e; DOCKET NO. .... p. ~ * . * r & e ~ v . * e ~ w . b s s w + ~ % ~ e . " m . ~ -.-- . .- .........-. ~..*>.~irJ...+:~S-+- ......>iiii i-i /

fN THE MATTER OF THE -- --- WPLICATION OF NUl TELECOM, INC. - - _.

FQR A CEFPTlFiCATE OF AUTHORITY 'T"G PROVIDE INTEREXCHANGE - - - - -- TELECOPAMUNIGATIC)N5 SERVICES IN SOUTH DAKOTA -- -- --

- - - - -

SkaakPtic Utilities Commission of the Sfate of South I&lakiit$;a

EARLY, LENNON, CROCKER & BARTOSIEWIFZ. P.L-C. A T T O R N E t S A T L A W

900 CO~IERICX BL!It,DI.% KALAMAZOO, MICWIC;.L% 490074753

TELEPHOXE (616) 381-8844 FAX (616) 349-8525

Bfil t iarr~ Bullixrd, Jr. Ex~.zntit.'c Director Sotit11 Dx33k0t;h Public Utilities Conlrnission StSc C'i~~~itol Building 500 East Capitol Avenue Pierre, South Dakota 5750 1 -5070

Re: NU1 TELECOM, INC.

Dcm Mr. Bullard:

E~?clostd herewith for filing with the Conlrnission please rind aciginsl alii t c ~ ii 4 fi5g~:p;~c +a$': 5:.1r%.irt* I-:

eiq~inocd corporation's Application for a Certificate ofPuhlic Conrcrtic$w.l- ~ - ) % ~ ~ ~ ~ i i i i ; z - i.7 Y*r.l;.*; $3,:

Hc~u3jlncss ofa Reseller of Interexchange Te1ecommunic;ttlons Sesx.&c%'$ irt $&g %;ifafg 36 2 ~ c b ~ ? : t B%&&i,~:,;r &i:*-

~vck-jtl~ a cficck in the amount of $250.00 for filing fees.

illso enclosed is an exact duplicate of this filing. Pfcasc dsre-sfa;fslr dag $ag4;4i~* a ~ i k IG%::: -; 3 L- 1 - - i-ts Ihc enclosed postage prepaid, addressed enveiope.

Shnubb you ha\-e any questions concerning this filingt plcrrsr: cnniraer S~C-

EARLS'. LmNON. CROCKER & BARTOSIECllfCZ, P.t,C-

BEFORE THE PUBLEC tlTIE&f$TES C<3:P;a53$f%5$%~2;"B.

OF THE STATE OF SQt:TIB if :"kkb%T %

IN THE MATTER OF:

'I r lE 'aPPLICATIOrd OF hW1 TELECOM, INC. FOR A CERTIFICATE OF PUBLIC CO'I.;'IrENiE?4.;I''E 4

AND NECESSITY TO TRANSACT I'IiE Ril-fSfNESS k 4, b - - .. d- <,- D&%% pv2-,f " i s ~ $

OF A RESELLER OF INTEREXCHASGE 6

TELECOMM~iICATIOPdS SERVICES AN13 B

FOR AfDPROVAL OF ITS INITIAL TARIF%' I

Conlmission ofthe State of South Dakota r h e ~ g i i a ; ~ @ g ~ ~ ~ & ~ g . ~ b gW 3 a , 5 ' ' g , 4 e " h ,;".$ c- : kt-- -,

authorjty pursuant to SDCL 49-3 1-3 irl ~cc~pdgscg t$&si-$ 3"; BY tl+--+ ci:L.ltdfi . J < . . J rrl '4 i_

offered by other interexchange carriers (" IXCfj ere fkiz &;&c.

evidence of its fitness to operate and rihc ~~i.iblic

in support of this Appiication:

Company's keicles of Incorporation is at{i~.ttegj Rgm~2 as. R&Qj:;"# +%.

quaiifying document is set. forth in Kxlxibif B ;?ia,i~e~~i

t Corrcspundmce regarciing this Application should be directed to:

Putrick. D. Crocker EARLY, L,EWBN, CROCKER & BARTOSIEWICZ. P.L.C: 900 Camerica Building Ktilamazuo, MI 49007-4752 (6 16) 38 1-8844

§ 6 - ++. 1 hc name of Applicant's Registered Agent, and the address of the registered officc

.;1; t;::~ t .?rpi?r,ittarr ti7 S O L I ~ ~ Dakota is:

Ronald D. Olinger, Esq. 1 17 E. Capitol Picirre, SD 57501-0066

Description of Authority Requested

T Applicant seeks autllority to operate as a reseller of intrastate telecan~rnnnicrztit~x~s

+ienf?flii:C-~ irk zilc putsl~c on a statewide basis. Applicant seeks authority to offer a full range of'"i -?I"

ix:f-f:;~:ficl~a~~$~ t ~ l ~ ~ ~ m l n u n i ~ a t i o n s services on a resale basis. Specifically, Applicant secksautl~a~<~y

air p~r-~i-i.Ee 'jtlJiS, irt-MMTS, out-WATS, and Calling Card services.

f ? . Applicant does not intend to provide operator services, 900 or 70C1 s c ~ ~ ~ i c e s .

>ern Applicant owns no transmission facilities. Applicant will offc; scnlice tcs i ~ s

,.~~l~sr.nri~ers ~1si11g frlcilities ofthe co~nrnurlications networks of Sprint, or other facilities-based IXCs

a;td qbi: tac;ll oxcl~angc telephone companies ("LECs").

S. Appiicanb has no plans at this time to construct any telecommunications trai;ism~ssion

[+-*ciii",i(?:: a f i i - ~ mtln and seela no construction authority by means of this Application. Xppi tcani wit1

~:perartc* cxciusively as a reseller.

9. Applicant will abide by all rules governing teleconl~nunications I - C S C ~ ~ ~ P ~ S . S U ~ ~ J I C ~ ~ thc

i*t:taf'iti~sic'):1 has proinulgated or may promulgate in the hture, u~iless applicatiot-t of stich niles in

ttptc:uifi~;ally waived by the Commission.

Propaised Sewices

I tl. Applicant iniends to offer MTS, in-WATS, out-WATS. and Callrrrg Card scr'i rcc-&.

lv sttbscribers within South Dakota. Applicant combines high qualily lransn~issivn scn zits u rah

\'cry can~pctitive rates. ilexible end user billing, professional custcjmcr scnlicc ttnrl e.;c&icrn

.nSIS5 ckzs!<>l2leT5 rn?p.lorting Lo create a unique blend which meets the individualized needs of such busi

1 1 . Applicant's services are designed to be especially attractive to basincns ctlsai3r;:ter;

12. Applicant's intends to engage in "switchless" resale. Applicant will ar.raa?gt: f i ~ r I ~ I C

;; .~f!ic of underlying subscribers to be routed directly over the networks of Appfi~"&~~t's a~ctn~rk

~rmviders.

13. Applicant is committed to the use of ethical sales praclices. Alf tlisrrihrrtnr.5 ~ e t

prautliicts must corn~nit in writing to market Applicant's services in a itrufcssiorral trrsnrscr, ,~rrsi ;$.I

fi~irly artd accurately portray Applicant's services and the charges far them.

Description and Fitness af Applicant

I . Applicant's officers have extensive managerial, financial and t;c"cfl;nti~a! cXjWtn~*:ti::

with which to execute the business plan described herein. Applicant's nrrtntigctzrsnl. pr:r$tt;rz,xI

mprcscnt a broad spectrum of business and technical discipIi~zes, possessing t:Ian2; yc411"s ii?

individiial and aggregate telecommunications experience. In supporl of Applieanr's nj:it3agcrral , t i l l1

teclzrlical ability to provide the services for which authority is sought tiercia. Apl.tIic,tnr 3rsbrlirkh ,I

{lcscl-iption of the background and experience of its cl~rrent manitgemcnt ~c"m 2:; ExTaEh!z C",

Applicant is a wholly owned subsidiary of NU1 Corporation. In suppnri ~PAppllcarir'~ fir~~rref,rf

iib~iitv to provide the proposed services, Applicant attaches WI Corprsratian's t QQ :is Ekhi%ti$ i).

Pubiic: laterest Conasieflcraltic~ns

15 Applica~t's entry into the South Dakota nlarketplace is in the public r~zeercsr bccausc

A ~ ~ B ~ c ~ J - I E ~s!tlllds to n1n-k~: rl uniquely attractive blend of service quality, network nlam.gernenr and

a.4+ , ,,bit JS I n3irg. 3 r d Istv rrires available.

Ih 111 addition ta the direct benefits delivered to the public by its services. Appiicanr's

C ? L ! P ~ into tile South Dakota n~arketplace wilI benefit the public indirectly by increasirlg rtls

ctt~a.ii3~caizi.\.c prcssurc felt by existing IXCs, spurring them to lower costs and improve scrvicc-s in

&-i!p-;iY~Z11,4c

Receasested Reeulatorv Treatment

* *Y 1 Applicrtnt is a nsn-dominant reseller of interexchange telecommunicatioirs scn*iccs.

;dpgahc,.a:rr ;&cqrrests to 13e regulated by the Commission in the same relaxed fitsllioiz cxrcndrd ru otftcr,

cttrzii;aj E > settlarcd rcscllers.

Initial Proposed Tariff

1 W . Applicant proposes to offer service pursuant to the rules, regulations, rarcs and arf~cr

Eu:r1$4::; :mti conciitions included in Applicant's initial proposed tariff which is attacE?cd lacrctci 3s

1~:xkrlhn"t E. h3illing, payment, credit, deposit and collection terms are set forth in a4ppirc;iur's

Jbj L?~X?,SCC! kU1 sf.

C-liance with ARSD 220:10:24:02

1'1 111 accordance wit11 ARSD 20:10:24:02, Applicant provides the roibx.;:?g

? 1. The name, address and telephone number of Applicant:

WI Telecom. Inc. 550 Route 202-206, 2nd Floor Redminster. NJ 0792 1

12). Applicant s h d l provide services under the name:

NU1 Telecom, Inc.

(3) . (a) Applicant is incorporated in the State of New .Ter:$e~. X copy 6sf

Applicant's articles ofincorporation is attached as Exhibi: A. :4 cop)

of the Applica~lt's certificate of authority to transact business in Sauxh

Daliota is attached as Exhibit B.

(b) .Applicant has no principal office in South Dakota. App1ica~t':i

registered agent is set forth in paragraph 4 hereinabove.

(.c) The names of Applicant's shareholders and nulltbers of shares llcld by

each:

Shareholders

NU1 Corporation 550 Route 202-206 P.O. Box 760 Bedminster, NJ 07921

Percentaee

1 OOV/'o

Applicant is a wholly owned subsidiary of NU1 Corporation.

IS).

(9).

Apfzt~cant is not a partnership.

See par~~graph 5 of the Application.

Scc pamgt-aph 7 of the Application.

Al.)plic;lllt shall offer services on all equal access areas within the Slate of

South Dakota. Accordingly, Applicant does not attach a map describing

service boundaries.

Sce Exhibits D and E attached hereto.

All cot~lplaints and regulatory matters shofild be directed to Applicant as set

forth in paragraph 1 of this Application.

h list of states where the Applicant is certified is attached hereto as Exhibit

F. Appifcant has not been denied certification in any state, and is in good

standing with the appropriate regulatory agency in the states where regisrcred

c9r certified.

Applicant intends to market its services to primarily business customers.

