3,165,562 ($12,763) ($5,734) ($30,340) ($7,629) ($56,466) ($193,725) ($250,191) $65,550 $1,569,942 $1,635,492 $1,666,542 $3,302,034 ($13,349) ($5,982) ($31,665) ($7,970) ($58,965) ($201,714) ($260,679) $68,492 $1,637,198 $1,705,690 $1,732,815 $3,438,505 ($13,935) ($6,230) ($32,989) ($8,310) ($61,464) ($209,702) ($271,167) $71,435 $1,704,453 $1,775,888 $1,799,088 $3,574,976 ($14,520) ($6,479) ($34,314) ($8,651) ($63,964) ($217,691) ($281,655) $74,378 $1,771,709 $1,846,087 $1,865,360 $3,711,447 ($15,106) ($6,727) ($35,638) ($8,992) ($66,463) ($225,680) ($292,142) $77,320 $1,838,965 $1,916,285 $1,931,633 $3,847,918 ($15,692) ($6,976) ($36,962) ($9,332) ($68,962) ($233,668) ($302,630) $2,285,454 $2,411,437 $2,537,421 $2,663,404 $2,789,388 $2,915,371 $3,041,355 $3,167,338 $3,293,321 $3,419,305 $3,545,288 $47,916,482 $114,636 $48,031,118 $114,636 $48,145,754 $114,636 $48,260,390 $114,636 $48,375,027 $114,636 $48,489,663 $114,636 $48,604,300 $114,636 $48,718,936 $114,636 $48,833,573 $114,636 $48,948,209 $114,636 $49,062,845 $114,636 $49,177,482 $114,636 $49,292,118 $29,573,764 $229,273 $29,803,037 $229,273 $30,032,310 $229,273 $30,261,583 $229,273 $30,490,856 $229,273 $30,720,129 $229,273 $30,949,402 $229,273 $31,178,675 $229,273 $31,407,948 $229,273 $31,637,221 $229,273 $31,866,494 $229,273 $32,095,767 $229,273 $32,325,040 $45,871,647 35.0% $16,055,077 $45,860,300 35.0% $16,051,105 $45,848,953 35.0% $16,047,134 $45,837,606 35.0% $16,043,162 $45,826,259 35.0% $16,039,191 $45,814,912 35.0% $16,035,219 $45,803,565 35.0% $16,031,248 $45,792,218 35.0% $16,027,276 $45,780,871 35.0% $16,023,305 $45,769,524 35.0% $16,019,333 $45,758,177 35.0% $16,015,362 $45,746,830 35.0% $16,011,390 $27,643,567 5.2% $1,437,465 $27,746,856 5.2% $1,442,837 $27,850,146 5.2% $1,448,208 $27,953,435 5.2% $1,453,579 $28,056,725 5.2% $1,458,950 $28,160,015 5.2% $1,464,321 $28,263,304 5.2% $1,469,692 $28,366,594 5.2% $1,475,063 $28,469,883 5.2% $1,480,434 $28,573,173 5.2% $1,485,805 $28,676,462 5.2% $1,491,176 $28,779,752 5.2% $1,496,547 ($508,246) ($508,246) ($508,246) ($508,246) ($508,246) ($508,246) ($508,246) ($508,246) ($508,246) ($508,246) ($508,246) ($508,246) $66,259,201 ($2,159,470) $64,099,730 ($16,984,296) $47,115,435 $66,259,201 ($2,285,454) $63,973,747 ($16,985,695) $46,988,052 $66,259,201 ($2,411,437) $63,847,764 ($16,987,095) $46,860,669 $66,259,201 ($2,537,421) $63,721,780 ($16,988,495) $46,733,286 $66,259,201 ($2,663,404) $63,595,797 ($16,989,894) $46,605,903 $66,259,201 ($2,789,388) $63,469,813 ($16,991,294) $46,478,519 $66,259,201 ($2,915,371) $63,343,830 ($16,992,693) $46,351,136 $66,259,201 ($3,041,355) $63,217,846 ($16,994,093) $46,223,753 $66,259,201 ($3,167,338) $63,091,863 ($16,995,493) $46,096,370 $66,259,201 ($3,293,321) $62,965,879 ($16,996,892) $45,968,987 $66,259,201 ($3,419,305) $62,839,896 ($16,998,292) $45,841,604 $66,259,201 ($3,545,288) $62,713,913 ($16,999,691) $45,714,221 $47,179,126 11.19% 31 0.95% $447,158 $125,983 $139,247 ($8,680) $703,708 $47,051,743 11.19% 29 0.89% $417,179 $125,983 $139,247 ($8,680) $673,729 $46,924,360 11.19% 31 0.95% $444,743 $125,983 $139,247 ($8,680) $701,293 $46,796,977 11.19% 30 0.92% $429,228 $125,983 $139,247 ($8,680) $685,778 $46,669,594 11.19% 31 0.95% $442,328 $125,983 $139,247 ($8,680) $698,878 $46,542,211 11.19% 30 0.92% $426,891 $125,983 $139,247 ($8,680) $683,441 $46,414,828 11.19% 31 0.95% $439,914 $125,983 $139,247 ($8,680) $696,464 $46,287,445 11.19% 31 0.95% $438,706 $125,983 $139,247 ($8,680) $695,256 $46,160,062 11.19% 30 0.92% $423,386 $125,983 $139,247 ($8,680) $679,936 $46,032,679 11.19% 31 0.95% $436,292 $125,983 $139,247 ($8,680) $692,842 $45,905,296 11.19% 30 0.92% $421,049 $125,983 $139,247 ($8,680) $677,599 $45,777,913 11.19% 31 0.95% $433,877 $125,983 $139,247 ($8,680) $690,427 ($508,246) $47,242,818 Calendar Year 2016 in 2018 ($9,834) ($4,492) ($23,718) ($5,926) ($43,970) ($153,782) ($197,752) $50,837 $1,233,663 $1,284,500 $1,335,178 $2,619,678 $2,159,470 (Line 61 * Line 62) Prior Mo. & Cur Mo. Line 72/ 2 Schedule 4 ($9,249) ($4,244) ($22,393) ($5,586) ($41,471) ($145,793) ($187,265) $47,894 $1,166,407 $1,214,301 $1,268,905 $2,483,206 $2,033,487 (Line 57 * Line 58) Line 12 Line 48 * -1 (Line 68 + Line 69) ((Line 63 + Line 59 + Line 65) * -1) (Line 70 + Line 71) $44,951 $1,099,152 $1,144,103 $1,202,632 $2,346,735 $35,312 $807,069 $842,380 $795,274 $1,637,654 ($7,029) ($2,980) ($15,894) ($4,087) ($29,990) ($95,863) ($125,853) $1,511,801 $5,200,752 $1,511,801 $1,670,960 ($104,162) $8,279,351 Columbia Gas of Massachusetts Witness: R. D. Gibbons D.P.U. 17-GSEP-05 Exh. CMA/RDG-2 Schedule 2 - 2015 in 2015 2018 Gas System Enhancement Program Calculation of Monthly Average Rate Base Revenue Requirement Line No. Description 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 Depreciable Plant Additions Monthly Plant Additions - Mains: Plant Additions - Mains - Coated Steel Plant Additions - Mains - Bare Steel Plant Additions - Mains - Plastic Plant Additions - Mains - Cast Iron Total monthly Plant Additions - Mains Total monthly Plant Additions - Services Total monthly Depreciable Additions Monthly Plant Additions Allocations-Mains: Plant Additions - Mains - Coated Steel Plant Additions - Mains - Bare Steel Plant Additions - Mains - Plastic Plant Additions - Mains - Cast Iron Monthly Plant Additions Allocations- Services Overheads Burdens Adjustment-Mains: Plant Additions - Mains - Coated Steel Plant Additions - Mains - Bare Steel Plant Additions - Mains - Plastic Plant Additions - Mains - Cast Iron Overheads Burdens Adjustment-Mains Total Overheads Burdens Adjustment-Services Overheads Burdens Adjustment-Total Reference GPA - 376.20 GPA - 373.30 GPA - 376.40 GPA - 376.80 (Sum of Lines 2 thru 5) GPA - 380.00 (Line 6 + Line 7) (Line 2 divided by Line 36, Column L) (Line 3 divided by Line 37, Column L) (Line 4 divided by Line 38, Column L) (Line 5 divided by Line 39, Column L) (Line 7 divided by Line 41, Column L) (Sch. 7, Col. 4, Line 1) (Sch. 7, Col. 4, Line 2) (Sch. 7, Col. 4, Line 3) (Sch. 7, Col. 4, Line 4) (Sum of Lines 18 thru 21) (Sch. 7, Col. 4, Line 6) January (a) $0 $0 $0 $0 $0 $267,833 $267,833 0.00% 0.00% 0.00% 0.00% 1.53% February (b) $0 $0 $0 $0 $0 $341,569 $341,569 0.00% 0.00% 0.00% 0.00% 1.95% March (c) April (d) 12,558 0 144,675 0 $157,233 $363,584 $520,817 0.08% 0.00% 0.93% 0.00% 2.08% 464,472 0 398,364 0 $862,836 $566,834 $1,429,670 2.88% 0.00% 2.56% 0.00% 3.24% 2015 Revenue Requirement 2015 Investments June July (f) (g) May (e) 158,916 0 497,014 0 $655,930 $1,399,446 $2,055,376 0.99% 0.00% 3.20% 0.00% 7.99% 210,620 0 2,095,569 0 $2,306,189 $2,147,548 $4,453,737 1.31% 0.00% 13.49% 0.00% 12.26% August (h) 1,013,166 0 991,187 0 $2,004,353 $1,698,857 $3,703,211 6.28% 0.00% 6.38% 0.00% 9.70% September (i) 1,471,765 0 845,162 0 $2,316,927 $1,691,598 $4,008,526 9.13% 0.00% 5.44% 0.00% 9.65% 24,493 0 3,028,686 0 $3,053,179 $2,338,664 $5,391,843 0.15% 0.00% 19.50% 0.00% 13.35% October (j) November (k) December (l) 2,853,743 0 768,198 0 $3,621,941 $1,850,365 $5,472,306 4,927,666 0 3,946,405 0 $8,874,071 $2,224,197 $11,098,267 4,988,575 0 2,819,133 0 $7,807,708 $2,630,950 $10,438,659 17.70% 0.00% 4.95% 0.00% 10.56% 30.56% 0.00% 25.40% 0.00% 12.69% (m) $16,125,974 $0 $15,534,393 $0 $31,660,367 $17,521,446 $49,181,813 30.94% 0.00% 18.15% 0.00% 15.02% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Cumulative Before Adjustment Plant Additions - Mains: Plant Additions - Mains - Coated Steel Plant Additions - Mains - Bare Steel Plant Additions - Mains - Plastic Plant Additions - Mains - Cast Iron Cumulative Before Adjustment Plant Additions - Mains Cumulative Before Adjustment Plant Additions - Services Cumulative Before Adjustment Depreciable Additions (Prior Mo. Line 27 + Current Mo. Line 2) (Prior Mo. Line 28 + Current Mo. Line 3) (Prior Mo. Line 29 + Current Mo. Line 4) (Prior Mo. Line 30 + Current Mo. Line 5) (Sum of Lines 27 thru 30) (Prior Mo. Line 32 + Current Mo. Line 7) (Line 31 + Line 32) $0 $0 $0 $0 $0 $267,833 $267,833 $0 $0 $0 $0 $0 $609,402 $609,402 $12,558 $0 $144,675 $0 $157,233 $972,987 $1,130,219 $477,030 $0 $543,038 $0 $1,020,069 $1,539,821 $2,559,889 $635,946 $0 $1,040,052 $0 $1,675,999 $2,939,267 $4,615,266 $846,566 $0 $3,135,622 $0 $3,982,187 $5,086,815 $9,069,002 $1,859,732 $0 $4,126,809 $0 $5,986,541 $6,785,672 $12,772,213 $3,331,497 $0 $4,971,971 $0 $8,303,468 $8,477,270 $16,780,738 $3,355,990 $0 $8,000,657 $0 $11,356,647 $10,815,935 $22,172,582 $6,209,733 $0 $8,768,855 $0 $14,978,588 $12,666,299 $27,644,887 $11,137,399 $0 $12,715,260 $0 $23,852,659 $14,890,496 $38,743,155 $16,125,974 $0 $15,534,393 $0 $31,660,367 $17,521,446 $49,181,813 Cumulative After Adjustment Plant Additions - Mains: Plant Additions - Mains - Coated Steel Plant Additions - Mains - Bare Steel Plant Additions - Mains - Plastic Plant Additions - Mains - Cast Iron Cumulative After Adjustment Plant Additions - Mains Cumulative After Adjustment Plant Additions - Services Cumulative After Adjustment Depreciable Additions (Prior Mo. Line 36 + Current Mo. Line 2 and 18) (Prior Mo. Line 37 + Current Mo. Line 3 and 19) (Prior Mo. Line 38 + Current Mo. Line 4 and 20) (Prior Mo. Line 39 + Current Mo. Line 5 and 21) (Sum of Lines 36 thru 39) (Prior Mo. Line 41 + Current Mo. Line 7 and 23) (Line 40 + Line 41) $0 $0 $0 $0 $0 $267,833 $267,833 $0 $0 $0 $0 $0 $609,402 $609,402 $12,558 $0 $144,675 $0 $157,233 $972,987 $1,130,219 $477,030 $0 $543,038 $0 $1,020,069 $1,539,821 $2,559,889 $635,946 $0 $1,040,052 $0 $1,675,999 $2,939,267 $4,615,266 $846,566 $0 $3,135,622 $0 $3,982,187 $5,086,815 $9,069,002 $1,859,732 $0 $4,126,809 $0 $5,986,541 $6,785,672 $12,772,213 $3,331,497 $0 $4,971,971 $0 $8,303,468 $8,477,270 $16,780,738 $3,355,990 $0 $8,000,657 $0 $11,356,647 $10,815,935 $22,172,582 $6,209,733 $0 $8,768,855 $0 $14,978,588 $12,666,299 $27,644,887 $11,137,399 $0 $12,715,260 $0 $23,852,659 $14,890,496 $38,743,155 $16,125,974 $0 $15,534,393 $0 $31,660,367 $17,521,446 $49,181,813 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $20 $20 $0 $0 $0 $0 $0 $0 $0 $0 $0 $15,508 $0 $15,508 $0 $15,508 $0 $0 $19,303 $0 $19,303 $0 $19,303 $134,022 $0 $86,264 $30,244 $250,530 $0 $250,530 $52,361 $16,398 $3,753 $16,073 $88,585 $0 $88,585 $306,401 $61,106 $195,844 13,124.52 $576,475 $0 $576,475 Cost of Removal: Plant Additions - Mains - Coated Steel Plant Additions - Mains - Bare Steel Plant Additions - Mains - Plastic Plant Additions - Mains - Cast Iron Total monthly Cost of Removal - Mains Total monthly Cost of Removal - Services Total monthly Cost of Removal GPA - 376.20 GPA - 373.30 GPA - 376.40 GPA - 376.80 (Line 49 + Line 50) Cumulative Cost of Removal (Prior Mo. Line 53 + Current Mo. Line 51) Total GSEP Plant Investment (Line 42 + Line 53) (Sum of Lines 45 thru 48) GPA - 380.00 $24,577 $0 ($2,232) $21,133 $43,479 $0 $43,479 $0 $0 $0 $0 $20 $20 $15,527 $34,831 $78,309 $328,840 $417,425 $993,900 $267,833 $609,402 $1,130,219 $2,559,889 $4,615,285 $9,069,022 $12,787,740 $16,815,569 $22,250,891 $27,973,727 $39,160,579 $50,175,713 $517,361 $77,504 $318,440 $80,575 $993,880 $20 $993,900 Columbia Gas of Massachusetts Witness: R. D. Gibbons D.P.U. 17-GSEP-05 Exh. CMA/RDG-2 Schedule 2 - 2015 in 2015 2018 Gas System Enhancement Program Calculation of Monthly Average Rate Base Revenue Requirement Line No. Description 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 GP 121 ARD 122 123 ADIT 124 125 126 127 RB 128 PTRR 129 130 131 132 DEPR 133 PTMS 134 OFF 135 GSEP_RECc Reference January (a) February (b) March (c) April (d) May (e) 2015 Investments June July (f) (g) 2015 Revenue Requirement August (h) September (i) October (j) November (k) December (l) (m) Depreciable Retirements Plant Retirements - Mains: Plant Additions - Mains - Coated Steel Plant Additions - Mains - Bare Steel Plant Additions - Mains - Plastic Plant Additions - Mains - Cast Iron Total monthly Plant Retirements - Mains Total monthly Plant Retirements - Services Total Depreciable Retirements Cumulative Plant Retirements - Mains: Plant Additions - Mains - Coated Steel Plant Additions - Mains - Bare Steel Plant Additions - Mains - Plastic Plant Additions - Mains - Cast Iron Total Cumulative Plant Retirements - Mains Total Cumulative Plant Retirements - Services Cumulative Net Depreciable Retirements GPA - 376.20 GPA - 373.30 GPA - 376.40 GPA - 376.80 (Line 63 + Line 64) $0 $0 $0 $0 $0 ($18,722) ($18,722) $0 $0 $0 $0 $0 ($10,975) ($10,975) $0 ($23) $0 $0 ($23) ($14,528) ($14,551) ($1,655) ($148) ($6,016) $0 ($7,818) ($64,645) ($72,463) ($329) ($1,021) ($14,397) ($279) ($16,026) ($118,012) ($134,038) ($3,373) ($295) ($2,215) ($552) ($6,434) ($200,296) ($206,730) ($11,463) ($1,138) ($34,127) ($5,712) ($52,441) ($205,584) ($258,025) ($11,963) ($3,291) ($3,891) ($35) ($19,180) ($202,819) ($221,999) ($5,844) ($2,813) ($34,524) ($1,552) ($44,733) ($266,825) ($311,557) ($27,438) ($4,527) ($170,805) ($3,335) ($206,105) ($238,676) ($444,781) ($97,557) ($11,900) ($303,819) ($2,988) ($416,264) ($247,612) ($663,876) ($105,347) ($20,115) ($360,876) ($31,412) ($517,750) ($238,355) ($756,104) (Prior Mo. Line 68 + Current Mo. Line 59) (Prior Mo. Line 69 + Current Mo. Line 60) (Prior Mo. Line 70 + Current Mo. Line 61) (Prior Mo. Line 71 + Current Mo. Line 62) (Sum of Lines 68 thru 71) (Prior Mo. Line 73 + Current Mo. Line 64) (Line 72 + Line 73) $0 $0 $0 $0 $0 ($18,722) ($18,722) $0 $0 $0 $0 $0 ($29,697) ($29,697) $0 ($23) $0 $0 ($23) ($44,225) ($44,248) ($1,655) ($171) ($6,016) $0 ($7,841) ($108,870) ($116,711) ($1,984) ($1,192) ($20,413) ($279) ($23,867) ($226,882) ($250,749) ($5,356) ($1,487) ($22,628) ($830) ($30,301) ($427,177) ($457,479) ($16,820) ($2,626) ($56,755) ($6,542) ($82,743) ($632,761) ($715,504) ($28,783) ($5,916) ($60,646) ($6,578) ($101,923) ($835,580) ($937,503) ($34,627) ($8,729) ($95,170) ($8,130) ($146,656) ($1,102,405) ($1,249,060) ($62,065) ($13,256) ($265,975) ($11,465) ($352,761) ($1,341,081) ($1,693,841) ($159,622) ($25,156) ($569,794) ($14,453) ($769,025) ($1,588,692) ($2,357,717) ($264,969) ($45,271) ($930,669) ($45,865) ($1,286,774) ($1,827,047) ($3,113,822) 2.61% 6.00% 2.02% 2.96% 3.52% 2.61% 6.00% 2.02% 2.96% 3.52% 2.61% 6.00% 2.02% 2.96% 3.52% 2.61% 6.00% 2.02% 2.96% 3.52% 2.61% 6.00% 2.02% 2.96% 3.52% 2.61% 6.00% 2.02% 2.96% 3.52% 2.61% 6.00% 2.02% 2.96% 3.52% 2.61% 6.00% 2.02% 2.96% 3.52% 2.61% 6.00% 2.02% 2.96% 3.52% 2.61% 6.00% 2.02% 2.96% 3.52% 2.61% 6.00% 2.02% 2.96% 3.52% 2.61% 6.00% 2.02% 2.96% 3.52% (Sum of Lines 59 thru 62) GPA - 380.00 ($264,969) ($45,271) ($930,669) ($45,865) ($1,286,774) ($1,827,047) ($3,113,822) Book Depreciation Mains - Book Depreciation Plant Additions - Mains - Coated Steel Plant Additions - Mains - Bare Steel Plant Additions - Mains - Plastic Plant Additions - Mains - Cast Iron Services - Book Depreciation As Approved at DPU 12-25 As Approved at DPU 12-25 As Approved at DPU 12-25 As Approved at DPU 12-25 As Approved at DPU 12-25 Book Depreciation relating to Additions: Cumulative Book Deprec - Mains - Coated Steel Cumulative Book Deprec - Mains - Plastic Total Cumulative Book Deprec - Mains Additions Cumulative Book Deprec - Services Additions Total Cumulative Book Depreciation Additions (Average of Current and Prior Mo. Line 36 * Line 78/12) (Average of Current and Prior Mo. Line 38 * Line 80/12) (Line 85 + Line 86) (Average of Current and Prior Mo. Line 41 * Line 82/12) (Line 87 + Line 88) $0 $0 $0 $393 $393 Book Depreciation Relating to Retirements: Cumulative Book Deprec - Mains - Coated Steel Cumulative Book Deprec - Mains - Bare Steel Cumulative Book Deprec - Mains - Plastic Cumulative Book Deprec - Mains - Cast Iron Total Cumulative Book Deprec - Mains Retirements Cumulative Book Deprec - Services Retirements Total Cumulative Book Depreciation Retirements (Average of Current and Prior Mo. Line 68 * Line 78/12) (Average of Current and Prior Mo. Line 69 * Line 79/12) (Average of Current and Prior Mo. Line 70 * Line 80/12) (Average of Current and Prior Mo. Line 71 * Line 81/12) (Sum of Lines 92 thru 95) (Average of Current and Prior Mo. Line 73 * Line 82/12) $0 $0 $0 $0 $0 ($27) ($27) Cumulative Book Depreciation Line 89 + Line 98 $365 $1,581 $3,929 $8,494 Sch 3 2015 in 2015, Line 39 (Prior Mo. Line 104 + Current Mo. Line 103) $181,748 $181,748 $232,085 $413,833 $354,170 $768,003 State Tax Depreciation and Repairs Deduction Cumulative State Tax Depreciation Sch 3 2015 in 2015, Line 72 (Prior Mo. Line 107 + Current Mo. Line 106) $95,663 $95,663 $122,602 $218,264 Federal Book/Tax Timing Difference Federal Tax Rate Deferred Federal Tax Reserve (Line 109 * Line 110) $181,383 35.0% $63,484 State Book/Tax Timing Difference State Tax Rate Deferred State Tax Reserve (Line 113 * Line 114) Net Operating Loss (NOL) Carryforward Offset Sch 3-2015 in 2015, Line 83 * -1 Deferred Tax Calculation Federal Tax Depreciation and Repairs Deduction Cumulative Federal Tax Depreciation Rate Base Calculation: Total Cumulative GSEP Plant Investment Accumulated Reserve for Depreciation Cumulative Net Plant Deferred Tax Reserve Cumulative Month End Rate Base Revenue Requirement Calculation: Average Rate Base Pre-Tax ROR Number of Days in the Month Monthly Applicable Pre-Tax ROR Return and Taxes Monthly Book Depreciation Property Taxes O&M Offset Monthly Revenue Requirement before Adjustments GPA - 376.20 GPA - 373.30 GPA - 376.40 GPA - 376.80 GPA - 380.00 $3,369 $5,548 $8,916 $26,027 $34,943 $6,312 $11,660 $17,972 $43,440 $61,411 $11,957 $19,318 $31,275 $65,825 $97,101 ($14) ($11) ($64) ($2) ($90) ($1,883) ($1,973) ($38) ($21) ($130) ($11) ($200) ($3,438) ($3,638) ($87) ($42) ($229) ($27) ($386) ($5,591) ($5,977) $17,083 $32,970 $57,774 $91,124 $971,911 $1,739,914 $1,399,002 $3,138,916 $3,031,756 $6,170,672 $2,546,185 $8,716,857 $187,523 $405,787 $514,151 $919,939 $742,609 $1,662,548 $1,609,775 $3,272,322 $412,252 35.0% $144,288 $764,074 35.0% $267,426 $1,731,420 35.0% $605,997 $3,121,833 35.0% $1,092,642 $95,297 5.2% $4,955 $216,683 5.2% $11,268 $401,859 5.2% $20,897 $911,445 5.2% $47,395 ($3,189) ($7,256) ($13,457) Line 55 Line 100 * -1 (Line 120 + Line 121) ((Line 115 + Line 111 + Line 117) * -1) (Line 122 + Line 123) $267,833 ($365) $267,468 ($65,250) $202,217 $609,402 ($1,581) $607,821 ($148,300) $459,521 Mo. 1 = Line 124/ 2, then (Prior Mo. & Cur Mo. Line 124/ 2) Schedule 4 $101,109 11.28% 31 0.96% $969 $365 $0 ($0) $1,334 $330,869 11.28% 28 0.87% $2,863 $1,216 $0 ($1) $4,077 (Line 104 - Line 100) (Line 107 - Line 100) Line 128 * (Line 129/ 365) Line 127 * Line 130 Line 100 - Prior Mo. Line 100 Schedule 5 As approved per D.P.U. 16-GREC-05 Line 131 thru 134 Calendar Year 2015 in 2015 $0 $0 $0 $1,679 $1,679 $0 $0 $0 $0 $0 ($98) ($98) $14 $122 $135 $4,000 $4,136 $29,633 $44,351 $73,984 $128,563 $202,546 $48,498 $62,434 $110,931 $168,979 $279,910 $78,147 $86,210 $164,357 $216,517 $380,874 ($262) ($134) ($664) ($69) ($1,129) ($12,017) ($13,146) ($503) ($230) ($1,368) ($101) ($2,201) ($16,314) ($18,516) ($964) ($406) ($2,631) ($176) ($4,177) ($21,324) ($25,501) $134,514 $189,400 $261,395 $355,373 $2,766,548 $11,483,405 $3,744,330 $15,227,735 $4,027,956 $19,255,691 $7,745,140 $27,000,831 $7,912,304 $34,913,135 $1,373,651 $4,645,973 $1,505,268 $6,151,241 $2,053,337 $8,204,579 $2,333,076 $10,537,654 $4,303,428 $14,841,082 $4,809,475 $19,650,557 $6,137,702 35.0% $2,148,196 $8,659,083 35.0% $3,030,679 $11,392,281 35.0% $3,987,299 $15,093,220 35.0% $5,282,627 $19,066,291 35.0% $6,673,202 $26,739,436 35.0% $9,358,803 $34,557,762 35.0% $12,095,217 $1,645,464 5.2% $85,564 $3,239,352 5.2% $168,446 $4,588,200 5.2% $238,586 $6,060,118 5.2% $315,126 $8,070,064 5.2% $419,643 $10,348,254 5.2% $538,109 $14,579,687 5.2% $758,144 $19,295,184 5.2% $1,003,350 ($30,479) ($54,951) ($107,978) ($152,070) ($199,797) ($263,994) ($329,149) ($461,288) ($585,574) $1,130,219 ($3,929) $1,126,290 ($274,866) $851,425 $2,559,889 ($8,494) $2,551,396 ($622,913) $1,928,482 $4,615,285 ($17,083) $4,598,202 ($1,123,255) $3,474,947 $9,069,022 ($32,970) $9,036,052 ($2,208,664) $6,827,388 $12,787,740 ($57,774) $12,729,966 ($3,117,195) $9,612,771 $16,815,569 ($91,124) $16,724,445 ($4,102,628) $12,621,818 $22,250,891 ($134,514) $22,116,377 ($5,438,277) $16,678,100 $27,973,727 ($189,400) $27,784,327 ($6,882,162) $20,902,165 $39,160,579 ($261,395) $38,899,185 ($9,655,658) $29,243,526 $50,175,713 ($355,373) $49,820,340 ($12,512,992) $37,307,348 $655,473 11.28% 31 0.96% $6,280 $2,348 $0 ($18) $8,610 $1,389,953 11.28% 30 0.93% $12,887 $4,565 $0 ($82) $17,369 $2,701,715 11.28% 31 0.96% $25,883 $8,590 $0 ($187) $34,285 $5,151,168 11.28% 30 0.93% $47,758 $15,887 $0 ($569) $63,075 $8,220,080 11.28% 31 0.96% $78,751 $24,804 $0 ($1,287) $102,267 $11,117,294 11.28% 31 0.96% $106,507 $33,350 $0 ($1,821) $138,036 $14,649,959 11.28% 30 0.93% $135,823 $43,391 $0 ($2,515) $176,699 $18,790,132 11.28% 31 0.96% $180,015 $54,886 $0 ($3,641) $231,259 $25,072,846 11.19% 30 0.92% $230,601 $71,995 $0 ($5,117) $297,480 $33,275,437 11.19% 31 0.95% $316,244 $93,978 $0 ($7,163) $403,059 $0 ($0) $0 $0 ($0) ($207) ($207) $546 $701 $1,247 $7,686 $8,932 ($2) ($1) ($5) $0 ($7) ($431) ($439) $1,756 $2,033 $3,789 $14,255 $18,045 ($6) ($4) ($27) ($0) ($37) ($924) ($961) $19,230 $30,237 $49,467 $94,122 $143,589 ($156) ($79) ($360) ($45) ($641) ($8,434) ($9,074) $1,144,580 $355,373 $0 ($22,403) $1,477,549 Columbia Gas of Massachusetts Witness: R. D. Gibbons D.P.U. 17-GSEP-05 Exh. CMA/RDG-2 Schedule 2 - 2015 in 2016 2018 Gas System Enhancement Program Calculation of Monthly Average Rate Base Revenue Requirement Line No. Description 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 Depreciable Plant Additions Cumulative Plant Additions - Mains: Plant Additions - Mains - Coated Steel Plant Additions - Mains - Bare Steel Plant Additions - Mains - Plastic Plant Additions - Mains - Cast Iron Cumulative Plant Additions - Mains Cumulative Plant Additions - Services Cumulative Depreciable Additions Reference (Sch. 2-2015 in 2015, Col. (l), Line 36) (Sch. 2-2015 in 2015, Col. (l), Line 37) (Sch. 2-2015 in 2015, Col. (l), Line 38) (Sch. 2-2015 in 2015, Col. (l), Line 39) (Sum of Lines 2 thru 5) (Sch. 2-2015 in 2015, Col. (l), Line 41) (Line 6 + Line 7) Cumulative Cost of Removal (Sch. 3-2015, Col. (L), Line 53) Total GSEP Plant Investment (Line 8 + Line 10) Depreciable Retirements Cumulative Plant Retirements - Mains: Plant Additions - Mains - Coated Steel Plant Additions - Mains - Bare Steel Plant Additions - Mains - Plastic Plant Additions - Mains - Cast Iron Total Cumulative Plant Retirements - Mains Total Cumulative Plant Retirements - Services Cumulative Net Depreciable Retirements GPA - 376.20 GPA - 373.30 GPA - 376.40 GPA - 376.80 GPA - 380.00 2015 December (a) $16,125,974 $0 $15,534,393 $0 $31,660,367 $17,521,446 $49,181,813 $993,900 (Sch. 2-2015 in 2015, Col. (l), Line 68) (Sch. 2-2015 in 2015, Col. (l), Line 69) (Sch. 2-2015 in 2015, Col. (l), Line 70) (Sch. 2-2015 in 2015, Col. (l), Line 71) (Sum of Lines 16 thru 19) (Sch. 2-2015 in 2015, Col. (l), Line 72) (Line 20 + Line 21) ($264,969) ($45,271) ($930,669) ($45,865) ($1,286,774) ($1,827,047) ($3,113,822) January (b) $16,125,974 $0 $15,534,393 $0 $31,660,367 $17,521,446 $49,181,813 February (c) $16,125,974 $0 $15,534,393 $0 $31,660,367 $17,521,446 $49,181,813 March (d) $16,125,974 $0 $15,534,393 $0 $31,660,367 $17,521,446 $49,181,813 April (e) $16,125,974 $0 $15,534,393 $0 $31,660,367 $17,521,446 $49,181,813 May (f) 2015 Investments in Calendar Year 2016 June July August (g) (h) (i) $16,125,974 $0 $15,534,393 $0 $31,660,367 $17,521,446 $49,181,813 $16,125,974 $0 $15,534,393 $0 $31,660,367 $17,521,446 $49,181,813 $16,125,974 $0 $15,534,393 $0 $31,660,367 $17,521,446 $49,181,813 $16,125,974 $0 $15,534,393 $0 $31,660,367 $17,521,446 $49,181,813 2016 Revenue Requirement September (j) $16,125,974 $0 $15,534,393 $0 $31,660,367 $17,521,446 $49,181,813 October (k) $16,125,974 $0 $15,534,393 $0 $31,660,367 $17,521,446 $49,181,813 November (l) December (m) $16,125,974 $0 $15,534,393 $0 $31,660,367 $17,521,446 $49,181,813 $16,125,974 $0 $15,534,393 $0 $31,660,367 $17,521,446 $49,181,813 $993,900 $993,900 $993,900 $993,900 $993,900 $993,900 $993,900 $993,900 $993,900 $993,900 $993,900 $993,900 $50,175,713 $50,175,713 $50,175,713 $50,175,713 $50,175,713 $50,175,713 $50,175,713 $50,175,713 $50,175,713 $50,175,713 $50,175,713 $50,175,713 ($264,969) ($45,271) ($930,669) ($45,865) ($1,286,774) ($1,827,047) ($3,113,822) ($264,969) ($45,271) ($930,669) ($45,865) ($1,286,774) ($1,827,047) ($3,113,822) ($264,969) ($45,271) ($930,669) ($45,865) ($1,286,774) ($1,827,047) ($3,113,822) ($264,969) ($45,271) ($930,669) ($45,865) ($1,286,774) ($1,827,047) ($3,113,822) ($264,969) ($45,271) ($930,669) ($45,865) ($1,286,774) ($1,827,047) ($3,113,822) ($264,969) ($45,271) ($930,669) ($45,865) ($1,286,774) ($1,827,047) ($3,113,822) ($264,969) ($45,271) ($930,669) ($45,865) ($1,286,774) ($1,827,047) ($3,113,822) ($264,969) ($45,271) ($930,669) ($45,865) ($1,286,774) ($1,827,047) ($3,113,822) ($264,969) ($45,271) ($930,669) ($45,865) ($1,286,774) ($1,827,047) ($3,113,822) ($264,969) ($45,271) ($930,669) ($45,865) ($1,286,774) ($1,827,047) ($3,113,822) ($264,969) ($45,271) ($930,669) ($45,865) ($1,286,774) ($1,827,047) ($3,113,822) ($264,969) ($45,271) ($930,669) ($45,865) ($1,286,774) ($1,827,047) ($3,113,822) 2.61% 6.00% 2.02% 2.96% 3.52% 2.61% 6.00% 2.02% 2.96% 3.52% 2.61% 6.00% 2.02% 2.96% 3.52% 2.61% 6.00% 2.02% 2.96% 3.52% 2.61% 6.00% 2.02% 2.96% 3.52% 2.61% 6.00% 2.02% 2.96% 3.52% 2.61% 6.00% 2.02% 2.96% 3.52% 2.61% 6.00% 2.02% 