Indiana Natural Gas Corporation

Budget Plan

Date: 3-31-2008

Purpose: The purpose of this document is to delineate the Budget Plan of Indiana Natural Gas Corporation.

Scope: This plan applies to natural gas purchased by customers of Indiana Natural Gas Corporation.

Responsibility: All Indiana Natural Gas management, billing and customer service employees are responsible to be aware of and follow the provisions of this plan. If questions arise regarding the application of this plan, the Office Manager or General Manager are responsible to see that the plan is correctly interpreted and fairly applied.

Amendment: Indiana Natural Gas Corporation may amend this plan.

Review: Company management will review this plan with all affected employees on a regular basis. All affected employees will be apprised of any amendments made to the plan.

Eligibility: The following types of accounts are eligible for the company's Budget Plan:

  1. Individually metered home.
  2. Individually metered apartment.
  3. Church (Recognized as such by the Internal Revenue Service).
  4. Parsonage (single family home owned by Church. See above.)
  5. Small Business (Business or Commercial Enterprise with 250 or smaller meter).
  6. Small Farming Operation (Farming Operation with 250 or smaller meter).
  7. School (Kindergarten - Grade 12).
  8. Small Not for-Profit institution (Not-For-Profit with 250 or smaller meter).

Application: Each customer who desires to take part in the company's Budget Plan will make written application to do so on forms provided by the company. Customers in good standing may sign up for the Budget Plan at any time during normal business hours. Applications will also be accepted via fax, mail, and through the company's drop box system.

Timing: Customers will be allowed to join the company's budget plan at any time during the year. There is no minimum length of time for an eligible entity to have been a customer before they are eligible to sign up for the budget plan.

Ineligible: The following customers are not eligible to participate in the Budget Plan:

  1. Customers whose gas service is not characterized by one of the eight descriptions shown under Eligibility, above.
  2. Customers who have a past due balance with the company.
  3. Customers who owe the company penalties, reconnection/collection fees, past due deposits, balances from a previous account, judgment, or any other past due amount.
  4. Transportation Customers (Customers utilizing Rate T).

Deposit: There is no special deposit required to enter the budget plan. Normal deposits as required by the company shall not be included in the customer's budget amount. These deposits will be collected in a manner consistent with the long-standing practice of the company and in compliance with the requirements of the Indiana Utility Regulatory Commission (IURC).

Budget Amount: The company will determine the Budget Amount (monthly budget payment), for each customer entering the budget plan. The following information will be utilized when determining this amount:

  1. Prior budget amounts by the customer through the applicable meter along with the year ending balance resulting from these amounts during previous Budget Years.
  2. Historical usage through the meter the customer wishes be on the budget plan for. If insufficient history is available, historical usage at another similar property will be used instead.
  3. Gas rates and trackers.
  4. Abnormal or unusual weather patterns that are expected to materially affect the customer's gas bills.
  5. Useful input from the customer regarding facts that will affect their gas usage.
  6. The months remaining in the Budget Year.
  7. If the customer requests a Budget Amount in excess of the company's determination, the customer's wishes will be honored.

Modification: A customer's budget amount may be modified by the company if:

  1. The customer's gas usage is significantly different than was anticipated in determining the Budget Amount.
  2. Gas rates or gas trackers are significantly different than was anticipated in determining the Budget Amount.
  3. The customer requests a modification to the Budget Amount and the company determines it is prudent to change the amount.

Budget Year: The Budget Year will be as follows:

  1. The Budget Year begins with bills sent in April of each year.
  2. The last (true up) month of the budget year is in March of each year.
  3. All customers will be notified about the budget plan by a message on their February and March bills.
  4. Current Budget Customers and customers who elect to join the Budget Plan during the normal sign up period of February and March will receive their first Budget Bill in April.
  5. Customers electing to enter the Budget Plan at any time other than April will still end their Budget Year in the following March.
  6. Customers will pay their Budget Amount each month during the year in order to remain on the Budget Plan.
  7. At the end of the Budget Year, customers who have a credit balance of more than $100.00 after consideration of their March bill, will be issued a check for their entire credit balance, unless they have specifically requested otherwise.
  8. Customers with a credit balance of less than $100 will be issued a check refunding their balance at the end of the Budget Year, if they request a refund. If they do not request a refund their balance will remain on their account.
  9. At the end of the Budget Year, customers who owe a balance of less than 150% of their Budget Amount as of March billing will be billed for their entire balance.
  10. Customers who owe a balance greater than 150% of their Budget Amount as of March billing and who remain on the Budget Plan for the subsequent year may elect to pay a true up bill equal to 150% of their current Budget Amount and pay the remaining balance in five equal payments to be added to their new Budget Amount during the first five months of the subsequent budget year.
  11. At the completion of the Budget Year, customers participating in the Budget Plan will begin a new Budget Year, and will continue in the Budget Plan unless they exit the plan as indicated below.

Exiting: Budget Customers will exit the Budget Plan as follows:

  1. Customers may cease taking part in the Budget Plan at any time by informing the company that they no longer wish to be part of the Budget Plan.
  2. Customers who do not make their Budget Payments will be removed from the plan.
  3. Customers whose character of service changes such that they do not meet a requirement of Eligibility, above, will be removed from the plan.
  4. Terminated customers will be removed from the plan.

Education: The Company's Budget Plan will be promoted to the public via:

  1. Messages printed on bills during February and March of each year.
  2. Commercial advertisements in local media.
  3. Informational material given to new customers.
  4. During discussions with customers having trouble paying their bills.
  5. Informational material given to any customer who requests it.
  6. Through the company's website.
  7. A written copy of the Budget Plan will be available to any customer who desires it.