Cast support for rates shown in the company's tariff for all noncnmpetitii.~

or enltrrging competitive services are as follows:

Applieaal's Cast for Underlying Transport Services

~~c~hcssr-r , . proposes ta resell services within South Dakota in excess of

igpk--sm"s c@sX of p r c f i ~ i n g szn-ices h m Applicant's urideriying carrier

~ ? F Z ? ' I _ -%ppZ~ p ~ x h a a i n m S e sc~;ces from Sprint for approsinratcly

9 - 0 - -*li-t--3 5 , --LX L L . L : ~ ~ = c 224 ~%%~ik $10 ?he p.ibiic far ap3~i3?r-im3ici> -. - 'f

-? --7 29 .z? -.- -,'>.-;-

. - A - -* a * - - -

; g&E: g yrqy~si c q ;k-yzy ! z--c2 ;ey 55 2 - 3 2 &. 2 > -

i - ? - -.. - +zZp, :*:ky: b a FJ%< ~ ? J ~ ~ ~ ~ ~ 7 ~ E; :eG uz-''&; : 55 kMxz; .;= *;y2 sw i: 2 -7 - - - - -

+ leds-% *-L >A- &: - L+ --- k-Lcrk& ---3 A +J &y:ag - - T ~ - C T & , ~ 2 fse r z ~ - L ~ g ~ ~ ~ T < s$Zy:z-; ~ 7 - z, ;: 2 :; ;->* - *'." --- - C -.- *' -

ielccan~rnunications provider and the act of charging customers for senlices

that I~rrve not been ordered.

gonclusion

4 d~iasnrn by the Commission to grant Applicant a Cert-ificate of Public Con~enience a d

? - V--I *:-*I+ $ 4 pTa~lfx irr Ihc public interest. Applicant will intrclduce irnportmt net\ products and

>r :C ,* iiri L~ cPy cil8fl3(1~tii,i~'t;~ rates as tvell as enhance the campct~t i~aess ofthe overall long distance

.ui .,, r *.;-.-.= r r:, r:t .;ti~i:b ~>;&QQ,

urant iC ts tOfKR&;FCPRE, NkJl Telecom, Inc, respectfulIy requests that this Commission

sra;ld!i;-r"2+~, 1 % ~ t~;~n:xii~t f h ~ ht ts i l~c~s of a reseller of interexchange telecolnlnunications services within

%: .%&4iz of 5ct1~rk Ikakata, that the Cornl~lissio~~ regulate it in a streamlined fashion, and that the

2 "

* . d A E ~ @ h ~ i r _ f f : 8@1T$\:C Applica~~t's initial proposed tariff effective on the date of the 01-der granting

>s~$F!T~$~W y ,

.-'. r' - > J f i L % ;

c" Tsy"i;z$ i," -- I - - - .-

OSIEWICZ , P.L.C.

Klci:,rrri hi. 13nutSria, President for NU1 Telecom, Inc. first being duly sworn on oath, deposes

i:d $1.. *> ritk~.! )!I: rend the foregoing Application and verifies that the statements made therein arc

2nu.r:: J F I B B ctjrr~ntct io the best of his knowledge, information, and belief.

NU1 Telecoy, Inc.

By: ~ f c h a r d M. Boudria, President

FBc kn'cgoiag instrument was acknowledged before me this .3,/ day of &&/&42.b01 by

My Comn~ission Expires:

EXHIBIT A

Articles of Hacforgaratiosa

ef d the of &E. vo@ 5

dm. d y B y b w may p m ~ d e that it may ody eK: do&, m&& Or

exwpt to fie amf that mb extxnfioa f&m Ihbiaip r4i. ~ W U D

ey B m w s C o ~ o ~ m Act rn

w m dwaenay m@rad&, No

imtiaaa of eadvmess of my law

o f bI%biHity pm.t%"d& fm inr W M c l e &dl *ply to or have my effect rn &e liaE;ili~y tsr

diwtd E&&v of any Dimmr er officer br or with respect to any acts or o m i n i a ~ of thai

rg prior ro P ; U & - ~ % & ~ G re@ or , . . . -

(@(I) ]Right to Indmddoa Each person who was or is made a party or is &ataed - -

w b m*1e a m :, is bwimd in my d o & d e or pnat=t.,tdisr& wh&m civil, p=Pimlnd, . .

a&&*-*= Ctji h v d @ v e

p o a mymc fi?r

~f @2c a~m&0;191 w k 0s- was

nap$@lpw i~0.r ~ m t sf

m a p l a p e b e f i t p k , whether tHane basis of

* stach mmbmt

@ i n j ~ a 4 by suJl e a r n ody if ~h pmwd* (or pmt the~of j was authoriEed by thp

wk if L rrp. %$- ,w Jmey %?3~0;w C Q $ ~ ~ Q & Q ~ Act ~ c p k e s , the payment of sus$ expass

f~ nrx Ln say o&tr ~ ~ c i r y in .which service was or is m & d by such pmm a

P J ~ % J W B ~ Q mzi; itlnim 1% beL'i b & h my g d anion (ocher @ ao actian brought to

$@@& G+~w@L !U &utls!&sj &ax atfte el has nbt met such applicable ran

i$$%%& k 4t&wdb a pr h

t333 M?i ~ & t IM of any ~ther wt which my pmon ~ l s y have or heredm acq*

Evixfatncc of Authority 40 Transact Business Withiw the State of Ssantk Dakota!

FILE NU. 7 :7 .,-.t.f . i s . ,

RECEP-r NO. - B -,"-%* F'i 2 2, 31% *,

- . C S!-li-+ .:.. ..Ti- p =. : PPii;; ._ - - - ..

. - -,:.:-' %,$$?eiq; &3t., . .+ %,,&A*% 5 A = ??.&$ ..< &;j2.&-*! 3 y<x

GpplicalOors for Certificate of AathosliQ

a%'P+&* sir 3,- of' SISfci, 41-8-7, tfic txxicrs~~ned cnr~~;.mtion hereby applies for a Ccrtificotc of ,411fhor.v to 5-mi;~'t %4%.,'0% a'!:' ??;@ *.hf)rt* ,f %;ahilk D;tE:~)ta and for thar ppurporc 5ubmitr; thc followine staremem:

;I- f E @ ? i%&3% n?%!w zrunwlw~ijt. Wtws nnt conrain ohc ~tvnrd "corporimon", "cninpmy", "~ncnrporatcd" vr "ILmi~cb" or does not comfn @*J % ~ b , r ? % ~ e ~ & ? ..;.-if c*1r5t r;f .irxk wrrds, Uterr CZIC rt;irnC fif the corpotatirrrl wirh d ~ e word t w abhrevrarion ~ k c h it clcctu to udct t.!latto fnr %4.$ $4 13'4% &!4

r. t 6<*4 ~ { Z ~ I Z ,'1:~~1731~3r& F< JERSEY - - -. - -- Fcdcml Tlini;layzr I TP -- 2 7 - 3 2 9 3 3 2 7 . ---

<Ib-Pp&6?;2.*rrafi6'in inrr-I In the inn or coiy undcr thc lam of which il is lu~vrporfued 1s 2 $ $ 2 X i j FL., BGDXIXS Ell , N.1 - 2 4 -, - --SF",*- ,-*,-*.-.,--..A-

. ---- 07921 zip Cfi& .4~*,2~~& ~ B 4 ~ ~ ~ 4 h$E $,!?:JY:$~; hy% ~h-tivi: I?,

* 2 1 b ~ ? h j 1 ax% !$I" c * $&%h+Agtr t f Rm ifli&@e>~";&~ ma&dresr. of m pmpvscd rcpscrcrcrrd office s the Smte of %to. DiiKon 1s i .l

-, ?

, . J .* ,. I. '+> d rilr.-<""a.*" ----. -----I---

Lip Codc --.. w*$ W i a,&:@ 3984 p ~ ~ . p i ~ k ~ r l gq&wxd # g ~ t ir~ S u t ~ of South I)akota at rhar ad&ess 1s x e A ! . & ) D. OLI3GEu - - ESq - t i : ''I& p S ~ % ~ L L %%tch rt pfC)p?k%~ to ~ W F U ~ in the mxucrion of ~ U S ~ J X Y S in thc Sufc of So:~th Ilakota arc f ~ i t r spdciiic pwposcj

T T * a*$@t: tBE T%LECQ%@lllN E CATION SERV I @ES - ' "-" - 9 -*-i *U*";t.dE - m t , - W ~ ~ ~ - -- .. - - -

it :, Ti- i~" 11~tiigr.t. r .q~ ,pwt t~ Q~&CSSCS of its d k ~ ~ r b wd officers are:

b,$C tyt%$T3 3 . BQIaKLh Q~ ; --ir-,u:*o u r i r,r,,r,r,~, aras -. -- DTR., PRES, CEO 14 JKFQPTUS HILLRL)., YmDIjkY, KJ 07%5 - . - - .~PAX$$ % a BK%ZSA$BLI~

4CCi&4~ m m * . . r - r ( v - - -* SECK E'l'ARY -- 7 KARY WAY, blOf&ISTOWN, EiJ 0 T r .-

, ~ ~ j ~ & & ~ ~ ~ j ~ . --. - TxASUREP 14 -ST()\IT DRIVE, BEZ,I,E- 08.502. &~ki&i .tv >,P LI~RZX - ,-- xmcro~ . .-- 8 S T ~ R ~ G E CT-~LJE, xjT85 3 Q

$35 %2'**9i&6.~$& nw:kr uf d w r c b which ir hrts atahonry ta isqinc, ~ccmiatrd by classeg, par valw; uf shxcs, s l ~ m s wirhoitt pax V ~ U C ,

& ~ k % ~ t f w%&%n 8 c:i&%s is:

Is= valuc pcr share nr srxfmcnt that C a a s $cries s h m s m wirIwln psr d u e

2,f@3 COMMON - - - . - P - - WITHOUT PAR V A L U E ' a "" -r-"rl-LBp-- - r--,-----

$*i% ., %h ~$@p&,ste i l x ~ t ~ t l l f 9ft~ i ~ ~ l ~ d fihm$, iec&cd b~ O ! ~ I Y Y ~ C , i,ilr value of fihares, shxcu wit hi^^ par vidue, and set+&?, if=:; %%%43 a t:x&" fz

Par vdur: per share nr s~unc,If &at I:~ELYY knes rhxrcs wickmut par v a ! ~

" ge; . . >D+=fMa~ - . - .. .--- WITHOUT P + ; . B a L J E -

' ~ , q ~ ' ~ s t ; & n ~ ~ + ~ ~ k t t f t t 3 l . * ~ ~ m ! ~ : ~ p i ~ t ~ i ~ ~ ~ 3 , & ~ ~ l 1 ~ 3 - - - - -- .. - % ~ i r % ~33% tirncs pi: ~ 3 1 ~ rymh ~piTa1. tn d ~ e i x c of no par vrtluc ~twk, swcd capitzl i s thc cunsrdcrati&i ~c&eci For ttre &%*it *%%A

#:ci: z&Ls~p$<i"ndwi i s Tiic~mp&cd by a 6l- K ' l I t2iCATE OF FACT or a CERTLFIC'A'J t- r)k TrC)OU STJLVDLNG drri5r !%4~31&-@N fuy hi: k r t a w y of Srga or uthcp vtfrcdt having cmndy of eo~puratc rccurds i r t the srrttr ar cow-ny u d c r isha~zr t a w I € OE lL~&&*po4 E&<

i$ $1 f $& a%&& CiK"F+t~~fJiftt dadj ~14)~ d(trutly or indkctly combine w I I & ~ any cnnrma wrh my incurpnrcd cornpay, furcign or &~dx'%%t~", &ty:b~e& &XIY tsti&h!dcm ux &F mqtees or assi,ps of such st~1LhViilcfi, or ~ 7 t h m y c o p m c ~ ~ ~ p rr &%~xiarion of $I'?*@&~ C$ @# m y ~$izart wkaw."r'~.~ to GX the price% lilnic thc production or rcgtrlas the m s p o d o n oiunv product cx- coLmmilrry icr kq @%I%%>$ ~ ~ M : W I I ~ O F fn mch pnces. pmclu~rton or transpoetatinn or to crtablish nhccsjive p r i e s thcrcfor.