2.96% 3.52% 2.61% 6.00% 2.02% 2.96% 3.52% 2.61% 6.00% 2.02% 2.96% 3.52% 2.61% 6.00% 2.02% 2.96% 3.52% 2.61% 6.00% 2.02% 2.96% 3.52% (n) Book Depreciation Mains - Book Depreciation Plant Additions - Mains - Coated Steel Plant Additions - Mains - Bare Steel Plant Additions - Mains - Plastic Plant Additions - Mains - Cast Iron Services - Book Depreciation As Approved at DPU 12-25 As Approved at DPU 12-25 As Approved at DPU 12-25 As Approved at DPU 12-25 As Approved at DPU 12-25 Book Depreciation relating to Additions: Cumulative Book Deprec - Mains - Coated Steel Cumulative Book Deprec - Mains - Plastic Total Cumulative Book Deprec - Mains Additions Cumulative Book Deprec - Services Additions Total Cumulative Book Depreciation Additions (Average of Current and Prior Mo. Line 2 * Line 26/12) (Average of Current and Prior Mo. Line 4 * Line 28/12) (Line 33 + Line 34) (Average of Current and Prior Mo. Line 7 * Line 30/12) (Line 35 + Line 36) $78,147 $86,210 $164,357 $216,517 $380,874 $113,221 $112,360 $225,581 $267,913 $493,494 $148,295 $138,510 $286,804 $319,309 $606,113 $183,369 $164,659 $348,028 $370,705 $718,733 $218,443 $190,809 $409,251 $422,102 $831,353 $253,516 $216,958 $470,475 $473,498 $943,973 Book Depreciation Relating to Retirements: Cumulative Book Deprec - Mains - Coated Steel Cumulative Book Deprec - Mains - Bare Steel Cumulative Book Deprec - Mains - Plastic Cumulative Book Deprec - Mains - Cast Iron Total Cumulative Book Deprec - Mains Retirements Cumulative Book Deprec - Services Retirements Total Cumulative Book Depreciation Retirements (Average of Current and Prior Mo. Line 16 * Line 26/12) (Average of Current and Prior Mo. Line 17 * Line 27/12) (Average of Current and Prior Mo. Line 18 * Line 28/12) (Average of Current and Prior Mo. Line 19 * Line 29/12) (Sum of Lines 40 thru 43) (Average of Current and Prior Mo. Line 21 * Line 30/12) ($964) ($406) ($2,631) ($176) ($4,177) ($21,324) ($25,501) ($1,541) ($632) ($4,197) ($289) ($6,659) ($26,684) ($33,343) ($2,117) ($859) ($5,764) ($402) ($9,141) ($32,043) ($41,184) ($2,693) ($1,085) ($7,330) ($515) ($11,624) ($37,402) ($49,026) ($3,270) ($1,311) ($8,897) ($628) ($14,106) ($42,762) ($56,868) ($3,846) ($1,538) ($10,464) ($741) ($16,589) ($48,121) ($64,710) ($4,422) ($1,764) ($12,030) ($854) ($19,071) ($53,480) ($72,551) Cumulative Book Depreciation Line 37 + Line 46 $355,373 $460,151 $564,929 $669,707 $774,485 $879,263 $984,041 $1,088,819 $1,193,597 $1,298,375 $1,403,153 $1,507,931 $1,612,709 $34,913,135 $95,394 $35,008,529 $95,394 $35,103,923 $95,394 $35,199,318 $95,394 $35,294,712 $95,394 $35,390,107 $95,394 $35,485,501 $95,394 $35,580,896 $95,394 $35,676,290 $95,394 $35,771,684 $95,394 $35,867,079 $95,394 $35,962,473 $95,394 $36,057,868 $19,650,557 $190,789 $19,841,346 $190,789 $20,032,135 $190,789 $20,222,924 $190,789 $20,413,713 $190,789 $20,604,502 $190,789 $20,795,291 $190,789 $20,986,080 $190,789 $21,176,869 $190,789 $21,367,658 $190,789 $21,558,447 $190,789 $21,749,236 $190,789 $21,940,025 $34,548,378 35.0% $12,091,932 $34,538,994 35.0% $12,088,648 $34,529,611 35.0% $12,085,364 $34,520,227 35.0% $12,082,080 $34,510,844 35.0% $12,078,795 $34,501,460 35.0% $12,075,511 $34,492,076 35.0% $12,072,227 $34,482,693 35.0% $12,068,942 $34,473,309 35.0% $12,065,658 $34,463,926 35.0% $12,062,374 $34,454,542 35.0% $12,059,090 $34,445,158 35.0% $12,055,805 $19,381,195 5.2% $1,007,822 $19,467,206 5.2% $1,012,295 $19,553,217 5.2% $1,016,767 $19,639,228 5.2% $1,021,240 $19,725,239 5.2% $1,025,712 $19,811,250 5.2% $1,030,185 $19,897,261 5.2% $1,034,658 $19,983,272 5.2% $1,039,130 $20,069,283 5.2% $1,043,603 $20,155,294 5.2% $1,048,075 $20,241,305 5.2% $1,052,548 $20,327,316 5.2% $1,057,020 ($585,574) ($585,574) ($585,574) ($585,574) ($585,574) ($585,574) ($585,574) ($585,574) ($585,574) ($585,574) ($585,574) ($585,574) $50,175,713 ($460,151) $49,715,562 ($12,514,180) $37,201,382 $50,175,713 ($564,929) $49,610,784 ($12,515,369) $37,095,415 $50,175,713 ($669,707) $49,506,006 ($12,516,557) $36,989,449 $50,175,713 ($774,485) $49,401,228 ($12,517,745) $36,883,483 $50,175,713 ($879,263) $49,296,450 ($12,518,934) $36,777,516 $50,175,713 ($984,041) $49,191,672 ($12,520,122) $36,671,550 $50,175,713 ($1,088,819) $49,086,894 ($12,521,310) $36,565,584 $50,175,713 ($1,193,597) $48,982,116 ($12,522,499) $36,459,617 $50,175,713 ($1,298,375) $48,877,338 ($12,523,687) $36,353,651 $50,175,713 ($1,403,153) $48,772,560 ($12,524,875) $36,247,685 $50,175,713 ($1,507,931) $48,667,782 ($12,526,063) $36,141,718 $50,175,713 ($1,612,709) $48,563,004 ($12,527,252) $36,035,752 $37,254,365 11.19% 31 0.95% $353,092 $104,778 $0 ($8,306) $449,564 $37,148,399 11.19% 29 0.89% $329,372 $104,778 $0 ($8,306) $425,844 $37,042,432 11.19% 31 0.95% $351,083 $104,778 $0 ($8,306) $447,555 $36,936,466 11.19% 30 0.92% $338,786 $104,778 $0 ($8,306) $435,258 $36,830,500 11.19% 31 0.95% $349,075 $104,778 $0 ($8,306) $445,547 $36,724,533 11.19% 30 0.92% $336,842 $104,778 $0 ($8,306) $433,314 $36,618,567 11.19% 31 0.95% $347,066 $104,778 $108,015 ($8,306) $551,553 $36,512,600 11.19% 31 0.95% $346,062 $104,778 $108,015 ($8,306) $550,548 $36,406,634 11.19% 30 0.92% $333,926 $104,778 $108,015 ($8,306) $538,413 $36,300,668 11.19% 31 0.95% $344,053 $104,778 $108,015 ($8,306) $548,540 $36,194,701 11.19% 30 0.92% $331,983 $104,778 $108,015 ($8,306) $536,469 $36,088,735 11.19% 31 0.95% $342,044 $104,778 $108,015 ($8,306) $546,531 Deferred Tax Calculation Federal Tax Depreciation and Repairs Deduction Cumulative Federal Tax Depreciation GP ARD ADIT Sch 3 2015 in 2016, Line 7 (Prior Mo. Line 52 + Current Mo. Line 51) State Tax Depreciation and Repairs Deduction Cumulative State Tax Depreciation Sch 3 2015 in 2016, Line 15 (Prior Mo. Line 55 + Current Mo. Line 54) Federal Book/Tax Timing Difference Federal Tax Rate Deferred Federal Tax Reserve (Line 52 - Line 48) State Book/Tax Timing Difference State Tax Rate Deferred State Tax Reserve (Line 55 - Line 48) Net Operating Loss (NOL) Carryforward Offset Sch 2-2015 in 2015, Col. (l), Line 117 Rate Base Calculation: Total Cumulative GSEP Plant Investment Accumulated Reserve for Depreciation Cumulative Net Plant Deferred Tax Reserve Cumulative Month End Rate Base Revenue Requirement Calculation: RB Average Rate Base PTRR Pre-Tax ROR Number of Days in the Month Monthly Applicable Pre-Tax ROR Return and Taxes DEPR Monthly Book Depreciation PTMS Property Taxes OFF O&M Offset GSEP_RECc Monthly Revenue Requirement before Adjustments GPA - 376.20 GPA - 373.30 GPA - 376.40 GPA - 376.80 GPA - 380.00 (Line 57 * Line 58) (Line 61 * Line 62) ($585,574) Line 12 Line 48 * -1 (Line 68 + Line 69) ((Line 63 + Line 59 + Line 65) * -1) (Line 70 + Line 71) $37,307,348 Prior Mo. & Cur Mo. Line 72/ 2 Schedule 4 Line 76 * (Line 77/ 366) Line 75 * Line 78 Line 48 - Prior Mo. Line 48 Schedule 5 Schedule 6, Line 8, Column 2 / 12 Line 79 thru 82 Calendar Year 2015 in 2016 $288,590 $243,108 $531,698 $524,894 $1,056,592 $323,664 $269,257 $592,922 $576,290 $1,169,212 ($4,999) ($1,990) ($13,597) ($968) ($21,554) ($58,840) ($80,393) $358,738 $295,407 $654,145 $627,687 $1,281,832 ($5,575) ($2,217) ($15,164) ($1,081) ($24,036) ($64,199) ($88,235) $393,812 $321,557 $715,369 $679,083 $1,394,452 ($6,151) ($2,443) ($16,730) ($1,194) ($26,518) ($69,558) ($96,077) $428,886 $347,706 $776,593 $730,479 $1,507,072 ($6,727) ($2,669) ($18,297) ($1,307) ($29,001) ($74,918) ($103,918) $463,960 $373,856 $837,816 $781,875 $1,619,691 ($7,304) ($2,896) ($19,863) ($1,420) ($31,483) ($80,277) ($111,760) $499,034 $400,005 $899,040 $833,272 $1,732,311 ($7,880) ($3,122) ($21,430) ($1,533) ($33,966) ($85,636) ($119,602) $420,888 $313,795 $734,683 $616,755 $1,351,438 ($6,916) ($2,716) ($18,800) ($1,358) ($29,789) ($64,312) ($94,101) $1,257,336 $4,103,384 $1,257,336 $648,088 ($99,672) $5,909,137 Columbia Gas of Massachusetts Witness: R. D. Gibbons D.P.U. 17-GSEP-05 Exh. CMA/RDG-2 Schedule 2 - 2015 in 2017 2018 Gas System Enhancement Program Calculation of Monthly Average Rate Base Revenue Requirement Line No. Description 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 Depreciable Plant Additions Cumulative Plant Additions - Mains: Plant Additions - Mains - Coated Steel Plant Additions - Mains - Bare Steel Plant Additions - Mains - Plastic Plant Additions - Mains - Cast Iron Cumulative Plant Additions - Mains Cumulative Plant Additions - Services Cumulative Depreciable Additions Reference (Sch. 2-2015 in 2015, Col. (l), Line 36) (Sch. 2-2015 in 2015, Col. (l), Line 37) (Sch. 2-2015 in 2015, Col. (l), Line 38) (Sch. 2-2015 in 2015, Col. (l), Line 39) (Sum of Lines 2 thru 5) (Sch. 2-2015 in 2015, Col. (l), Line 41) (Line 6 + Line 7) Cumulative Cost of Removal (Sch. 3-2015, Col. (L), Line 53) Total GSEP Plant Investment (Line 8 + Line 10) Depreciable Retirements Cumulative Plant Retirements - Mains: Plant Additions - Mains - Coated Steel Plant Additions - Mains - Bare Steel Plant Additions - Mains - Plastic Plant Additions - Mains - Cast Iron Total Cumulative Plant Retirements - Mains Total Cumulative Plant Retirements - Services Cumulative Net Depreciable Retirements GPA - 376.20 GPA - 373.30 GPA - 376.40 GPA - 376.80 GPA - 380.00 2015 December (a) $16,125,974 $0 $15,534,393 $0 $31,660,367 $17,521,446 $49,181,813 $993,900 (Sch. 2-2015 in 2015, Col. (l), Line 68) (Sch. 2-2015 in 2015, Col. (l), Line 69) (Sch. 2-2015 in 2015, Col. (l), Line 70) (Sch. 2-2015 in 2015, Col. (l), Line 71) (Sum of Lines 16 thru 19) (Sch. 2-2015 in 2015, Col. (l), Line 72) (Line 20 + Line 21) ($264,969) ($45,271) ($930,669) ($45,865) ($1,286,774) ($1,827,047) ($3,113,822) January (b) $16,125,974 $0 $15,534,393 $0 $31,660,367 $17,521,446 $49,181,813 February (c) $16,125,974 $0 $15,534,393 $0 $31,660,367 $17,521,446 $49,181,813 March (d) $16,125,974 $0 $15,534,393 $0 $31,660,367 $17,521,446 $49,181,813 April (e) $16,125,974 $0 $15,534,393 $0 $31,660,367 $17,521,446 $49,181,813 May (f) 2015 Investments in Calendar Year 2017 June July August (g) (h) (i) $16,125,974 $0 $15,534,393 $0 $31,660,367 $17,521,446 $49,181,813 $16,125,974 $0 $15,534,393 $0 $31,660,367 $17,521,446 $49,181,813 $16,125,974 $0 $15,534,393 $0 $31,660,367 $17,521,446 $49,181,813 $16,125,974 $0 $15,534,393 $0 $31,660,367 $17,521,446 $49,181,813 2017 Revenue Requirement September (j) $16,125,974 $0 $15,534,393 $0 $31,660,367 $17,521,446 $49,181,813 October (k) $16,125,974 $0 $15,534,393 $0 $31,660,367 $17,521,446 $49,181,813 November (l) December (m) $16,125,974 $0 $15,534,393 $0 $31,660,367 $17,521,446 $49,181,813 $16,125,974 $0 $15,534,393 $0 $31,660,367 $17,521,446 $49,181,813 $993,900 $993,900 $993,900 $993,900 $993,900 $993,900 $993,900 $993,900 $993,900 $993,900 $993,900 $993,900 $50,175,713 $50,175,713 $50,175,713 $50,175,713 $50,175,713 $50,175,713 $50,175,713 $50,175,713 $50,175,713 $50,175,713 $50,175,713 $50,175,713 ($264,969) ($45,271) ($930,669) ($45,865) ($1,286,774) ($1,827,047) ($3,113,822) ($264,969) ($45,271) ($930,669) ($45,865) ($1,286,774) ($1,827,047) ($3,113,822) ($264,969) ($45,271) ($930,669) ($45,865) ($1,286,774) ($1,827,047) ($3,113,822) ($264,969) ($45,271) ($930,669) ($45,865) ($1,286,774) ($1,827,047) ($3,113,822) ($264,969) ($45,271) ($930,669) ($45,865) ($1,286,774) ($1,827,047) ($3,113,822) ($264,969) ($45,271) ($930,669) ($45,865) ($1,286,774) ($1,827,047) ($3,113,822) ($264,969) ($45,271) ($930,669) ($45,865) ($1,286,774) ($1,827,047) ($3,113,822) ($264,969) ($45,271) ($930,669) ($45,865) ($1,286,774) ($1,827,047) ($3,113,822) ($264,969) ($45,271) ($930,669) ($45,865) ($1,286,774) ($1,827,047) ($3,113,822) ($264,969) ($45,271) ($930,669) ($45,865) ($1,286,774) ($1,827,047) ($3,113,822) ($264,969) ($45,271) ($930,669) ($45,865) ($1,286,774) ($1,827,047) ($3,113,822) ($264,969) ($45,271) ($930,669) ($45,865) ($1,286,774) ($1,827,047) ($3,113,822) 2.61% 6.00% 2.02% 2.96% 3.52% 2.61% 6.00% 2.02% 2.96% 3.52% 2.61% 6.00% 2.02% 2.96% 3.52% 2.61% 6.00% 2.02% 2.96% 3.52% 2.61% 6.00% 2.02% 2.96% 3.52% 2.61% 6.00% 2.02% 2.96% 3.52% 2.61% 6.00% 2.02% 2.96% 3.52% 2.61% 6.00% 2.02% 2.96% 3.52% 2.61% 6.00% 2.02% 2.96% 3.52% 2.61% 6.00% 2.02% 2.96% 3.52% 2.61% 6.00% 2.02% 2.96% 3.52% 2.61% 6.00% 2.02% 2.96% 3.52% (n) Book Depreciation Mains - Book Depreciation Plant Additions - Mains - Coated Steel Plant Additions - Mains - Bare Steel Plant Additions - Mains - Plastic Plant Additions - Mains - Cast Iron Services - Book Depreciation As Approved at DPU 12-25 As Approved at DPU 12-25 As Approved at DPU 12-25 As Approved at DPU 12-25 As Approved at DPU 12-25 Book Depreciation relating to Additions: Cumulative Book Deprec - Mains - Coated Steel Cumulative Book Deprec - Mains - Plastic Total Cumulative Book Deprec - Mains Additions Cumulative Book Deprec - Services Additions Total Cumulative Book Depreciation Additions (Average of Current and Prior Mo. Line 2 * Line 26/12) (Average of Current and Prior Mo. Line 4 * Line 28/12) (Line 33 + Line 34) (Average of Current and Prior Mo. Line 7 * Line 30/12) (Line 35 + Line 36) Book Depreciation Relating to Retirements: Cumulative Book Deprec - Mains - Coated Steel Cumulative Book Deprec - Mains - Bare Steel Cumulative Book Deprec - Mains - Plastic Cumulative Book Deprec - Mains - Cast Iron Total Cumulative Book Deprec - Mains Retirements Cumulative Book Deprec - Services Retirements Total Cumulative Book Depreciation Retirements (Average of Current and Prior Mo. Line 16 * Line 26/12) (Average of Current and Prior Mo. Line 17 * Line 27/12) (Average of Current and Prior Mo. Line 18 * Line 28/12) (Average of Current and Prior Mo. Line 19 * Line 29/12) (Sum of Lines 40 thru 43) (Average of Current and Prior Mo. Line 21 * Line 30/12) Cumulative Book Depreciation Line 37 + Line 46 Deferred Tax Calculation Federal Tax Depreciation and Repairs Deduction Cumulative Federal Tax Depreciation GP ARD ADIT GPA - 376.20 GPA - 373.30 GPA - 376.40 GPA - 376.80 GPA - 380.00 Sch 3 2015 in 2017, Line 7 (Prior Mo. Line 52 + Current Mo. Line 51) State Tax Depreciation and Repairs Deduction Cumulative State Tax Depreciation Sch 3 2015 in 2017, Line 15 (Prior Mo. Line 55 + Current Mo. Line 54) Federal Book/Tax Timing Difference Federal Tax Rate Deferred Federal Tax Reserve (Line 52 - Line 48) State Book/Tax Timing Difference State Tax Rate Deferred State Tax Reserve (Line 55 - Line 48) Net Operating Loss (NOL) Carryforward Offset Sch 2-2015 in 2016, Col. (l), Line 65 Rate Base Calculation: Total Cumulative GSEP Plant Investment Accumulated Reserve for Depreciation Cumulative Net Plant Deferred Tax Reserve Cumulative Month End Rate Base Revenue Requirement Calculation: RB Average Rate Base PTRR Pre-Tax ROR Number of Days in the Month Monthly Applicable Pre-Tax ROR Return and Taxes DEPR Monthly Book Depreciation PTMS Property Taxes OFF O&M Offset GSEP_RECc Monthly Revenue Requirement before Adjustments $499,034 $400,005 $899,040 $833,272 $1,732,311 ($7,880) ($3,122) ($21,430) ($1,533) ($33,966) ($85,636) ($119,602) Line 76 * (Line 77/ 365) Line 75 * Line 78 Line 48 - Prior Mo. Line 48 Schedule 5 Schedule 6, Line 8, Column 2 / 12 Line 79 thru 82 ($9,609) ($3,801) ($26,130) ($1,873) ($41,413) ($101,714) ($143,127) $639,330 $504,603 $1,143,934 $1,038,857 $2,182,790 ($10,185) ($4,028) ($27,697) ($1,986) ($43,895) ($107,074) ($150,969) $674,404 $530,753 $1,205,157 $1,090,253 $2,295,410 ($10,762) ($4,254) ($29,263) ($2,099) ($46,378) ($112,433) ($158,811) $709,478 $556,903 $1,266,381 $1,141,649 $2,408,030 ($11,338) ($4,480) ($30,830) ($2,212) ($48,860) ($117,792) ($166,652) $744,552 $583,052 $1,327,605 $1,193,045 $2,520,650 ($11,914) ($4,707) ($32,397) ($2,325) ($51,343) ($123,152) ($174,494) $779,626 $609,202 $1,388,828 $1,244,442 $2,633,270 ($12,491) ($4,933) ($33,963) ($2,438) ($53,825) ($128,511) ($182,336) $814,700 $635,351 $1,450,052 $1,295,838 $2,745,889 ($13,067) ($5,159) ($35,530) ($2,551) ($56,307) ($133,870) ($190,178) $849,774 $661,501 $1,511,275 $1,347,234 $2,858,509 ($13,643) ($5,386) ($37,096) ($2,665) ($58,790) ($139,230) ($198,020) $884,848 $687,650 $1,572,499 $1,398,630 $2,971,129 ($14,219) ($5,612) ($38,663) ($2,778) ($61,272) ($144,589) ($205,861) $919,922 $713,800 $1,633,722 $1,450,027 $3,083,749 ($14,796) ($5,838) ($40,230) ($2,891) ($63,755) ($149,948) ($213,703) $1,822,265 $1,927,043 $2,031,821 $2,136,600 $2,241,378 $2,346,156 $2,450,934 $2,555,712 $2,660,490 $2,765,268 $2,870,046 $36,057,868 $88,140 $36,146,008 $88,140 $36,234,147 $88,140 $36,322,287 $88,140 $36,410,427 $88,140 $36,498,567 $88,140 $36,586,706 $88,140 $36,674,846 $88,140 $36,762,986 $88,140 $36,851,126 $88,140 $36,939,265 $88,140 $37,027,405 $88,140 $37,115,545 $21,940,025 $176,280 $22,116,305 $176,280 $22,292,585 $176,280 $22,468,865 $176,280 $22,645,145 $176,280 $22,821,425 $176,280 $22,997,705 $176,280 $23,173,985 $176,280 $23,350,265 $176,280 $23,526,545 $176,280 $23,702,825 $176,280 $23,879,105 $176,280 $24,055,385 $34,428,520 35.0% $12,049,982 $34,411,882 35.0% $12,044,159 $34,395,244 35.0% $12,038,335 $34,378,605 35.0% $12,032,512 $34,361,967 35.0% $12,026,688 $34,345,329 35.0% $12,020,865 $34,328,691 35.0% $12,015,042 $34,312,052 35.0% $12,009,218 $34,295,414 35.0% $12,003,395 $34,278,776 35.0% $11,997,571 $34,262,137 35.0% $11,991,748 $34,245,499 35.0% $11,985,925 $20,398,818 5.2% $1,060,739 $20,470,320 5.2% $1,064,457 $20,541,822 5.2% $1,068,175 $20,613,323 5.2% $1,071,893 $20,684,825 5.2% $1,075,611 $20,756,327 5.2% $1,079,329 $20,827,829 5.2% $1,083,047 $20,899,331 5.2% $1,086,765 $20,970,833 5.2% $1,090,483 $21,042,335 5.2% $1,094,201 $21,113,837 5.2% $1,097,920 $21,185,339 5.2% $1,101,638 ($585,574) ($585,574) ($585,574) ($585,574) ($585,574) ($585,574) ($585,574) ($585,574) ($585,574) ($585,574) ($585,574) ($585,574) $50,175,713 ($1,717,487) $48,458,226 ($12,525,147) $35,933,079 $50,175,713 ($1,822,265) $48,353,448 ($12,523,041) $35,830,406 $50,175,713 ($1,927,043) $48,248,670 ($12,520,936) $35,727,734 $50,175,713 ($2,031,821) $48,143,892 ($12,518,831) $35,625,061 $50,175,713 ($2,136,600) $48,039,114 ($12,516,725) $35,522,388 $50,175,713 ($2,241,378) $47,934,336 ($12,514,620) $35,419,715 $50,175,713 ($2,346,156) $47,829,557 ($12,512,515) $35,317,043 $50,175,713 ($2,450,934) $47,724,779 ($12,510,409) $35,214,370 $50,175,713 ($2,555,712) $47,620,001 ($12,508,304) $35,111,697 $50,175,713 ($2,660,490) $47,515,223 ($12,506,199) $35,009,024 $50,175,713 ($2,765,268) $47,410,445 ($12,504,094) $34,906,352 $50,175,713 ($2,870,046) $47,305,667 ($12,501,988) $34,803,679 $35,984,416 11.19% 31 0.95% $341,990 $104,778 105,289 ($8,306) $543,751 $35,881,743 11.19% 28 0.86% $308,013 $104,778 105,289 ($8,306) $509,773 $35,779,070 11.19% 31 0.95% $340,038 $104,778 105,289 ($8,306) $541,799 $35,676,397 11.19% 30 0.92% $328,125 $104,778 105,289 ($8,306) $529,886 $35,573,725 11.19% 31 0.95% $338,087 $104,778 105,289 ($8,306) $539,847 $35,471,052 11.19% 30 0.92% $326,236 $104,778 105,289 ($8,306) $527,997 $35,368,379 11.19% 31 0.95% $336,135 $104,778 105,289 ($8,306) $537,896 $35,265,706 11.19% 31 0.95% $335,159 $104,778 105,289 ($8,306) $536,920 $35,163,034 11.19% 30 0.92% $323,404 $104,778 105,289 ($8,306) $525,164 $35,060,361 11.19% 31 0.95% $333,208 $104,778 105,289 ($8,306) $534,969 $34,957,688 11.19% 30 0.92% $321,515 $104,778 105,289 ($8,306) $523,276 $34,855,015 11.19% 31 0.95% $331,256 $104,778 105,289 ($8,306) $533,017 ($585,574) $36,035,752 Calendar Year 2015 in 2017 ($9,033) ($3,575) ($24,563) ($1,760) ($38,931) ($96,355) ($135,285) $604,256 $478,454 $1,082,710 $987,460 $2,070,171 $1,717,487 (Line 61 * Line 62) Mo. 1 = Line 72/ 2, then (Prior Mo. & Cur Mo. Line 72/ 2) Schedule 4 ($8,456) ($3,349) ($22,997) ($1,646) ($36,448) ($90,996) ($127,444) $569,182 $452,304 $1,021,487 $936,064 $1,957,551 $1,612,709 (Line 57 * Line 58) Line 12 Line 48 * -1 (Line 68 + Line 69) ((Line 63 + Line 59 + Line 65) * -1) (Line 70 + Line 71) $534,108 $426,155 $960,263 $884,668 $1,844,931 $420,888 $313,795 $734,683 $616,755 $1,351,438 ($6,916) ($2,716) ($18,800) ($1,358) ($29,789) ($64,312) ($94,101) $1,257,336 $3,963,167 $1,257,336 $1,263,464 ($99,672) $6,384,295 Columbia Gas of Massachusetts Witness: R. D. Gibbons D.P.U. 17-GSEP-05 Exh. CMA/RDG-2 Schedule 2 - 2015 in 2018 2018 Gas System Enhancement Program Calculation of Monthly Average Rate Base Revenue Requirement Line No. Description 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 Depreciable Plant Additions Cumulative Plant Additions - Mains: Plant Additions - Mains - Coated Steel Plant Additions - Mains - Bare Steel Plant Additions - Mains - Plastic Plant Additions - Mains - Cast Iron Cumulative Plant Additions - Mains Cumulative Plant Additions - Services Cumulative Depreciable Additions Reference (Sch. 2-2015 in 2015, Col. (l), Line 36) (Sch. 2-2015 in 2015, Col. (l), Line 37) (Sch. 2-2015 in 2015, Col. (l), Line 38) (Sch. 2-2015 in 2015, Col. (l), Line 39) (Sum of Lines 2 thru 5) (Sch. 2-2015 in 2015, Col. (l), Line 41) (Line 6 + Line 7) Cumulative Cost of Removal (Sch. 3-2015, Col. (L), Line 53) Total GSEP Plant Investment (Line 8 + Line 10) Depreciable Retirements Cumulative Plant Retirements - Mains: Plant Additions - Mains - Coated Steel Plant Additions - Mains - Bare Steel Plant Additions - Mains - Plastic Plant Additions - Mains - Cast Iron Total Cumulative Plant Retirements - Mains Total Cumulative Plant Retirements - Services Cumulative Net Depreciable Retirements GPA - 376.20 GPA - 373.30 GPA - 376.40 GPA - 376.80 GPA - 380.00 2015 December (a) $16,125,974 $0 $15,534,393 $0 $31,660,367 $17,521,446 $49,181,813 $993,900 (Sch. 2-2015 in 2015, Col. (l), Line 68) (Sch. 2-2015 in 2015, Col. (l), Line 69) (Sch. 2-2015 in 2015, Col. (l), Line 70) (Sch. 2-2015 in 2015, Col. (l), Line 71) (Sum of Lines 16 thru 19) (Sch. 2-2015 in 2015, Col. (l), Line 72) (Line 20 + Line 21) ($264,969) ($45,271) ($930,669) ($45,865) ($1,286,774) ($1,827,047) ($3,113,822) January (b) $16,125,974 $0 $15,534,393 $0 $31,660,367 $17,521,446 $49,181,813 February (c) $16,125,974 $0 $15,534,393 $0 $31,660,367 $17,521,446 $49,181,813 March (d) $16,125,974 $0 $15,534,393 $0 $31,660,367 $17,521,446 $49,181,813 April (e) $16,125,974 $0 $15,534,393 $0 $31,660,367 $17,521,446 $49,181,813 May (f) 2015 Investments in Calendar Year 2018 June July August (g) (h) (i) $16,125,974 $0 $15,534,393 $0 $31,660,367 $17,521,446 $49,181,813 $16,125,974 $0 $15,534,393 $0 $31,660,367 $17,521,446 $49,181,813 $16,125,974 $0 $15,534,393 $0 $31,660,367 $17,521,446 $49,181,813 $16,125,974 $0 $15,534,393 $0 $31,660,367 $17,521,446 $49,181,813 2018 Revenue Requirement September (j) $16,125,974 $0 $15,534,393 $0 $31,660,367 $17,521,446 $49,181,813 October (k) $16,125,974 $0 $15,534,393 $0 $31,660,367 $17,521,446 $49,181,813 November (l) December (m) $16,125,974 $0 $15,534,393 $0 $31,660,367 $17,521,446 $49,181,813 $16,125,974 $0 $15,534,393 $0 $31,660,367 $17,521,446 $49,181,813 $993,900 $993,900 $993,900 $993,900 $993,900 $993,900 $993,900 $993,900 $993,900 $993,900 $993,900 $993,900 $50,175,713 $50,175,713 $50,175,713 $50,175,713 $50,175,713 $50,175,713 $50,175,713 $50,175,713 $50,175,713 $50,175,713 $50,175,713 $50,175,713 ($264,969) ($45,271) ($930,669) ($45,865) ($1,286,774) ($1,827,047) ($3,113,822) ($264,969) ($45,271) ($930,669) ($45,865) ($1,286,774) ($1,827,047) ($3,113,822) ($264,969) ($45,271) ($930,669) ($45,865) ($1,286,774) ($1,827,047) ($3,113,822) ($264,969) ($45,271) ($930,669) ($45,865) ($1,286,774) ($1,827,047) ($3,113,822) ($264,969) ($45,271) ($930,669) ($45,865) ($1,286,774) ($1,827,047) ($3,113,822) ($264,969) ($45,271) ($930,669) ($45,865) ($1,286,774) ($1,827,047) ($3,113,822) ($264,969) ($45,271) ($930,669) ($45,865) ($1,286,774) ($1,827,047) ($3,113,822) ($264,969) ($45,271) ($930,669) ($45,865) ($1,286,774) ($1,827,047) ($3,113,822) ($264,969) ($45,271) ($930,669) ($45,865) ($1,286,774) ($1,827,047) ($3,113,822) ($264,969) ($45,271) ($930,669) ($45,865) ($1,286,774) ($1,827,047) ($3,113,822) ($264,969) ($45,271) ($930,669) ($45,865) ($1,286,774) ($1,827,047) ($3,113,822) ($264,969) ($45,271) ($930,669) ($45,865) ($1,286,774) ($1,827,047) ($3,113,822) 2.61% 6.00% 2.02% 2.96% 3.52% 2.61% 6.00% 2.02% 2.96% 3.52% 2.61% 6.00% 2.02% 2.96% 3.52% 2.61% 6.00% 2.02% 2.96% 3.52% 2.61% 6.00% 2.02% 2.96% 3.52% 2.61% 6.00% 2.02% 2.96% 3.52% 2.61% 6.00% 2.02% 2.96% 3.52% 2.61% 6.00% 2.02% 2.96% 3.52% 2.61% 6.00% 2.02% 2.96% 3.52% 2.61% 6.00% 2.02% 2.96% 3.52% 2.61% 6.00% 2.02% 2.96% 3.52% 2.61% 6.00% 2.02% 2.96% 3.52% (n) Book Depreciation Mains - Book Depreciation Plant Additions - Mains - Coated Steel Plant Additions - Mains - Bare Steel Plant Additions - Mains - Plastic Plant Additions - Mains - Cast Iron Services - Book Depreciation As Approved at DPU 12-25 As Approved at DPU 12-25 As Approved at DPU 12-25 As Approved at DPU 12-25 As Approved at DPU 12-25 Book Depreciation relating to Additions: Cumulative Book Deprec - Mains - Coated Steel Cumulative Book Deprec - Mains - Plastic Total Cumulative Book Deprec - Mains Additions Cumulative Book Deprec - Services Additions Total Cumulative Book Depreciation Additions (Average of Current and Prior Mo. Line 2 * Line 26/12) (Average of Current and Prior Mo. Line 4 * Line 28/12) (Line 33 + Line 34) (Average of Current and Prior Mo. Line 7 * Line 30/12) (Line 35 + Line 36) Book Depreciation Relating to Retirements: Cumulative Book Deprec - Mains - Coated Steel Cumulative Book Deprec - Mains - Bare Steel Cumulative Book Deprec - Mains - Plastic Cumulative Book Deprec - Mains - Cast Iron Total Cumulative Book Deprec - Mains Retirements Cumulative Book Deprec - Services Retirements Total Cumulative Book Depreciation Retirements (Average of Current and Prior Mo. Line 16 * Line 26/12) (Average of Current and Prior Mo. Line 17 * Line 27/12) (Average of Current and Prior Mo. Line 18 * Line 28/12) (Average of Current and Prior Mo. Line 19 * Line 29/12) (Sum of Lines 40 thru 43) (Average of Current and Prior Mo. Line 21 * Line 30/12) Cumulative Book Depreciation Line 37 + Line 46 Deferred Tax Calculation Federal Tax Depreciation and Repairs Deduction Cumulative Federal Tax Depreciation GP ARD ADIT GPA - 376.20 GPA - 373.30 GPA - 376.40 GPA - 376.80 GPA - 380.00 Sch 3 2015 in 2018, Line 7 (Prior Mo. Line 52 + Current Mo. Line 51) State Tax Depreciation and Repairs Deduction Cumulative State Tax Depreciation Sch 3 2015 in 2018, Line 15 (Prior Mo. Line 55 + Current Mo. Line 54) Federal Book/Tax Timing Difference Federal Tax Rate Deferred Federal Tax Reserve (Line 52 - Line 48) State Book/Tax Timing Difference State Tax Rate Deferred State Tax Reserve (Line 55 - Line 48) Net Operating Loss (NOL) Carryforward Offset Sch 2-2015 in 2017, Col. (l), Line 65 Rate Base Calculation: Total Cumulative GSEP Plant Investment Accumulated Reserve for Depreciation Cumulative Net Plant Deferred Tax Reserve Cumulative Month End Rate Base Revenue Requirement Calculation: RB Average Rate Base PTRR Pre-Tax ROR Number of Days in the Month Monthly Applicable Pre-Tax ROR Return and Taxes DEPR Monthly Book Depreciation PTMS Property Taxes OFF O&M Offset GSEP_RECc Monthly Revenue Requirement before Adjustments $919,922 $713,800 $1,633,722 $1,450,027 $3,083,749 ($14,796) ($5,838) ($40,230) ($2,891) ($63,755) ($149,948) ($213,703) Line 76 * (Line 77/ 366) Line 75 * Line 78 Line 48 - Prior Mo. Line 48 Schedule 5 Schedule 6, Line 8, Column 2 / 12 Line 79 thru 82 ($16,525) ($6,518) ($44,930) ($3,230) ($71,202) ($166,026) ($237,228) $1,060,218 $818,398 $1,878,617 $1,655,612 $3,534,228 ($17,101) ($6,744) ($46,496) ($3,343) ($73,684) ($171,386) ($245,070) $1,095,292 $844,548 $1,939,840 $1,707,008 $3,646,848 ($17,677) ($6,970) ($48,063) ($3,457) ($76,167) ($176,745) ($252,912) $1,130,366 $870,697 $2,001,064 $1,758,404 $3,759,468 ($18,254) ($7,197) ($49,629) ($3,570) ($78,649) ($182,104) ($260,754) $1,165,440 $896,847 $2,062,287 $1,809,800 $3,872,087 ($18,830) ($7,423) ($51,196) ($3,683) ($81,132) ($187,464) ($268,595) $1,200,514 $922,996 $2,123,511 $1,861,196 $3,984,707 ($19,406) ($7,649) ($52,763) ($3,796) ($83,614) ($192,823) ($276,437) $1,235,588 $949,146 $2,184,734 $1,912,593 $4,097,327 ($19,983) ($7,876) ($54,329) ($3,909) ($86,097) ($198,182) ($284,279) $1,270,662 $975,296 $2,245,958 $1,963,989 $4,209,947 ($20,559) ($8,102) ($55,896) ($4,022) ($88,579) ($203,542) ($292,121) $1,305,736 $1,001,445 $2,307,181 $2,015,385 $4,322,567 ($21,135) ($8,328) ($57,463) ($4,135) ($91,061) ($208,901) ($299,962) $1,340,810 $1,027,595 $2,368,405 $2,066,781 $4,435,186 ($21,711) ($8,555) ($59,029) ($4,248) ($93,544) ($214,260) ($307,804) $3,079,602 $3,184,380 $3,289,158 $3,393,936 $3,498,714 $3,603,492 $3,708,270 $3,813,048 $3,917,826 $4,022,604 $4,127,382 $37,115,545 $81,625 $37,197,170 $81,625 $37,278,795 $81,625 $37,360,420 $81,625 $37,442,045 $81,625 $37,523,670 $81,625 $37,605,295 $81,625 $37,686,920 $81,625 $37,768,545 $81,625 $37,850,171 $81,625 $37,931,796 $81,625 $38,013,421 $81,625 $38,095,046 $24,055,385 $163,250 $24,218,635 $163,250 $24,381,885 $163,250 $24,545,135 $163,250 $24,708,385 $163,250 $24,871,635 $163,250 $25,034,885 $163,250 $25,198,135 $163,250 $25,361,385 $163,250 $25,524,635 $163,250 $25,687,885 $163,250 $25,851,135 $163,250 $26,014,385 $34,222,346 35.0% $11,977,821 $34,199,193 35.0% $11,969,718 $34,176,040 35.0% $11,961,614 $34,152,887 35.0% $11,953,511 $34,129,734 35.0% $11,945,407 $34,106,581 35.0% $11,937,303 $34,083,428 35.0% $11,929,200 $34,060,275 35.0% $11,921,096 $34,037,122 35.0% $11,912,993 $34,013,969 35.0% $11,904,889 $33,990,817 35.0% $11,896,786 $33,967,664 35.0% $11,888,682 $21,243,811 5.2% $1,104,678 $21,302,283 5.2% $1,107,719 $21,360,755 5.2% $1,110,759 $21,419,227 5.2% $1,113,800 $21,477,699 5.2% $1,116,840 $21,536,171 5.2% $1,119,881 $21,594,643 5.2% $1,122,921 $21,653,115 5.2% $1,125,962 $21,711,587 5.2% $1,129,003 $21,770,059 5.2% $1,132,043 $21,828,531 5.2% $1,135,084 $21,887,003 5.2% $1,138,124 ($585,574) ($585,574) ($585,574) ($585,574) ($585,574) ($585,574) ($585,574) ($585,574) ($585,574) ($585,574) ($585,574) ($585,574) $50,175,713 ($2,974,824) $47,200,889 ($12,496,925) $34,703,964 $50,175,713 ($3,079,602) $47,096,111 ($12,491,862) $34,604,249 $50,175,713 ($3,184,380) $46,991,333 ($12,486,799) $34,504,534 $50,175,713 ($3,289,158) $46,886,555 ($12,481,736) $34,404,819 $50,175,713 ($3,393,936) $46,781,777 ($12,476,673) $34,305,104 $50,175,713 ($3,498,714) $46,676,999 ($12,471,610) $34,205,389 $50,175,713 ($3,603,492) $46,572,221 ($12,466,547) $34,105,674 $50,175,713 ($3,708,270) $46,467,443 ($12,461,484) $34,005,959 $50,175,713 ($3,813,048) $46,362,665 ($12,456,421) $33,906,244 $50,175,713 ($3,917,826) $46,257,887 ($12,451,358) $33,806,529 $50,175,713 ($4,022,604) $46,153,109 ($12,446,295) $33,706,814 $50,175,713 ($4,127,382) $46,048,331 ($12,441,232) $33,607,099 $34,753,822 11.19% 31 0.95% $330,295 $104,778 102,563 ($8,306) $529,329 $34,654,106 11.19% 28 0.86% $297,475 $104,778 102,563 ($8,306) $496,509 $34,554,391 11.19% 31 0.95% $328,399 $104,778 102,563 ($8,306) $527,434 $34,454,676 11.19% 30 0.92% $316,889 $104,778 102,563 ($8,306) $515,923 $34,354,961 11.19% 31 0.95% $326,504 $104,778 102,563 ($8,306) $525,539 $34,255,246 11.19% 30 0.92% $315,054 $104,778 102,563 ($8,306) $514,089 $34,155,531 11.19% 31 0.95% $324,609 $104,778 102,563 ($8,306) $523,643 $34,055,816 11.19% 31 0.95% $323,661 $104,778 102,563 ($8,306) $522,696 $33,956,101 11.19% 30 0.92% $312,303 $104,778 102,563 ($8,306) $511,338 $33,856,386 11.19% 31 0.95% $321,766 $104,778 102,563 ($8,306) $520,800 $33,756,671 11.19% 30 0.92% $310,469 $104,778 102,563 ($8,306) $509,504 $33,656,956 11.19% 31 0.95% $319,870 $104,778 102,563 ($8,306) $518,905 ($585,574) $34,803,679 Calendar Year 2015 in 2018 ($15,948) ($6,291) ($43,363) ($3,117) ($68,720) ($160,667) ($229,387) $1,025,144 $792,249 $1,817,393 $1,604,215 $3,421,608 $2,974,824 (Line 61 * Line 62) Prior Mo. & Cur Mo. Line 72/ 2 Schedule 4 ($15,372) ($6,065) ($41,796) ($3,004) ($66,237) ($155,308) ($221,545) $990,070 $766,099 $1,756,169 $1,552,819 $3,308,988 $2,870,046 (Line 57 * Line 58) Line 12 Line 48 * -1 (Line 68 + Line 69) ((Line 63 + Line 59 + Line 65) * -1) (Line 70 + Line 71) $954,996 $739,949 $1,694,946 $1,501,423 $3,196,369 $420,888 $313,795 $734,683 $616,755 $1,351,438 ($6,916) ($2,716) ($18,800) ($1,358) ($29,789) ($64,312) ($94,101) $1,257,336 $3,827,293 $1,257,336 $1,230,752 ($99,672) $6,215,708 Columbia Gas of Massachusetts Witness: R. D. Gibbons D.P.U. 17-GSEP-05 Exh. CMA/RDG-2 Schedule 3 - 2018 in 2018 2018 Gas System Enhancement Program Calculation of Deferred Taxes For the Year Ending December 31, 2018 Line No. 2018 Reference 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 Federal Tax Depreciation Capital Repairs Deduction Mains, Services, and Meter Set Additions Capital Repairs & Section 263A Mixed. Serv. Cost Deduction Rate Capital Repairs Deduction Bonus Depreciation Mains, Services, and Meter Set Additions Less Capital Repairs Deduction Mains, Services, and Meter Set Additions Net of Capital Repairs Deduction Bonus Depreciation rate Bonus Depreciation Remaining Tax Depreciation Mains, Services, and Meter Set Additions Less Capital Repairs Deduction Less Bonus Depreciation Mains & Services Additions Subject to 20 YR MACRS Tax Depreciation 20 YR MACRS Tax Depreciation Rates Remaining Tax Depreciation Monthly Remaining Tax Depreciation January February March April May June July August September October November December Total Remaining Tax Depreciation Deduction for Cost of Removal Total Federal Tax Depreciation, Cost of Removal and Repairs Deduction State Tax Depreciation Capital Repairs Deduction Mains, Services, and Meter Set Additions Capital Repairs Deduction Rate Capital Repairs Deduction Remaining Tax Depreciation Mains, Services, and Meter Set Additions Less Capital Repairs Deduction Mains, Services, and Meter Set Additions Net of Capital Repairs Deduction 20 YR MACRS Tax Depreciation Rates Remaining State Tax Depreciation Monthly Remaining Tax Depreciation January February March April May June July August September October November December Total Remaining Tax Depreciation Deduction for Cost of Removal Total State Tax Depreciation, Cost of Removal and Repairs Deduction January (a) Sch. 2 2018 in 2018, Lines 8 and 24 $ Line 3 * Line 4 $ Line 3 Line 5 Line 8 - Line 9 $ $ $ Line 10 * Line 11 $ Line 3 Line 5 Line 12 Line 15 - Line 16 - Line 17 $ $ Line 18 * Line 19 $ $ February (b) March (c) April (d) May (e) June (f) July (g) August (h) September (i) October (j) November (k) December (l) 273,498 $ 1,064,235 $ 1,330,938 $ 2,655,666 $ 5,071,097 $ 6,835,253 $ 5,757,627 $ 10,643,666 $ 9,048,195 $ 7,469,252 $ 17,525,783 $ 12,324,790 35.515900% 35.515900% 35.515900% 35.515900% 35.515900% 35.515900% 35.515900% 35.515900% 35.515900% 35.515900% 35.515900% 35.515900% 3,213,548 $ 3,780,194 $ 2,652,772 $ 97,135 $ 377,973 $ 472,695 $ 943,184 $ 1,801,046 $ 2,427,602 $ 2,044,873 $ 6,224,439 $ 4,377,260 273,498 97,135 176,363 40% 70,545 $ 1,064,235 $ 377,973 $ 686,262 40% $ 274,505 $ 1,330,938 $ 472,695 $ 858,243 40% $ 343,297 $ 2,655,666 $ 943,184 $ 1,712,482 40% $ 684,993 $ 5,071,097 $ 1,801,046 $ 3,270,051 40% $ 1,308,020 $ $ $ $ 273,498 $ 1,064,235 $ 1,330,938 $ 2,655,666 $ 5,071,097 $ 97,135 $ 377,973 $ 472,695 $ 943,184 $ 1,801,046 $ 70,545 274,505 343,297 684,993 1,308,020 $105,818 $411,757 $514,946 $1,027,489 $1,962,030 3.750% 3.750% 3.750% 3.750% 3.750% 3,968 $ 15,441 $ 19,310 $ 38,531 $ 73,576 $ $ $ 331 1,404 $ $ $ 331 1,404 1,931 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 10,643,666 3,780,194 6,863,472 40% 2,745,389 $ $ $ $ 9,048,195 3,213,548 5,834,647 40% 2,333,859 $ $ $ $ 7,469,252 2,652,772 4,816,480 40% 1,926,592 $ $ $ $ 17,525,783 6,224,439 11,301,344 40% 4,520,538 6,835,253 $ 2,427,602 $ 1,763,061 $2,644,591 3.750% 99,172 $ 5,757,627 $ 2,044,873 $ 1,485,102 $2,227,653 3.750% 83,537 $ 10,643,666 $ 3,780,194 $ 2,745,389 $4,118,083 3.750% 154,428 $ 9,048,195 $ 3,213,548 $ 2,333,859 $3,500,788 3.750% 131,280 $ 7,469,252 $ 2,652,772 $ 1,926,592 $2,889,888 3.750% 108,371 $ 331 1,404 1,931 4,281 9,197 14,167 $ $ $ $ $ $ $ 331 1,404 1,931 4,281 9,197 14,167 13,923 331 1,404 1,931 4,281 9,197 14,167 13,923 30,886 $ $ $ $ $ $ $ $ $ 331 1,404 1,931 4,281 9,197 14,167 13,923 30,886 32,820 $ $ $ $ $ $ $ $ $ $ 331 1,404 1,931 4,281 9,197 14,167 13,923 30,886 32,820 36,124 $ $ $ $ $ $ $ $ $ $ $ 331 1,404 1,931 4,281 9,197 14,167 13,923 30,886 32,820 36,124 127,140 $ $ $ $ $ $ $ $ $ 12,324,790 $ 4,377,260 $ 7,947,530 40% $ 3,179,012 17,525,783 $ 12,324,790 6,224,439 $ 4,377,260 4,520,538 3,179,012 $6,780,806 $4,768,518 3.750% 3.750% 254,280 $ 178,819 Line 23 Through Line 34 $ 331 $ 1,734 $ 3,665 $ 7,947 $ 17,144 $ 31,311 $ 45,234 $ 76,119 $ 108,939 $ 145,063 $ 272,203 $ 176,321 $ 404,841 $ 515,752 $ 20,498 $ 281,762 $ 320,972 $ 108,561 $ 202,503 $ 203,700 $ 355,285 $ 175,632 $ 1,089,424 Sum of Lines 5, 12, 35 and 37 $ 344,332 $ 1,059,053 $ 3,407,972 $ 4,542,945 $ 3,683,770 $ 6,804,205 $ 5,860,046 $ 5,079,712 $ 11,192,812 $ 9,096,718 Line 3 Line 4 Line 43 * Line 44 $ Line 43 Line 45 Line 48 - Line 49 $ $ $ Line 50 * Line 51 $ $ 1,656,622 331 1,404 1,931 4,281 9,197 $ 5,757,627 2,044,873 3,712,754 40% 1,485,102 Sch. 2 2018 in 2018, Line 51 $ 1,335,410 331 1,404 1,931 4,281 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 331 6,835,253 2,427,602 4,407,651 40% 1,763,061 331 1,404 1,931 4,281 9,197 14,167 13,923 30,886 32,820 36,124 127,140 178,819 451,022 273,498 $ 1,064,235 $ 1,330,938 $ 2,655,666 $ 5,071,097 $ 6,835,253 $ 5,757,627 $ 10,643,666 $ 9,048,195 $ 7,469,252 $ 17,525,783 $ 12,324,790 35.515900% 35.515900% 35.515900% 35.515900% 35.515900% 35.515900% 35.515900% 35.515900% 35.515900% 35.515900% 35.515900% 35.515900% 97,135 $ 377,973 $ 472,695 $ 943,184 $ 1,801,046 $ 2,427,602 $ 2,044,873 $ 3,780,194 $ 3,213,548 $ 2,652,772 $ 6,224,439 $ 4,377,260 273,498 97,135 176,363 3.750% 6,614 $ 1,064,235 $ 377,973 $ 686,262 3.750% $ 25,735 $ 1,330,938 $ 472,695 $ 858,243 3.750% $ 32,184 $ 2,655,666 $ 943,184 $ 1,712,482 3.750% $ 64,218 $ 5,071,097 $ 1,801,046 $ 3,270,051 3.750% $ 122,627 $ $ $ $ 6,835,253 2,427,602 4,407,651 3.750% 165,287 $ $ $ $ 5,757,627 2,044,873 3,712,754 3.750% 139,228 $ $ $ $ 10,643,666 3,780,194 6,863,472 3.750% 257,380 $ $ $ $ 9,048,195 3,213,548 5,834,647 3.750% 218,799 $ $ $ $ 7,469,252 2,652,772 4,816,480 3.750% 180,618 $ $ $ $ 17,525,783 6,224,439 11,301,344 3.750% 423,800 $ 551 $ $ 551 2,340 $ $ $ 551 2,340 3,218 $ $ $ $ 551 2,340 3,218 7,135 $ $ $ $ $ 551 2,340 3,218 7,135 15,328 $ $ $ $ $ $ 551 2,340 3,218 7,135 15,328 23,612 $ $ $ $ $ $ $ 551 2,340 3,218 7,135 15,328 23,612 23,205 $ $ $ $ $ $ $ $ 551 2,340 3,218 7,135 15,328 23,612 23,205 51,476 $ $ $ $ $ $ $ $ $ 551 2,340 3,218 7,135 15,328 23,612 23,205 51,476 54,700 $ $ $ $ $ $ $ $ $ $ 551 2,340 3,218 7,135 15,328 23,612 23,205 51,476 54,700 60,206 $ $ $ $ $ $ $ $ $ $ $ 551 2,340 3,218 7,135 15,328 23,612 23,205 51,476 54,700 60,206 211,900 Line 55 Through Line 66 $ 551 $ 2,891 $ 6,109 $ 13,244 $ 28,573 $ 52,185 $ 75,390 $ 126,866 $ 181,566 $ 241,772 $ Line 37 $ 176,321 $ 404,841 $ 515,752 $ 20,498 $ 281,762 $ 320,972 $ 108,561 $ 202,503 $ 203,700 $ 355,285 Sum of Lines 45, 67 and 70 $ 274,007 $ 785,705 $ 994,556 $ 976,926 $ 2,111,381 $ 2,800,759 $ 2,228,824 $ 4,109,563 $ 3,598,813 $ 3,249,829 85,484 171,404 $ $ 170,569 341,974 $ $ 325,708 667,682 $ $ 439,017 1,106,700 $ $ 369,803 1,476,503 $ $ 683,626 2,160,129 $ $ 581,151 2,741,280 $ $ $ 160,751 $ 477,067 $ 954,135 $ 1,591,954 $ 2,385,338 $ ADIT NOL Calculation: GSEP Projected Additions-2018 Total Projected Additions-2018 GSEP Projected Additions to Total Projected Additions Line 75 / Line 76 $ 80,000,000 $ 144,269,204 55.45% 2018 NOL ADIT Creation 2018 NOL ADIT Allocated to GSEP Projected Line 79 * Line 77 $ $ 9,266,182 5,138,273 Monthly NOL ADIT Allocation Monthly Cumulative NOL ADIT (Line 3 / Line 75, Col a) * Line 80 Prior Mo. Line 83 + Current Mo. Line 82 $ $ 17,566 17,566 $ $ 68,354 85,920 $ $ Deferred Tax Normalization (Reg. Sec. 1.167) Sch. 3A 2018 in 2018, Col. E less Col. A $ - $ - $ - $ - $ 12,324,790 $ 4,377,260 $ 7,947,530 3.750% $ 298,032 453,672 $ $ $ $ $ $ $ $ $ $ $ $ $ 551 2,340 3,218 7,135 15,328 23,612 23,205 51,476 54,700 60,206 211,900 298,032 751,704 $ 175,632 $ 1,089,424 $ 6,853,743 $ 6,218,388 479,738 3,221,018 $ $ 1,125,653 4,346,671 $ $ 791,602 5,138,273 3,339,474 $ 4,449,175 $ 5,719,626 Columbia Gas of Massachusetts Witness: R. D. Gibbons D.P.U. 17-GSEP-05 Exh. CMA/RDG-2 Schedule 3 - 2017 in 2017 2018 Gas System Enhancement Program Calculation of Deferred Taxes For the Year Ending December 31, 2017 Line No. 2017 Reference 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 Federal Tax Depreciation Capital Repairs Deduction Mains, Services, and Meter Set Additions Capital Repairs & Section 263A Mixed. Serv. Cost Deduction Rate Capital Repairs Deduction Bonus Depreciation Mains, Services, and Meter Set Additions Less Capital Repairs Deduction Mains, Services, and Meter Set Additions Net of Capital Repairs Deduction Bonus Depreciation rate Bonus Depreciation Remaining Tax Depreciation Mains, Services, and Meter Set Additions Less Capital Repairs Deduction Less Bonus Depreciation Mains & Services Additions Subject to 20 YR MACRS Tax Depreciation 20 YR MACRS Tax Depreciation Rates Remaining Tax Depreciation Monthly Remaining Tax Depreciation January February March April May June July August September October November December Total Remaining Tax Depreciation Deduction for Cost of Removal Total Federal Tax Depreciation, Cost of Removal and Repairs Deduction State Tax Depreciation Capital Repairs Deduction Mains, Services, and Meter Set Additions Capital Repairs Deduction Rate Capital Repairs Deduction Remaining Tax Depreciation Mains, Services, and Meter Set Additions Less Capital Repairs Deduction Mains, Services, and Meter Set Additions Net of Capital Repairs Deduction 20 YR MACRS Tax Depreciation Rates Remaining State Tax Depreciation Monthly Remaining Tax Depreciation January February March April May June July August September October November December Total Remaining Tax Depreciation Deduction for Cost of Removal Total State Tax Depreciation, Cost of Removal and Repairs Deduction January (a) March (c) April (d) May (e) June (f) July (g) August (h) September (i) October (j) November (k) December (l) 7,856,054 $ 9,212,213 $ 6,514,787 $ 14,963,020 $ 10,538,014 259,392 $ 940,034 $ 1,185,075 $ 2,317,021 $ 4,465,083 $ 6,009,991 $ 5,038,316 $ 35.515900% 35.515900% 35.515900% 35.515900% 35.515900% 35.515900% 35.515900% 35.515900% 35.515900% 35.515900% 35.515900% 35.515900% 822,911 $ 1,585,814 $ 420,890 $ 333,862 $ 2,134,502 $ 92,125 $ 1,789,403 $ 3,271,800 $ 2,790,148 $ 2,313,785 $ 5,314,251 $ 3,742,670 Sch. 2 2017 in 2017, Lines 8 and 24 $ Line 3 * Line 4 $ Line 3 Line 5 Line 8 - Line 9 $ $ $ Line 10 * Line 11 $ Line 3 Line 5 Line 12 Line 15 - Line 16 - Line 17 $ $ Line 18 * Line 19 $ 259,392 $ 92,125 $ 83,634 $83,634 3.750% 3,136 $ $ 261 $ $ 259,392 92,125 167,267 50% 83,634 $ $ $ $ 940,034 333,862 606,172 50% 303,086 $ 1,185,075 $ 420,890 $ 764,185 50% $ 382,093 $ 2,317,021 $ 822,911 $ 1,494,110 50% $ 747,055 $ 4,465,083 $ 1,585,814 $ 2,879,269 50% $ 1,439,634 $ $ $ $ 940,034 $ 1,185,075 $ 2,317,021 $ 4,465,083 $ 333,862 $ 420,890 $ 822,911 $ 1,585,814 $ 303,086 382,093 747,055 1,439,634 $303,086 $382,093 $747,055 $1,439,634 3.750% 3.750% 3.750% 3.750% 11,366 $ 14,328 $ 28,015 $ 53,986 $ 261 1,033 $ $ $ 261 1,033 1,433 $ $ $ $ 261 1,033 1,433 3,113 $ $ $ $ $ 261 1,033 1,433 3,113 6,748 $ $ $ $ $ $ 6,009,991 2,134,502 3,875,489 50% 1,937,744 $ $ $ $ 5,038,316 1,789,403 3,248,913 50% 1,624,457 $ $ $ $ 9,212,213 3,271,800 5,940,413 50% 2,970,206 $ $ $ $ 7,856,054 2,790,148 5,065,906 50% 2,532,953 $ $ $ $ 6,514,787 2,313,785 4,201,002 50% 2,100,501 $ $ $ $ 14,963,020 5,314,251 9,648,769 50% 4,824,384 6,009,991 $ 2,134,502 $ 1,937,744 $1,937,744 3.750% 72,665 $ 5,038,316 $ 1,789,403 $ 1,624,457 $1,624,457 3.750% 60,917 $ 9,212,213 $ 3,271,800 $ 2,970,206 $2,970,206 3.750% 111,383 $ 7,856,054 $ 2,790,148 $ 2,532,953 $2,532,953 3.750% 94,986 $ 6,514,787 $ 2,313,785 $ 2,100,501 $2,100,501 3.750% 78,769 $ 261 1,033 1,433 3,113 6,748 10,381 $ $ $ $ $ $ $ 261 1,033 1,433 3,113 6,748 10,381 10,153 $ $ $ $ $ $ $ $ 261 1,033 1,433 3,113 6,748 10,381 10,153 22,277 $ $ $ $ $ $ $ $ $ 261 1,033 1,433 3,113 6,748 10,381 10,153 22,277 23,747 $ $ $ $ $ $ $ $ $ $ 261 1,033 1,433 3,113 6,748 10,381 10,153 22,277 23,747 26,256 $ $ $ $ $ $ $ $ $ $ $ 261 1,033 1,433 3,113 6,748 10,381 10,153 22,277 23,747 26,256 90,457 195,858 $ 10,538,014 $ 3,742,670 $ 6,795,344 50% $ 3,397,672 14,963,020 $ 10,538,014 5,314,251 $ 3,742,670 4,824,384 3,397,672 $4,824,384 $3,397,672 3.750% 3.750% 180,914 $ 127,413 $ $ $ $ $ $ $ $ $ $ $ $ $ 261 1,033 1,433 3,113 6,748 10,381 10,153 22,277 23,747 26,256 90,457 127,413 323,271 Line 23 Through Line 34 $ 261 $ 1,295 $ 2,727 $ 5,840 $ 12,588 $ 22,969 $ 33,122 $ 55,399 $ 79,145 $ 105,401 $ Sch. 2 2017 in 2017, Line 51 $ 167,455 $ 384,486 $ 489,820 $ 19,467 $ 267,595 $ 304,833 $ 103,103 $ 192,321 $ 193,458 $ 337,421 $ 166,801 $ 1,034,648 Sum of Lines 5, 12, 35 and 37 $ 343,475 $ 1,022,728 $ 3,305,632 $ 4,400,049 $ 3,550,084 $ 6,489,726 $ 5,595,704 $ 4,857,109 $ 10,501,295 $ 8,498,262 Line 3 Line 4 Line 43 * Line 44 $ Line 43 Line 45 Line 48 - Line 49 $ $ $ Line 50 * Line 51 $ Line 55 Through Line 66 $ $ 1,295,530 $ 1,595,274 259,392 $ 940,034 $ 1,185,075 $ 2,317,021 $ 4,465,083 $ 6,009,991 $ 5,038,316 $ 9,212,213 $ 7,856,054 $ 6,514,787 $ 14,963,020 $ 10,538,014 35.515900% 35.515900% 35.515900% 35.515900% 35.515900% 35.515900% 35.515900% 35.515900% 35.515900% 35.515900% 35.515900% 35.515900% 92,125 $ 333,862 $ 420,890 $ 822,911 $ 1,585,814 $ 2,134,502 $ 1,789,403 $ 3,271,800 $ 2,790,148 $ 2,313,785 $ 5,314,251 $ 3,742,670 259,392 92,125 167,267 3.750% 6,273 $ $ $ $ 940,034 333,862 606,172 3.750% 22,731 $ 1,185,075 $ 420,890 $ 764,185 3.750% $ 28,657 $ 2,317,021 $ 822,911 $ 1,494,110 3.750% $ 56,029 $ 4,465,083 $ 1,585,814 $ 2,879,269 3.750% $ 107,973 $ $ $ $ 6,009,991 2,134,502 3,875,489 3.750% 145,331 $ $ $ $ 5,038,316 1,789,403 3,248,913 3.750% 121,834 $ $ $ $ 9,212,213 3,271,800 5,940,413 3.750% 222,765 $ $ $ $ 7,856,054 2,790,148 5,065,906 3.750% 189,971 $ $ $ $ 6,514,787 2,313,785 4,201,002 3.750% 157,538 $ $ $ $ 14,963,020 5,314,251 9,648,769 3.750% 361,829 $ 523 $ $ 523 2,066 $ $ $ 523 2,066 2,866 $ $ $ $ 523 2,066 2,866 6,225 $ $ $ $ $ 523 2,066 2,866 6,225 13,497 $ $ $ $ $ $ 523 2,066 2,866 6,225 13,497 20,762 $ $ $ $ $ $ $ 523 2,066 2,866 6,225 13,497 20,762 20,306 $ $ $ $ $ $ $ $ 523 2,066 2,866 6,225 13,497 20,762 20,306 44,553 $ $ $ $ $ $ $ $ $ 523 2,066 2,866 6,225 13,497 20,762 20,306 44,553 47,493 $ $ $ $ $ $ $ $ $ $ 523 2,066 2,866 6,225 13,497 20,762 20,306 44,553 47,493 52,513 $ $ $ $ $ $ $ $ $ $ $ 523 2,066 2,866 6,225 13,497 20,762 20,306 44,553 47,493 52,513 180,915 $ 523 $ 2,589 $ 5,455 $ 11,680 $ 25,177 $ 45,939 $ 66,244 $ 110,797 $ 158,290 $ 210,803 $ 391,717 $ $ 10,538,014 $ 3,742,670 $ 6,795,344 3.750% $ 254,825 $ $ $ $ $ $ $ $ $ $ $ $ $ 523 2,066 2,866 6,225 13,497 20,762 20,306 44,553 47,493 52,513 180,915 254,825 646,542 Line 37 $ 167,455 $ 384,486 $ 489,820 $ 19,467 267,595 $ 304,833 $ 103,103 $ 192,321 $ 193,458 $ 337,421 $ 166,801 $ 1,034,648 Sum of Lines 45, 67 and 70 $ 260,103 $ 720,937 $ 916,165 $ 854,059 $ 1,878,586 $ 2,485,274 $ 1,958,750 $ 3,574,919 $ 3,141,896 $ 2,862,009 $ 5,872,770 $ 5,423,861 $ $ 45,003 57,421 $ $ 56,734 114,155 $ $ 110,924 225,079 $ $ $ $ 287,721 726,561 $ $ 241,203 967,764 $ $ 441,023 1,408,787 $ $ 376,099 1,784,885 $ $ 311,887 2,096,773 $ $ 716,336 2,813,109 $ $ 504,494 3,317,603 ADIT NOL Calculation: GSEP Projected Additions-2017 Total Projected Additions-2017 GSEP Projected Additions to Total Projected Additions Line 75 / Line 76 $ 69,299,000 $ 127,424,454 54.38% 2017 NOL ADIT Creation 2017 NOL ADIT Allocated to GSEP Projected Line 79 * Line 77 $ $ 6,100,286 3,317,603 (Line 3 / Line 75, Col a) * Line 80 Prior Mo. Line 83 + Current Mo. Line 82 $ $ 12,418 12,418 Monthly NOL ADIT Allocation Monthly Cumulative NOL ADIT February (b) 213,760 438,840 Columbia Gas of Massachusetts Witness: R. D. Gibbons D.P.U. 17-GSEP-05 Exh. CMA/RDG-2 Schedule 3 - 2017 in 2018 2018 Gas System Enhancement Program Calculation of Deferred Taxes For the Year Ending December 31, 2018 Line No. Reference 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Federal Tax Depreciation Remaining Tax Depreciation Mains & Services Subject to 20 YR MACRS Tax Depreciation 20 YR MACRS Tax Depreciation Rates Remaining Tax Depreciation Total Monthly Federal Tax Depreciation, Cost of Removal and Repairs Deduction State Tax Depreciation Remaining Tax Depreciation Mains, Services, and Meter Set Net of Capital Repairs Deduction 20 YR MACRS Tax Depreciation Rates Remaining State Tax Depreciation Total Monthly State Tax Depreciation, Cost of Removal and Repairs Deduction Sum of Prior Year (Jan thru Dec) Line 18 Line 3 * Line 4 Line 5 divided by 12 Sum of Prior Year (Jan thru Dec) Line 50 Line 11 * Line 12 Line 13 divided by 12 January (a) February (b) March (c) April (d) May (e) 2017 Investments in Calendar Year 2018 June July August (f) (g) (h) September (i) October (j) November (k) December (l) $22,343,420 $22,343,420 $22,343,420 $22,343,420 $22,343,420 $22,343,420 $22,343,420 $22,343,420 $22,343,420 $22,343,420 $22,343,420 $22,343,420 7.219% 7.219% 7.219% 7.219% 7.219% 7.219% 7.219% 7.219% 7.219% 7.219% 7.219% 7.219% 1,612,971 $ 1,612,971 $ $ 1,612,971 $ 1,612,971 $ 1,612,971 $ 1,612,971 $ 1,612,971 $ 1,612,971 $ 1,612,971 $ 1,612,971 $ 1,612,971 $ 1,612,971 $ 134,414 $ 134,414 $ 134,414 $ 134,414 $ 134,414 $ $ 44,686,839 $ 44,686,839 $ 44,686,839 $ 44,686,839 $ 44,686,839 $ 7.219% 7.219% 7.219% 7.219% 7.219% $ 3,225,943 $ 3,225,943 $ 3,225,943 $ 3,225,943 $ 3,225,943 $ $ 268,829 $ 268,829 $ 268,829 $ 268,829 $ 268,829 $ 134,414 $ 134,414 $ 134,414 $ 134,414 $ 134,414 $ 44,686,839 $ 7.219% 3,225,943 $ 44,686,839 $ 7.219% 3,225,943 $ 44,686,839 $ 7.219% 3,225,943 $ 44,686,839 $ 7.219% 3,225,943 $ 44,686,839 $ 7.219% 3,225,943 $ 268,829 268,829 268,829 268,829 268,829 $ $ $ $ $ 134,414 $ 134,414 44,686,839 $ 44,686,839 7.219% 7.219% 3,225,943 $ 3,225,943 268,829 $ 268,829 Columbia Gas of Massachusetts Witness: R. D. Gibbons D.P.U. 17-GSEP-05 Exh. CMA/RDG-2 Schedule 3 - 2016 in 2016 2018 Gas System Enhancement Program Calculation of Deferred Taxes For the Year Ending December 31, 2016 Line No. 2016 Reference 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 Federal Tax Depreciation Capital Repairs Deduction Mains, Services, and Meter Set Additions Capital Repairs & Section 263A Mixed. Serv. Cost Deduction Rate Capital Repairs Deduction Bonus Depreciation Mains, Services, and Meter Set Additions Less Capital Repairs Deduction Mains, Services, and Meter Set Additions Net of Capital Repairs Deduction Bonus Depreciation rate Bonus Depreciation Remaining Tax Depreciation Mains, Services, and Meter Set Additions Less Capital Repairs Deduction Less Bonus Depreciation Mains & Services Additions Subject to 20 YR MACRS Tax Depreciation 20 YR MACRS Tax Depreciation