; 4 ; ' s & &, , ~>a: v+=b ibqmrifnn, $S cnni;tdcranon of'ib beir~g permined ro begin or cunrinuc doing Im~inrsq w i ~ b ~ I C Stir@ of Snub i&t~a %dr ~ ~ n ~ t t i v i t h h1 dlt: taws ofhc said Statc with regard to Foreign corpomtions

'f*% ia;~ei&&iei~., rnl,&%! :r.. a t # ~ d , i;r dt t presence of a notary public, by thp chainnsn of &c bard u t JrrrQnr.;, or by &c pnzidcnt nr 9 %.if*%% @&ex2 A

crirlc)

4 , u nutary pobllc, dn hcrchy ccr(jCy h r on Ws t 4 LCly of - . vho, hcing by me first d~tly rwm. &~h.rcd that h ~ & t

ELECOH, IXC. *a- f%JL.---.-- h t hdqhc h ; p d h e forcening r l i p t m ~ t 1s

%:%x*pr *z@vk*~mb&lr&i. a16 WC r t i l m ~ ~ n ~ s therein cunkabad arc mlc. 1

Joyce M Fajnar Rotary Pubf:s of f f ~

,%,a ~rdi: 5gzi My Comrn~srion EXpires August 20, 2035

~ Y ~ C ~ ~ ~ ~ % Y ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ C ~ S D H U S ~ U ~ ~ # Y I L P E ~ Q ~ / ~ ~ O ~ + ~ ~ ~ ~ ~ + ~ ~ ~ Q ~ ~ ~ ~ ~ A ~ ~ ~ ~ ~ U ~ * ~ ~ ~ ~ ~ U ~ & & ~ ~ ~ ~ ~ * ~ ~ ~ ~ S ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ W ~ ~ ~ ~ ~ ~ ~

T k C~+n%~ct of Appointment Bsclaw most be sigdcd by the re@s&red tapcnt listed in numbcr dx.

r--- - Chwaewt tlrf Appointment by the Reggeered Agent

t 323N~tLD ,D . OX. I NI;P.R, ES . (a 1 , --,--.-. . .-, hsre\)y give ruy consent to s e w au the registcrccl

irulrv of n ? g ~ s t t ~ d upltl)

2 i f - - - - N U 1 TELECOM, LNC, .-- - . -

EXHIBIT C

Resumes

Brm~tern Experience:

ti914 - Present: NU1 Telecom, Inc. W a international Telephone Group, Inc. President Founding partner of corporation engaged il dornefric and international saldresde of telecomm~~catiwns network services to business customers.

Augusta Associates, Ltd. President Telecommuflications consdtants sening major corporations both domestically and interdonally. Fornine 50 client base including BN Morgan Stanley, Sony and Chase Manhattan Bank.

GTE Corporation Director of Straterric Planning Responsible for the deveiopment of all k e t s of the five year strategic plan far telephone operaticns generaring $12 billion annual revenue.

Xerox Corporation &w York Oueraeions Sales Mana@er

Ranked one of fifty Account E x e d e

Rmked 6rst n a h o d y Sales Executive

Ranked one of one hundred and f?fky

Erlerr3.l Lynch, New Yark, W Account E x e e

EXHIBIT D

Financial Statement

tt@lTEB STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 2054 9

FORM 10-Q

3, , . QUARTERLY REPORT PURSUANT TO SECTION 3 3 OF l i l n ; 2: : $2 6 '\kg 1 I E ;:

EXCHANGE ACT O F 1934

-.-ig %hi- gu;?t';p: Ey per-3013 ended J u n e 30, 2001

?'PJI.NSITION REPORT PURSUANT TO SECT1011 3 i32 15. ( d ) iL?f I*; ? ?", : ;.; , .:

EXCHANGE ACT OF 1934

rgg r4.e at..- .,-., .,. ,,-. c t ~ i . . ~ ~ ; , t: A~:.II per iod from to -.. .

:Jt:ti Jersey if' .? .i3 e"' $1: J r ~ c c ~ r p o r a t ion)

Lsl:' kikutr- . 7'32-206, PO Box 760, Bedminster, Hew Jersey 07921-0760 Ff"kddrCsn of principal executive cffices, lnciudlng z ~ p codsi

(908) 781-0500 tkegistrant's telephone number, including area code)

B&Sg:~t'c by check mark whether the registrant: (1) has f i l e d all reports @q~fr*i:f XO be? f iLed by Sectior, 13 or 15(d ) of the Securities E>echanqe Acr

5934 during the preceding 12 months (or for such shorter period t h a i t h e @@kSt~anl was required to file such reports), and ( 2 ) has been subject to M ~ R ing ~sguirements for the past 90 0 ~ ' d , Yes X No

APPLICABLE ONLY TO CORPORATE ISSUERS:

5B a&mk%ss allt shras outstanding of each of the registrant's classes af #+ma%s sP:o~k, zts af July 31, 2001: Common Stock, No Par Value: i3 ,751,?03 taws auts tanding.

NU1 Corporation and Subsfdi8r:&?s Consolidated Balance %%+ro

(Dcllars i n ~h~usands8

ASSETS Current Assets Cash and cash equrvalents Accounts receivable (less ellowance f r$s Gr,::.',.: i accounts of $2,458 and $1,544, respectively) Motes Receivable Fuel inventories, at average css?. Unrecovered purchased gas costs Prepayments and other

Total Current Assets

Property, Plant and Equipmeat Property, plant and equlpmettl. at C,l . i^l~2it :1: P fir-? Accumulated depruciat loll and emnr t r sa"2:ac, Unamortized planr acq~ l s l t B B I : : ~ . ~ E P ; ~ ; , % :I, *., "

Funds for Construccion Held by Priidcpe

rn + Investments i n T I C Enterpr~ ses, &.:I

Other Investments

Assets Held for Sale

Other Assets Regulatory Assets Deferred Assets

Total Other Assets

Total Assets

CAPITALIZATION AND LIABILITIES Cur~ent Liabilities Notes payable to banks Mates payable Current portion of c a p i t a l lease obllgwtiew Accounts payable, customer deposits and aczr ~ s ~ : liabilities Federal income and other taxes

Other Liab i l i t i e s Capital lease obligations Deferred federal income taxes Unamortized investment tax credits Ehvixrzmentd Remediation Resamc Regubatoay and other liabiU.ti@@

C&gl e@S %zarian d e n t 1 shareholder' s equity Pr?zlersed stuck Wng-tam debt Tay,&,L Capitalization

*Derived from aucilted f lr~ancla; c ? a:q88*-i5' *

, A r w < . See the notes to the consoildated financlaJ 5 : d r ,-----" -

N U 1 Corpor5: lon and Sabslai a: i * + ~

Consolidated Statement of C a s h Flows Ilin.a$.A,: 4-c)

iGollars i n thousaco~'

m a r a k i n y P-ctivities Ndft Xrrcon~e Ei*&j~stments to reconcile net income to net cash pzsvided by operating activities

Mprsclation and amortization Deferred Federal. income taxes &nor t i za t ion of deferred investment tax

~ a a d i t s CXAe r Efgects of changes in: -

Accounts receivable, net F ~ e l inventories Accounts payable, deposits, accruals Over (under) recovered purchase gas costs O t h e r

Nee cash (used in) provided by operating act$ v i t i e s

Financing Activities Braceads from sales of coinmon stock, net of krsasury purchased Dividends to shareholders Zr*wds fers construction held by trustee, net Hoeas receivable from Virginia Gas Na't.@s payable for TIC acquisition

t rw,

Pg&n@dg$&1 repayments under c a p i t a l l e a s e s l a g i g ~ r b u n s ?&!t shor t - t e rm borrowi,ngs (repayments)

BSro"c,.ash provided b y ( u s e d f o r ) f inancinq qeh t u g ~ j c s

~ T P a<t+.*,.>t e *.?- atlq Activities Cx%sh expenditures f o r property, p lan t and vi',~U Z. p2mort L O; R a y

N s l c a s h used i n investrng ac t? -vd t ies

N o t knc:rcasa ( d e c ~ e a s e ) i n cash and cash r r q r r t u,s1 e n t s

Cash and cash equivalents AE baginning of period Ar utrd or" per iod

If~lp,ti.li::n~ant;ai Drsc! osures of C a s h F l o w s Xft~crfote taxes pa ld , n e t Z f l t @zest paid

SE*C~- t ' n ~ n o t e s to t h e consolidated f ~ r i a n c ; a i !'.I -rt ~ < P . + . : P '

NU1 Corporation and Subsidiarxcs Notes t o the Consolidated Financial STc~etorrio:rt i:

1 . Bas i s of Presenta t ion

"II'lie consalj.dated f i n a n c i a l s ta tements inc lude a l l aperatir~q & P v ~ ~ s Q w ~ .";.%?id #&s&diaries of NU1 Corporation ( c o l l e c t i v e l y referred 60 as MVf on t h : Compai-#y). NU1 is t. m u l t i - s t a t e company engaged i n rlrs ss2c nnd d ~ ~ i r t t \ i t a f > : ~ af natural gas, energy commodity t r a d i n g and marketrtrqi s&le:-% ea<atuoirjcrl:a 1fq &Cld t e ~ e c a m u n i c a t i o n s . The Company ' s u t i l i t y d i v i s i o n s s @ ~ * ~ c " n~g$i?,Y't"ixfwis? $-- I;

380,a00 customers i n seven s t a t e s along t h e eastern seebsnkiyi t?'d 5 3 9 k % ~ ~ t * ' i ; E Grates and comprise Elizabethtown Gas Company (New Jessagl , C: t y C w ? Ca1gbany of F lo r ida , North Carol ina Gas, Elkton Gas (Ha~yHanSi A Ya b i * & # cik ia ;s Gas (Pennsylvania) , Waverly Gas (New Yolk] and V";r$inza G&e; z?- i -= - Rote 4 1 + Virg in ia Gas is a l s o engaged i n other activitiesJ suck &% i;ii%g~;Lbr;~v aprae ion ; n a t u r a l gas s torage; ga ther ing , marketing snd disa r t k ~ ~ i ~ s c t ~ S @ E V ~ C Q S ; natural gas exp lo ra t ion , production and well ~perdL tm; m 2 3 propeae d i s t r i b u t i o n . The Company ' s nan-regulated businesse% f nc%uth t"i?,$B &+l@~qy, fnc. (NU1 Energy), an energy r e t a i l e r ; WX Energy EWp-srk.llpm-: 6%9: Energy Brokers) , an energy wholesaler; N U 1 Energy Salud,Pc~z$, E ws . , $ 7 1

aktergy project development and consu l t ing e n t i t y ; NUI Envi ronmr;:sa%,&> Gcwgi; In@, , an environmental project develapment subsidiary; O%ff%$% y @us :n@e&:= SarT?lces, Inc . , (UBS), a g e o s p a t i a l and customer infomtl$oa sgz!Zssfa anc $i@zvIees subsidiaxy; WUI Teiecura, Inc. (NU1 TeXeconf r a t @ l s @ ~ m @ ~ k = & l ~ f ~ &

3 ~ i ~ b i . d ~ ~ ~ r ~ (See Note 3 ) ; and TIC Enterprises, L.L.C f T I i n i O 6

C5~1FSaurcing subsidiary (see Note 5 ) . All intercompany a c ~ ~ u n t 2 - 3 and %'#n,"iW-f iZ7l38 h a v e Ewen eliminated i n consolidation.

i Crf: Msy I * * , 30$11, the Company acqul red the rema, n l n q 51 percent Intc.!i'.;t * r ' E 4 % - i i u 5 , 1 3 not. prevlclusly own !see Plate 5 ) . N:JI orlglr-.ak!y d c ~ j l ~ ~ r r ~ . ! *A

4. i t @ b y lnrcres l . i n T l r : on May 18 , 1 9 9 ? , f $2; EX: i 1 : : , r~

gtrz %:; rs $ro)i(2.rr.rt:; Compafiy and 1s exempt f ram rfqi 5: r a t : or: ?.:rii$<;er : 3;- i'u?;: 1 .- I , , - , .