Rates Remaining Tax Depreciation Monthly Remaining Tax Depreciation January February March April May June July August September October November December Total Remaining Tax Depreciation Deduction for Cost of Removal Total Federal Tax Depreciation, Cost of Removal and Repairs Deduction State Tax Depreciation Capital Repairs Deduction Mains, Services, and Meter Set Additions Capital Repairs Deduction Rate Capital Repairs Deduction Remaining Tax Depreciation Mains, Services, and Meter Set Additions Less Capital Repairs Deduction Mains, Services, and Meter Set Additions Net of Capital Repairs Deduction 20 YR MACRS Tax Depreciation Rates Remaining State Tax Depreciation Monthly Remaining Tax Depreciation January February March April May June July August September October November December Total Remaining Tax Depreciation Deduction for Cost of Removal Total State Tax Depreciation, Cost of Removal and Repairs Deduction ADIT NOL Calculation: GSEP Actual Additions-2016 Total Actual Additions-2016 GSEP Actual Additions to Total Actual Additions 2016 NOL ADIT Creation 2016 NOL ADIT Allocated to GSEP (Line 77 * Line 79) Monthly NOL ADIT Allocation Monthly Cumulative NOL ADIT January (a) Sch. 2 2016 in 2016, Lines 8 and 24 $ Line 3 * Line 4 $ Line 3 Line 5 Line 8 - Line 9 $ $ $ Line 10 * Line 11 $ Line 3 Line 5 Line 12 Line 15 - Line 16 - Line 17 $ $ Line 18 * Line 19 $ $ February (b) March (c) April (d) May (e) June (f) July (g) August (h) September (i) October (j) November (k) December (l) 7,378,689 $ 5,097,270 $ 13,828,129 $ 7,200,266 109,024 $ 1,137,038 $ 1,326,579 $ 2,304,432 $ 5,018,624 $ 5,162,956 $ 4,410,474 $ 10,926,364 $ 35.515900% 35.515900% 35.515900% 35.515900% 35.515900% 35.515900% 35.515900% 35.515900% 35.515900% 35.515900% 35.515900% 35.515900% 818,440 $ 1,782,410 $ 471,147 $ 403,829 $ 1,833,670 $ 38,721 $ 1,566,420 $ 3,880,596 $ 2,620,608 $ 1,810,341 $ 4,911,184 $ 2,557,239 109,024 38,721 70,303 50% 35,151 $ 1,137,038 $ 403,829 $ 733,209 50% $ 366,605 $ 1,326,579 $ 471,147 $ 855,432 50% $ 427,716 $ 2,304,432 $ 818,440 $ 1,485,992 50% $ 742,996 $ 5,018,624 $ 1,782,410 $ 3,236,214 50% $ 1,618,107 $ $ $ $ 109,024 $ 1,137,038 $ 1,326,579 $ 2,304,432 $ 5,018,624 $ 38,721 $ 403,829 $ 471,147 $ 818,440 $ 1,782,410 $ 35,151 366,605 427,716 742,996 1,618,107 $35,151 $366,605 $427,716 $742,996 $1,618,107 3.750% 3.750% 3.750% 3.750% 3.750% 1,318 $ 13,748 $ 16,039 $ 27,862 $ 60,679 $ 110 $ $ 110 1,250 $ $ $ 110 1,250 1,604 $ $ $ $ 110 1,250 1,604 3,096 $ $ $ $ $ 110 1,250 1,604 3,096 7,585 $ $ $ $ $ $ 5,162,956 1,833,670 3,329,286 50% 1,664,643 $ $ $ $ 5,162,956 $ 1,833,670 $ 1,664,643 $1,664,643 3.750% 62,424 $ 4,410,474 1,566,420 2,844,054 50% 1,422,027 $ $ $ $ 4,410,474 $ 1,566,420 $ 1,422,027 $1,422,027 3.750% 53,326 $ 110 1,250 1,604 3,096 7,585 8,918 $ $ $ $ $ $ $ 110 1,250 1,604 3,096 7,585 8,918 8,888 $ $ $ $ $ $ $ $ 10,926,364 3,880,596 7,045,768 50% 3,522,884 $ $ $ $ 7,378,689 2,620,608 4,758,081 50% 2,379,040 $ $ $ $ 5,097,270 1,810,341 3,286,929 50% 1,643,464 $ $ $ $ 10,926,364 $ 3,880,596 $ 3,522,884 $3,522,884 3.750% 132,108 $ 7,378,689 $ 2,620,608 $ 2,379,040 $2,379,040 3.750% 89,214 $ 5,097,270 $ 1,810,341 $ 1,643,464 $1,643,464 3.750% 61,630 $ 110 1,250 1,604 3,096 7,585 8,918 8,888 26,422 $ $ $ $ $ $ $ $ $ 110 1,250 1,604 3,096 7,585 8,918 8,888 26,422 22,304 $ $ $ $ $ $ $ $ $ $ 110 1,250 1,604 3,096 7,585 8,918 8,888 26,422 22,304 20,543 13,828,129 4,911,184 8,916,945 50% 4,458,472 $ $ $ $ 7,200,266 2,557,239 4,643,027 50% 2,321,514 13,828,129 $ 7,200,266 4,911,184 $ 2,557,239 4,458,472 2,321,514 $4,458,472 $2,321,514 3.750% 3.750% 167,193 $ 87,057 $ $ $ $ $ $ $ $ $ $ $ 110 1,250 1,604 3,096 7,585 8,918 8,888 26,422 22,304 20,543 83,597 184,315 $ $ $ $ $ $ $ $ $ $ $ $ $ 110 1,250 1,604 3,096 7,585 8,918 8,888 26,422 22,304 20,543 83,597 87,057 271,372 Line 23 Through Line 34 $ 110 $ 1,360 $ 2,964 $ 6,059 $ 13,644 $ 22,562 $ 31,450 $ 57,871 $ 80,175 $ 100,718 $ Sch. 2 2016 in 2016, Line 51 $ 153,362 $ 352,126 $ 448,596 $ 17,829 $ 245,054 $ 279,178 $ 78,917 $ 156,832 $ 133,697 $ 58,492 $ 64,178 $ 371,094 Sum of Lines 5, 12, 35 and 37 $ 227,344 $ 1,123,920 $ 3,659,215 $ 3,800,053 $ 3,098,814 $ 7,618,183 $ 5,213,520 $ 3,613,016 $ 9,618,149 $ 5,521,218 Line 3 Line 4 Line 43 * Line 44 $ Line 43 Line 45 Line 48 - Line 49 $ $ $ Line 50 * Line 51 $ $ $ 1,350,422 $ 1,585,325 109,024 $ 1,137,038 $ 1,326,579 $ 2,304,432 $ 5,018,624 $ 5,162,956 $ 4,410,474 $ 10,926,364 $ 7,378,689 $ 5,097,270 $ 13,828,129 $ 7,200,266 35.515900% 35.515900% 35.515900% 35.515900% 35.515900% 35.515900% 35.515900% 35.515900% 35.515900% 35.515900% 35.515900% 35.515900% 38,721 $ 403,829 $ 471,147 $ 818,440 $ 1,782,410 $ 1,833,670 $ 1,566,420 $ 3,880,596 $ 2,620,608 $ 1,810,341 $ 4,911,184 $ 2,557,239 109,024 38,721 70,303 3.750% 2,636 $ 1,137,038 $ 403,829 $ 733,209 3.750% $ 27,495 $ 1,326,579 $ 471,147 $ 855,432 3.750% $ 32,079 $ 2,304,432 $ 818,440 $ 1,485,992 3.750% $ 55,725 $ 5,018,624 $ 1,782,410 $ 3,236,214 3.750% $ 121,358 $ $ $ $ 5,162,956 1,833,670 3,329,286 3.750% 124,848 $ $ $ $ 4,410,474 1,566,420 2,844,054 3.750% 106,652 $ $ $ $ 10,926,364 3,880,596 7,045,768 3.750% 264,216 $ $ $ $ 7,378,689 2,620,608 4,758,081 3.750% 178,428 $ $ $ $ 5,097,270 1,810,341 3,286,929 3.750% 123,260 $ $ $ $ 13,828,129 4,911,184 8,916,945 3.750% 334,385 $ 220 $ $ 220 2,500 $ $ $ 220 2,500 3,208 $ $ $ $ 220 2,500 3,208 6,192 $ $ $ $ $ 220 2,500 3,208 6,192 15,170 $ $ $ $ $ $ 220 2,500 3,208 6,192 15,170 17,835 $ $ $ $ $ $ $ 220 2,500 3,208 6,192 15,170 17,835 17,775 $ $ $ $ $ $ $ $ 220 2,500 3,208 6,192 15,170 17,835 17,775 52,843 $ $ $ $ $ $ $ $ $ 220 2,500 3,208 6,192 15,170 17,835 17,775 52,843 44,607 $ $ $ $ $ $ $ $ $ $ 220 2,500 3,208 6,192 15,170 17,835 17,775 52,843 44,607 41,087 $ $ $ $ $ $ $ $ $ $ $ 220 2,500 3,208 6,192 15,170 17,835 17,775 52,843 44,607 41,087 167,193 Line 55 Through Line 66 $ 220 $ 2,719 $ 5,927 $ 12,119 $ 27,289 $ 45,124 $ 62,899 $ 115,742 $ 160,349 $ 201,436 $ 368,629 Line 37 $ 153,362 $ 352,126 $ 448,596 $ 17,829 $ Sum of Lines 45, 67 and 70 $ 192,303 $ 758,675 $ 925,670 $ 848,388 $ $ 9,044 9,911 $ $ 10,551 20,462 $ $ 18,329 38,791 Line 75 / Line 76 $ $ $ $ 7,200,266 2,557,239 4,643,027 3.750% 174,114 $ $ $ $ $ $ $ $ $ $ $ $ $ 220 2,500 3,208 6,192 15,170 17,835 17,775 52,843 44,607 41,087 167,193 174,114 542,743 245,054 $ 279,178 $ 78,917 $ 156,832 $ 133,697 $ 58,492 $ 64,178 $ 371,094 $ 2,054,752 $ 2,157,972 $ 1,708,237 $ 4,153,170 $ 2,914,655 $ 2,070,270 $ 5,343,991 $ 3,471,076 $ $ $ $ 41,065 119,773 $ $ 35,080 154,853 $ $ 86,906 241,759 $ $ 58,689 300,448 $ $ 40,543 340,991 $ $ 109,986 450,977 $ $ 57,269 508,246 $ 63,899,846 $ 124,070,468 51.50% As filed per D.P.U. 17-GREC-05 Line 79 * Line 77 $ $ 986,831 508,246 (Line 3 / Line 75, Col a) * Line 80 Prior Mo. Line 83 + Current Mo. Line 82 $ $ 867 867 39,917 78,708 Columbia Gas of Massachusetts Witness: R. D. Gibbons D.P.U. 17-GSEP-05 Exh. CMA/RDG-2 Schedule 3 - 2016 in 2017 2018 Gas System Enhancement Program Calculation of Deferred Taxes For the Year Ending December 31, 2017 Line No. Reference 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Federal Tax Depreciation Remaining Tax Depreciation Mains & Services Subject to 20 YR MACRS Tax Depreciation 20 YR MACRS Tax Depreciation Rates Remaining Tax Depreciation Total Monthly Federal Tax Depreciation, Cost of Removal and Repairs Deduction State Tax Depreciation Remaining Tax Depreciation Mains, Services, and Meter Set Net of Capital Repairs Deduction 20 YR MACRS Tax Depreciation Rates Remaining State Tax Depreciation Total Monthly State Tax Depreciation, Cost of Removal and Repairs Deduction Sum of Prior Year (Jan thru Dec) Line 18 Line 3 * Line 4 Line 5 divided by 12 Sum of Prior Year (Jan thru Dec) Line 50 Line 11 * Line 12 Line 13 divided by 12 January (a) February (b) March (c) April (d) May (e) 2016 Investments in Calendar Year 2017 June July August (f) (g) (h) September (i) October (j) November (k) December (l) $20,602,620 $20,602,620 $20,602,620 $20,602,620 $20,602,620 $20,602,620 $20,602,620 $20,602,620 $20,602,620 $20,602,620 $20,602,620 $20,602,620 7.219% 7.219% 7.219% 7.219% 7.219% 7.219% 7.219% 7.219% 7.219% 7.219% 7.219% 7.219% 1,487,303 $ 1,487,303 $ $ 1,487,303 $ 1,487,303 $ 1,487,303 $ 1,487,303 $ 1,487,303 $ 1,487,303 $ 1,487,303 $ 1,487,303 $ 1,487,303 $ 1,487,303 $ 123,942 $ 123,942 $ 123,942 $ 123,942 $ 123,942 $ $ 41,205,241 $ 41,205,241 $ 41,205,241 $ 41,205,241 $ 41,205,241 $ 7.219% 7.219% 7.219% 7.219% 7.219% $ 2,974,606 $ 2,974,606 $ 2,974,606 $ 2,974,606 $ 2,974,606 $ $ 247,884 $ 247,884 $ 247,884 $ 247,884 $ 247,884 $ 123,942 $ 123,942 $ 123,942 $ 123,942 $ 123,942 $ 41,205,241 $ 7.219% 2,974,606 $ 41,205,241 $ 7.219% 2,974,606 $ 41,205,241 $ 7.219% 2,974,606 $ 41,205,241 $ 7.219% 2,974,606 $ 41,205,241 $ 7.219% 2,974,606 $ 247,884 247,884 247,884 247,884 247,884 $ $ $ $ $ 123,942 $ 123,942 41,205,241 $ 41,205,241 7.219% 7.219% 2,974,606 $ 2,974,606 247,884 $ 247,884 Columbia Gas of Massachusetts Witness: R. D. Gibbons D.P.U. 17-GSEP-05 Exh. CMA/RDG-2 Schedule 3 - 2016 in 2018 2018 Gas System Enhancement Program Calculation of Deferred Taxes For the Year Ending December 31, 2018 Line No. Reference 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Federal Tax Depreciation Remaining Tax Depreciation Mains & Services Subject to 20 YR MACRS Tax Depreciation 20 YR MACRS Tax Depreciation Rates Remaining Tax Depreciation Total Monthly Federal Tax Depreciation, Cost of Removal and Repairs Deduction State Tax Depreciation Remaining Tax Depreciation Mains, Services, and Meter Set Net of Capital Repairs Deduction 20 YR MACRS Tax Depreciation Rates Remaining State Tax Depreciation Total Monthly State Tax Depreciation, Cost of Removal and Repairs Deduction Sum of Prior Year (Jan thru Dec) Line 18 Line 3 * Line 4 Line 5 divided by 12 Sum of Prior Year (Jan thru Dec) Line 50 Line 11 * Line 12 Line 13 divided by 12 January (a) February (b) March (c) April (d) May (e) 2016 Investments in Calendar Year 2018 June July August (f) (g) (h) September (i) October (j) November (k) December (l) $20,602,620 $20,602,620 $20,602,620 $20,602,620 $20,602,620 $20,602,620 $20,602,620 $20,602,620 $20,602,620 $20,602,620 $20,602,620 $20,602,620 6.677% 6.677% 6.677% 6.677% 6.677% 6.677% 6.677% 6.677% 6.677% 6.677% 6.677% 6.677% 1,375,637 $ 1,375,637 $ $ 1,375,637 $ 1,375,637 $ 1,375,637 $ 1,375,637 $ 1,375,637 $ 1,375,637 $ 1,375,637 $ 1,375,637 $ 1,375,637 $ 1,375,637 $ 114,636 $ 114,636 $ 114,636 $ 114,636 $ 114,636 $ $ 41,205,241 $ 41,205,241 $ 41,205,241 $ 41,205,241 $ 41,205,241 $ 6.677% 6.677% 6.677% 6.677% 6.677% $ 2,751,274 $ 2,751,274 $ 2,751,274 $ 2,751,274 $ 2,751,274 $ $ 229,273 $ 229,273 $ 229,273 $ 229,273 $ 229,273 $ 114,636 $ 114,636 $ 114,636 $ 114,636 $ 114,636 $ 41,205,241 $ 6.677% 2,751,274 $ 41,205,241 $ 6.677% 2,751,274 $ 41,205,241 $ 6.677% 2,751,274 $ 41,205,241 $ 6.677% 2,751,274 $ 41,205,241 $ 6.677% 2,751,274 $ 229,273 229,273 229,273 229,273 229,273 $ $ $ $ $ 114,636 $ 114,636 41,205,241 $ 41,205,241 6.677% 6.677% 2,751,274 $ 2,751,274 229,273 $ 229,273 Columbia Gas of Massachusetts Witness: R. D. Gibbons D.P.U. 17-GSEP-05 Exh. CMA/RDG-2 Schedule 3 - 2015 in 2015 2018 Gas System Enhancement Program Calculation of Deferred Taxes For the Year Ending December 31, 2015 Line No. 2015 Reference 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 Federal Tax Depreciation Capital Repairs Deduction Mains, Services, and Meter Set Additions Capital Repairs & Section 263A Mixed. Serv. Cost Deduction Rate Capital Repairs Deduction Bonus Depreciation Mains, Services, and Meter Set Additions Less Capital Repairs Deduction Mains, Services, and Meter Set Additions Net of Capital Repairs Deduction Bonus Depreciation rate Bonus Depreciation Remaining Tax Depreciation Mains, Services, and Meter Set Additions Less Capital Repairs Deduction Less Bonus Depreciation Mains & Services Additions Subject to 20 YR MACRS Tax Depreciation 20 YR MACRS Tax Depreciation Rates Remaining Tax Depreciation Monthly Remaining Tax Depreciation January February March April May June July August September October November December Total Remaining Tax Depreciation Deduction for Cost of Removal Total Federal Tax Depreciation, Cost of Removal and Repairs Deduction State Tax Depreciation Capital Repairs Deduction Mains, Services, and Meter Set Additions Capital Repairs Deduction Rate Capital Repairs Deduction Remaining Tax Depreciation Mains, Services, and Meter Set Additions Less Capital Repairs Deduction Mains, Services, and Meter Set Additions Net of Capital Repairs Deduction 20 YR MACRS Tax Depreciation Rates Remaining State Tax Depreciation Monthly Remaining Tax Depreciation January February March April May June July August September October November December Total Remaining Tax Depreciation Deduction for Cost of Removal Total State Tax Depreciation, Cost of Removal and Repairs Deduction ADIT NOL Calculation: GSEP Actual Additions-2015 Total Actual Additions-2015 GSEP Actual Additions to Total Actual Additions 2015 NOL ADIT Creation 2015 NOL ADIT Allocated to GSEP Monthly NOL ADIT Allocation Monthly Cumulative NOL ADIT January (a) February (b) March (c) April (d) May (e) June (f) July (g) August (h) September (i) October (j) November (k) December (l) 5,391,843 $ 4,008,526 $ 5,472,306 $ 11,098,267 $ 10,438,659 267,833 $ 341,569 $ 520,817 $ 1,429,670 $ 2,055,376 $ 4,453,737 $ 3,703,211 $ 35.515900% 35.515900% 35.515900% 35.515900% 35.515900% 35.515900% 35.515900% 35.515900% 35.515900% 35.515900% 35.515900% 35.515900% 507,760 $ 184,973 $ 729,985 $ 121,311 $ 1,581,785 $ 95,123 $ 1,315,229 $ 1,423,664 $ 1,914,962 $ 1,943,539 $ 3,941,650 $ 3,707,384 Sch. 2 2015 in 2015, Lines 8 and 24 $ Line 3 * Line 4 $ Line 3 Line 5 Line 8 - Line 9 $ $ $ Line 10 * Line 11 $ Line 3 Line 5 Line 12 Line 15 - Line 16 - Line 17 $ $ Line 18 * Line 19 $ 267,833 $ 95,123 $ 86,355 $86,355 3.750% 3,238 $ $ 270 $ $ 270 375 $ $ $ 270 375 630 $ $ $ $ 270 375 630 1,921 267,833 95,123 172,710 50% 86,355 $ $ $ $ 341,569 121,311 220,258 50% 110,129 $ $ $ $ 341,569 $ 121,311 $ 110,129 $110,129 3.750% 4,130 $ 520,817 184,973 335,844 50% 167,922 $ 1,429,670 $ 507,760 $ 921,910 50% $ 460,955 $ 2,055,376 $ 729,985 $ 1,325,391 50% $ 662,696 $ $ $ $ 520,817 $ 1,429,670 $ 2,055,376 $ 184,973 $ 507,760 $ 729,985 $ 167,922 460,955 662,696 $167,922 $460,955 $662,696 3.750% 3.750% 3.750% 6,297 $ 17,286 $ 24,851 $ 4,453,737 1,581,785 2,871,952 50% 1,435,976 $ $ $ $ 4,453,737 $ 1,581,785 $ 1,435,976 $1,435,976 3.750% 53,849 $ $ $ $ $ $ 270 375 630 1,921 3,106 $ $ $ $ $ $ 270 375 630 1,921 3,106 7,693 $ $ $ $ $ $ $ 3,703,211 1,315,229 2,387,982 50% 1,193,991 $ $ $ $ 3,703,211 $ 1,315,229 $ 1,193,991 $1,193,991 3.750% 44,775 $ 4,008,526 1,423,664 2,584,862 50% 1,292,431 $ $ $ $ 4,008,526 $ 1,423,664 $ 1,292,431 $1,292,431 3.750% 48,466 $ 5,391,843 1,914,962 3,476,881 50% 1,738,441 $ $ $ $ 5,472,306 1,943,539 3,528,767 50% 1,764,383 $ $ $ $ 11,098,267 3,941,650 7,156,617 50% 3,578,309 5,391,843 $ 1,914,962 $ 1,738,441 $1,738,441 3.750% 65,192 $ 5,472,306 $ 1,943,539 $ 1,764,383 $1,764,383 3.750% 66,164 $ 270 375 630 1,921 3,106 7,693 7,463 9,693 16,298 22,055 $ $ $ $ $ $ $ $ $ $ $ 270 375 630 1,921 3,106 7,693 7,463 9,693 16,298 22,055 67,094 136,597 270 375 630 1,921 3,106 7,693 7,463 $ $ $ $ $ $ $ $ 270 375 630 1,921 3,106 7,693 7,463 9,693 $ $ $ $ $ $ $ $ $ 270 375 630 1,921 3,106 7,693 7,463 9,693 16,298 $ $ $ $ $ $ $ $ $ $ $ 10,438,659 $ 3,707,384 $ 6,731,275 50% $ 3,365,637 11,098,267 $ 10,438,659 3,941,650 $ 3,707,384 3,578,309 3,365,637 $3,578,309 $3,365,637 3.750% 3.750% 134,187 $ 126,211 $ $ $ $ $ $ $ $ $ $ $ $ $ 270 375 630 1,921 3,106 7,693 7,463 9,693 16,298 22,055 67,094 126,211 262,808 Line 23 Through Line 34 $ 270 $ 645 $ 1,275 $ 3,196 $ 6,302 $ 13,995 $ 21,457 $ 31,150 $ 47,448 $ 69,503 $ Sch. 2 2015 in 2015, Line 51 $ - $ - $ - $ - $ 20 $ - $ 15,508 $ 19,303 $ 43,479 $ 250,530 $ 88,585 $ 576,475 Sum of Lines 5, 12, 35 and 37 $ $ 1,399,002 $ $ 2,546,185 $ 2,766,548 $ 3,744,330 $ 4,027,956 $ 7,745,140 $ 7,912,304 Line 3 Line 4 Line 43 * Line 44 $ Line 43 Line 45 Line 48 - Line 49 $ $ $ Line 50 * Line 51 $ $ 181,748 $ 232,085 $ 354,170 $ 971,911 3,031,756 267,833 $ 341,569 $ 520,817 $ 1,429,670 $ 2,055,376 $ 4,453,737 $ 3,703,211 $ 4,008,526 $ 5,391,843 $ 5,472,306 $ 11,098,267 $ 10,438,659 35.515900% 35.515900% 35.515900% 35.515900% 35.515900% 35.515900% 35.515900% 35.515900% 35.515900% 35.515900% 35.515900% 35.515900% 95,123 $ 121,311 $ 184,973 $ 507,760 $ 729,985 $ 1,581,785 $ 1,315,229 $ 1,423,664 $ 1,914,962 $ 1,943,539 $ 3,941,650 $ 3,707,384 267,833 95,123 172,710 3.750% 6,477 $ $ $ $ 341,569 121,311 220,258 3.750% 8,260 $ $ $ $ 520,817 184,973 335,844 3.750% 12,594 $ 1,429,670 $ 507,760 $ 921,910 3.750% $ 34,572 $ 2,055,376 $ 729,985 $ 1,325,391 3.750% $ 49,702 $ $ $ $ 4,453,737 1,581,785 2,871,952 3.750% 107,698 $ $ $ $ 3,703,211 1,315,229 2,387,982 3.750% 89,549 $ $ $ $ 4,008,526 1,423,664 2,584,862 3.750% 96,932 $ $ $ $ 5,391,843 1,914,962 3,476,881 3.750% 130,383 $ $ $ $ 5,472,306 1,943,539 3,528,767 3.750% 132,329 $ $ $ $ 11,098,267 3,941,650 7,156,617 3.750% 268,373 $ 10,438,659 $ 3,707,384 $ 6,731,275 3.750% $ 252,423 $ 540 $ $ 540 751 $ $ $ 540 751 1,259 $ $ $ $ 540 751 1,259 3,841 $ $ $ $ $ 540 751 1,259 3,841 6,213 $ $ $ $ $ $ 540 751 1,259 3,841 6,213 15,385 $ $ $ $ $ $ $ 540 751 1,259 3,841 6,213 15,385 14,925 $ $ $ $ $ $ $ $ 540 751 1,259 3,841 6,213 15,385 14,925 19,386 $ $ $ $ $ $ $ $ $ 540 751 1,259 3,841 6,213 15,385 14,925 19,386 32,596 $ $ $ $ $ $ $ $ $ $ 540 751 1,259 3,841 6,213 15,385 14,925 19,386 32,596 44,110 $ $ $ $ $ $ $ $ $ $ $ 540 751 1,259 3,841 6,213 15,385 14,925 19,386 32,596 44,110 134,187 Line 55 Through Line 66 $ 540 $ 1,291 $ 2,550 $ 6,391 $ 12,604 $ 27,990 $ 42,914 $ 62,301 $ 94,897 $ 139,006 $ 273,193 Line 37 $ - $ - $ 20 $ - $ 15,508 $ 19,303 $ 43,479 $ 250,530 $ 88,585 $ 576,475 Sum of Lines 45, 67 and 70 $ 95,663 $ 122,602 $ 187,523 $ 514,151 $ 742,609 $ 1,609,775 $ 1,373,651 $ 1,505,268 $ 2,053,337 $ 2,333,076 $ 4,303,428 $ 4,809,475 $ $ 4,067 7,256 $ $ 6,201 13,457 $ $ 17,022 30,479 $ $ 24,472 54,951 $ $ 53,028 107,978 $ $ 44,092 152,070 $ $ 47,727 199,797 $ $ 64,197 263,994 $ $ 65,155 329,149 $ $ 132,139 461,288 $ $ 124,286 585,574 Line 75 / Line 76 - $ - $ $ $ $ $ $ $ $ $ $ $ $ $ $ 540 751 1,259 3,841 6,213 15,385 14,925 19,386 32,596 44,110 134,187 252,423 525,616 $ 49,181,813 $ 103,660,188 47.45% 2015 Federal Tax Return Line 79 * Line 77 $ $ 1,234,211 585,574 (Line 3 / Line 75, Col a) * Line 80 Prior Mo. Line 83 + Current Mo. Line 82 $ $ 3,189 3,189 Columbia Gas of Massachusetts Witness: R. D. Gibbons D.P.U. 17-GSEP-05 Exh. CMA/RDG-2 Schedule 3 - 2015 in 2016 2018 Gas System Enhancement Program Calculation of Deferred Taxes For the Year Ending December 31, 2016 Line No. Reference 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Federal Tax Depreciation Remaining Tax Depreciation Mains & Services Subject to 20 YR MACRS Tax Depreciation 20 YR MACRS Tax Depreciation Rates Remaining Tax Depreciation Total Monthly Federal Tax Depreciation, Cost of Removal and Repairs Deduction State Tax Depreciation Remaining Tax Depreciation Mains, Services, and Meter Set Net of Capital Repairs Deduction 20 YR MACRS Tax Depreciation Rates Remaining State Tax Depreciation Total Monthly State Tax Depreciation, Cost of Removal and Repairs Deduction Sum of Prior Year (Jan thru Dec) Line 18 Line 3 * Line 4 Line 5 divided by 12 Sum of Prior Year (Jan thru Dec) Line 50 Line 11 * Line 12 Line 13 divided by 12 January (a) February (b) March (c) April (d) May (e) 2015 Investments in Calendar Year 2016 June July August (f) (g) (h) September (i) October (j) November (k) December (l) $15,857,224 $15,857,224 $15,857,224 $15,857,224 $15,857,224 $15,857,224 $15,857,224 $15,857,224 $15,857,224 $15,857,224 $15,857,224 $15,857,224 7.219% 7.219% 7.219% 7.219% 7.219% 7.219% 7.219% 7.219% 7.219% 7.219% 7.219% 7.219% 1,144,733 $ 1,144,733 $ $ 1,144,733 $ 1,144,733 $ 1,144,733 $ 1,144,733 $ 1,144,733 $ 1,144,733 $ 1,144,733 $ 1,144,733 $ 1,144,733 $ 1,144,733 $ 95,394 $ 95,394 $ 95,394 $ 95,394 $ 95,394 $ $ 31,714,448 $ 31,714,448 $ 31,714,448 $ 31,714,448 $ 31,714,448 $ 7.219% 7.219% 7.219% 7.219% 7.219% $ 2,289,466 $ 2,289,466 $ 2,289,466 $ 2,289,466 $ 2,289,466 $ $ 190,789 $ 190,789 $ 190,789 $ 190,789 $ 190,789 $ 95,394 $ 95,394 $ 95,394 $ 95,394 $ 95,394 $ 31,714,448 $ 7.219% 2,289,466 $ 31,714,448 $ 7.219% 2,289,466 $ 31,714,448 $ 7.219% 2,289,466 $ 31,714,448 $ 7.219% 2,289,466 $ 31,714,448 $ 7.219% 2,289,466 $ 190,789 190,789 190,789 190,789 190,789 $ $ $ $ $ 95,394 $ 95,394 31,714,448 $ 31,714,448 7.219% 7.219% 2,289,466 $ 2,289,466 190,789 $ 190,789 Columbia Gas of Massachusetts Witness: R. D. Gibbons D.P.U. 17-GSEP-05 Exh. CMA/RDG-2 Schedule 3 - 2015 in 2017 2018 Gas System Enhancement Program Calculation of Deferred Taxes For the Year Ending December 31, 2017 Line No. Reference 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Federal Tax Depreciation Remaining Tax Depreciation Mains & Services Subject to 20 YR MACRS Tax Depreciation 20 YR MACRS Tax Depreciation Rates Remaining Tax Depreciation Total Monthly Federal Tax Depreciation, Cost of Removal and Repairs Deduction State Tax Depreciation Remaining Tax Depreciation Mains, Services, and Meter Set Net of Capital Repairs Deduction 20 YR MACRS Tax Depreciation Rates Remaining State Tax Depreciation Total Monthly State Tax Depreciation, Cost of Removal and Repairs Deduction Sum of Prior Year (Jan thru Dec) Line 18 Line 3 * Line 4 Line 5 divided by 12 Sum of Prior Year (Jan thru Dec) Line 50 Line 11 * Line 12 Line 13 divided by 12 January (a) February (b) March (c) April (d) May (e) 2015 Investments in Calendar Year 2017 June July August (f) (g) (h) September (i) October (j) November (k) December (l) $15,857,224 $15,857,224 $15,857,224 $15,857,224 $15,857,224 $15,857,224 $15,857,224 $15,857,224 $15,857,224 $15,857,224 $15,857,224 $15,857,224 6.670% 6.670% 6.670% 6.670% 6.670% 6.670% 6.670% 6.670% 6.670% 6.670% 6.670% 6.670% 1,057,677 $ 1,057,677 $ $ 1,057,677 $ 1,057,677 $ 1,057,677 $ 1,057,677 $ 1,057,677 $ 1,057,677 $ 1,057,677 $ 1,057,677 $ 1,057,677 $ 1,057,677 $ 88,140 $ 88,140 $ 88,140 $ 88,140 $ 88,140 $ $ 31,714,448 $ 31,714,448 $ 31,714,448 $ 31,714,448 $ 31,714,448 $ 6.670% 6.670% 6.670% 6.670% 6.670% $ 2,115,354 $ 2,115,354 $ 2,115,354 $ 2,115,354 $ 2,115,354 $ $ 176,280 $ 176,280 $ 176,280 $ 176,280 $ 176,280 $ 88,140 $ 88,140 $ 88,140 $ 88,140 $ 88,140 $ 31,714,448 $ 6.670% 2,115,354 $ 31,714,448 $ 6.670% 2,115,354 $ 31,714,448 $ 6.670% 2,115,354 $ 31,714,448 $ 6.670% 2,115,354 $ 31,714,448 $ 6.670% 2,115,354 $ 176,280 176,280 176,280 176,280 176,280 $ $ $ $ $ 88,140 $ 88,140 31,714,448 $ 31,714,448 6.670% 6.670% 2,115,354 $ 2,115,354 176,280 $ 176,280 Columbia Gas of Massachusetts Witness: R. D. Gibbons D.P.U. 17-GSEP-05 Exh. CMA/RDG-2 Schedule 3 - 2015 in 2018 2018 Gas System Enhancement Program Calculation of Deferred Taxes For the Year Ending December 31, 2018 Line No. Reference 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Federal Tax Depreciation Remaining Tax Depreciation Mains & Services Subject to 20 YR MACRS Tax Depreciation 20 YR MACRS Tax Depreciation Rates Remaining Tax Depreciation Total Monthly Federal Tax Depreciation, Cost of Removal and Repairs Deduction State Tax Depreciation Remaining Tax Depreciation Mains, Services, and Meter Set Net of Capital Repairs Deduction 20 YR MACRS Tax Depreciation Rates Remaining State Tax Depreciation Total Monthly State Tax Depreciation, Cost of Removal and Repairs Deduction Sum of Prior Year (Jan thru Dec) Line 18 January (a) $ Line 5 divided by 12 $ Line 11 * Line 12 Line 13 divided by 12 March (c) April (d) May (e) 2015 Investments in Calendar Year 2018 June July August (f) (g) (h) September (i) October (j) November (k) December (l) $15,857,224 $15,857,224 $15,857,224 $15,857,224 $15,857,224 $15,857,224 $15,857,224 $15,857,224 $15,857,224 $15,857,224 $15,857,224 $15,857,224 6.177% 6.177% 6.177% 6.177% 6.177% 6.177% 6.177% 6.177% 6.177% 6.177% 6.177% 6.177% 979,501 $ 979,501 $ 979,501 $ 979,501 $ 979,501 $ 979,501 $ 979,501 $ 979,501 $ 979,501 $ 979,501 $ 979,501 $ 979,501 Line 3 * Line 4 Sum of Prior Year (Jan thru Dec) Line 50 February (b) 81,625 $ 81,625 $ 81,625 $ 81,625 $ 81,625 $ $ 31,714,448 $ 31,714,448 $ 31,714,448 $ 31,714,448 $ 31,714,448 $ 6.177% 6.177% 6.177% 6.177% 6.177% $ 1,959,001 $ 1,959,001 $ 1,959,001 $ 1,959,001 $ 1,959,001 $ $ 163,250 $ 163,250 $ 163,250 $ 163,250 $ 163,250 $ 81,625 $ 81,625 $ 81,625 $ 81,625 $ 81,625 $ 31,714,448 $ 6.177% 1,959,001 $ 31,714,448 $ 6.177% 1,959,001 $ 31,714,448 $ 6.177% 1,959,001 $ 31,714,448 $ 6.177% 1,959,001 $ 31,714,448 $ 6.177% 1,959,001 $ 163,250 163,250 163,250 163,250 163,250 $ $ $ $ $ 81,625 $ 81,625 31,714,448 $ 31,714,448 6.177% 6.177% 1,959,001 $ 1,959,001 163,250 $ 163,250 Columbia Gas of Massachusetts Witness: R. D. Gibbons D.P.U. 17-GSEP-05 Exh. CMA/RDG-2 Schedule - 3A - 2018 in 2018 2018 Gas System Enhancement Program Calculation of Deferred Tax Normalization (Reg. Sec. 1.167) Line No. ADIT by Month 2018 2017 2016 1 2 3 4 5 6 7 8 9 10 11 12 13 12/31/2017 1/31/2018 2/28/2018 3/31/2018 4/30/2018 5/31/2018 6/30/2018 7/31/2018 8/31/2018 9/30/2018 10/31/2018 11/30/2018 12/31/2018 (1,275,855) (2,551,710) (3,827,565) (5,103,421) (6,379,276) (7,655,131) (8,930,986) (10,206,841) (11,482,696) (12,758,551) (14,034,407) (15,310,262) (16,027,575) (16,031,021) (16,034,467) (16,037,912) (16,041,358) (16,044,804) (16,048,250) (16,051,696) (16,055,142) (16,058,588) (16,062,034) (16,065,480) (16,068,926) (16,982,896) (16,984,296) (16,985,695) (16,987,095) (16,988,495) (16,989,894) (16,991,294) (16,992,693) (16,994,093) (16,995,493) (16,996,892) (16,998,292) (16,999,691) 14 Change in ADIT (15,310,262) (41,351) (16,795) 15 Difference of Ending ADIT Balance @ 12/31/2018 16 17 18 Impact to Rate Base (Monthly Average): Proforma Normalization Adjustment balance of ADIT Monthly Average of Forecasted Period ADIT 19 Difference (Increase to Rate Base) 2015 (12,501,988) (12,496,925) (12,491,862) (12,486,799) (12,481,736) (12,476,673) (12,471,610) (12,466,547) (12,461,484) (12,456,421) (12,451,358) (12,446,295) (12,441,232) 60,756 Total A (45,512,459) (46,788,097) (48,063,735) (49,339,372) (50,615,010) (51,890,648) (53,166,285) (54,441,923) (55,717,561) (56,993,198) (58,268,836) (59,544,474) (60,820,111) Activity B (1,275,638) (1,275,638) (1,275,638) (1,275,638) (1,275,638) (1,275,638) (1,275,638) (1,275,638) (1,275,638) (1,275,638) (1,275,638) (1,275,638) Remaining Days in Rate Effective Calendar Year C 246/246 215/246 185/246 154/246 123/246 93/246 62/246 32/246 1/246 Prorated Amount D=B*C (1,275,638) (1,114,887) (959,321) (798,570) (637,819) (482,253) (321,502) (165,937) (5,186) Per Reg. Sec. 1.167 E (45,512,459) (46,788,097) (48,063,735) (49,339,372) (50,615,010) (51,729,897) (52,689,218) (53,487,788) (54,125,607) (54,607,860) (54,929,362) (55,095,299) (55,100,485) Forecasted Monthly Average F (46,150,278) (47,425,916) (48,701,553) (49,977,191) (51,252,829) (52,528,466) (53,804,104) (55,079,742) (56,355,379) (57,631,017) (58,906,655) (60,182,292) Pro Forma Monthly Average G (46,150,278) (47,425,916) (48,701,553) (49,977,191) (51,172,453) (52,209,557) (53,088,503) (53,806,697) (54,366,733) (54,768,611) (55,012,330) (55,097,892) (15,307,652) (Col A, Ln 13 - Col. E, Ln 13) Col G, Ln 13 Col F, Ln 13 (5,719,626) ($55,097,892) ($60,182,292) ($5,084,400) Columbia Gas of Massachusetts Witness: R. D. Gibbons D.P.U. 17-GSEP-05 Exh. CMA/RDG-2 Schedule - 4 2018 Gas System Enhancement Program Calculation of Pre Tax Rate of Return D.P.U. 13-75 - Effective March 1, 2014 - October 31, 2015 Line No. Item Capital Ratio Cost Weighted Cost (1) (2) (3) (4) 1 Debt 46.32% 5.83% 2.70% 2 Equity 53.68% 9.55% 5.13% 3 Total 100.00% Tax Gross-up Factor (5) Pre-Tax Cost (6) 2.70% 59.80% 2/ 8.58% 7.83% 1/ 11.28% 1/ - Per Order at D.P.U. 13-75, Schedule 5, Page 387. 2018 Gas System Enhancement Program Calculation of Pre Tax Rate of Return D.P.U. 15-50 - Effective November 1, 2015 - Present Line No. Item Capital Ratio Cost Weighted Cost (1) (2) (3) (4) 4 Debt 46.46% 5.68% 2.64% 5 Equity 53.54% 9.55% 5.11% 6 Total 100.00% 7.75% 1/ 1/ - Per Order and Settlement Agreement of D.P.U. 15-50, Section 1.4 Cost of Capital. NOTE: 2/ Tax Gross-up Factor: Federal Rate State Rate Effective State Rate Total Tax Effective Rate Gross-up Factor 35.00% 8.00% 5.20% 40.20% 59.80% Tax Gross-up Factor (5) Pre-Tax Cost (6) 2.64% 59.80% 2/ 8.55% 11.19% Columbia Gas of Massachusetts Witness: R. D. Gibbons D.P.U. 17-GSEP-05 Exh. CMA/RDG-2 Schedule - 5 2018 Gas System Enhancement Program Calculation of Property Taxes Line No. 1 Property Tax Rate Calculation 2 3 4 Plant in Service Accumulated Depreciation Net Plant in Service 5 Net Plant in Service subject to Property Tax Expense 6 Property Tax Rate 7 Rate Year Property Tax Expense * 1/ 2015 GSEP 2016 2017 (2) (3) Reference 2015 (1) Sch 2, Ln 55 Sch 2, Ln 100 or 48 Line 2 + Line 3 $50,175,713 ($355,373) $49,820,340 Prior Year Line 4 1/ Ln 5 x Ln 6 Note: Yr 1 = $0, Yr 2 = $1/2) Per DPU 15-50, Exhibit CMA/TLS-5, Workpaper TLS - 2, Page 50 of 54. *--Reflects 1/2 year of property taxes on year 2 of investments due to the fiscal tax year being July -June. $0 2.60170% $0 2018 (4) 2016 (5) 2016 GSEP 2017 (6) 2018 (7) $66,259,201 ($521,686) $65,737,515 $66,259,201 ($2,033,487) $64,225,714 $66,259,201 ($3,545,288) $62,713,913 $65,737,515 $64,225,714 $50,175,713 ($1,612,709) $48,563,004 $50,175,713 ($2,870,046) $47,305,667 $50,175,713 ($4,127,382) $46,048,331 $49,820,340 $48,563,004 $47,305,667 2.60170% $648,088 2.60170% $1,263,464 2.60170% $1,230,752 $0 2.60170% $0 2.60170% $855,146 2.60170% $1,670,960 2017 GSEP 2017 2018 (8) (9) $72,960,410 ($550,725) $72,409,685 $0 2.60170% $0 $72,960,410 ($2,269,476) $70,690,934 $72,409,685 2.60170% $941,941 2018 GSEP 2018 (10) $83,855,251 ($627,497) $83,227,754 $0 2.60170% $0 Columbia Gas of Massachusetts Witness: R. D. Gibbons D.P.U. 17-GSEP-05 Exh. CMA/RDG-2 Schedule - 6 2018 Gas System Enhancement Program Calculation of GSEP Offsets Line No. Description (1) Amount (2) 1 2 3 4 Non-cathodically Protected Steel & Cast/Wrought Iron Mains Projected Miles Replaced-2015 Program Non-cathodically Protected Steel & Cast/Wrought Iron Mains Projected Miles Replaced-2016 Program Non-cathodically Protected Steel & Cast/Wrought Iron Mains Projected Miles Replaced-2017 Program Non-cathodically Protected Steel & Cast/Wrought Iron Mains Projected Miles Replaced-2018 Program 5 6 Offset Per Mile of Replaced Non-cathodically Protected Steel & Cast/Wrought Mains (3 Year Avg. Ending 2015) Offset Per Mile of Replaced Non-cathodically Protected Steel & Cast/Wrought Mains (3 Year Avg. Ending 2016) $ $ 2,240 2,346 7 8 9 10 11 Projected GSEP Savings - Non-cathodically Protected Steel & Cast/Wrought Iron Mains-2015 Program (Y1) Projected GSEP Savings - Non-cathodically Protected Steel & Cast/Wrought Iron Mains-2015 Program (Y2,Y3,Y4) Projected GSEP Savings - Non-cathodically Protected Steel & Cast/Wrought Iron Mains-2016 Program Projected GSEP Savings - Non-cathodically Protected Steel & Cast/Wrought Iron Mains-2017 Program Projected GSEP Savings - Non-cathodically Protected Steel & Cast/Wrought Iron Mains-2018 Program $ $ $ $ $ 95,169 99,672 104,162 117,600 137,335 12 13 14 15 16 Eligible GSEP Savings - Leak Repair Cost per Mile for Program Year 2015 & 2017 2013 Actual Corrosion Leak Repair - Bare Steel & Cast/Wrought Iron (b) Total Cost $2,222,992 Leak Volume 908 Cost per Leak Line 12 / Line 13 $2,448 Miles of BS & UPCS 1,023 Leaks per mile Line 13 / Line 15 0.89 18 19 20 21 22 42.5 44.4 52.5 58.5 2014 Actual (c) $1,771,751 839 $2,112 872 0.96 2015 Actual (d) $2,107,132 894 $2,357 830 1.08 $2,174 $2,032 $2,540 Eligible GSEP Savings - Leak Repair Cost per Mile for Program Year 2016 & 2018 2014 Actual Corrosion Leak Repair - Bare Steel & Cast/Wrought Iron (b) Total Cost $1,771,751 Leak Volume 839 Cost per Leak Line 18 / Line 19 $2,112 Miles of BS & UPCS 872 Leaks per mile Line 19 / Line 21 0.96 2015 Actual (c) $2,107,132 894 $2,357 830 1.08 2016 Actual (d) $1,897,702 691 $2,746 760 0.91 $2,540 $2,497 17 Eligible GSEP Savings - Costs per mile 23 Eligible GSEP Savings - Costs per mile Line 14 * Line 16 Line 20 * Line 22 $2,031 Reference (3) 3 Year Avg. (e) $2,033,958 880 $2,310 908 0.97 $2,240 3 Year Avg. (e) $1,925,528 808 $2,383 821 0.98 $2,346 Line 1 * Line 5 Line 1 * Line 6 Line 2 * Line 6 Line 3 * Line 5 Line 4 * Line 6 Columbia Gas of Massachusetts Witness: R. D. Gibbons D.P.U. 17-GSEP-05 Exh. CMA/RDG-2 Schedule - 7 2018 Gas System Enhancement Program Calculation of Overheads and Burdens Adjustment Line No. Description (1) 1 2 3 4 5 6 Depreciable Plant Additions--2015 Plant Additions - Mains Coated Steel Plastic Plant Additions - Services Plant Additions - Meter Sets & Other Plant Total 7 8 9 10 11 12 Depreciable Plant Additions--2016 Plant Additions - Mains Coated Steel Plastic Plant Additions - Services Plant Additions - Meter Sets & Other Plant Total 13 14 15 16 17 18 Depreciable Plant Additions--2017 Plant Additions - Mains Coated Steel Plastic Plant Additions - Services Plant Additions - Meter Sets & Other Plant Total 19 20 21 22 23 24 Depreciable Plant Additions--2018 Plant Additions - Mains Coated Steel Plastic Plant Additions - Services Plant Additions - Meter Sets & Other Plant Total Reference (2) Before Adjustment Amount (3) Adjustment Required (4) $0 $0 $0 $0 $0 After Adjustment Amount (5) (Line 1 thru Line 5) $0 $16,125,974 $15,534,393 $17,521,446 $0 $49,181,813 (Line 7 thru Line 11) $0 $1,417,262 $41,853,602 $23,667,254 $66,938,118 (Line 13 thru Line 17) $43,018,187 $0 $0 $26,280,813 $69,299,000 $0 $0 $0 $0 $0 $43,018,187 $0 $0 $26,280,813 $0 $69,299,000 (Line 19 thru Line 23) $48,000,000 $0 $0 $32,000,000 $80,000,000 $0 $0 $0 $0 $0 $48,000,000 $0 $0 $32,000,000 $0 $80,000,000 $0 ($64,328) ($1,899,704) ($1,074,239) ($3,038,272) Note: Column 4 - Adjustment Required - The Overhead and Burden Total is the total Adjustment as calculated in the annual reconciliation filing submitted each May 1 in an exhibit which is formatted similar to the Overhead and Burden Adjustment previously provided in TIRF filings. $0 $16,125,974 $15,534,393 $17,521,446 $0 $49,181,813 $0 $1,352,934 $39,953,898 $22,593,015 $0 $63,899,846 Columbia Gas of Massachusetts Witness: R. D. Gibbons D.P.U. 17-GSEP-05 Exh. CMA/RDG-2 Schedule - 8 2018 Gas System Enhancement Program Gas System Enhancement Adjustment Factor (GSEAF) by Rate Class Sectors Effective May 1, 2018 through April 30, 2019 Line No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 1/ Amount (1) 2018 GSEAF Filed Oct. 31, 2017 --- Total Revenue Requirement After Adjustments $ 26,839,882 Sch. 1, Col. 5, Ln. 26 GSEAF Calculation by Rate Class Sector RB Allocation - 2018 GSEP Revenue Requirement After Adjustments Allocated Cost 1/ May 18 - Apr 19 $$ Fcst Therms Rate Class Sectors Residential C&I - Low Annual Use C&I - Medium Annual Use C&I - High Annual Use C&I - Extra High Annual Use $ $ $ $ $ 16,616,661 2,371,970 3,376,021 2,304,832 2,170,399 Total $ 26,839,882 265,263,802 36,389,856 81,014,539 63,203,869 81,176,786 527,048,852 Rate Class Sector Allocation (per D.P.U. 12-126-A) Support Rate Base Allocation -- for GSEAF Rate Calculation Rate Base $$ Amount Rate Class Sectors Allocator Residential C&I - Low Annual Use C&I - Medium Annual Use C&I - High Annual Use C&I - Extra High Annual Use $ $ $ $ $ 279,495,285 39,896,967 56,785,289 38,767,699 36,506,509 61.91% 8.84% 12.58% 8.59% 8.09% Total $ 451,451,749 100.00% Source: D.P.U. 13-75 Compliance Filing -- Exhibit CMA/MPB-2, Schedule MPB-2-3, Page 6 of 23. Per Unit $ $ $ $ $ Reference (2) $/Therm 0.0626 0.0652 0.0417 0.0365 0.0267 Columbia Gas of Massachusetts Witness: Gibbons D.P.U. 17-GSEP-05 Exh. CMA/RDG-3 COLUMBIA GAS OF MASSACHUSETTS Typical Residential Heating Bill (R-3) Calendar Year 2017 GSEAF Effective May 2018 Page 1 of 12 Typical Usage In Therms Line No. Residential Heating (R-3) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Base Rates Effective Nov. 1, 2016 Off-Peak Cust. Chg All therms @ May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------40 21 20 20 22 50 96 150 180 155 134 77 $12.20 $0.4834 $12.20 $19.34 $12.20 $10.15 $12.20 $9.67 $12.20 $9.67 $12.20 $10.64 $12.20 $24.17 Total May - Apr (13) ------------965 $73 $84 Total Off-Peak (14) ------------173 Total Peak (15) ------------792 $73 $84 Peak Cust. Chg All therms @ $12.20 $0.4834 2017 - 2018 Base Rate Amount $12.20 $46.41 $12.20 $72.51 $12.20 $87.01 $12.20 $74.93 $12.20 $64.78 $12.20 $37.22 $73 $383 $613 $31.54 $22.35 $21.87 $21.87 $22.84 $36.37 $58.61 $84.71 $99.21 $87.13 $76.98 $49.42 $0.2859 $0.0191 $0.2108 $0.2859 $0.0191 $0.2108 $0.2859 $0.0191 $0.2108 $0.2859 $0.0191 $0.2108 $0.1990 $0.0191 $0.2108 $0.5401 $0.0290 $0.2255 $0.5401 $0.0290 $0.2255 $0.5401 $0.0290 $0.2255 $0.5401 $0.0290 $0.2255 $0.5401 $0.0290 $0.2255 $0.5401 $0.0290 $0.2255 May 2018 - Apr. 2019 CGA Rates (Summer 2017 / Winter 17-18) RDAF Rates (Summer 2017 / Winter 17-18) Nov 2017 LDAF with Current GSEAF of $0.0416 $0.2859 $0.0191 $0.2108 Nov 2017 LDAF with Proposed GSEAF of $0.0626 $0.2318 $0.2318 $0.2318 $0.2318 $0.2318 $0.2318 $0.2465 $0.2465 $0.2465 $0.2465 $0.2465 $0.2465 $0.0210 $0.0210 $0.0210 $0.0210 $0.0210 $0.0210 $0.0210 $0.0210 $0.0210 $0.0210 $0.0210 $0.0210 $52.17 $53.01 $0.84 $33.18 $33.62 $0.44 $32.18 $32.60 $0.42 $32.18 $32.60 $0.42 $34.18 $34.64 $0.46 $57.82 $58.87 $1.05 $134.89 $136.90 $2.02 $203.90 $207.05 $3.15 $242.24 $246.02 $3.78 $210.29 $213.55 $3.26 $183.45 $186.27 $2.81 $110.61 $112.22 $1.62 Difference in LDAF re: GSEAF Total Bill with Current GSEAF rate Total Bill with Proposed GSEAF rate Difference % Change in Total Bill Average monthly impact 1.61% 1.33% 1.30% 1.30% 1.35% 1.82% 1.49% 1.54% 1.56% 1.55% 1.53% 1.46% $73 $383 $157 $456 $1,327.09 $1,347.36 $20.26 $241.72 $245.35 $3.63 $1,085.38 $1,102.01 $16.63 1.53% 1.50% 1.53% $1.69 $0.61 $2.77 Columbia Gas of Massachusetts Witness: Gibbons D.P.U. 17-GSEP-05 Exh. CMA/RDG-3 COLUMBIA GAS OF MASSACHUSETTS Typical Residential Non-Heating Bill (R-1) Calendar Year 2017 GSEAF Effective May 2018 Page 2 of 12 Typical Usage In Therms Line No. Residential Non-Heating (R-1) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Base Rates Effective Nov. 1, 2016 Off-Peak Cust. Chg All therms @ May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------13 11 10 10 11 15 18 22 24 21 20 15 $12.20 $0.6973 $12.20 $9.07 $12.20 $7.67 $12.20 $6.97 $12.20 $6.97 $12.20 $7.67 $12.20 $10.46 Total May - Apr (13) ------------190 $73 $49 Total Off-Peak (14) ------------70 Total Peak (15) ------------120 $73 $49 Peak Cust. Chg All therms @ $12.20 $0.6973 2017 - 2018 Base Rate Amount $12.20 $12.55 $12.20 $15.34 $12.20 $16.74 $12.20 $14.64 $12.20 $13.95 $12.20 $10.46 $73 $84 $279 $21.27 $19.87 $19.17 $19.17 $19.87 $22.66 $24.75 $27.54 $28.94 $26.84 $26.15 $22.66 $0.2044 $0.0191 $0.2108 $0.2044 $0.0191 $0.2108 $0.2044 $0.0191 $0.2108 $0.2044 $0.0191 $0.2108 $0.1175 $0.0191 $0.2108 $0.4630 $0.0290 $0.2255 $0.4630 $0.0290 $0.2255 $0.4630 $0.0290 $0.2255 $0.4630 $0.0290 $0.2255 $0.4630 $0.0290 $0.2255 $0.4630 $0.0290 $0.2255 May 2018 - Apr. 2019 CGA Rates (Summer 2017 / Winter 17-18) RDAF Rates (Summer 2017 / Winter 17-18) Nov 2017 LDAF with Current GSEAF of $0.0416 $0.2044 $0.0191 $0.2108 Nov 2017 LDAF with Proposed GSEAF of $0.0626 $0.2318 $0.2318 $0.2318 $0.2318 $0.2318 $0.2318 $0.2465 $0.2465 $0.2465 $0.2465 $0.2465 $0.2465 $0.0210 $0.0210 $0.0210 $0.0210 $0.0210 $0.0210 $0.0210 $0.0210 $0.0210 $0.0210 $0.0210 $0.0210 $26.91 $27.18 $0.27 $24.65 $24.88 $0.23 $23.52 $23.73 $0.21 $23.52 $23.73 $0.21 $24.65 $24.88 $0.23 $27.87 $28.19 $0.32 $37.67 $38.04 $0.38 $43.33 $43.79 $0.46 $46.16 $46.66 $0.50 $41.91 $42.35 $0.44 $40.50 $40.92 $0.42 $33.42 $33.74 $0.31 Difference in LDAF re: GSEAF Total Bill with Current GSEAF rate Total Bill with Proposed GSEAF rate Difference % Change in Total Bill Average monthly impact 1.01% 0.94% 0.89% 0.89% 0.94% 1.13% 1.00% 1.07% 1.09% 1.05% 1.04% 0.94% $73 $84 $122 $157 $394.08 $398.07 $3.99 $151.11 $152.58 $1.47 $242.98 $245.50 $2.52 1.01% 0.97% 1.04% $0.33 $0.25 $0.42 Columbia Gas of Massachusetts Witness: Gibbons D.P.U. 17-GSEP-05 Exh. CMA/RDG-3 COLUMBIA GAS OF MASSACHUSETTS Typical Residential Heating Low Income Bill (R-4) Calendar Year 2017 GSEAF Effective May 2018 Page 3 of 12 Typical Usage In Therms Line No. Residential Heating Low Income (R-4) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 Base Rates Effective Nov. 1, 2016 Off-Peak Cust. Chg All therms @ May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------58 32 26 23 24 53 94 148 156 142 133 81 $12.20 $0.4834 $12.20 $28.04 $12.20 $15.47 $12.20 $12.57 $12.20 $11.12 $12.20 $11.60 $12.20 $25.62 Total May - Apr (13) ------------970 $73 $104 Total Off-Peak (14) ------------216 Total Peak (15) ------------754 $73 $104 Peak Cust. Chg All therms @ $12.20 $0.4834 2017 - 2018 Base Rate Amount $12.20 $45.44 $12.20 $71.54 $12.20 $75.41 $12.20 $68.64 $12.20 $64.29 $12.20 $39.16 $73 $364 $615 $40.24 $27.67 $24.77 $23.32 $23.80 $37.82 $57.64 $83.74 $87.61 $80.84 $76.49 $51.36 $0.2859 $0.0526 $0.2108 $0.2859 $0.0526 $0.2108 $0.2859 $0.0526 $0.2108 $0.2859 $0.0526 $0.2108 $0.1990 $0.0526 $0.2108 $0.5401 $0.0290 $0.2255 $0.5401 $0.0290 $0.2255 $0.5401 $0.0290 $0.2255 $0.5401 $0.0290 $0.2255 $0.5401 $0.0290 $0.2255 $0.5401 $0.0290 $0.2255 $73 $364 $178 $438 May 2018 - Apr. 2019 CGA Rates (Summer 2017 / Winter 17-18) RDAF Rates (Summer 2017 / Winter 17-18) Nov 2017 LDAF with Current GSEAF of $0.0416 $0.2859 $0.0526 $0.2108 Nov 2017 LDAF with Proposed GSEAF of $0.0626 $0.2318 $0.2318 $0.2318 $0.2318 $0.2318 $0.2318 $0.2465 $0.2465 $0.2465 $0.2465 $0.2465 $0.2465 $0.0210 $0.0210 $0.0210 $0.0210 $0.0210 $0.0210 $0.0210 $0.0210 $0.0210 $0.0210 $0.0210 $0.0210 Total Bill with Current GSEAF rate Total Bill with Proposed GSEAF rate Difference $72.10 $73.31 $1.22 $45.25 $45.92 $0.67 $39.05 $39.60 $0.55 $35.95 $36.43 $0.48 $36.99 $37.49 $0.50 $62.33 $63.44 $1.11 $132.33 $134.31 $1.97 $201.34 $204.45 $3.11 $211.57 $214.84 $3.28 $193.68 $196.66 $2.98 $182.17 $184.97 $2.79 $115.72 $117.42 $1.70 $1,328.47 $1,348.84 $20.37 $291.66 $296.19 $4.54 $1,036.81 $1,052.65 $15.83 Total Bill with Current GSEAF rate--25.0% Discount Total Bill with Proposed GSEAF rate--25.0% Discount Difference $54.07 $54.99 $0.91 $33.93 $34.44 $0.50 $29.29 $29.70 $0.41 $26.96 $27.33 $0.36 $27.74 $28.12 $0.38 $46.75 $47.58 $0.83 $99.25 $100.73 $1.48 $151.01 $153.34 $2.33 $158.68 $161.13 $2.46 $145.26 $147.49 $2.24 $136.63 $138.73 $2.09 $86.79 $88.06 $1.28 $996.35 $1,011.63 $15.28 $218.74 $222.14 $3.40 $777.61 $789.48 $11.88 1.53% 1.56% 1.53% $1.27 $0.57 $1.98 Difference in LDAF re: GSEAF % Change in Total Bill Average monthly impact 1.69% 1.49% 1.40% 1.34% 1.36% 1.79% 1.49% 1.54% 1.55% 1.54% 1.53% 1.47% Columbia Gas of Massachusetts Witness: Gibbons D.P.U. 17-GSEP-05 Exh. CMA/RDG-3 COLUMBIA GAS OF MASSACHUSETTS Typical Residential Non-Heating Low Income Bill (R-2) Calendar Year 2017 GSEAF Effective May 2018 Page 4 of 12 Typical Usage In Therms Line No. Residential Non-Heating Low Income (R-2) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 Base Rates Effective Nov. 1, 2016 Off-Peak Cust. Chg All therms @ May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------17 14 13 13 14 19 21 26 26 23 24 23 $12.20 $0.6973 $12.20 $11.85 $12.20 $9.76 $12.20 $9.07 $12.20 $9.07 $12.20 $9.76 $12.20 $13.25 Total May - Apr (13) ------------233 $73 $63 Total Off-Peak (14) ------------90 Total Peak (15) ------------143 $73 $63 Peak Cust. Chg All therms @ $12.20 $0.6973 2017 - 2018 Base Rate Amount $12.20 $14.64 $12.20 $18.13 $12.20 $18.13 $12.20 $16.04 $12.20 $16.74 $12.20 $16.04 $73 $100 $309 $24.05 $21.96 $21.27 $21.27 $21.96 $25.45 $26.84 $30.33 $30.33 $28.24 $28.94 $28.24 $0.2044 $0.0191 $0.2108 $0.2044 $0.0191 $0.2108 $0.2044 $0.0191 $0.2108 $0.2044 $0.0191 $0.2108 $0.1175 $0.0191 $0.2108 $0.4630 $0.0290 $0.2255 $0.4630 $0.0290 $0.2255 $0.4630 $0.0290 $0.2255 $0.4630 $0.0290 $0.2255 $0.4630 $0.0290 $0.2255 $0.4630 $0.0290 $0.2255 $73 $100 $136 $173 May 2018 - Apr. 2019 CGA Rates (Summer 2017 / Winter 17-18) RDAF Rates (Summer 2017 / Winter 17-18) Nov 2017 LDAF with Current GSEAF of $0.0416 $0.2044 $0.0191 $0.2108 Nov 2017 LDAF with Proposed GSEAF of $0.0626 $0.2318 $0.2318 $0.2318 $0.2318 $0.2318 $0.2318 $0.2465 $0.2465 $0.2465 $0.2465 $0.2465 $0.2465 $0.0210 $0.0210 $0.0210 $0.0210 $0.0210 $0.0210 $0.0210 $0.0210 $0.0210 $0.0210 $0.0210 $0.0210 Total Bill with Current GSEAF rate Total Bill with Proposed GSEAF rate Difference $31.44 $31.79 $0.36 $28.04 $28.34 $0.29 $26.91 $27.18 $0.27 $26.91 $27.18 $0.27 $28.04 $28.34 $0.29 $32.05 $32.45 $0.40 $41.91 $42.35 $0.44 $48.99 $49.53 $0.55 $48.99 $49.53 $0.55 $44.74 $45.22 $0.48 $46.16 $46.66 $0.50 $44.74 $45.22 $0.48 $448.91 $453.80 $4.89 $173.39 $175.28 $1.89 $275.52 $278.52 $3.00 Total Bill with Current GSEAF rate--25.0% Discount Total Bill with Proposed GSEAF rate--25.0% Discount Difference $23.58 $23.85 $0.27 $21.03 $21.25 $0.22 $20.18 $20.39 $0.20 $20.18 $20.39 $0.20 $21.03 $21.25 $0.22 $24.04 $24.34 $0.30 $31.43 $31.76 $0.33 $36.74 $37.15 $0.41 $36.74 $37.15 $0.41 $33.56 $33.92 $0.36 $34.62 $34.99 $0.38 $33.56 $33.92 $0.36 $363.62 $367.58 $3.96 $140.45 $141.98 $1.53 $223.17 $225.60 $2.43 1.09% 1.09% 1.09% $0.33 $0.26 $0.41 Difference in LDAF re: GSEAF % Change in Total Bill Average monthly impact 1.14% 1.05% 1.01% 1.01% 1.05% 1.24% 1.05% 1.11% 1.11% 1.08% 1.09% 1.08% Columbia Gas of Massachusetts Witness: Gibbons D.P.U. 17-GSEP-05 Exh. CMA/RDG-3 COLUMBIA GAS OF MASSACHUSETTS Typical C&I Low Annual/Low Winter (G-50) Calendar Year 2017 GSEAF Effective May 2018 Page 6 of 12 Typical Usage In Therms Line No. C&I Low Annual/Low Winter (G-50) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Base Rates Effective Nov. 1, 2016 Off-Peak Cust. Chg All therms @ May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------104 92 92 92 96 114 131 145 144 131 133 113 $19.80 $0.4556 $19.80 $47.38 $19.80 $41.92 $19.80 $41.92 $19.80 $41.92 $19.80 $43.74 $19.80 $51.94 Total May - Apr (13) ------------1,387 $119 $269 Total Off-Peak (14) ------------590 Total Peak (15) ------------797 $119 $269 Peak Cust. Chg All therms @ $19.80 $0.4556 2017 - 2018 Base Rate Amount $19.80 $59.68 $19.80 $66.06 $19.80 $65.61 $19.80 $59.68 $19.80 $60.60 $19.80 $51.48 $119 $363 $870 $67.18 $61.72 $61.72 $61.72 $63.54 $71.74 $79.48 $85.86 $85.41 $79.48 $80.40 $71.28 $0.2044 $0.0505 $0.1103 $0.2044 $0.0505 $0.1103 $0.2044 $0.0505 $0.1103 $0.2044 $0.0505 $0.1103 $0.1175 $0.0505 $0.1103 $0.4630 $0.0255 $0.1281 $0.4630 $0.0255 $0.1324 $0.4630 $0.0255 $0.1324 $0.4630 $0.0255 $0.1324 $0.4630 $0.0255 $0.1324 $0.4630 $0.0255 $0.1324 May 2018 - Apr. 2019 CGA Rates (Summer 2017 / Winter 17-18) RDAF Rates (Summer 2017 / Winter 17-18) Nov 2017 LDAF with Current GSEAF of $0.0515 $0.2044 $0.0505 $0.1103 Nov 2017 LDAF with Proposed GSEAF of $0.0652 $0.1240 $0.1240 $0.1240 $0.1240 $0.1240 $0.1240 $0.1418 $0.1461 $0.1461 $0.1461 $0.1461 $0.1461 Difference in LDAF re: GSEAF $0.0137 $0.0137 $0.0137 $0.0137 $0.0137 $0.0137 $0.0137 $0.0137 $0.0137 $0.0137 $0.0137 $0.0137 Total Bill with Current GSEAF rate Total Bill with Proposed GSEAF rate Difference $105.16 $106.59 $1.42 $95.31 $96.57 $1.26 $95.31 $96.57 $1.26 $95.31 $96.57 $1.26 $98.60 $99.91 $1.32 $103.46 $105.03 $1.56 $160.26 $162.05 $1.79 $175.89 $177.88 $1.99 $174.82 $176.79 $1.97 $160.82 $162.62 $1.79 $162.97 $164.80 $1.82 $141.44 $142.99 $1.55 % Change in Total Bill Average monthly impact 1.35% 1.32% 1.32% 1.32% 1.33% 1.51% 1.12% 1.13% 1.13% 1.12% 1.12% 1.09% $119 $363 $388 $482 $1,569.37 $1,588.37 $19.00 $593.16 $601.25 $8.08 $976.21 $987.13 $10.92 1.21% 1.36% 1.12% $1.58 $1.35 $1.82 Columbia Gas of Massachusetts Witness: Gibbons D.P.U. 17-GSEP-05 Exh. CMA/RDG-3 COLUMBIA GAS OF MASSACHUSETTS Typical C&I Low Annual/High Winter (G-40) Calendar Year 2017 GSEAF Effective May 2018 Page 5 of 12 Typical Usage In Therms Line No. C&I Low Annual/High Winter (G-40) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Base Rates Effective Nov. 1, 2016 Off-Peak Cust. Chg All therms @ May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------37 14 13 13 16 46 123 234 297 257 212 102 $19.80 $0.4780 $19.80 $17.69 $19.80 $6.69 $19.80 $6.21 $19.80 $6.21 $19.80 $7.65 $19.80 $21.99 Total May - Apr (13) ------------1,364 $119 $66 Total Off-Peak (14) ------------139 Total Peak (15) ------------1,225 $119 $66 Peak Cust. Chg All therms @ $19.80 $0.4780 2017 - 2018 Base Rate Amount $19.80 $58.79 $19.80 $111.85 $19.80 $141.97 $19.80 $122.85 $19.80 $101.34 $19.80 $48.76 $119 $586 $890 $37.49 $26.49 $26.01 $26.01 $27.45 $41.79 $78.59 $131.65 $161.77 $142.65 $121.14 $68.56 $0.2859 $0.0505 $0.1103 $0.2859 $0.0505 $0.1103 $0.2859 $0.0505 $0.1103 $0.2859 $0.0505 $0.1103 $0.1990 $0.0505 $0.1103 $0.5401 $0.0255 $0.1281 $0.5401 $0.0255 $0.1324 $0.5401 $0.0255 $0.1324 $0.5401 $0.0255 $0.1324 $0.5401 $0.0255 $0.1324 $0.5401 $0.0255 $0.1324 May 2018 - Apr. 2019 CGA Rates (Summer 2017 / Winter 17-18) RDAF Rates (Summer 2017 / Winter 17-18) Nov 2017 LDAF with Current GSEAF of $0.0515 $0.2859 $0.0505 $0.1103 Nov 2017 LDAF with Proposed GSEAF of $0.0652 $0.1240 $0.1240 $0.1240 $0.1240 $0.1240 $0.1240 $0.1418 $0.1461 $0.1461 $0.1461 $0.1461 $0.1461 $0.0137 $0.0137 $0.0137 $0.0137 $0.0137 $0.0137 $0.0137 $0.0137 $0.0137 $0.0137 $0.0137 $0.0137 $54.01 $54.52 $0.51 $32.75 $32.94 $0.19 $31.82 $32.00 $0.18 $31.82 $32.00 $0.18 $34.60 $34.81 $0.22 $58.34 $58.97 $0.63 $163.92 $165.60 $1.69 $294.98 $298.19 $3.21 $369.07 $373.14 $4.07 $322.03 $325.55 $3.52 $269.11 $272.02 $2.90 $139.75 $141.15 $1.40 Difference in LDAF re: GSEAF Total Bill with Current GSEAF rate Total Bill with Proposed GSEAF rate Difference % Change in Total Bill Average monthly impact 0.94% 0.59% 0.56% 0.56% 0.63% 1.08% 1.03% 1.09% 1.10% 1.09% 1.08% 1.00% $119 $586 $185 $704 $1,802.21 $1,820.89 $18.69 $243.34 $245.24 $1.90 $1,558.87 $1,575.65 $16.78 1.04% 0.78% 1.08% $1.56 $0.32 $2.80 Columbia Gas of Massachusetts Witness: Gibbons D.P.U. 17-GSEP-05 Exh. CMA/RDG-3 COLUMBIA GAS OF MASSACHUSETTS Typical C&I Medium Annual/Low Winter (G-51) Calendar Year 2017 GSEAF Effective May 2018 Page 7 of 12 Typical Usage In Therms Line No. C&I Medium Annual/Low Winter(G-51) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Base Rates Effective Nov. 1, 2016 Off-Peak Cust. Chg All therms @ May Jun Jul Aug Sep Oct Nov (1) (2) (3) (4) (5) (6) (7) ------------- ------------- ------------- ------------- ------------- ------------- ------------922 806 810 812 827 991 1,090 $78.30 $0.1552 $78.30 $143.09 $78.30 $125.09 $78.30 $125.71 $78.30 $126.02 $78.30 $128.35 Dec (8) ------------1,279 Jan (9) ------------1,368 Feb (10) ------------1,204 Mar (11) ------------1,217 Apr (12) ------------1,022 $78.30 $153.80 Total May - Apr (13) ------------12,348 $470 $802 Total Off-Peak (14) ------------5,168 Total Peak (15) ------------7,180 $470 $802 Peak Cust. Chg All