. , R i ; l P & : ~ q Company A c t of 1935 . NUI's w f i ~ j l y c>i.rfiecf :;.t,jkt~:r~$cc: <yp :2;;.

. . ( ' , . . . . 1": subject to r e q l ? l a t i o n as a n n p e r a t l r l q l i t 2 i :p- : .::= , .::.;!::y ~c~r~:i : l .sslorls of he sta1:es i r l t;Ric_h i t . <::~;':::&fc::, : ' - , . ? - ' t , ~ ! '

5; ++J ka ;k; 1 ,.-i ..... 7, .jd *,- , ,e? k 0 : '$1 rg i f i i a Gas are rraulatecj by T h e i'; ~:'a:ns.;a :';7.0?

~~~2:$~ ,ar&: , : . e i r ; C : ~ r r i p ~ * s s i o n . Because of the sei;sona) ne'c.ure of -:;<t:'

%$$::ssai:;pr!s, t h e results k c y r i n t e r i m periods a r e riot ngCrz..j:3,;zarijy a r e : i i c : : j ~ t r a ~ . .

73: t l i ~ 3 i?c?rr!pany's r e s u 1 . t ~ for a n e n t i r e y e a r .

F c:l?~~rnan Shareholders' Equlry

'p%$ 6 fJi.flT% i P .,.i& , x p ~ ~ , r & n t s a f common shareholders ' equity werp 2s f o i l o w s . i ~ i % 9 12-5 I ;C

P P ;-,%c?5.t, ,iaj+~ - $ ;.-cd, 791 :

C:srm,%an stock, no par v a l u e I%haros h e l b I n t r e a s u r y R$T t,~x i nzcl oernirigs Uassrnad employee compensation Tsr ta i cammon shareholders' equity

4

Cmr* * -3 - l - - - l - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - , - - - - - -=T . ,T L",z.-

1 *. - Purchase of NU1 Telecom

On November 12, 1999, the Company closed on its acquisiLra?i if

~n%%rrlaCisni%l Telephone Group, I ~ C . ( I T G ) . The a c q u ~ s i r i o n was trearcd as R @ ~ Q o E %$tjjh%reby TTG merged wi th and i n t o a s u b s i d i a r y of ?rbe Co!!?pan.J. $7'; b%&@bqrl~#'rP:l y changed its name to NU1 Telecom, Inc . The purch%a@ $3rr tc - %B%.Bk%d $ 3 . t? r n i ] 1 ion and inc luded t h e issuance a£ 113,280 shares 0: as?.!: CGD%WPl~ stork, with the remainder paid i n cash. NUT Teiecns 1:- d f d i

?k@ZWiPa kalephone company t h a t provides ~ t s customers w r t l i a sdrlqtr SC' rv2y3*

% : b l ~ t t l st: for 1 t h ~ l r telecommunication requirements i :~c l udi r!i: i o % - d l , i r3 .2 <--

*k$k~a+l f - i s . " I I Y r , internet, and da t a conmunlcat i o n s r : ~ r > ~ s P 0 : e T I ~

h.2~ Va*%@rbt I 1 r of Merger conta J nr a p rovis ion whercoy : : c r - 2 2 : stii%rcI'raLda~s a5 NtJ I 'l'clecom w i l l r e ce ive an add i t i ona l $ 3 .0 n?~l if mc;:? ::: 1;'":

ebWCin Sf C3ck ?if:2 i',->lecom achieves c e r t a j n revenue targets rzc iat d-r ?..+'

Dqf.-r :eirzfi**r 2- _" i '2 3 . I 3 .

YJlltt " E C ' ~ ~ l I 1 . 6 1 t ~ f r n was accounted f o r a s a purchase. The excesz 0 5

+ ? 2 5 ~ : ' : ' ! ~ khr:iki~lfr:; t 1 i r . a acldj 1-i ona l earn , n q s cur i t l n g e n c y rr+?t c t d .! -":+ , f " i ~ ~ i t i : !%RY3:'t : z t>< f r n a s c r a l g h t - l l n p J & , t i ;*, 2 : t =

4 , P u r ~ : ! ~ , f c ~ c ; Vlrqln ia Gas Company

i 252, ? O O i , t h e Company completed i t s acqulsl";lofi 01

c:*%i~~&!;y bVf3ri:f . The acquisition was t r e a t e d as a merger wtrc*ra$y %E<4t i yw0wi?iea :~:;~L>sjcilary of N U I . The purchase p r i c e iotaifst! 5 2 9 inrft~dacl the i s5uance of 7 9 2 , 6 0 0 sha re s of N U T con-mnr, 5: r _ i -

&Xk$ I l d t \ l ~ & l r jds d i s t l r l bu t lon company, which operates ;ri a : C

%irl;; , i~h tkac h a s a r a p i d l y growing demand for ? a c;:un4 g * f i @ C d ~ f P C b n c l i l ~ L C : s l g n l f l c a n t development. It owns ant. na"x:ln: s :

w.k153 f t a s t - . ~ n ' ] e c t Lon, fast-withdrawal capabl l i t r ies anri k ~ & * '.'&

Q~i~2r$!iif+$ o f a second s t o r a g e f a c l l l t y . D u r i n g r.?unr? : ' Q f - : , ! &.v

1;~-5cltad a n aqreement t o a c q u i r e t he remalnlnq 1::ter~sit : !. t::**+

fa@iiiEy i see "Capital Expendi tures and Commitmentsf'j.

Tl're sc:qrilslt. ion 1s belng accounted f o r a s a purchase. Plrr; q5xa e : ~ . if : i' I -

Qwrchssa price over t he f a i r va lue of t h e n e t a s s e t s of PCGC ?!.. :a:s? &T>&"..': +

k 3 Ipyrraxlmatel y $ 4 . 6 m i l l i o n and w i l l be amorf izoci ear: a %* 2 . - t$~;fpT - h # * - B

b&&k~ over a 30-year p e r i o d . I n conjunct ion w i t h t h e oeq~rlz:r:i,:!, : , f a - .

Cwp&rry has i d e n t i f i e d two o p e r a t i o n s of Vi rg in ia Gas that wid i hr~ b ~ ~ k " ' ; i f c . - *%kl@- A-zsctrrdingly, t h e n e t a s s e t s of Virg in ia Gasf Ptapane dnd WRI~:!,Y." LT;. : opr&tLorrs a s we l l a s VGC's 50 percent equity i n t e r e s t i n il d:%rrrbrsc,;iq:. comp&ay have been segrega ted and c l a s s i f i e d a s "Assets Hal& far $akaY wt.

C o n ~ o l i d a t e d Balance Sheet a t June 30, 200i.

5 . Purchase of T I C E n t e r p r i s e s , LLC

On May 15, 2001, t h e Company acqu i r ed t h e remaining 57 perccrtr ::;Eers**ivtZ T4C E n k c r p r i s e s , LLC (TIC) it d i d not prev ious ly awn. The aninuna p;s ic$

Fh* ¶i3%jority owner t o t a l e d $8 m i l l i o n , which was paid i n cash ant5 n z:af-e P~Y.~;IESLFL, T I C i s a s a l e s o u t s o u r c i n g firm loca ted i n Roswef l , G&, T51:' ::as .liax~tnaiafe c o n t r a c t s w i t h t h e United States Postal Service (B3PSji ~ r r e VEftxiokts t a l e c o m u n i c a t i ons equipment and service providara tl3&t; ernk>$~. P If: RQ PrQVide a b road range of t e l ephony and da ta products an$ SQZV~~;SL.$ t,;$ ~ 2 . i cusronaers

Thf: acWi:sition i s being accounted f o r a s a put-chase. TRQ f?KCr*!&% 0: if^

p ~ r ~ h a s e price ove r the f a i r v a l u e of t h e n e t assets of TIC i s Or! : %1- kw sggsclxiimnataly $35 -7 m i l l i o n and w i l l be amortiacd an a sXrs.'xqlfir-. :i : r 4 r r

basks uver a 25-year period.

%Pw C@+$$htiy rec)rd@d l o s s e s of $5 .3 m i l l i o n th rough May 15, 2001, f o r 4 %

@ f %fte a g e r a t i n g l o s s e s T I C i n c u r r e d p r i o r t o comple t ing E ~ H - & B q ~ t t ~ % e l @ a s F remain ing 51 p e r c e n t i n t e r e s t i t d i d n o t p r e v i o u s l y 0 k . Z .

T j r - t m n r M F . r r l cncccl longer and more c o s t l y d e l a y s i n t r a n s i t i o n i n c : f r c ~ % + * I ; trt"; tkrr- p r~d" ts i : t s of one t e l ecommunica t ions equipment provider to t f ;&Scs

~ 2 - g i** i . t$ /c ' r . l'?.ie :.jrzmand f ~ r telecommunications equipment has a i s r ~ weai:er:ea *%a% 5 ,?t%*X$%%$?i a';REvf?l ~ ~ 2 1 y affecting T I C ' S r e s u l t s . As a r e s u l t of tnieSC8

x f ; ; X i ' ~ : : r ~ i ~ : s ' h : ~ Trf l t l i j ~ a g g r e s s i v e l y talcen s t eps toward c s s c reduccluns a ~ i i r F-!~.P U $ I ( f t i ? k : ~ 5 ! c:">mpenSatlOn p l a n s 11-1 o r d e r t o improve its f i ~ ~ ? : i > < - j <:L

k : T h e €:onpany e x p e c t s T I C t o achieve break-even st.iziu:; by : 7!%5%_ and be well p o s i t i o n e d f o r f u r t h e r growti?. While the!"&! c~r r r G ..- 'Da;a M4t+$B, t i $,ui4*3_iC3.:C~? t h s t t h e c u r r e n t economic c l i m a t e fo r t e l e c o r m t u r , ~ c n t . f & r ~ ~ ' ~ ' n y ~ ~ ~ - -

@ r $ ~ ~ ~ ~ ~ ~ f ~ ~ . imy.rr.ove I n t h e n e a r - t e r m o r t h a t T I C wl l l tct ilrra f r .

$-&%*g&X,&bp, ~ z P y, K;i,?naqemr;nt b e l l e v e s t h a t t h e c u r r e n t c a r r y l r l q tra l ui- <-#1 i t : % J ~ ~ ~ W ha:$ .,t';~r t.ef?r-, lmpa l rcd .

*~i.

t fr.X ,rr:,:: O I tjle cn:;r. over t h e ne t a s s e t s of a c q u l ea : 1:- . r r , t t: - ;*~~'-;: ,~EC~F:: A & y r ~ i 7 a w ~ 11, w h l c h 1s l n c l u d e d I n d e f e r r e j c h a r ~ e s i i ; i ti: , ' i . t 2 ! . i t * - &b*Si?t %&i$&wb 7.1 r s a m o r t i z e d on a s t r a r g h t - l l n e baszs Ever ! r s c::;,!, in^^^^^^.^