therms @ $78.30 $0.2626 $78.30 $286.23 $78.30 $335.87 $78.30 $359.24 $78.30 $316.17 $78.30 $319.58 $78.30 $268.38 $470 $1,885 $3,627 2017 - 2018 Base Rate Amount $221.39 $203.39 $204.01 $204.32 $206.65 $232.10 $364.53 $414.17 $437.54 $394.47 $397.88 $346.68 May 2018 - Apr. 2019 CGA Rates (Summer 2017 / Winter 17-18) RDAF Rates (Summer 2017 / Winter 17-18) Nov 2017 LDAF with Current GSEAF of $0.0281 $0.2044 $0.0227 $0.0744 $0.2044 $0.0227 $0.0744 $0.2044 $0.0227 $0.0744 $0.2044 $0.0227 $0.0744 $0.2044 $0.0227 $0.0744 $0.1175 $0.0227 $0.0744 $0.4630 $0.0164 $0.0886 $0.4630 $0.0164 $0.0886 $0.4630 $0.0164 $0.0886 $0.4630 $0.0164 $0.0886 $0.4630 $0.0164 $0.0886 $0.4630 $0.0164 $0.0886 Nov 2017 LDAF with Proposed GSEAF of $0.0417 $0.0880 $0.0880 $0.0880 $0.0880 $0.0880 $0.0880 $0.1022 $0.1022 $0.1022 $0.1022 $0.1022 $0.1022 Difference in LDAF re: GSEAF $0.0136 $0.0136 $0.0136 $0.0136 $0.0136 $0.0136 $0.0136 $0.0136 $0.0136 $0.0136 $0.0136 $0.0136 Total Bill with Current GSEAF rate Total Bill with Proposed GSEAF rate Difference $499.38 $511.92 $12.54 $446.40 $457.36 $10.96 $448.23 $459.24 $11.02 $449.14 $460.18 $11.04 $455.99 $467.24 $11.25 $444.77 $458.25 $13.48 $983.65 $998.48 $14.82 $1,140.64 $1,158.03 $17.39 $1,214.56 $1,233.17 $18.60 $1,078.34 $1,094.72 $16.37 $1,089.14 $1,105.69 $16.55 $927.17 $941.07 $13.90 % Change in Total Bill Average monthly impact 2.51% 2.46% 2.46% 2.46% 2.47% 3.03% 1.51% 1.52% 1.53% 1.52% 1.52% 1.50% $470 $1,885 $1,272 $2,355 $9,177.41 $9,345.35 $167.93 $2,743.91 $2,814.19 $70.28 $6,433.51 $6,531.16 $97.65 1.83% 2.56% 1.52% $13.99 $11.71 $16.27 Columbia Gas of Massachusetts Witness: Gibbons D.P.U. 17-GSEP-05 Exh. CMA/RDG-3 COLUMBIA GAS OF MASSACHUSETTS Typical C&I Medium Annual/High Winter (G-41) Calendar Year 2017 GSEAF Effective May 2018 Page 8 of 12 Typical Usage In Therms Line No. C&I Medium Annual/High Winter(G-41) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Base Rates Effective Nov. 1, 2016 Off-Peak Cust. Chg All therms @ May Jun Jul Aug Sep Oct (1) (2) (3) (4) (5) (6) ------------- ------------- ------------- ------------- ------------- ------------390 174 147 148 194 566 $78.30 $0.2844 $78.30 $110.92 $78.30 $49.49 $78.30 $41.81 $78.30 $42.09 $78.30 $55.17 Nov (7) ------------1,155 Dec (8) ------------1,930 Jan (9) ------------2,298 Feb (10) ------------1,959 Mar (11) ------------1,634 Apr (12) ------------864 $78.30 $160.97 Total May - Apr (13) ------------11,459 $470 $460 Total Off-Peak (14) ------------1,619 Total Peak (15) ------------9,840 $470 $460 Peak Cust. Chg All therms @ $78.30 $0.2844 $78.30 $328.48 $78.30 $548.89 $78.30 $653.55 $78.30 $557.14 $78.30 $464.71 $78.30 $245.72 $470 $2,798 $4,199 2017 - 2018 Base Rate Amount $189.22 $127.79 $120.11 $120.39 $133.47 $239.27 $406.78 $627.19 $731.85 $635.44 $543.01 $324.02 May 2018 - Apr. 2019 CGA Rates (Summer 2017 / Winter 17-18) RDAF Rates (Summer 2017 / Winter 17-18) Nov 2017 LDAF with Current GSEAF of $0.0281 $0.2859 $0.0227 $0.0744 $0.2859 $0.0227 $0.0744 $0.2859 $0.0227 $0.0744 $0.2859 $0.0227 $0.0744 $0.2859 $0.0227 $0.0744 $0.1990 $0.0227 $0.0744 $0.5401 $0.0164 $0.0886 $0.5401 $0.0164 $0.0886 $0.5401 $0.0164 $0.0886 $0.5401 $0.0164 $0.0886 $0.5401 $0.0164 $0.0886 $0.5401 $0.0164 $0.0886 Nov 2017 LDAF with Proposed GSEAF of $0.0417 $0.0880 $0.0880 $0.0880 $0.0880 $0.0880 $0.0880 $0.1022 $0.1022 $0.1022 $0.1022 $0.1022 $0.1022 Difference in LDAF re: GSEAF $0.0136 $0.0136 $0.0136 $0.0136 $0.0136 $0.0136 $0.0136 $0.0136 $0.0136 $0.0136 $0.0136 $0.0136 Total Bill with Current GSEAF rate Total Bill with Proposed GSEAF rate Difference $329.73 $335.04 $5.30 $190.48 $192.84 $2.37 $173.07 $175.07 $2.00 $173.72 $175.73 $2.01 $203.37 $206.01 $2.64 $394.01 $401.71 $7.70 $1,132.93 $1,148.64 $15.71 $1,840.58 $1,866.83 $26.25 $2,176.60 $2,207.86 $31.25 $1,867.06 $1,893.71 $26.64 $1,570.31 $1,592.53 $22.22 $867.22 $878.97 $11.75 % Change in Total Bill Average monthly impact 1.61% 1.24% 1.16% 1.16% 1.30% 1.95% 1.39% 1.43% 1.44% 1.43% 1.42% 1.35% $470 $2,798 $930 $3,268 $10,919.09 $11,074.93 $155.84 $1,464.38 $1,486.40 $22.02 $9,454.71 $9,588.53 $133.82 1.43% 1.50% 1.42% $12.99 $3.67 $22.30 Columbia Gas of Massachusetts Witness: Gibbons D.P.U. 17-GSEP-05 Exh. CMA/RDG-3 COLUMBIA GAS OF MASSACHUSETTS Typical C&I High Annual/Low Winter (G-52) Calendar Year 2017 GSEAF Effective May 2018 Page 9 of 12 Typical Usage In Therms Line No. C&I High Annual/Low Winter(G-52) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Base Rates Effective Nov. 1, 2016 Off-Peak Cust. Chg All therms @ May (1) ------------6,634 $290.00 $0.1197 $290.00 $794.09 Jun (2) ------------6,205 Jul (3) ------------6,089 Aug (4) ------------6,525 Sep (5) ------------6,240 Oct (6) ------------7,389 $290.00 $742.74 $290.00 $728.85 $290.00 $781.04 $290.00 $746.93 $290.00 $884.46 Nov (7) ------------8,681 Dec (8) ------------9,648 Jan (9) ------------10,966 Feb (10) ------------8,780 Mar (11) ------------9,658 Apr (12) ------------7,104 Total May - Apr (13) ------------93,919 $1,740 $4,678 Total Off-Peak (14) ------------39,082 Total Peak (15) ------------54,837 $1,740 $4,678 Peak Cust. Chg All therms @ $290.00 $0.2377 2017 - 2018 Base Rate Amount May 2018 - Apr. 2019 CGA Rates (Summer 2017 / Winter 17-18) RDAF Rates (Summer 2017 / Winter 17-18) Nov 2017 LDAF with Current GSEAF of Nov 2017 LDAF with Proposed GSEAF of Difference in LDAF re: GSEAF Total Bill with Current GSEAF rate Total Bill with Proposed GSEAF rate Difference % Change in Total Bill Average monthly impact $290.00 $2,063.47 $290.00 $2,293.33 $290.00 $2,606.62 $290.00 $2,087.01 $290.00 $2,295.71 $290.00 $1,688.62 $1,740 $13,035 $21,193 $1,084.09 $1,032.74 $1,018.85 $1,071.04 $1,036.93 $1,174.46 $2,353.47 $2,583.33 $2,896.62 $2,377.01 $2,585.71 $1,978.62 $0.0222 $0.2044 $0.0136 $0.0654 $0.2044 $0.0136 $0.0654 $0.2044 $0.0136 $0.0654 $0.2044 $0.0136 $0.0654 $0.2044 $0.0136 $0.0654 $0.1175 $0.0136 $0.0654 $0.4630 $0.0155 $0.0779 $0.4630 $0.0155 $0.0779 $0.4630 $0.0155 $0.0779 $0.4630 $0.0155 $0.0779 $0.4630 $0.0155 $0.0779 $0.4630 $0.0155 $0.0779 $0.0365 $0.0797 $0.0797 $0.0797 $0.0797 $0.0797 $0.0797 $0.0922 $0.0922 $0.0922 $0.0922 $0.0922 $0.0922 $0.0143 $0.0143 $0.0143 $0.0143 $0.0143 $0.0143 $0.0143 $0.0143 $0.0143 $0.0143 $0.0143 $0.0143 $2,964.17 $3,059.03 $94.87 $2,791.24 $2,879.97 $88.73 $2,744.48 $2,831.55 $87.07 $2,920.23 $3,013.54 $93.31 $2,805.34 $2,894.58 $89.23 $2,626.40 $2,732.06 $105.66 $7,183.58 $7,307.72 $124.14 $7,951.48 $8,089.44 $137.97 $8,998.10 $9,154.91 $156.81 $7,262.20 $7,387.75 $125.55 $7,959.42 $8,097.53 $138.11 $5,931.29 $6,032.87 $101.59 3.20% 3.18% 3.17% 3.20% 3.18% 4.02% 1.73% 1.74% 1.74% 1.73% 1.74% 1.71% $1,740 $13,035 $6,418 $62,137.91 $16,851.85 $63,480.96 $17,410.72 $1,343.04 $558.87 2.16% $111.92 3.32% $93.15 $14,775 $45,286.06 $46,070.23 $784.17 1.73% $130.69 Columbia Gas of Massachusetts Witness: Gibbons D.P.U. 17-GSEP-05 Exh. CMA/RDG-3 COLUMBIA GAS OF MASSACHUSETTS Typical C&I High Annual/High Winter (G-42) Calendar Year 2017 GSEAF Effective May 2018 Page 10 of 12 Typical Usage In Therms Line No. C&I High Annual/High WinterG-42) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Base Rates Effective Nov. 1, 2016 Off-Peak Cust. Chg All therms @ $290.00 $0.1528 May (1) ------------2,926 Jun (2) ------------1,205 Jul (3) ------------1,154 Aug (4) ------------1,102 Sep (5) ------------1,432 Oct (6) ------------3,564 $290.00 $447.09 $290.00 $184.12 $290.00 $176.33 $290.00 $168.39 $290.00 $218.81 $290.00 $544.58 Nov (7) ------------6,847 Dec (8) ------------10,689 Jan (9) ------------13,248 Feb (10) ------------11,444 Mar (11) ------------10,494 Apr (12) ------------6,044 Total May - Apr (13) ------------70,149 Total Off-Peak (14) ------------11,383 $1,740 $1,739 $1,740 $1,739 Total Peak (15) ------------58,766 Peak Cust. Chg All therms @ $290.00 $0.2480 $290.00 $1,698.06 $290.00 $2,650.87 $290.00 $3,285.50 $290.00 $2,838.11 $290.00 $2,602.51 $290.00 $1,498.91 $1,740 $14,574 $19,793 2017 - 2018 Base Rate Amount $737.09 $474.12 $466.33 $458.39 $508.81 $834.58 $1,988.06 $2,940.87 $3,575.50 $3,128.11 $2,892.51 $1,788.91 May 2018 - Apr. 2019 CGA Rates (Summer 2017 / Winter 17-18) RDAF Rates (Summer 2017 / Winter 17-18) Nov 2017 LDAF with Current GSEAF of $0.0222 $0.2859 $0.0136 $0.0654 $0.2859 $0.0136 $0.0654 $0.2859 $0.0136 $0.0654 $0.2859 $0.0136 $0.0654 $0.2859 $0.0136 $0.0654 $0.1990 $0.0136 $0.0654 $0.5401 $0.0155 $0.0779 $0.5401 $0.0155 $0.0779 $0.5401 $0.0155 $0.0779 $0.5401 $0.0155 $0.0779 $0.5401 $0.0155 $0.0779 $0.5401 $0.0155 $0.0779 Nov 2017 LDAF with Proposed GSEAF of $0.0365 $0.0797 $0.0797 $0.0797 $0.0797 $0.0797 $0.0797 $0.0922 $0.0922 $0.0922 $0.0922 $0.0922 $0.0922 $0.0143 $0.0143 $0.0143 $0.0143 $0.0143 $0.0143 $0.0143 $0.0143 $0.0143 $0.0143 $0.0143 $0.0143 $1,804.79 $1,846.63 $41.84 $913.83 $931.06 $17.23 $887.43 $903.93 $16.50 $860.51 $876.26 $15.76 $1,031.35 $1,051.82 $20.48 $1,825.37 $1,876.34 $50.97 $6,325.63 $6,423.54 $97.91 $9,712.35 $9,865.21 $152.85 $11,968.11 $12,157.56 $189.45 $10,377.89 $10,541.54 $163.65 $9,540.46 $9,690.53 $150.06 $5,617.79 $5,704.22 $86.43 Difference in LDAF re: GSEAF Total Bill with Current GSEAF rate Total Bill with Proposed GSEAF rate Difference % Change in Total Bill Average monthly impact 2.32% 1.89% 1.86% 1.83% 1.99% 2.79% 1.55% 1.57% 1.58% 1.58% 1.57% 1.54% $1,740 $14,574 $3,479 $16,314 $60,865.50 $61,868.63 $1,003.13 $7,323.27 $7,486.05 $162.78 $53,542.23 $54,382.58 $840.35 1.65% 2.22% 1.57% $83.59 $27.13 $140.06 Columbia Gas of Massachusetts Witness: Gibbons D.P.U. 17-GSEP-05 Exh. CMA/RDG-3 COLUMBIA GAS OF MASSACHUSETTS Typical C&I Extra High Annual/Low Winter (G-53) Calendar Year 2017 GSEAF Effective May 2018 Page 11 of 12 Typical Usage In Therms Line No. C&I Extra High Annual/Low WinterG-53) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 Usage Demand Base Rates Effective Nov. 1, 2016 Off-Peak Cust. Chg All therms @ Demand Charge Peak Cust. Chg All therms @ Demand Charge $1,155.90 $0.0551 $1.0099 Nov 2017 LDAF with Proposed GSEAF of Difference in LDAF re: GSEAF Total Bill with Current GSEAF rate Total Bill with Proposed GSEAF rate Difference % Change in Total Bill Average monthly impact $1,155.90 $3,129.74 $3,090.29 Jun (2) ------------50,063 2,794 $1,155.90 $2,758.47 $2,821.66 Jul (3) ------------51,037 2,586 $1,155.90 $2,812.14 $2,611.60 Aug (4) ------------50,449 2,622 $1,155.90 $2,779.74 $2,647.96 Sep (5) ------------52,138 2,473 Oct (6) ------------60,338 2,895 $1,155.90 $2,872.80 $2,497.48 $1,155.90 $3,324.62 $2,923.66 $1,155.90 $0.1124 $2.4196 2017 - 2018 Base Rate Amount May 2018 - Apr. 2019 CGA Rates (Summer 2017 / Winter 17-18) RDAF Rates (Summer 2017 / Winter 17-18) Nov 2017 LDAF with Current GSEAF of May (1) ------------56,801 3,060 Nov (7) ------------63,642 3,369 Dec (8) ------------73,746 3,140 Jan (9) ------------73,701 3,397 Feb (10) ------------68,114 4,085 Mar (11) ------------67,603 3,525 Apr (12) ------------61,673 3,980 $6,935 $17,678 $16,593 $1,155.90 $7,153.36 $8,151.63 $1,155.90 $8,289.05 $7,597.54 $1,155.90 $8,283.99 $8,219.38 $1,155.90 $7,656.01 $9,884.07 $1,155.90 $7,598.58 $8,529.09 $1,155.90 $6,932.05 $9,630.01 $6,935 $45,913 $52,012 $146,066 $7,375.93 $6,736.03 $6,579.64 $6,583.60 $6,526.19 $7,404.19 $16,460.89 $17,042.49 $17,659.27 $18,695.98 $17,283.57 $17,717.95 $0.0181 $0.2044 $0.0083 $0.0581 $0.2044 $0.0083 $0.0581 $0.2044 $0.0083 $0.0581 $0.2044 $0.0083 $0.0581 $0.2044 $0.0083 $0.0581 $0.1175 $0.0083 $0.0581 $0.4630 $0.0115 $0.0656 $0.4630 $0.0115 $0.0656 $0.4630 $0.0115 $0.0656 $0.4630 $0.0115 $0.0656 $0.4630 $0.0115 $0.0656 $0.4630 $0.0115 $0.0656 $0.0267 $0.0667 $0.0667 $0.0667 $0.0667 $0.0667 $0.0667 $0.0742 $0.0742 $0.0742 $0.0742 $0.0742 $0.0742 $0.0086 $0.0086 $0.0086 $0.0086 $0.0086 $0.0086 $0.0086 $0.0086 $0.0086 $0.0086 $0.0086 $0.0086 $22,757.64 $23,246.13 $488.49 $20,293.09 $20,723.63 $430.54 $20,400.46 $20,839.38 $438.92 $20,245.19 $20,679.05 $433.86 $20,645.16 $21,093.54 $448.39 $18,500.34 $19,019.25 $518.91 $50,833.94 $51,381.26 $547.32 $56,872.71 $57,506.92 $634.22 $57,465.18 $58,099.01 $633.83 $55,484.35 $56,070.13 $585.78 $53,795.95 $54,377.33 $581.39 $51,027.54 $51,557.93 $530.39 2.15% 2.12% 2.15% 2.14% 2.17% 2.80% Total May - Apr (13) ------------729,305 37,926 1.08% 1.12% 1.10% 1.06% 1.08% 1.04% Total Off-Peak (14) ------------320,826 16,430 $6,935 $17,678 $16,593 $6,935 $45,913 $52,012 $41,206 $448,321.55 $122,841.88 $454,593.57 $125,600.98 $6,272.02 $2,759.10 1.40% $522.67 Total Peak (15) ------------408,479 21,496 2.25% $459.85 $104,860 $325,479.67 $328,992.59 $3,512.92 1.08% $585.49 Columbia Gas of Massachusetts Witness: Gibbons D.P.U. 17-GSEP-05 Exh. CMA/RDG-3 COLUMBIA GAS OF MASSACHUSETTS Typical C&I Extra High Annual/High Winter (G-43) Calendar Year 2017 GSEAF Effective May 2018 Page 12 of 12 Typical Usage In Therms Line No. C&I Extra High Annual/Low WinterG-43) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 Usage Demand Base Rates Effective Nov. 1, 2016 Off-Peak Cust. Chg All therms @ Demand Charge Peak Cust. Chg All therms @ Demand Charge $1,155.90 $0.0551 $1.0099 Nov 2017 LDAF with Proposed GSEAF of Difference in LDAF re: GSEAF Total Bill with Current GSEAF rate Total Bill with Proposed GSEAF rate Difference % Change in Total Bill Average monthly impact Jun (2) ------------19,153 1,245 Jul (3) ------------14,363 595 Aug (4) ------------15,393 543 Sep (5) ------------17,030 534 Oct (6) ------------30,598 1,093 $1,155.90 $1,977.87 $2,363.17 $1,155.90 $1,055.33 $1,257.33 $1,155.90 $791.40 $600.89 $1,155.90 $848.15 $548.38 $1,155.90 $938.35 $539.29 $1,155.90 $1,685.95 $1,103.82 $1,155.90 $0.1124 $2.4196 2017 - 2018 Base Rate Amount May 2018 - Apr. 2019 CGA Rates (Summer 2017 / Winter 17-18) RDAF Rates (Summer 2017 / Winter 17-18) Nov 2017 LDAF with Current GSEAF of May (1) ------------35,896 2,340 Nov (7) ------------59,187 2,474 Dec (8) ------------91,789 3,174 Jan (9) ------------85,151 3,247 Feb (10) ------------81,994 3,555 Mar (11) ------------76,392 4,080 Apr (12) ------------55,353 3,136 $6,935 $7,297 $6,413 $1,155.90 $6,652.62 $5,986.09 $1,155.90 $10,317.08 $7,679.81 $1,155.90 $9,570.97 $7,856.44 $1,155.90 $9,216.13 $8,601.68 $1,155.90 $8,586.46 $9,871.97 $1,155.90 $6,221.68 $7,587.87 $6,935 $50,565 $47,584 $125,730 $5,496.94 $3,468.56 $2,548.19 $2,552.43 $2,633.54 $3,945.67 $13,794.61 $19,152.79 $18,583.31 $18,973.70 $19,614.33 $14,965.44 $0.0181 $0.2859 $0.0083 $0.0581 $0.2859 $0.0083 $0.0581 $0.2859 $0.0083 $0.0581 $0.2859 $0.0083 $0.0581 $0.2859 $0.0083 $0.0581 $0.1990 $0.0083 $0.0581 $0.5401 $0.0115 $0.0656 $0.5401 $0.0115 $0.0656 $0.5401 $0.0115 $0.0656 $0.5401 $0.0115 $0.0656 $0.5401 $0.0115 $0.0656 $0.5401 $0.0115 $0.0656 $0.0267 $0.0667 $0.0667 $0.0667 $0.0667 $0.0667 $0.0667 $0.0742 $0.0742 $0.0742 $0.0742 $0.0742 $0.0742 $0.0086 $0.0086 $0.0086 $0.0086 $0.0086 $0.0086 $0.0086 $0.0086 $0.0086 $0.0086 $0.0086 $0.0086 $18,143.10 $18,451.80 $308.71 $10,216.16 $10,380.87 $164.72 $7,608.28 $7,731.80 $123.52 $7,975.38 $8,107.76 $132.38 $8,633.21 $8,779.67 $146.46 $12,066.38 $12,329.52 $263.14 $50,324.83 $50,833.83 $509.01 $75,804.96 $76,594.35 $789.39 $71,138.51 $71,870.81 $732.30 $69,580.40 $70,285.55 $705.15 $66,763.47 $67,420.44 $656.97 $49,129.31 $49,605.35 $476.04 1.70% 1.61% 1.62% 1.66% 1.70% 2.18% Total May - Apr (13) ------------582,299 26,016 1.01% 1.04% 1.03% 1.01% 0.98% 0.97% $447,383.99 $452,391.76 $5,007.77 1.12% $417.31 Total Off-Peak (14) ------------132,433 6,350 Total Peak (15) ------------449,866 19,666 $6,935 $7,297 $6,413 $6,935 $50,565 $47,584 $20,645 $64,642.50 $65,781.43 $1,138.92 1.76% $189.82 $105,084 $382,741.49 $386,610.33 $3,868.85 1.01% $644.81 Columbia Gas of Massachusetts D.P.U. 17-GSEP-05 Exhibit CMA/RDG-4 Page 1 of 13 8.0 Gas System Enhancement Program Costs Allowable for LDAC 8.1 Purpose and Applicability 8.1(1) Purpose The purpose of the Gas System Enhancement Program (“GSEP”) Tariff is to establish a procedure that implements the provisions of G.L. c. 164, § 145, allowing Bay State Gas Company d/b/a Columbia Gas of Massachusetts (the “Company”), subject to the jurisdiction of the Department of Public Utilities (the “Department”), to obtain recovery of eligible costs associated with the replacement or improvement of existing natural gas distribution infrastructure to improve public safety or infrastructure reliability. In accordance with G.L. c. 164, § 145(b), all costs associated with the GSEP are incurred to address aging or leaking natural gas infrastructure within the Commonwealth in the interest of public safety and reducing lost and unaccounted for natural gas through a reduction in natural gas system leaks. Consistent with St. 2016, c. 188, Section 13, Appendix A to the GSEP provisions of the Company’s LDAC tariff sets forth the cost recovery associated with the repair of Grade 3 gas leaks that have been determined to have a significant environmental impact. 8.1(2) Applicability As a component of the Local Distribution Adjustment Clause (“LDAC”), the GSEAF and the GSERAF, as defined in Section 8.2, shall be applied to all firm sales and firm transportation throughput of the Company as determined in accordance with the provisions of Section 8.3 of this clause. The GSEAF and GSERAF shall be determined annually by the Company, as defined below, subject to the Department’s review and approval. 8.1(3) Effective Date In accordance with G.L. c. 164, §§ 145 (a), (d), (e), the annual GSEAF associated with each GSEP Investment Year beginning on and after January 1, 2015, shall be effective on May 1 of the respective GSEP Investment Year, based on the GSEP Revenue Requirement calculated in the annual GSEP Plan filed with the Department on or before October 31 in the year prior to the GSEP Investment Year. The annual GSERAF shall be effective on the November 1 following each GSEP Investment Year. 8.2 Definitions (1) Accumulated Deferred Income Taxes are the net reduction in Federal income and State franchise taxes associated with the use of accelerated depreciation allowed for income tax purposes. (2) Accumulated Reserve for Depreciation is the cumulative net credit balance arising from the provision for Depreciation Expense. (3) Depreciation Expense is the return of the Company’s investment in Rate Base at established depreciation rates as approved by the Department in the Company’s most recent general distribution rate proceeding. 1 Columbia Gas of Massachusetts D.P.U. 17-GSEP-05 Exhibit CMA/RDG-4 Page 2 of 13 (4) Eligible GSEP Investment is the cost of Eligible Infrastructure Replacement Projects planned for the current GSEP Investment Year, plus the cumulative actual and planned cost of Eligible Infrastructure Replacement Projects completed through the end of the year prior to the current GSEP Investment Year, as summarized in the annual GSEP Plan. Costs included in the GSEP Revenue Requirement associated with Eligible GSEP Investment are Depreciation Expense, property taxes, and the return on investment utilizing the after-tax rate of return approved by the Department in the Company’s most recent general distribution rate proceeding, adjusted to a pre-tax basis by using the current federal and state income tax rates applicable to the GSEP Investment Year. Project costs shall be Eligible GSEP Investment in the year completed and placed into service. Eligible GSEP Investment includes costs recorded in the following MDPU/FERC plant accounts: Account No. 367/376 Account No. 380/380 Account No. 381/381 Account No. 382/382 Account No. 383/383 Mains – Distribution Services – Distribution Meters – Distribution Meter Installations – Distribution House Regulators – Distribution The costs booked to the above accounts shall be determined in accordance with the Company’s application of the Uniform System of Accounts for Gas Companies, 220 C.M.R. § 50.00, Gas Plant Accounts, in use during the test year of its previous base rate case filed pursuant to G.L. c. 164, § 94. (5) Eligible GSEP Savings are the cumulative reduction in operating and maintenance leak repair expense achieved with the replacement of leak-prone main. Eligible GSEP Savings shall be equal to the most recent three-year average of leak repair cost per mile for non-cathodically protected steel mains, cast iron mains and wrought iron mains, updated annually in the GSEP Plan filed on October 31 of each year for the subsequent construction year. The costs associated with leak repair expense shall be determined in accordance with the Uniform System of Accounts for Gas Companies, 220 C.M.R. §50.00, Operations and Maintenance Expense Accounts, in use during the test year of its previous base rate case filed pursuant to G.L. c. 164 § 94. (6) Existing Infrastructure is mains, services, meter sets, and other ancillary facilities composed of non-cathodically protected steel, cast iron wrought iron and other ancillary facilities composed of non-cathodically protected steel, cast iron, wrought iron and copper, and any connected facilities such as services, meters or regulators or pre-existing pipe segments, including but not limited to plastic and cathodically protected steel pipe segments, or regulator stations that must be installed, replaced or retired to enable the replacement project to become operational and/or manage the costs of the replacement project. [G.L. c. 164, § 145(c) and (d)] 2 Columbia Gas of Massachusetts D.P.U. 17-GSEP-05 Exhibit CMA/RDG-4 Page 3 of 13 (7) Eligible Infrastructure Replacement Project is a project to replace or improve the Company’s existing infrastructure that: (i.) is made on or after January 1, 2015; (ii) is designed to improve public safety or infrastructure reliability; (iii) does not increase the Company’s revenue by connecting an improvement for a principal purpose of serving new customers; (iv) reduces, or has the potential to reduce, lost and unaccounted for natural gas through a reduction in natural gas system leaks; and (v) is not included in the Company’s current Rate Base as determined in the gas company’s most recent rate proceeding. [G.L. c. 164, § 145(a); St.2016, c. 188, § 13] (8) Gross Plant Investments are the capitalized costs of GSEP plant investments including costs of removal recorded on the Company’s books for Eligible Infrastructure Replacement Projects. Gross Plant Investment for a GSEP Investment Year shall be the cumulative actual and planned cost of Eligible Infrastructure Replacement Projects completed through the end of the year prior to the current GSEP Investment Year and the planned capitalized investment for the current GSEP Investment Year associated with the GSEP Plan filed with the Department on October 31 of the year prior to the GSEP Investment Year. Actual capitalized cost of GSEP Investments shall include applicable overhead and burden costs subject to the test provided in Section 8.5. (9) GSEAF is the Gas System Enhancement Adjustment Factor that recovers the aggregate GSEP Revenue Requirement approved by the Department for actual and planned Eligible GSEP Investment made beginning January 1, 2015, and in annual periods January 1 through December 31 of each GSEP Investment Year, with the annual recovery period beginning May 1 of each GSEP Investment Year for the cumulative spending on planned or completed projects anticipated to be placed in service through the end of the GSEP Investment Year. (10) GSERAF is the Gas System Enhancement Reconciliation Adjustment Factor that recovers the GSEP Reconciliation Adjustment. The GSERAF shall be filed on or before May 1 for effect November 1 following each GSEP Investment Year through October 31 of the following year. (11) GSEP Investment Year is the annual period beginning on January 1 and ending on December 31, during which the Company anticipates placing GSEP Eligible Infrastructure Replacement Projects in service. (12) GSEP Offsets represent the reduced operating and maintenance expense associated with the elimination of natural gas leaks through Eligible Infrastructure Replacement Projects. GSEP Offsets are determined by multiplying Eligible GSEP Savings by the total miles of non-cathodically protected steel mains, cast iron mains and wrought iron mains, replaced or abandoned by the Company in the period January 1 through December 31 of the respective GSEP Investment Year. 3 Columbia Gas of Massachusetts D.P.U. 17-GSEP-05 Exhibit CMA/RDG-4 Page 4 of 13 (13) GSEP Plan is the Company’s plan to replace or improve existing distribution infrastructure in accordance with G.L. c. 164, § 145, as filed with the Department on October 31 of each year, including information pertaining to eligible infrastructure replacement undertaken to eliminate natural gas system leaks in the subsequent construction year and over a future timeline allowing for the removal of all leak-prone infrastructure on an accelerated basis. [G.L. c. 164, § 145 (a), (c) and (d)] (14) GSEP Reconciliation Adjustment is the difference between the GSEP Revenue Requirement on cumulative Eligible GSEP Investment for a GSEP Investment Year and the billed revenue from the GSEAF associated with the same GSEP Investment Year. The GSEP Revenue Requirement, for this purpose, shall reflect actual cumulative Eligible GSEP Investment. The GSEP Reconciliation Adjustment shall include interest on any balance, accrued at the prime rate as reported by the Wall Street Journal. The GSEP Reconciliation Adjustment shall be recovered through the GSERAF. (15) GSEP Revenue Requirement is the accumulated revenue requirements through December 31 of each GSEP Investment Year based on the Eligible GSEP Investment to be completed during the GSEP Investment Year and inclusive of the actual and planned Eligible GSEP Investment incurred through the end of the year prior to the current GSEP Investment Year. The revenue requirement for each GSEP Investment Year will be calculated on a monthly basis, and shall represent the sum of the revenue requirement for each of the twelve months of the respective year. The annual revenue requirement on Eligible GSEP Investment for subsequent years will also be calculated on a monthly basis. (16) Property Tax Rate is the Company’s composite property tax rate determined in the Company’s most recent general distribution rate proceeding, calculated as the ratio of total annual property taxes paid to total taxable net plant in service. (17) Rate Base is the investment value upon which the Company is permitted to earn its authorized rate of return. (18) Rate Base Allocators are the allocation factors for each GSEP Rate Class Sector that are applied to the GSEP Revenue Requirements that the Company is allowed to recover through the GSEAF to determine the GSEAF rate for each Rate Class Sector. The following are the Rate Base Allocators as approved by the Department in the Company’s general distribution rate proceeding (D.P.U. 13-75): Rate Class Sector Rate Base Allocators Residential 61.910% C&I Low Annual Use C&I Medium Annual Use C&I High Annual Use 8.837% 12.578% 8.587% C&I Extra High Annual Use 8.086% 4 Columbia Gas of Massachusetts D.P.U. 17-GSEP-05 Exhibit CMA/RDG-4 Page 5 of 13 8.3 Rate Formulas 8.3(1) Gas System Enhancement Adjustment Factor (“GSEAF”) Formula CAP = 1.5% * TOT_REV And: m=1 GSEP_RECc = [ ∑ ((RB x PTRR) + DEPR) ] + PTMS – OFF m=12 and: RB = ( (GPpm – ARDpm – ADITpm) + (GPcm – ARDcm – ADITcm) ) ÷ 2 If CAP ≤ GSEP_RECc - GSEAF_RECp Then GSEAFs = (GSEP_RECc – ( ( GSEP_RECc – GSEAF_RECp ) – CAP ) ) x RBAs A : TPvols Else GSEAFs = (GSEP RECc + DEF_REC) x RBAs A: TPvols and DEF_REC = Lesser of ( DEFr or ( CAP – (GSEP_RECc – GSEAF_RECp ) ) ) Where: S Designates a separate factor for each Rate Class Sector. GSEAFs The Gas System Enhancement Adjustment Factor, by Rate Class Sector, as defined in Section 2.02. GSEP_REC The GSEP Recovery, consisting of GSEP Revenue Requirement associated with the cumulative Eligible GSEP Investments for the respective GSEP Investment Year. Cumulative Eligible GSEP Investments will consist of actual and planned investment from January 1, 2015 through the end of the respective GSEP Investment Year. GSEAF_RECp The annual recovery amount reflected in the GSEAF for the applicable prior GSEP Investment Year. The current year GSEP_REC is compared against the GSEAF_RECp to quantify the change in the recovery that is to be compared to the CAP. RBAs Rate Base Allocator for each Rate Class Sector, as specified in Section 8.2 (18). 