f '?i -~* : t . - f a : 8 s- , r ~irig Lnq from 20 t o 30 years. ?'he Company ha:, rsc~i i?n A , , . . f a i t rlt-t Qf e i c r u r n u l a t e d a m o r t ~ z a t l o n , a t June 30, ?lii?l . t " . ~ r : t 3 b : i i PK?W:pr**W.f $or r p c o v c r a h ~ l l t y periodically or whenever evei:L!- ;-,r ~: ,~ i r f : .?* ,.. - 2 3 l , i s a t ,e$~'i4Pih&t~iir+:?i 3 n d h ~ a t e t h a t t h e c a r r y l n g amount niay no t be. rf:c/~v+?:&lr:r;. 1'

@f$&2~%i?y 1:;ilL rc?c~rded a r n o r t i z a t i ~ n o f g o o d w i l l of $420,090 a i i ~ $ 2 7 1 ! p i r f :* : 3 2 - 7 arid ne-month p c r l o d ended Jgne 3 0 , 2031, s ~ ~ z i .~ t : t.i. .

$:'intib$ ri;rr~3~rs~aE Namters . The Company i s s u b j e c t t o federal and ste t s i , iu:,

*%%?a P . ~ 2 % p @ C t , to w a t e r , a i r q u a l i t y , s o l i d waste disposal arkd t+srrp\t+yt:r- $@&2t?t sad s a f e t y matters, and t o e n v i r o n m e n t a l regulations zssuect by rase %kjtC,t?b S ta tas Envi ronmenta l P r o t e c t i o n Agency (EPA), t h e Maw Jsrst?y &@pa F* ~ e n t o f Envi ronmenta l P r o t e c t i o n (NJDEP) and o t h e r federa l snb %l.wh r:

&+g&@t2& 6x3 . ' Y h Co%i'&,any owns, or p r e v i o u s 1 y owned, c e r t a i n prcperi ken 0;s wt;; ~ $ 1

s&rziztdc:arcd gas p l a n t s (MGP) were operaced by t h e Company 01 k2.y of lie; $%%4PAa3 i n the past . I n N e w J e r s e y , t h e Company nas reparracri tifr:: jtre$Zx"$re:v

s i x MGP s i t e s t o t h e EPA, t h e NJDEP and t h e N e w Jersey Beard of P@bkd@ B Z l l i t i a s (NJBPUI and is c u r r e n t l y c o n d u c t i n g remedia3 a c t l v l t n e ~ s a: &%l ii:tX s i t es w i t h overs ight from t h e NJDEP. The Company also owns, ckr $%&%vi~,'i~skgr owned, 1 0 fo rmer MGP f a c i l i t i e s l o c a t e d i n t h e stares sf tZert2r @X@L$%&, 6 ~ u t h Carolina, Pennsylvania, Hew York and Maryland. Based c m chis W@% ~ @ c @ E I C assessment, the Company has recorded a total reserve fo:' sfivh~onmsntsk investigation and remediation costs of appr~ximatsfy $ 3 3 %A$%4,0~1 t which i s t he probable minimum amount that the Co~pzny exgcces t i >

@g*rnd &xi r rq the next 20 y e a r s . O f t h i s r e s e r v e , a p p r o x i m a t e l y $2? ~ ; X f r t o . : i ~ & t o the six New Jersey MGP sites and a p p r o x i m & t e l y $1: t:%x 1 l :*;p:&

r@$t&Ea6 t6 t h e 10 sites l o c a t e d outside N e w Jersey.

j Y&e ce-agrts prudently incurred remediation costs for the New Jersey MGF

i z e d by t h e NYBPU to be recoverable in rates. In New currently recovering MGP-related expenditures on z i r - 8

base rates and aver a rolling seven-year period MGP Remediation Adjustment Clause. As a result,

a t e recovery of approximately $8.3 million of ugh June 30, 2 0 0 0 . Accordingly, the sset of approximately $35.3 milli~n a5

nq future recovery of boch lncurred costs a?:c I 1 , t 1 , ] 1 1 it j.es re l aced t r ; 1,iel.i J e r sr. y ?*:'.'7T

ccessiul ln recovering a portion ~i N t ! New Jersey sites irom the lGC%?rip%! ,I%-" to pursue additional rep-@L--;T-y7;7- vf'it.?:

ted with the remaining MGP sites located outside nt:cnds to pursue recovery from ratepayers, former

ar~d Insurance carriers, although the Company 1 s rior e r any or all of these recovery eff~:: 5

working with the rc-guiatory aqencne?, : . .

l : . i i ; ~ : ::i(::t::. . C e r ! a1r.i of t h e Company's long-term con'iract 2 f g :

rag$+ and delivery of natural gas include fixed charges c h a t ej-;prL?xiaatrl. y $60.5 million annually. The Company current; y

$<.* ., %,14; .. ;y;$>-. . -- -. ,,.- . v , n : 2 : 6 exgloctfi to continue to recover, such f i x e d charges ~h rnu i ; : .

$ $ .g.:-. . - : . . z. ,<A&:, . !<I *.,$- , . ( 4 *.:?An ;:sd-~usi-rrieri!. c-aur~r_.s . As a resu j 0 ; 7. he f o r t i:d-.","-,i * ' . . - - * . L % - a , - 3 'b ' .'-! ? ,.,,:, -,. - , . . hs$ Gz-p;,71..fs~~ : 4 g $<.~k t> f ;-;;$ !,, t? 1 gas ser~~1ce.s ~n New Jersey, chest cont:.racrs g',q-,:f- : L , ."% p k. 2.. 6, s , -s 1 ,, - . .. . . -,~,hi:aLl.~t~ of stranded costs by the Corrtparry. t4anaqe~e:;r &$*,.$ ,; . >. 2, *? 4 3:. "':- -7 +:, <= ,. t-, ~ %: .. >. j i,J t .~:l.!&t.* ;if t hest.. ac i io i l s will not h a v e a i:,nr c r i e l aa;:t~::.::i. & ! : 2 ~ 2 l l !::L:!. $,14<:, 1X;:tzipdl.i~~~ ~PIU~~S- T ~ E Company also 1s corm! ic r - r~d 1.0 $:.is; kfi : c . . z + . % i ? . t : * r ' : ? l ~ i t c > d := .-. 1- , $: : ' I t : c s , mlr';].mum quantiiles o f gas ~ ~ 1 ~ ~ - , l r 1 t i l t . ~,q,:;;.'f.q&:;., $jf$ $$ gpI- i ;> .- 2 i*; -. . 3 - . . i 2 , - 7 1 ~ . . ~ ~ . ~ > : i i 5 i . ' 7 . ; ' .<I b,i.lllon ctibir-- feet ( B c f ) per yea ; cr L O psi. fsrrrt;:;,:. .i:;z2:~i , . d; i . a : il.~er?r t h e minimw, quantities are nc-7- t a k e i i . Ttie i - ~ l ~ t , ~ ~ ; ; . . . cT ..- ,?,, *r , .. * ,

,,,.%. . : 1 ; i cfc.n~.ar~d or, its sj~stems for t-he r j s r a t 19;: of ! ! . I - : - . .

?~::.f:&; ! "c ::: '; :i ,: 1 COnt lnue to exceed these minimum purchase obl igtt: cr ;? .

i' I* $ 1 ;'kg1 c = ( ~ ! k f J d ? r j :$ rnvolved 3 n varlous clalms and 11 tlqar J or: I i-ircrds~;.;~:

2 eJi:i.rrte:xr;, In the oplnlon of management, none of these c1;l;r.s art .. ;s%vsqgt:J - v ; ~ I - " & t * z i l haw a material adverse effect on the Company's results (1:

MM.k.z %%'i?k$q raY 2 t s f lnancial condition.

%$%* c~*df7rtfiv w; 11 adopt Statement of Financial Accounting Standards No. I 4 1 . *Pbta .il:V36,u. C~mBinat ions" (SFAS 14 1 ) and Statement of Financial Af3caunr 3 nc! $f-%~f~d&rid:: NO. 142, nGa~dwill and Intangible Assetsw (SFAS i42f in fiscal ZQez, "~^?z%Y%E statetmsnts were issued in July 2001 and, when implemented, r.ra @ raq~irc that companies amortize goodwill; however an annual 1%@%63%r~&3st i s required to determine if the carrying value of goadw~di lias 3 . In general, under SFAS 142, acquired intangible a s s e t s art? %G k~&$- y%&'kraesly recognized if the intangible asset arises from canrracsua:

lagal r i g h t s , or if the intangible asset can be solci, transLCatraa,

h ~ ~ f i & @ d , uEnt&ci, or e x c h a n g e d , r e g a r d l e s s of t h e company 's ;nLenl- do L O

@a. 'Tho v a l u e of t h e s e i n t a n g i b l e s w i l l c o n t i n u e to be amortized o v e r t f :e :r ..ec ~ ~ % h % m & P a d u & @ f u l l i v e s . A s n o t e d , the Company e x p e c t s io implemcnr tf:cc--

SP*&%asir@fit~ at t h e b e g i n n i n g of i t s n e x t f i s c a l y e a r , O c t o b e r t , 20Q1, a;!!: t i EaVrak qc,?adwl i l r e c o r d e d f o r 1 ts r e c e n t acqu l s l t ; c . r r s t.5 iaci-n? *f? t"--

.t." .,i a' 5 .- a i r ^- m G u f>f k n t a n g l b l e s r e q u i r i n g a r n o r t i z a t l o n and s d p p o r t trj2 :rc:rrPyrr: ;

idd% ,-k$ @ r t $:if : f. i. C;?O&WL f 1 . ,.. ~ ;? f't:s%;;ai.rt?f,s Segment l n f o rma t i o n

,.. . '$$3*> %C:IET~$:~Y' 5 o p o n a i i o n s a r e o r g a n i z e d 2nd managed t-,.,' , , r.~: rr.:~;; .; ' & $ ~ . Q F % z & ~ ~ t ~ : $?i~~~j.l>~t,ion S e r v i c e s , Enerqy S a l e s : ~ , i . . ~ .-'--& i-.'-.* .. *.=, 7 . i Z-': 16,. ,s?.&T%i5+2+, f8 . t~ : D i s t r i b u t i o n S e r v i c e s segment d i 5 ; r i b u t e . s r;,2';ural ;:> .:->; .. ,

,5f::W'k~:F- &):T:C;I;~U$~! t h e Companyr s r e g u l a t e d u t i l i t y divlsi~ns. T ~ I Q f:r:c:rc';;: .. , :<*: : z - - : . . afixl G ~ . - + S L w t , C Q f . ? .+ seqment r e f l e c t s t h e c ipe rac ions of t h e Co~,.p&ny' Id:;; E : i i : l

ag,I,::; & : l ~ ~ t q y Br-kel:.s and E U I V l r g l n i a Gas s u b s i d i a r i e s , a s we i ! a 2 . G - . t,,: -. , ;,:. ' - L .:; .. i

i , b,!. N/jI Energy B r o k e r s on b e h a i f of the u r : i r t y d;.s..;:;r.::r.:-,.. G$:,$g.f?&i':: $j:$?f c:j.cea segment r e f l ec t s t h e ~ p e r a t l a n ~ c;f {.he fcqr;sjr:,'i2 ., %.,, . \.,:;:- . ?,;:". i" -- 9 z, $-ic:qzf> b rkci 'P , 1 a ('- c;uhslci iar i .es , a s ~. , ,zi i a s app] laircc i ~ _ . a ~ : t ~ q , ; E Z ; , + C ; : x i : ; , . !

jr. .p i a- r. zi, , - ~ . - . ; . ~ ~ - ~ t ~ ~ . . ? ~ k i i b + ~ i r : @ 0pCi:at:lons. The Company a l s o h a s oorpora 'ce Oper.r;;.;or~s : ) ; I ; " .I.:.

Xi$?.% g#$riar&te anif r e v e n u e s .

, c: ;. 1 ; ,, . . t a b l e p r o v i d e s i n f o r m a t i o n cof icern l f iy E P ; ~ r~$:j<,;.: :2.i::tj~~:+z;;?,~,:, ;,!$

x; $!% q, :;'.,.- '.,%.+i.irpii3:;f e+cn- t o r t h e t r r r ee and n i n e month p e r l f l d s ended *,7;~::#? m"-<:: ;. xi ,:- B n. ,i1'.t>i3";l, G < . ~ ~ Y T T \ U ~ > : : . 1 3 ~ i u d ~ i n t e r s e g m e n t s a l e s to aff;l:a;ed t:r.r;e ; :c : : , , 1.::;;;:

gi : i . : p r ,r2 . 4 I:., cansoi.ida~j~n. p.11. of t h e Company':; o i ,~~v : . * : , - . - - - . , ,.. , , ,. .: %

z j p. : + ,- .,a C : Z . + ~ + . ~ ? L . . . ~.23j:f:!: i . .- a n d t h e r e f o r e no t need s e l - ] ~ ~ a ' ; e dl:cj,cir;..i.;r.-

$9dv~!;\lr"?.$ : i$i%i:t; x ib t l t iai? Services E n e r g y Sa les and S e r v i c e s ~Tt~s%,~srrr@r S B T V ~ C C S %37tbr%agMent Revenues 'i'ora Y Ravenuas

Vr@-xax Opera t ing Income (Loss): D~stributi on S e r v i c e s C ~ r c r g y S a l e s anci S e r v i c e s Cuacaaer S e r v l c e s I s e , n l F r a - t a x O p e r a t i n g Income ~ L C J S S ~

T h r e e Months Ended J u n e 3 0 ,

2001 '-., <.< I j :->, .- s.; L , %,

,Yi r t ~ c o n c l b i a t i o n of t h e Company 's segment pre-tax cspcrai,ir~c~ ;rir-isas rri &Bak$r?t;s reported on t h e consolidated financial statemants I:;; as, f .-=; ti;..-c:. :

T h r e e Months Ended June 30,

tBoLXars in thousands)

~tX~&n&xl t Pre- tax Operating Income MdR-!&pent pre-tax operating i nCafne Pre - tax Operatlny Income

NU1 Corporation ana Su&s:dl&rlezc S u m ~ a r y Consolidated Opera; in.:? O$iC a

Operating Revenues (Dollars I n

thousands 1 Firm sales:

Residential Commercial Industrial

Interruptible Sales Unregulated Sales Transportation Services Customer Servlce, Appliance k a s r n ? , Qthor

Gas Sold or Transported (MMcf) Firm sales:

Residential Comsrct ia 1 Industrial

Xnrerruptible Sales Vnregulated Sales Transportation Services

Rvezage Utility Customers Served Fixm saies:

Residential Commerctial Industrial

Xnterrnptible Sales Transportation Services

3,853 5,e.t;

,as . %

I f , 22,836

s * 2&a 4%i, 3 35 fRw*rw.riPSd

Daqtcie &ys :n New J e r s e y Wee @ar*w X g*~rt:.~n"rkn$c,. varle3ncc f r o m normal

465 5 68 1 s t

w a r m e r

N U 1 Corporatiori and Subslo! a r lo:; Mnnagernent ' s Discuss ion 2nd Rna lys i s of F : n a n t l a ! <':';.r.,ri; ! : :-:. ..i

and Resu l t s of Ope ra t i sns

Tkhe to%iuw.i,ng d l s c u s s l o n and analysis r e f e r s tc NU1 COI p ^ i ~ f r ~ 4 P :-,:: o r 5 +, ; i. " 7 . - k t 8 a p e r a t i n g divisions and s u b s i d l a r l e s ( c o i l ? ~ t i v t > 3 y xi"t r.: ~ 5 ~ 1 : : ' - 5 - 1 * ' -

C9n!partyi . NU1 is a r n u l t ~ - s t a t e company engaged ;in the .?,I ,td . ~ r c: :; 4 ' ' : :; + ,

o f F l a t u r a l g a s , e n e r g y commodity t r a d i n g a n a m a r k e t . ~ r . i ; , C:C, ! c s - L ' i

sn$X ~ e ~ e r 2 n n z 1 u n r c a t l o n s . The Company's u t l l l t y Sinsrr.r,jnn.r 5 c a : ' + * r * ; : : - % . . - " - " - "JJ:, ?iG"* c,::zt o incrs IT , srve:, s i s t ~ c alar,q 1. h r ~-~:,-'t c ?:I - t i i : : v L 1

%t+zita2a ant: comnrlse El I z a b e t h t c ~ ~ n Gas Company I , I e : L I - 3 2 . . n i - $dssjp.';ir;y 01 F'lozida, Norch Carol l n a Gas, E; u,iurr ita: !T."i;i:.p ' s i " .

C ~ t . k % : > ~ Gas [Pennsylvania) aria Waverly Gas [New 'fork2 aha VE%::;!>,.. i - i

v&2!Q~naa Gas 2s a l s o engaged 1n o t h e r a c t l v l t l e s , suf-"!? g : k g v r - : i f s a

~33axat ion; n a t u r a l gas s t o r a g e ; g a t h e r i n g , marl-:er l r i q eir?ri *p,; R", W1u' , -.:, &%r"32kC@S; n a t u r a l g a s e s p l o r a t l o n , production anc v r l i opcr,r* ;ti,,, 1 3 7 s h 3 $ r q W z f ? d l s t r l b u t l o n . The Company's non-regulated s&msa3ar:+:$ iz , , % L B :a =';-"' r n ~ r * ~ ~ " 1 ~ 1 ~ . (NU1 E n e r g y ) , an energy r e t a i l e r ; t*TtjI Enezqy B T t 5 , r * ~ * , <%-ux Energy Broke r s ) , an energy wholesa le r ; N U 1 E ~ Q Y Q ~ %~:J:!xz : ->:rv- -~ i r k , . .* @Tr@ryiy project development and consu l t i ng e n t i t y ; PJUT @ark :'rt.Dmi~;k: ni: p - t l i 4 . : ,

Tnc*, an environmelltal p r o j e c t development subslcliarry; B i ' i 11: y Bve-t,~;q-f@' Barvices, I n c . (UBS) , a geospatial and customer infarnazrt c~:sib ayrrr;PntL wy*f @ ~ ~ ~ i c 6 k s s u b s i d i a r y ; NU1 Telecom, Inc . (NU1 TelrcamS , a : c i ? ' ~ X i ~ ' ~ % ? - ~ ~ ~ r - * p + l c

s~rwiees s u b s i d i a r y ; and T I C E n t e r p r i s e s , I,. L . C . tTZC9, a :h$fec outsourcing s u b s i d i a r y ,

01% March 28, 2001, t h e Company completed its er=qipj;rz.:c-:i +=I: 2'a:T3;$:,i~,z. ,;E

C Q ~ l p ~ n y (VGC) of mir igdon, V i rg in i a . On May 15, 2001, 5t3z iJ~d;+';,+a$~*~y ~ ~ c ~ ~ ~ ~ ~ ~ z ~ + ~ : ; F!3@ remaining 51 p e r c e n t i n t e r e s t of T I C that ii d ~ b a<:; pr45*2:0rp5iy tr"%b!:-.

H g I o + i y i n ~ l l y a c q u i r e d a 4 9 percent interesr zn 'SIC &I; $ 4 ~ 2 Xbu i <$$7;'r t c : $22 n d l l i o n .

R.cfisu9ts of Opera t ions

Fhree-Month Periods Ended June 30, 2001 and 2000

Mar: ]income. Net income f o r t h e three-month period ended A t ~ s . 38, 28:~:- WG: ' - r i . millionr or $0.05 per share, as compared .wj.tk ner a a k i 3 w r : r:jf

% i l X f r s n , or SO. ll per share, f o r t h e three-montn gerht3d Qa~f&h %.&nr.- 39, aQQ#- Set income for the c u r r e n t period includes losses ts% $3. %FL & :k%t>:~, %r *a-07 pas share, for the operations of T I C Enterprises, Rfncs s t becs&ae s

wh~lfy-awned s u b s i d i a r y of the Company on May 15, 2abZ1.

Pi +rs adjus tment clauses. Such c l a u s e s e n a b l e ; tic- fcxapdny E-;.: f:l::l's

A t & cttstorners, v i a p e r i o d i c adjustments tc cus;:.%?!erS' 3:" i :-SF

, j 2,:: : ' .,. i *: 2 5- .' pfod'ii an t h e sale c;f ~ h e gas c o n m o a t y , cp,<: C-,: - - , , - . * ; 'z . -

ag&raeing r e v e n u e s 1s noz necessarily ifldi!:,3: l ~ ~ e i:?: i i z i . - ; i h : < ' t . j :;

- .LC. 231 three-montf j p e r i ~ d efided June 39, z!f:',~ , :~r;?:~;.-l

Qhraa-m0nt h per i od ended .June 313, ZfiUcj. Cey:~ip&?xy " s . . ,. - , S C ~ Y . I C @ ~ ' revenue inc reased by approxin;aie!k: z L . Z ( + . t, r?;l l i, ; ;:.s;. ~ . i . b i l . ) . , .

h ~ Q f ' i t 3 9 . gat; p r i c e s c h a r g e d t h r o u g h t h e < ' c , ~ , p a r i y ' ~ og:rsfia$,ffa :::;j+$; - i > ~ . : : t 2 J - ! . ; : ~ ~ ~ '

. . , < . I ? . r-"f&l!scs, a n infre.*. .se l n b a s e r a res 2.n k'it .jri(fb {.i>t:,4> yJ~~:~.;t,gl~f;,:'', B < - : * ? - , s P . : .

+'i..?. . , t : ~ ~ s t ~ ~ e ~ g r o w t h . 'r)iese increases :,;eI <= L&i f 1 j y (-:' '' >, ::,:t ? :,ec .7 r 5.:. - i'

weather t h a t was 1 4 per?-ent warmer co~,p;i,red t .. h;, , r .. ;hi+;;s;ic.~li;;?:;-. w . + i i i . - v * . . , . . ':!,.I,-,,:

d u n e 30 , %OC)O, Cust-orer S e r v i c e s ' reveriui. ini.;r.a;+.f;ed by .;!grpr.r:.% jra;+?, r 2 -, 1 ..:,

?'elecom and t h e r e c e n t acqu i s i c iu f i o f T l f Fn:erps!:-:i:::s $n;ii.v

tile Not@$ to t h e Corisol idater j F l n a r i c r a ] S:,a: a m ~ f ~ t ~j ; 2,:r:q;. .,zL. r i

$erv:ices ' revenue ~ n c r ~ a s e d b y apF;r <~>;1n;i:;. fi i y ::. .:. ,, *.-. F;,.; : <. ; . , ,x