5 Columbia Gas of Massachusetts D.P.U. 17-GSEP-05 Exhibit CMA/RDG-4 Page 6 of 13 A:TPvols Forecasted Annual Throughput Volumes for each Rate Class Sector, inclusive of all firm sales and firm transportation throughput. RB The Rate Base associated with the cumulative Eligible GSEP Investments. For purposes of establishing a GSEAF rate and the GSEP Reconciliation Adjustment, the rate base will be calculated using projected (GSEAF) and actual (GSERAF) monthly balances for GP, ARD and ADIT. PTRR The pre-tax rate of return shall be the after-tax weighted average cost of capital established by the Department in the Company’s most recent general rate proceeding, adjusted to a pre-tax basis by using currently effective federal and state income tax rates applicable to the period of the Eligible GSEP Investment. DEPR The annual depreciation expense associated with the cumulative monthly Eligible GSEP Investments. For purposes of determining the GSEAF and the GSEP Reconciliation Adjustment, depreciation expense is equal to the sum of the depreciation expense calculated on a monthly basis based on the monthly plant balances utilized in determining rate base. PTMS The property taxes calculated based on the cumulative net GSEP plant investment at the end of the GSEP Investment Year multiplied by the Property Tax Rate established by the Department in the Company’s most recent general distribution rate proceeding. Property taxes will be included in the GSEP Revenue Requirement beginning in the year following the GSEP Investment Year at 50% of the annual property tax amount for the first year. In subsequent years, the GSEP Revenue Requirement will reflect a full year of property taxes. OFF The total GSEP Offset associated with reduced leak repair operating and maintenance costs. The GSEP Offset for the first GSEP Investment Year will be 50% of the annual GSEP Offset calculated. In subsequent years, the GSEP Offset will reflect a full year of the calculated GSEP Offset. For purposes of determining the GSEP Reconciliation Adjustment for the first year of each GSEP Investment Year, the annual GSEP Offset will be allocated to months based on the monthly miles of mains replaced. GP The cumulative GSEP Gross Plant Investments including cost of removal. ARD The Accumulated Reserve for Depreciation associated with the cumulative Eligible GSEP Investments. ADIT The Accumulated Deferred Income Taxes associated with the cumulative Eligible GSEP Investments. 6 Columbia Gas of Massachusetts D.P.U. 17-GSEP-05 Exhibit CMA/RDG-4 Page 7 of 13 CAP The maximum change in the revenue requirement to be billed in any given year through the Company’s GSEAF. TOT_REV The total annual delivery and cost of gas revenues from sales and transportation throughput during the calendar year prior to the year in which the GSEP investment plan is filed, including imputed cost of gas revenue at the Company’s cost of gas adjustment factors associated with transportation customers. DEF Cumulative actual Reconciliation Adjustment amounts for the prior GSEP Investment Years which have not been reflected in rates due to being in excess of the CAP and are deferred for recovery in a subsequent GSEAF. DEF_REC Amount of DEF that is allowed for recovery in the GSEAF. C The current year. P The prior year. Cm pm m R The current month The prior month Month Subsequent GSERAF Filing. 7 Columbia Gas of Massachusetts D.P.U. 17-GSEP-05 Exhibit CMA/RDG-4 Page 8 of 13 8.3(2) Gas System Enhancement Reconciliation Adjustment Factor (“GSERAF”) Formula: If ( RA – DEF_REC – GSERAF_REVMay-Oct) < 0 Then GSERAFs= ( RA – DEF_REC – GSERAF_REVMay-Oct ) x RBAs A: TPvols Else If CAP < GSEP_RECc – GSEAF_RECp + DEF_REC Then GSERAF = 0 Else RA_REC = Lesser of ( (RA – DEF_RECf – GSERAF_REVMay-Oct ) or ( CAP – (GSEP_RECc – GSEAF_RECp + DEF_RECf ) ) And GSERAFs= RA_REC x RBAs A: TPvols And DEF = RA – RA_REC – DEF_RECf – GSERAF_REVMay-Oct Where: S Designates a separate factor for each Rate Class Sector. GSERAFs The Gas System Enhancement Reconciliation Adjustment Factor, by Rate Class Sector, as defined in Section 2.02. CAP The maximum change in the revenue requirement to be billed in any given year through the Company’s GSEAF. GSEP_REC The GSEP Recovery, consisting of GSEP Revenue Requirement associated with the cumulative Eligible GSEP Investments for the respective GSEP Investment Year. Cumulative Eligible GSEP Investments will consist of actual and planned investment from January 1, 2015 through the end of the respective GSEP Investment Year. GSEAF_RECp The annual recovery amount reflected in the GSEAF for the applicable prior GSEP Investment Year. The current year GSEP_REC is compared against the GSEAF_RECp to quantify the change in the recovery that is to be compared to the CAP. 8 Columbia Gas of Massachusetts D.P.U. 17-GSEP-05 Exhibit CMA/RDG-4 Page 9 of 13 RA GSEP Reconciliation Adjustment – Account 182.30570, inclusive of the associated interest, as outlined in Section 8.6, for the GSEP Investment Years as of May 1 of each year. RA_REC GSEP Reconciliation Adjustment that is allowed to be recovered in the GSERAF. RBAs Rate Base Allocator for each Rate Class Sector, as specified in Section 8.2 (18). A:TPvols Forecasted Annual Throughput Volumes for each Rate Class Sector, inclusive of all firm sales and firm transportation throughput. C The current year. P The prior year. F Subsequent GSEAF filing. GSERAF_REV GSERAF revenue estimated for the period May through October of the current year. May-Oct DEF_REC Amount of DEF that is allowed for recovery in the GSEAF. DEF Cumulative actual Reconciliation Adjustment amounts for the prior GSEP Investment Years which have not been reflected in rates due to being in excess of the CAP and are deferred for recovery in a subsequent GSEAF. 8.3(3) Application of GSEAF and GSERAF to Customer Bills The GSEAF ($ per therm) and GSERAF ($ per therm) shall be calculated to the nearest one one-hundredth ($0.0001) of a cent per therm and will be applied to the monthly firm sales and firm transportation throughput. 8.4 Limitations on Annual GSEAF and GSERAF Charges 8.4(1) Unless modified by the Department, annual changes in the GSEP recovery that may be billed in any year shall be limited by a cap (“GSEP Cap”), which is an amount equal to 1.5 percent of the Company’s most recent calendar year total firm revenues, including gas revenues attributable to sales customers and including imputed cost of gas revenues for transportation customers, at the time of the October plan filing. [G.L. c. 164, § 145 (f)]. In addition, in the instance where the GSERAF is a surcharge to customers, the recovery of the annual GSERAF that may be billed in any year beginning on November 1 will be limited by the difference between the GSEP Cap and the annual change in the GSEP recovery. 8.4(2) In accordance with G.L. c. 164, § 145 (f), the Department may increase the GSEP Cap to a percentage of total firm revenues, including gas revenues attributable to 9 Columbia Gas of Massachusetts D.P.U. 17-GSEP-05 Exhibit CMA/RDG-4 Page 10 of 13 sales customers and including imputed cost of gas revenues for the Company’s transportation customers, greater than 1.5 percent. 8.4(3) Application of the GSEP Cap shall not affect the calculation of GSEP recovery, including GSEP Revenue Requirement, in subsequent periods. However, any GSEP recovery approved by the Department in excess of the GSEP Cap may be deferred for recovery in the following year. 8.5 Overhead and Burden Adjustments For purposes of GSEP calculations, the actual overheads and burdens shall be reduced to the extent that actual O&M overheads and burdens in a given year are less than the amount included in base rates as determined in its most recent base distribution rate case. Such reduction shall be the difference between actual O&M overheads and burdens and the amount included in base rates. In addition, the percentage of capitalized overheads and burdens assigned to GSEP projects shall be set equal to the ratio of GSEP to nonGSEP direct costs in any given year. 8.6 Reconciliation Adjustments 8.6(1) Account 182.30570 shall contain the accumulated difference between revenues billed through the GSEAF for a GSEP Recovery associated with a respective GSEP Investment Year, as calculated by multiplying the GSEAFs times the respective Rate Class Sector monthly firm sales and transportation throughput, plus the revenues billed through the GSERAF as calculated by multiplying the GSERAFs times the respective Rate Class Sector monthly firm sales and transportation throughput, unless otherwise identified in the Company’s billing records, and the revenue requirement associated with the actual Eligible GSEP allowed, plus carrying charges calculated on the average monthly balance using the consensus prime rate as reported by the Wall Street Journal and then added to the end-of-month balance. Any deferral of GSEP Recovery as a result of the limitation of the amount allowed to be billed in any one year in accordance with the GSEP Cap shall be reflected in the GSEP Reconciliation Adjustment Account with the monthly calculation of carrying charges as set out herein. 8.6(2) The GSEP Revenue Requirement will initially be based on planned spending for Eligible Infrastructure Replacement Projects for the GSEP Investment Year, plus cumulative actual and planned investment in eligible in-service plant through the end of the prior GSEP Investment Year. Pursuant to Section 8.7(3) below, upon Department approval of actual Eligible GSEP Investment, the Company shall adjust the GSEP Revenue Requirement of the applicable GSEP Investment Year. 8.6(3) The GSEP Reconciliation Adjustment as of the implementation date of base rates established in a Company’s next general rate proceeding, including any aspect of the GSEP Reconciliation Adjustment pertaining to the cumulative deferral of revenue requirement recovery due to application of the GSEP Cap in prior year(s), shall be included in developing the GSEAF established as of the effective date of the new base rates. Upon the effective date of new base rates, the GSEAF then in effect shall be adjusted to reflect the removal of cumulative GSEP Investment through the end of the test year of such general rate proceeding. Subsequent October 31 filings of GSEP Plans shall exclude cumulative GSEP Investment 10 Columbia Gas of Massachusetts D.P.U. 17-GSEP-05 Exhibit CMA/RDG-4 Page 11 of 13 included in rate base through the end of the test year of such general rate proceeding. The recovery of GSEP Investment not included in a general rate proceeding shall continue through the GSEP until the GSEP Investment is included in rate base as part of a subsequent general rate proceeding. The filing of a general rate proceeding shall not result in a Company not recovering eligible GSEP costs incurred prior to the date new base rates go into effect. 8.7 Information to be Filed with the Department 8.7(1) Information For Subsequent Construction Year Any GSEP Plan submitted to the Department on October 31 of each year in relation to Eligible GSEP Investment in the subsequent construction year shall include, but not be limited to: (a) A plan for the completion of eligible infrastructure replacement projects relating to mains, services, meter sets and other ancillary facilities composed of non-cathodically protected steel, cast iron, wrought iron and copper prioritized to implement the federal gas distribution pipeline integrity management plan annually submitted to the Department and consistent with subpart P of 49 C.F.R. part 192; (b) An anticipated timeline for the completion of each project; (c) The estimated cost of each project; (d) Rate change requests; (e) A description of customer costs and benefits under the plan; and (f) Any other information the Department considers necessary to evaluate the plan. 8.7(2) Information on Timeline for Removal of Leak-Prone Infrastructure A GSEP Plan submitted on or before October 31 of any year shall include a timeline for removal of all leak-prone infrastructure on an accelerated basis specifying an annual replacement pace and program end date with a target end date of either: (a) not more than 20 years, or (b) a reasonable target end date considering the allowable recovery cap established pursuant to G.L. c. 164, § 145(f). [G.L. c. 164, § 145(c)] After the filing of the initial GSEP Plan on October 31, 2014, at five-year intervals, the Company shall provide the Department with a summary of its replacement progress to date, a summary of work to be completed during the next five years and any similar information the Department may require. [G.L. c. 164, § 145(c)] 8.7(3) Information to be filed with the Department for GSEP Reconciliation On or before May 1 of each year subsequent to a GSEP Investment Year, the Company shall file with the Department certain information to support its GSEP Reconciliation (“GREC”). The Company shall file final project documentation for projects completed in 11 Columbia Gas of Massachusetts D.P.U. 17-GSEP-05 Exhibit CMA/RDG-4 Page 12 of 13 the prior year to demonstrate: (a) substantial compliance with the GSEP Plan in effect for the respective GSEP Investment Year; and (b) that project costs were reasonably and prudently incurred. The Company shall also file the revenue requirement based on the actual costs submitted in this filing, which shall form the basis of the GSERAF to become effective on November 1. 8.8 APPENDIX A – Repair of Grade 3 Gas Leaks with Significant Environmental Impact 8.8(1) Applicability Pursuant to St. 2016, c. 188, Section 13, the Department shall provide for the recovery of costs incurred for the repair of Grade 3 gas leaks determined to have a significant environmental impact as part of the most cost-effective timeline for repairs under a plan submitted under G.L. c. 164, § 145, without a reduction to the recovery for eligible leak prone pipe replacement. For Grade 3 gas leaks determined to have a significant environmental impact (“G3SEI”), the Company shall provide in its October 31 annual filing a description of the process the Company will follow during the upcoming GSEP Investment Year to identify and repair G3SEI leaks. To the extent available or reasonably estimated, the Company will reference the number of G3SEI leaks to be repaired and provide a general estimate of the costs associated with repairing such leaks. Eligible repair costs of G3SEI leaks shall be limited to costs charged to operation and maintenance (“O&M”) accounts (“Eligible G3SEI O&M Costs”) and shall exclude any capital costs, if any, incurred. Estimated Eligible G3SEI O&M Costs to be recovered through the GSEAF for the upcoming GSEP Investment year will be reconciled against actual GSEP Investment year Eligible G3SEI O&M Costs as part of GSEP Reconciliation Adjustment. 8.8(2) Exclusion from GSEP Investment Cap Consistent with St. 2016, c. 188, Section 13, recovery of Eligible G3SEI O&M Costs associated with all material types does not reduce the recovery of the GSEP Revenue Requirement, for which the annual change is subject to the GSEP Cap The Company shall exclude Eligible G3SEI O&M Costs from the operation of the GSEP Cap and shall add that amount to the amount of GSEP Revenue Requirement determined to be recoverable pursuant to the GSEP Cap for purposes of calculating the GSEAF. In the event that the Company incurs capital cost to replace Existing Infrastructure having a G3SEI leak, the Company shall include the replacement costs in the GSEP Revenue Requirement that is subject to the GSEP Cap. In the event that the Company incurs capital cost to replace composite materials having a G3SEI leak that do not constitute Existing Infrastructure, the resulting capital cost shall be excluded from Eligible GSEP Investment, the GSEP Revenue Requirement, and any GSEAF, and shall be eligible for recovery in the Company’s next general rate case. 8.8(3) Information to be Filed with the Department Pursuant to G.L. c. 164, § 145 and St. 2016, c. 188, Section 13, the Company, in its annual May 1 GSEP Reconciliation (“GREC”) filing, shall submit, for G3SEI leaks for which costs are eligible for recovery through the GSEAF, final project documentation for G3SEI 12 Columbia Gas of Massachusetts D.P.U. 17-GSEP-05 Exhibit CMA/RDG-4 Page 13 of 13 leaks that were repaired or replaced in the prior GSEP Investment Year to demonstrate that the costs were reasonably and prudently incurred However, the Company is not required to report G3SEI leaks of composite materials for which costs are not eligible for recovery through the GSEAF. The Company shall provide the Department with sufficient documentation to identify whether the costs associated with each reported G3SEI leak was related to repair or replacement of Existing Infrastructure under the GSEP and, accordingly, whether the capital cost is included in the GSEP Revenue Requirement subject to the GSEP Cap or included in Eligible G3SEI O&M Cost recoverable outside the GSEP Cap. 13 Columbia Gas of Massachusetts D.P.U. 17-GSEP-05 Exhibit CMA/RDG-5 Page 1 of 13 8.0 Gas System Enhancement Program Costs Allowable for LDAC 8.1 Purpose and Applicability 8.1(1) Purpose The purpose of the Gas System Enhancement Program (“GSEP”) Tariff is to establish a procedure that implements the provisions of G.L. c. 164, § 145, allowing Bay State Gas Company d/b/a Columbia Gas of Massachusetts (the “Company”), subject to the jurisdiction of the Department of Public Utilities (the “Department”), to obtain recovery of eligible costs associated with the replacement or improvement of existing natural gas distribution infrastructure to improve public safety or infrastructure reliability. In accordance with G.L. c. 164, § 145(b), all costs associated with the GSEP are incurred to address aging or leaking natural gas infrastructure within the Commonwealth in the interest of public safety and reducing lost and unaccounted for natural gas through a reduction in natural gas system leaks. Consistent with St. 2016, c. 188, Section 13, Appendix A to the GSEP provisions of the Company’s LDAC tariff sets forth the cost recovery associated with the repair of Grade 3 gas leaks that have been determined to have a significant environmental impact. 8.1(2) Applicability As a component of the Local Distribution Adjustment Clause (“LDAC”), the GSEAF and the GSERAF, as defined in Section 8.2, shall be applied to all firm sales and firm transportation throughput of the Company as determined in accordance with the provisions of Section 8.3 of this clause. The GSEAF and GSERAF shall be determined annually by the Company, as defined below, subject to the Department’s review and approval. 8.1(3) Effective Date In accordance with G.L. c. 164, §§ 145 (a), (d), (e), the annual GSEAF associated with each GSEP Investment Year beginning on and after January 1, 2015, shall be effective on May 1 of the respective GSEP Investment Year, based on the GSEP Revenue Requirement calculated in the annual GSEP Plan filed with the Department on or before October 31 in the year prior to the GSEP Investment Year. The annual GSERAF shall be effective on the November 1 following each GSEP Investment Year. 8.2 Definitions (1) Accumulated Deferred Income Taxes are the net reduction in Federal income and State franchise taxes associated with the use of accelerated depreciation allowed for income tax purposes. (2) Accumulated Reserve for Depreciation is the cumulative net credit balance arising from the provision for Depreciation Expense. (3) Depreciation Expense is the return of the Company’s investment in Rate Base at established depreciation rates as approved by the Department in the Company’s most recent general distribution rate proceeding. 