.intercampany t r a n s a c t l o n s , pr imari i y 6 i . i ~ tc. f, i ~2 f:+,< : (;;T:z :+ ;: : ; c: qT 5~ a ;<I r . i n t inreguLated o f f - s y s t e m s a l e s z r , ~ l k i c . d c ~ ~ ~ ~ 2 : ; , : :!c;b;-; (,,:i 7 . ; ; : :> : : ,: ... Y-

'?he il:oiiipany ': i j p~ . r d l - j i . q r ~ a r q i ~ : ; lrGr;: t2a:-.E.,.i i.:,.-, , #;, ?: 2 . ; I :,. : : ., ; ,,- -

'! ' ' fax t he Lhree-monti - l p e r l o d endred Ji!ric .i;[:, r, . ;IS*: . <)::

. , at.t.ri.l-tutable t o arl increase o f g i : , .: xt; ;, P:. . , 1 .

' SIC." *"lr:""' ' 3 % . . . ' 9.i. I customer's f u t u r e e l e c t r i c i t y p~.~rch-;.srs, .... ., , * , , e r < . , e r : . - , . 7 L .

ale' gas p r i c e s experienced througllout t h e n a t ta:z, r.kr';Q t 9 : r L :*-"l;iif -: r :-

of NU1 Virg inaa Gas. NUI's wholesaf e buszr;cs%, 2 &%-xr: $ 3 t ; Z . S F ~ " ,

increased o p e r a t i n g margins $ 4 . 5 mzllion, ox: I B l r pe;Ft:-5:nr,, 6 ~ d ~ 2 il;;,i.i ' 6; ;: it< 'p

s u b s i d i a r y , NU1 Energy, i nc reased narqins $2.4 mr l l $art, 2':: 2 4 gc i~ := ,~~ , -+:-.

yaa c o s t s d e c r e a s e d from t h e unprecedented Icpr~al:; t?%gertr/t1,-*-5 " : s * j;-32'

winter. AS the p r i c e of gas dec l ined , t J U I 6 c ~ r g y C%X%Eg;lEt@i:+ EiT,tt%E ; 7 y d - F = f - i -

? , sway from t h e month-to-month arranc;enonte: t n 1~r:~4-2err r: t - - '

p x o t e c t i o n a g a i n s t f u t u r e s ea sona l I n c r e a s e s . w~ftx&t:f$k~ k%aX~;b!t~E- - f i b ' C n ,T - in t h e Customer Services segment by appraxraatcfy "%,? a;: ~ L Q F - , r1z -c

intercompany t r a n s a c t i o n s , due t o zncrea5cd saidia &zy IZi,sI ?~t-;ie;r~~%~. w e ; - ; '-si:!

as w e l l 2 s t h e r n c l u s l o n of r e s u l t s frarn TIC Entcr;ta;ssr* i . r : n * r 2P:;4+ 5, Y?: - Notes to t h e Conso l ida t ed F inanc i a l StLabenrc$nrr;j. T"-r:a:+ii,i. a ~ ~ < - , " ; r s ~ . ~ : - : d*--:-

o d f s e t by a d e c r e a s e of approximately $ 0 . ; R , 5 % / c ' r l * i , -,* * , h , * +

D i s t r i b u t i o n S e r v i c e s segment a s a r e s u l t c r i ws;.r%t.Ra;a %ha% ~ m ? ~ i B f---f---."~*

Warner as compared w i t h the three-month porfr;xd artQeaP S;hr:to '%D, , A * * + - - ~ J

Qther Opera t ing Expenses. Operat ions and rnain~~n3r tce ~ ? ~ ~ ~ C * ~ F ~ Q ~ :s,>' P W D ~ P 1

ppproxirnately $ 1 4 . 5 m i l l i o n , o r 66 percent, Bc:r %:~PZ r,Wx Jr:a-g,2fi% ?+ p-,s, z 5 - . ended June 30, 2001, a s compared wi th t h e d;hr~e-z;it:>:lnth ~x@xEB% @;7$z%'s$ 2 i i r i ~ 2000. The increase was t h e result s f opera%.inq es3%r&am 2 % ~ z-ezs-i~~~ &cquisitions of NU1 Virg in ia Gas and TIC Enterpr5aas, h%qk-.e$ f$.'48q~% $ S w n t E+-*

had &@bt?Sn increased labor and employee benef r t costs, hsgfter e:rrm.F: 2 % ; # "

I B P E r m r g y Brokers as a result of increased margins, arid cost& r c ' i ? ; ~ ~ : ' t * ! ; ~ ~ ~

sdikh t he Company's new technology lease. The C:ompariy prc:rrzaur+f y f 'b;?~'.: " f-

% ~ C h ~ l ~ ? y ; y assets It replaced durlng the year.

<;%h*.,;. Xnccmme and Expense, Net. Equity in i .t)e Insscr., c;f TZi' 8,p$rcaximaCcly $0.4 million due to operating locses TIC: rni:.i:r'ro.?$ $7: f!:!ir : i.: HiJx" acquisition of' t h e remaining equity i n t e r e s : in s<>~p;.ir;y. c$.?,,-?,i~::.j;1

prisiar: l y t h e resill t of i h t ; cant lnii;iirl : ! ..,w(:$oI.:~~ i;, : ,-$.?,,::.:,,..; + , . * . , : ~

f i ' *,.+ ~ T ? ~ E C ~ ~ R K S ~ ~ I C ~ ~ ~ W ~ e q u i p m e n t . Now u n d e r [ 2 [ ) 1 >. ~ : , ~ + r , ~ : r ~ $ i ~ ~ ; ~ "'":~~~ ': .,, : $ :- !. !> . ~ O f k toward i.rn~r~rvlng its cost S t r u c t u r r . :c, e::&::,z<~% - ' - ' '>

,-.:.A

ps3f i t i ik . i l . I ?<> I:;, ? h.? rtr-ar-term.

f n t c r a s t Expense. Interest expense increased by ap;:r f C>T I: ha:? t hr-ae-month period ended June 3 0 , Q,:!!, 2 s csy, i><+r~or~ r n Ihe prior year. I)urifia t , he ~ i ~ ~ ~ > - ~ ! r : ~ i ; . ~ : 2 ., 2.3 azcordanze w i t h 2 S t l p u l a t - i o r l appr f iv~~r ; , r::.: . t

&=~&lii; C:t-i:i:ies, t h e Company at-:le . - : i

computed on previously deferred expenses i nc id f - r cd f o r f ~@med is t i on of manufactlured gas plant s i t e s t $ < b r ,?a k n c r s a s e is a result of the effect o f t.he prro: year t i 3 gticr average debt outstanding during 200; (:;,:? Fi f i : ~ [ 3 + ~

Rcsc:lrtrces) . Partially off se~ting this increaze wh:; 5 0 ,i:. r, recorded as a regulatory asset in accc.rd~r.-~.'. . . b z T , q . ti:! f, :; Stipuiation by the New Je r sey Board of F'ut-ji 4:- !..I!. ; i i : I , . . : , .l% .ity&?;pany to reccver ( Z a r r p i n q cost5 c ~ m ! ~ ; i r t ~ " ..,;, i.;!.i;:~j.:.-rc.,..-~.<~~~~B'~B':.; ;;.:&,. . .

i:$t?%$ Regulatory M a t t e r s ) .

Net Lnco%f?. Net income t a r i h e nine-rnor::f.; pat. ih:!rj r:z<,$p~ .>."*-* . r , , .

$ 2 3 * 8 miliian, or Si.80 per sha re , 25 ~ ~ ~ ~ p ~ ~ ~ ~ ~ $ kg:?,!:, :ktp: m4 1 1 :an , a+ S 2 . OR p e r s h z r e , f o r pc.r.3,cj*".r.i.:r:.; -?;;jL.,,:

EleCKeaSe 3-n the current p e r i o d w a s p r 1 m a r ~ l . y a;.ie. ?,c, ::.r::::iii:j

m ! 3 u l t s of the Company's co re businesses.

Operatirig Revenues and Operating Margins. Tkc i'c;rtpan&'':< rilSeb3C:: P., .9 : - , , iflaeased by $264 - 7 millron, or 37 percent, fa: n:na-eeesh pir*r$i, i a - 1.. - Jhme 30, 2001, as compared with the nine-month pcrrod t -c~#$%s*& JY**EI. PCti', . ' - Tha Campany's Distribution Services ' revcnu~ xljcrqaae-s$ e ~ y g ; - " - - I " ;, .- $117 .a million, mainly due to the higher cost 0 3 ~ A S +krf;1'$ + F ; , L : , % P * B * z n , .

Wearher in Hew Jersey was 3 percent warmer than rsatol?, FJW t : i ?.-

~older than the prior year period. Energy Sales ~sf$ ; - ; - i

increased by approximate1 y $134.9 mi 1 3 , r;.;!",(: C b 5 ~ y a - transactions, due to higher gas prices aria ;eF.;r:**,%:,-- .$. iv;r,g*-: : -" 7.

off -system sales. Customer Services ' rzipenl,e l;'rct.snr.usl r r9 t2.r-; 4 3*$~.;-"4* - 832.0 million, net of intercompany trnnsactjons, &usv ; . A ?sS2: . E:;ESPPB s Z~,'( i,,i?'-

by N U 1 Telecom, hlgher sales by UBS and the apy~1:a~ree. 9 ~ z ; , ; , t - : ~ i - ~ : i i p z i ~ * --: :

and the recent acquisiflon of TIC (see E 4 ~ g e 5 6' : T,+- :LQI:@,Z 4

Consolidated Financial Statements).

j The Company's operating margins increased by 520.5 ;;p;.zf l r4.ri, 7.): 'I: i " - + n 8 b p '+-- <. " i for the nine-month period ended June 30 , 20:Yi1T % ~ i i + ~ * t i * ~ c i P +. 4- *4 : * Z l ,- , nine-month period ended June 30, 2900. Thcl t - 4 , ;I; .. -.;. . 3 I attributable to an lncrease of $10.4 rni1Li.u~~ in r;1k2 Ce,l.~~p:;+y'~'!. %-:rt'r;:y i t z * + ; r

ar~d Services segment as a result of the accquf satssn eQ M"r3 ";z:.*,i,ai,+ r.,.? .:-,

fees earned as part of a customer's future i ," Ier5%rk~f t y gf'i1;ile~hi%s1'~:-~ pt*f: :;jir

canklnued voliitility in the price of natural q ~ w , Q ~ q i d k ? ktgg g ~ g ~ 3 % : g ~

hcrf?&st2d approximately $ 2 . 5 m i i l i o n I n m w ~ + y 9 f33 2-C t X$,vd 4;w:1 R " : - t t ' s - . . a sQ$JFWne a5 a result of customer growth and :nc:cris2Q :.i7rlt+i ~ 2 4 ~ - + * pgeatfler i n t h e c u r r e n t period. The Coiwany has we6t4 b+c: ; - C ~ ~ U S ~ S i t 3 i ts N e w j e r s e y and tjorth Cars: rns 7 &g:f f F . ~ *i:;;r-: sp r *s--:r7;~* ' a

kelp stabla sze t h e Company's resuits cy ~ n c r e a s : t : , ~

' 4. , . ,,2,,e,,.,+T~: t..: r 5. *',h;,a rgec L O Custome-5 wf?sr2 w

" ' - . : x - . ~ .;recreasing am6ui-ii-s chara& w h e s w@zr.m+sr ha:; P,:s:-.'.n c-si-;i'-: !

a r e su l t c!f west h e r r?ori?..a l i z a r i on approximately SO. 6 m i l l i o n znd 54.9 a