1 Columbia Gas of Massachusetts D.P.U. 17-GSEP-05 Exhibit CMA/RDG-5 Page 2 of 13 (4) Eligible GSEP Investment is the cost of Eligible Infrastructure Replacement Projects planned for the current GSEP Investment Year, plus the cumulative actual and planned cost of Eligible Infrastructure Replacement Projects completed through the end of the year prior to the current GSEP Investment Year, as summarized in the annual GSEP Plan. Costs included in the GSEP Revenue Requirement associated with Eligible GSEP Investment are Depreciation Expense, property taxes, and the return on investment utilizing the after-tax rate of return approved by the Department in the Company’s most recent general distribution rate proceeding, adjusted to a pre-tax basis by using the current federal and state income tax rates applicable to the GSEP Investment Year. Project costs shall be Eligible GSEP Investment in the year completed and placed into service. Eligible GSEP Investment includes costs recorded in the following MDPU/FERC plant accounts: Account No. 367/376 Account No. 380/380 Account No. 381/381 Account No. 382/382 Account No. 383/383 Mains – Distribution Services – Distribution Meters – Distribution Meter Installations – Distribution House Regulators – Distribution The costs booked to the above accounts shall be determined in accordance with the Company’s application of the Uniform System of Accounts for Gas Companies, 220 C.M.R. § 50.00, Gas Plant Accounts, in use during the test year of its previous base rate case filed pursuant to G.L. c. 164, § 94. (5) Eligible GSEP Savings are the cumulative reduction in operating and maintenance leak repair expense achieved with the replacement of leak-prone main. Eligible GSEP Savings shall be equal to the most recent three-year average of leak repair cost per mile for non-cathodically protected steel mains, cast iron mains and wrought iron mains, updated annually in the GSEP Plan filed on October 31 of each year for the subsequent construction year. The costs associated with leak repair expense shall be determined in accordance with the Uniform System of Accounts for Gas Companies, 220 C.M.R. §50.00, Operations and Maintenance Expense Accounts, in use during the test year of its previous base rate case filed pursuant to G.L. c. 164 § 94. (6) Existing Infrastructure is mains, services, meter sets, and other ancillary facilities composed of non-cathodically protected steel, cast iron and wrought iron and other ancillary facilities composed of non-cathodically protected steel, cast iron, wrought iron and copper, and any connected facilities such as services, meters or regulators or preexisting pipe segments, including but not limited to plastic and cathodically protected steel pipe segments, or regulator stations that must be installed, replaced or retired to enable the replacement project to become operational and/or manage the costs of the replacement project. [G.L. c. 164, § 145(c) and (d)] 2 Columbia Gas of Massachusetts D.P.U. 17-GSEP-05 Exhibit CMA/RDG-5 Page 3 of 13 (7) Eligible Infrastructure Replacement Project is a project to replace or improve the Company’s existing infrastructure that: (i.) is made on or after January 1, 2015; (ii) is designed to improve public safety or infrastructure reliability; (iii) does not increase the Company’s revenue by connecting an improvement for a principal purpose of serving new customers; (iv) reduces, or has the potential to reduce, lost and unaccounted for natural gas through a reduction in natural gas system leaks; and (v) is not included in the Company’s current Rate Base as determined in the gas company’s most recent rate proceeding. [G.L. c. 164, § 145(a); St.2016, c. 188, § 13] (8) Gross Plant Investments are the capitalized costs of GSEP plant investments including costs of removal recorded on the Company’s books for Eligible Infrastructure Replacement Projects. Gross Plant Investment for a GSEP Investment Year shall be the cumulative actual and planned cost of Eligible Infrastructure Replacement Projects completed through the end of the year prior to the current GSEP Investment Year and the planned capitalized investment for the current GSEP Investment Year associated with the GSEP Plan filed with the Department on October 31 of the year prior to the GSEP Investment Year. Actual capitalized cost of GSEP Investments shall include applicable overhead and burden costs subject to the test provided in Section 8.5. (9) GSEAF is the Gas System Enhancement Adjustment Factor that recovers the aggregate GSEP Revenue Requirement approved by the Department for actual and planned Eligible GSEP Investment made beginning January 1, 2015, and in annual periods January 1 through December 31 of each GSEP Investment Year, with the annual recovery period beginning May 1 of each GSEP Investment Year for the cumulative spending on planned or completed projects anticipated to be placed in service through the end of the GSEP Investment Year. (10) GSERAF is the Gas System Enhancement Reconciliation Adjustment Factor that recovers the GSEP Reconciliation Adjustment. The GSERAF shall be effectivefiled on or before May 1 for effect November 1 following each GSEP Investment Year and included in through October 31 of the Company’s LDAF filing to be submitted to the Department 90 days before the LDAF effective date of November 1following year. (11) GSEP Investment Year is the annual period beginning on January 1 and ending on December 31, during which the Company anticipates placing GSEP Eligible Infrastructure Replacement Projects in service. (12) GSEP Offsets represent the reduced operating and maintenance expense associated with the elimination of natural gas leaks through Eligible Infrastructure Replacement Projects. GSEP Offsets are determined by multiplying Eligible GSEP Savings by the total miles of non-cathodically protected steel mains, cast iron mains and wrought iron mains, replaced or abandoned by the Company in the period January 1 through December 31 of the respective GSEP Investment Year. 3 Columbia Gas of Massachusetts D.P.U. 17-GSEP-05 Exhibit CMA/RDG-5 Page 4 of 13 (13) GSEP Plan is the Company’s plan to replace or improve existing distribution infrastructure in accordance with G.L. c. 164, § 145, as filed with the Department on October 31 of each year, including information pertaining to eligible infrastructure replacement undertaken to eliminate natural gas system leaks in the subsequent construction year and over a future timeline allowing for the removal of all leak-prone infrastructure on an accelerated basis. [G.L. c. 164, § 145 (a), (c) and (d)] (14) GSEP Reconciliation Adjustment is the difference between the GSEP Revenue Requirement on cumulative Eligible GSEP Investment for a GSEP Investment Year and the billed revenue from the GSEAF associated with the same GSEP Investment Year. The GSEP Revenue Requirement, for this purpose, shall reflect actual cumulative Eligible GSEP Investment. The GSEP Reconciliation Adjustment shall include interest on any balance, accrued at the prime rate as reported by the Wall Street Journal. The GSEP Reconciliation Adjustment shall be recovered through the GSERAF. (15) GSEP Revenue Requirement is the accumulated revenue requirements through December 31 of each GSEP Investment Year, which are calculated as part of the GSEP Plan filed each October 31 for the subsequent construction year, based on the Eligible GSEP Investment to be completed during the following GSEP Investment Year and inclusive of the actual and planned Eligible GSEP Investment incurred through the end of the year prior to the current GSEP Investment Year. For the year in which Eligible GSEP Investment is placed into service, the annual The revenue requirement for each GSEP Investment Year will be calculated on a monthly basis., and shall represent the sum of the revenue requirement for each of the twelve months of the respective year. The annual revenue requirement on Eligible GSEP Investment for subsequent years will also be calculated based upon calendar year-end balances.on a monthly basis. (16) Property Tax Rate is the Company’s composite property tax rate determined in the Company’s most recent general distribution rate proceeding, calculated as the ratio of total annual property taxes paid to total taxable net plant in service. (17) Rate Base is the investment value upon which the Company is permitted to earn its authorized rate of return. (18) Rate Base Allocators are the allocation factors for each GSEP Rate Class Sector that are applied to the GSEP Revenue Requirements that the Company is allowed to recover through the GSEAF to determine the GSEAF rate for each Rate Class Sector. The following are the Rate Base Allocators as approved by the Department in the Company’s general distribution rate proceeding (D.P.U. 13-75): Rate Class Sector Rate Base Allocators Residential 61.910% C&I Low Annual Use C&I Medium Annual Use C&I High Annual Use 8.837% 12.578% 8.587% C&I Extra High Annual Use 8.086% 4 Columbia Gas of Massachusetts D.P.U. 17-GSEP-05 Exhibit CMA/RDG-5 Page 5 of 13 8.3 Rate Formulas 8.3(1) Gas System Enhancement Adjustment Factor (“GSEAF”) Formula CAP = 1.5% * TOT_REV And: m=1 GSEP_RECc = [ ∑ ((RB x PTRR) + DEPR) ] + PTMS – OFF m=12 and: RB = ( (GPpm – ARDpm – ADITpm) + (GPcm – ARDcm – ADITcm) ) ÷ 2 If CAP ≤ GSEP_RECc - GSEAF_RECp Then GSEAFs = (GSEP_RECc – ( ( GSEP_RECc – GSEAF_RECp ) – CAP ) ) x RBAs A : TPvols Else GSEAFs = (GSEP RECc + DEF_REC) x RBAs A: TPvols and DEF_REC = Lesser of ( DEFr or ( CAP – (GSEP_RECc – GSEAF_RECp ) ) ) Where: S Designates a separate factor for each Rate Class Sector. GSEAFs The Gas System Enhancement Adjustment Factor, by Rate Class Sector, as defined in Section 2.02. GSEP_REC The GSEP Recovery, consisting of GSEP Revenue Requirement associated with the cumulative Eligible GSEP Investments for the respective GSEP Investment Year. Cumulative Eligible GSEP Investments will consist of actual and planned investment from January 1, 2015 through the end of the respective GSEP Investment Year. GSEAF_RECp The annual recovery amount reflected in the GSEAF for the applicable prior GSEP Investment Year. The current year GSEP_REC is compared against the GSEAF_RECp to quantify the change in the recovery that is to be compared to the CAP. RBAs Rate Base Allocator for each Rate Class Sector, as specified in Section 8.2 (18). 5 Columbia Gas of Massachusetts D.P.U. 17-GSEP-05 Exhibit CMA/RDG-5 Page 6 of 13 A:TPvols Forecasted Annual Throughput Volumes for each Rate Class Sector, inclusive of all firm sales and firm transportation throughput. RB For the purpose of calculating the GSEAF, the average annualThe Rate Base associated with the cumulative Eligible GSEP Investments, based upon the beginning of the year and end of the year GP, ARD, and ADIT balances of the respective GSEP Investment Year.. For purposes of establishing a GSEAF rate and the GSEP Reconciliation Adjustment for the year during which Eligible GSEP Investment is placed into service, Rate Base, the rate base will be calculated using projected (GSEAF) and actual beginning and end of month(GSERAF) monthly balances for GP, ARD, and ADIT. PTRR The pre-tax rate of return shall be the after-tax weighted average cost of capital established by the Department in the Company’s most recent general rate proceeding, adjusted to a pre-tax basis by using currently effective federal and state income tax rates applicable to the period of the Eligible GSEP Investment. DEPR The annual depreciation expense associated with the cumulative monthly Eligible GSEP Investments as of the end of the respective GSEP Investment Year.. For purposes of determining the GSEAF, depreciation expense will be based on the average of the beginning and end of year plant balances. For purposes of determining the GSEP Reconciliation Adjustment for the year during which Eligible GSEP Investment , depreciation expense is placed into service, equal to the sum of the depreciation expense will be calculated on a monthly basis based on the actual depreciation recognized on the monthly plant balances usedutilized in determining Rate Base.rate base. PTMS The property taxes calculated based on the cumulative net GSEP plant investment at the end of the GSEP Investment Year multiplied by the Property Tax Rate established by the Department in the Company’s most recent general distribution rate proceeding. Property taxes will be included in the GSEP Revenue Requirement beginning in the year following the GSEP Investment Year at 50% of the annual property tax amount for the first year. In subsequent years, the GSEP Revenue Requirement will reflect a full year of property taxes. 6 Columbia Gas of Massachusetts D.P.U. 17-GSEP-05 Exhibit CMA/RDG-5 Page 7 of 13 OFF The total GSEP Offset associated with reduced leak repair operating and maintenance costs. The GSEP Offset for the first GSEP Investment Year will be 50% of the annual GSEP Offset calculated. In subsequent years, the GSEP Offset will reflect a full year of the calculated GSEP Offset. For purposes of determining the GSEP Reconciliation Adjustment for the first year of each GSEP Investment Year, the annual GSEP Offset will be allocated to months based on the monthly miles of mains replaced. GP The cumulative GSEP Gross Plant Investments including cost of removal as of the end of the respective GSEP Investment Year.. ARD The Accumulated Reserve for Depreciation associated with the cumulative Eligible GSEP Investments as of the end of the respective GSEP Investment Year. ADIT The Accumulated Deferred Income Taxes associated with the cumulative Eligible GSEP Investments as of the end of the respective GSEP Investment Year. CAP The maximum change in the revenue requirement to be billed in any given year through the Company’s GSEAF. TOT_REV The total annual delivery and cost of gas revenues from sales and transportation throughput during the calendar year prior to the year in which the GSEP investment plan is filed, including imputed cost of gas revenue at the Company’s cost of gas adjustment factors associated with transportation customers. DEF Cumulative actual Reconciliation Adjustment amounts for the prior GSEP Investment Years which have not been reflected in rates due to being in excess of the CAP and are deferred for recovery in a subsequent GSEAF. DEF_REC Amount of DEF that is allowed for recovery in the GSEAF. C The current year. P The prior year. cm pm m R The current month The prior month Month Subsequent GSERAF Filing. 7 Columbia Gas of Massachusetts D.P.U. 17-GSEP-05 Exhibit CMA/RDG-5 Page 8 of 13 8.3(2) Gas System Enhancement Reconciliation Adjustment Factor (“GSERAF”) Formula: If ( RA – DEF_REC – GSERAF_REVMay-Oct) < 0 Then GSERAFs= ( RA – DEF_REC – GSERAF_REVMay-Oct ) x RBAs A: TPvols Else If CAP < GSEP_RECc – GSEAF_RECp + DEF_REC Then GSERAF = 0 Else RA_REC = Lesser of ( (RA – DEF_RECf – GSERAF_REVMay-Oct ) or ( CAP – (GSEP_RECc – GSEAF_RECp + DEF_RECf ) ) And GSERAFs= RA_REC x RBAs A: TPvols And DEF = RA – RA_REC – DEF_RECf – GSERAF_REVMay-Oct Where: S Designates a separate factor for each Rate Class Sector. GSERAFs The Gas System Enhancement Reconciliation Adjustment Factor, by Rate Class Sector, as defined in Section 2.02. CAP The maximum change in the revenue requirement to be billed in any given year through the Company’s GSEAF. GSEP_REC The GSEP Recovery, consisting of GSEP Revenue Requirement associated with the cumulative Eligible GSEP Investments for the respective GSEP Investment Year. Cumulative Eligible GSEP Investments will consist of actual and planned investment from January 1, 2015 through the end of the respective GSEP Investment Year. GSEAF_RECp The annual recovery amount reflected in the GSEAF for the applicable prior GSEP Investment Year. The current year GSEP_REC is compared against the GSEAF_RECp to quantify the change in the recovery that is to be compared to the CAP. 8 Columbia Gas of Massachusetts D.P.U. 17-GSEP-05 Exhibit CMA/RDG-5 Page 9 of 13 RA GSEP Reconciliation Adjustment – Account 182.30570, inclusive of the associated interest, as outlined in Section 8.6, for the GSEP Investment Years as of May 1 of each year. RA_REC GSEP Reconciliation Adjustment that is allowed to be recovered in the GSERAF. RBAs Rate Base Allocator for each Rate Class Sector, as specified in Section 8.2 (18). A:TPvols Forecasted Annual Throughput Volumes for each Rate Class Sector, inclusive of all firm sales and firm transportation throughput. C The current year. P The prior year. F Subsequent GSEAF filing. GSERAF_REV GSERAF revenue estimated for the period May through October of the current year. May-Oct DEF_REC Amount of DEF that is allowed for recovery in the GSEAF. DEF Cumulative actual Reconciliation Adjustment amounts for the prior GSEP Investment Years which have not been reflected in rates due to being in excess of the CAP and are deferred for recovery in a subsequent GSEAF. 8.3(3) Application of GSEAF and GSERAF to Customer Bills The GSEAF ($ per therm) and GSERAF ($ per therm) shall be calculated to the nearest one one-hundredth ($0.0001) of a cent per therm and will be applied to the monthly firm sales and firm transportation throughput. 8.4 Limitations on Annual GSEAF and GSERAF Charges 8.4(1) Unless modified by the Department, annual changes in the GSEP recovery that may be billed in any year shall be limited by a cap (“GSEP Cap”), which is an amount equal to 1.5 percent of the Company’s most recent calendar year total firm revenues, including gas revenues attributable to sales customers and including imputed cost of gas revenues for transportation customers, at the time of the October plan filing. [G.L. c. 164, § 145 (f)]. In addition, in the instance where the GSERAF is a surcharge to customers, the recovery of the annual GSERAF that may be billed in any year beginning on November 1 will be limited by the difference between the GSEP Cap and the annual change in the GSEP recovery. 8.4(2) In accordance with G.L. c. 164, § 145 (f), the Department may increase the GSEP Cap to a percentage of total firm revenues, including gas revenues attributable to sales customers and including imputed cost of gas revenues for the Company’s transportation customers, greater than 1.5 percent. 9 Columbia Gas of Massachusetts D.P.U. 17-GSEP-05 Exhibit CMA/RDG-5 Page 10 of 13 8.4(3) Application of the GSEP Cap shall not affect the calculation of GSEP recovery, including GSEP Revenue Requirement, in subsequent periods. However, any GSEP recovery approved by the Department in excess of the GSEP Cap may be deferred for recovery in the following year. 8.5 Overhead and Burden Adjustments For purposes of GSEP calculations, the actual overheads and burdens shall be reduced to the extent that actual O&M overheads and burdens in a given year including the Pension/PBOP Adjustment Factor (PAF) are less than the amount included in base rates as determined in its most recent base distribution rate case and the PAF. Such reduction shall be the difference between the actual O&M overheads and burdens including those in the PAF and the amount included in base rates and the PAF . In addition, the percentage of capitalized overheads and burdens assigned to GSEP projects shall be set equal to the ratio of GSEP to non-GSEP direct costs in any given year. 8.6 Reconciliation Adjustments 8.6(1) Account 182.30570 shall contain the accumulated difference between revenues billed through the GSEAF for a GSEP Recovery associated with a respective GSEP Investment Year, as calculated by multiplying the GSEAFs times the respective Rate Class Sector monthly firm sales and transportation throughput, plus the revenues billed through the GSERAF as calculated by multiplying the GSERAFs times the respective Rate Class Sector monthly firm sales and transportation throughput, unless otherwise identified in the Company’s billing records, and the revenue requirement associated with the actual Eligible GSEP allowed, plus carrying charges calculated on the average monthly balance using the consensus prime rate as reported by the Wall Street Journal and then added to the end-of-month balance. Any deferral of GSEP Recovery as a result of the limitation of the amount allowed to be billed in any one year in accordance with the GSEP Cap shall be reflected in the GSEP Reconciliation Adjustment Account with the monthly calculation of carrying charges as set out herein. 8.6(2) The GSEP Revenue Requirement will initially be based on planned spending for Eligible Infrastructure Replacement Projects for the GSEP Investment Year, plus cumulative actual and planned investment in eligible in-service plant through the end of the prior GSEP Investment Year. Pursuant to Section 8.7(3) below, upon Department approval of actual Eligible GSEP Investment, the Company shall adjust the GSEP Revenue Requirement of the applicable GSEP Investment Year. 8.6(3) The GSEP Reconciliation Adjustment as of the implementation date of base rates established in a Company’s next general rate proceeding, including any aspect of the GSEP Reconciliation Adjustment pertaining to the cumulative deferral of revenue requirement recovery due to application of the GSEP Cap in prior year(s), shall be included in developing the GSEAF established as of the effective date of the new base rates. Upon the effective date of new base rates, the GSEAF then in effect shall be adjusted to reflect the removal of cumulative GSEP Investment through the end of the test year of such general rate proceeding. Subsequent October 31 filings of GSEP Plans shall exclude cumulative GSEP Investment included in rate base through the end of the test year of such general rate 10 Columbia Gas of Massachusetts D.P.U. 17-GSEP-05 Exhibit CMA/RDG-5 Page 11 of 13 proceeding. The recovery of GSEP Investment not included in a general rate proceeding shall continue through the GSEP until the GSEP Investment is included in rate base as part of a subsequent general rate proceeding. The filing of a general rate proceeding shall not result in a Company not recovering eligible GSEP costs incurred prior to the date new base rates go into effect. 8.7 Information to be Filed with the Department 8.7(1) Information For Subsequent Construction Year Any GSEP Plan submitted to the Department on October 31 of each year in relation to Eligible GSEP Investment in the subsequent construction year shall include, but not be limited to: (a) A plan for the completion of eligible infrastructure replacement projects relating to mains, services, meter sets and other ancillary facilities composed of non-cathodically protected steel, cast iron, and wrought iron and copper prioritized to implement the federal gas distribution pipeline integrity management plan annually submitted to the Department and consistent with subpart P of 49 C.F.R. part 192; (b) An anticipated timeline for the completion of each project; (c) The estimated cost of each project; (d) Rate change requests; (e) A description of customer costs and benefits under the plan; and (f) Any other information the Department considers necessary to evaluate the plan. 8.7(2) Information on Timeline for Removal of Leak-Prone Infrastructure A GSEP Plan submitted on or before October 31 of any year shall include a timeline for removal of all leak-prone infrastructure on an accelerated basis specifying an annual replacement pace and program end date with a target end date of either: (a) not more than 20 years, or (b) a reasonable target end date considering the allowable recovery cap established pursuant to G.L. c. 164, § 145(f). [G.L. c. 164, § 145(c)] After the filing of the initial GSEP Plan on October 31, 2014, at five-year intervals, the Company shall provide the Department with a summary of its replacement progress to date, a summary of work to be completed during the next five years and any similar information the Department may require. [G.L. c. 164, § 145(c)] 8.7(3) Project DocumentationInformation to be filed with the Department for GSEP Reconciliation On or before May 1 of each year subsequent to a GSEP Investment Year, the Company shall file with the Department certain information to support its GSEP Reconciliation (“GREC”). The Company shall file final project documentation for projects completed in 11 Columbia Gas of Massachusetts D.P.U. 17-GSEP-05 Exhibit CMA/RDG-5 Page 12 of 13 the prior year to demonstrate: (a) substantial compliance with the GSEP Plan in effect for the respective GSEP Investment Year; and (b) that project costs were reasonably and prudently incurred. The Company shall also file the revenue requirement based on the actual costs submitted in this filing, which shall form the basis of the GSERAF to be included in the Company’s LDAF filing to be submitted 90 days before the effective date ofbecome effective on November 1. 8.8 APPENDIX A – Repair of Grade 3 Gas Leaks with Significant Environmental Impact 8.8(1) Applicability Pursuant to St. 2016, c. 188, Section 13, the Department shall provide for the recovery of costs incurred for the repair of Grade 3 gas leaks determined to have a significant environmental impact as part of the most cost-effective timeline for repairs under a plan submitted under G.L. c. 164, § 145, without a reduction to the recovery for eligible leak prone pipe replacement. For Grade 3 gas leaks determined to have a significant environmental impact (“G3SEI”), the Company shall provide in its October 31 annual filing a description of the process the Company will follow during the upcoming GSEP Investment Year to identify and repair G3SEI leaks. To the extent available or reasonably estimated, the Company will reference the number of G3SEI leaks to be repaired and provide a general estimate of the costs associated with repairing such leaks. Eligible repair costs of G3SEI leaks shall be limited to costs charged to operation and maintenance (“O&M”) accounts (“Eligible G3SEI O&M Costs”) and shall exclude any capital costs, if any, incurred. Estimated Eligible G3SEI O&M Costs to be recovered through the GSEAF for the upcoming GSEP Investment year will be reconciled against actual GSEP Investment year Eligible G3SEI O&M Costs as part of GSEP Reconciliation Adjustment. 8.8(2) Exclusion from GSEP Investment Cap Consistent with St. 2016, c. 188, Section 13, recovery of Eligible G3SEI O&M Costs associated with all material types does not reduce the recovery of the GSEP Revenue Requirement, for which the annual change is subject to the GSEP Cap The Company shall exclude Eligible G3SEI O&M Costs from the operation of the GSEP Cap and shall add that amount to the amount of GSEP Revenue Requirement determined to be recoverable pursuant to the GSEP Cap for purposes of calculating the GSEAF. In the event that the Company incurs capital cost to replace Existing Infrastructure having a G3SEI leak, the Company shall include the replacement costs in the GSEP Revenue Requirement that is subject to the GSEP Cap. In the event that the Company incurs capital cost to replace composite materials having a G3SEI leak that do not constitute Existing Infrastructure, the resulting capital cost shall be excluded from Eligible GSEP Investment, the GSEP Revenue Requirement, and any GSEAF, and shall be eligible for recovery in the Company’s next general rate case. 8.8(3) Information to be Filed with the Department Pursuant to G.L. c. 164, § 145 and St. 2016, c. 188, Section 13, the Company, in its annual May 1 GSEP Reconciliation (“GREC”) filing, shall submit, for G3SEI leaks for which 12 Columbia Gas of Massachusetts D.P.U. 17-GSEP-05 Exhibit CMA/RDG-5 Page 13 of 13 costs are eligible for recovery through the GSEAF, final project documentation for G3SEI leaks that were repaired or replaced in the prior GSEP Investment Year to demonstrate that the costs were reasonably and prudently incurred However, the Company is not required to report G3SEI leaks of composite materials for which costs are not eligible for recovery through the GSEAF. The Company shall provide the Department with sufficient documentation to identify whether the costs associated with each reported G3SEI leak was related to repair or replacement of Existing Infrastructure under the GSEP and, accordingly, whether the capital cost is included in the GSEP Revenue Requirement subject to the GSEP Cap or included in Eligible G3SEI O&M Cost recoverable outside the GSEP Cap. 13