periods, respectively, s bar: t EIJC~ c i a u s e s . Operatinq ~ i ~ r c j l ns ~ f i ~

k approximately $7.4 ~ ~ 1 1 : OF:, Tr+ t

2 s t h e recent acgu~sltrsr: of f:[- Cunsolidated Financial Stacenents;.

Depreciation a n d amortization Increased c u r r e n t period, d u e t o a d d i t i o n a l p lant , rn N U I V i r g i c i a Gas and T I C .

Znterest Expense. I n t e r e s t expense inc 19 percent , due t o h igher levels of s the Company's purchases of natural gas. average shor t - te rm d e b t balance c f 5 anded June 30 , 2001, compared t o 572.1 Financ ing Activiries and Resources] t he & r e n t year w a s t h e p r e v i o u s l y of t h e c a r r y i n g c o s t s conputed o i n v e s t i g a t i o n and r emed ia t i on o f man i n fiscal 2000. P a r t i a l l y o f f s e t t i n interest and amounts c a p i t a i i z e d a s ca.rrjtinq c o s t s a s s o c i a t e d with the

Regula tory Matters

The Company's C i t y Gas d i v i s i o n receivca apfira>;~a,? g r L ~ L j y - i - , 1 '6

S e ? ~ v i c e C ~ . ~ i s s r o n (FPSC) an J a n u a r y 15, ;3Qi3& ccr sn::::r q , ~ ~ . c : ;; 5 A T = ;+ ; :, Z, ,.- rates by $5.13 million. T h e new raLe 3ttval pzc~~:$.2t:% f m s sf+ #+:--+ s,: E W ~ ,g On e ~ i t y of 11 - 5 percent and an aver213 r~iPBa,.;*& g.rQ~i - g :&3jcr* 7 - 5 i -

@Q H~.%&er 2 , 2000, t h e Hew J e r s e y Board o f p u b l i c Utilieies { t$JBPVi !LbWf&irf- Cf'i order a p p r o v i n g a n i n c r e a s e i n t h e blew Jersey porchascd qas % Z ~ . $ Q % ~ I @ , @ ~ I E @ l a u s @ ! PGA) of 17.3 percent. The r a t e i n c r e a s e was ef i e c t i

z "

k%@@,eizkt@iy and r e s u l t s in a r e v e n u e i n c r e a s e of approxima'eely $ 4 7 E Z 2 ; 2C::V:

&"# '& i& !~y , 513 &&d:~iol- i , the Campa~y was s ; l l o w e d to increase r.kic. Pi.;& I d Z g s t . ) @R &&Q8$iwn~+i 2 p e r c e n t e a c h month b e t w e e n Dete&er 200U and & p r l l 2 0 6 : . 4:: . h .3 >&$tih t z h ~ g t ? ~ 0 1 1 t t l l . y rijte i n c r e a s e s a d d e d revenues of uh,: t<: S&? $ : r , i i l i c X ' ~ 3:;

M.3 & . W t ? S ? ~ i &>:;;asis. TPle i n c r e a s e d pGp, r a t e g r a n t e d ra c a v i l f r.i;r. I.':syher ;:i. ...;-=~~!!+ C~;?~;&,a;;~; h a s been p a y i n g f o r i t s n- t l l r a l 035 & U T : . . , ~ ~ ' - , - ' . ' , , < ,. , : , ; + : 8 .-.'

x . & ~ @ ; r 8l.t;tm sbaur 2 2 . 5 G per d e k a t h e r , ~ l n Jd;> , 1995 :;o a s h i q f ; 5it : ; .$f : :-a'.- g ,.,, *

& [ $ ? , $ + ~ t ~ & $ ~ ~ ~ ip'l Jarrue:-y 2001 ( s e e " F i n a n c i n g Hctivit-es ancf Respij~,-:-:,i.-'" . , _ . > J - a . .- -. "3 '&y.$::,~ $ +3 *& ? fik,. a- Z* *:i;ttO f i 1 i n g , t h e Company p r o p o s e d f h e c:,r.ensi on ;: 5 : ; ; t . . .:‘ '?,,. s L G *~ 1

2 ?"rZ'P,t:eilt: ?&2~ af$jusfinient-s f o r a n a d . 3 i . i i ~ n a l th ree montt.;-. 2nd &;:.!:<:."i?..:fi j~.i:.

g . 9 ""rp., z .,,.i>rd i.n::ercst o n i t s u n d e r - r e c o v e r e d q a s b a l a n c e . fir.: Mar.-:-c Lii!, > r $ " =

p .*,",:",.~..:‘t' .--a*.). "b :';ersaa;, ir-icr-cases throi lqh J u l y ><!;il i f ac;~ij qi$:. r---;..*- BuC!; :rii;:t$;:,3f;.+3s. ':!-:<. :-:ornpany has i r r i p l ~ r r l ~ ~ i r ~ ~ inc:rtr:.*:'--.: ,,....... . ;.. . # - : I : r ; - i i !

::?:a t;!>r.&r. & t J o w s tf,.:? Ccimpany to b ~ ~ ~ ~ , re:;o;.cinq 1 r ; : e r ~ ~ t c;. ; , I : .;, \ . $ . ~ . i a ~ b 2 . * ~ ~ $ : @ : , : > ' W ~ ~ q : d ~ r, 1753 r ~ ~ i b a l a n c e , 2r.d r ~ i a b i ~ ~ h ~ < j i 6 riei: r - - t l , - r ,!;:;ji , .

r'$.icQV'Qt ?;:kii- q ; ; ~ cost u n d e r - r e c o v e r y kclance 25 of Oc-ok:~ei li, *;(>?: . i ; r !,

? I : 3, Dt,e:.-est oWu*er a t h r e e - y e s r peric;cj.

=- * #* .= 6-. ,+?, i" F j u * n J r E ~ . : , * t l ~ fPj;~.9:1vit i e c and Kesnur~ces

*a,*+ ,., .,.. . - - s-+r. <2iT$s$j&!;s~ had T I ~ : c a s h used ir, (,pere~::,,,; z(.::. LL*J? . :2*j~<% z..,: .; <? ; . :

@~r..~..jl-.-w . 4. . el-~decj juf ie 3 0 , 1 . : Z j f i l , C C S ~ T : C Z : ~ C ; sf:? fit.:'. t:;~::~!.

~~f34?:: :~? ,?198 & t ; t l v j , t i p " o f $51.1 m i l i l ~ f i f 3>A2X;,3i.: i ? ~

r%?s,{~>i !>bd !. o ?!.:rid 3iiclir-r-recovere.j-- q a z ! :nsrs a:-:rj : f i r .

+Ig$,S 3iuppliars . T h e s e i n c r e a s e s w e r e p a r r l a l l y a f f s F&~:2~y~ GU$%:Q[QQ~- .

* * q r * P i % " , A , , ' * F e * P~; .v @alIip,:ll?y sxpect-s to raise $60 m l l i l f i r l from it.ie 2s::'Ua::ei- i: .;,,. ... ,, &@~zx l!'bJrinf.j Augus t 2001. The p r o c e e d s would be used ta rmpiry t :ti- .-.tl-trTd : sr!r

l~#%krt, uwd, i n p a r t , t o a c q u i r e d NU1 V i r g i n i a Gas. T i d d l ~ tcrr~a; l y , r :;,: t:aiz:r.$r.;J g%sns i3n e q l t i t y o f f e r i n g o f a p p r o x i m a t e l y 525 million of c~:%---n l",t:*i:b ::* 6Sna fa11 of 2001. The p r o c e e d s o f t h e equity ~ f f e r i i i g F I O I J X Q kw ~z,?+*:'s '. $tt$rCtbtW r e d u c e i t s s h o r t - t e r m i n d e b t e d n e s s and other gr=*rai?;rn) P t ;4<: A-: 4

purp'.tsee.

M r c . , ~ t : : ; c ~ t.t:s Conpany's business 1s h j g h l l j s e a s o n a l , shoz-; - r c - i c t 4 ," * !, :it *- " b f i l IVEpL s e a s o n a l work ing c a p i t a l r e q u i r e m e n t s . The Carep8afr;y ;a! 5.: "

hinder i ts b a n k l i n e s of c r e d i t t o f i n a n c e postita;r:a o; : * : : , I E ~ E I ~ ~ ,

@xgsondPPures, p e n d l n g r e f i n a n c i n g t h r o u g h t h e Issuance te.f . E y - I :

i b ~ q - t ~ r m x n d e b t e d n e s s a t a l a t e r d a t e , depend lnq upen pr6r'i(.~$ z : ; i:+q rn-3 B

ccmdz t ions.

BR~sr t -Term D e b t . The w e i g h t e d a v e r a g e d a i l y amounts 3 ~ & $ t & r : : i ~ r : q r>: FY,";'-

payable to b a n k s a n d t h e w e i g h t e d a v e r a g e i n t e r e s t rarcs or; tnasa { ~ % i r - ~ t t e t 4

t@e;rre 6154 1 m i l l i o n a t 5 . 9 p e r c e n t f o r t h e nine-month period a?zdcrd it-^^** ?ti.

2001, a13d $7 2 . 1 m i l l i o n a t 6 . 6 p e r c e n t f o r t h e nine-rnai?ttz Fc:'aafZ Pndna ,: ~ 5 r . t

3'0, 2600. At J u n e 30, 2001 , t h e Company had outstanding I ~ ~ P L I Z S jJiltY2tr8r- * " b a n k s a m o u n t i n g t o $215.8 m i l l i o n a n d a v a i l a b l e unused k:rz-:arr nf d:r-+,bi " 4m~;zunz;intg to $15 .7 m i l l i o n . Notes p a y a b l e t o banks increaacd as of 4t~tx;. :i'+ &$OX, as corcpared t o t h e b a l a n c e outstanding a t September 30, 2800, bu*

X2AZQBS discussed above.

tap'ri;a-Tsr~ Debt and Funds for Construc"Llo Held b y Trl;sZee - .: t=*: '-, :,'T Tlz=:

&-l;*$?Cx,iier; i n trust +,he unexpended portion of the net FzcCeud: f c: 2 . : ' - : - c -

k-ac'r i:i ;@a R c v e n ~ e Bonds until drawr: upon for e l i q i b L e F:x~c:~.$; U: r -, - " ,Y%L@W. 3h, 2061, the total unexpended portloris o f 6x1 0 1 %:'ti t CslTfi.":

? - i ~ { t k b ~ t i a s Rev~nue Bonds were $7.2 milllor* and arc '

L " O Z ~ ~ J & ? ? ? ' 3 cishsol ldated balance sheet, including 2 fit arcs: t :< i r r~c - ; 5 S . i - - r r , , . :urifi% f:: ,-;;K.-t r.lri Ion h e l d b y t r u s t e e .

p"is5ats Held for S a l e . Upon completing t h ? acqu ls l t ; cm o: C:ONpsn\i now seeks to focus or: ';he der?e!opme:?r of Gpf?rat.~on:: that coinplement and auqment e:.:lc-tlr:q 1 i 7 p J s o r t u n i t i e s for- q r o w t i ~ . Accordinql y , :r:e CCI:;~~::;: . ,

3.SScts nf NU1 V i r g i n l a G a s ' P r o p a n e and K a r k c ? ; n:ic: $ r e - 2 , ~ : ?I<) percent e q ~ i i t y ir:iFesCmf?r!ri R d: 5: r.::.,i.:t a . :

ax;'sctsd to be r e i n v e s c p d 11-1 a d d l ~ r t c:i;;3 j j ~ k i : i :~.,i-j.

tcj l~. *t 2 : ; 1.1 Lace the qrowEh of NU1 i i l r g ~ r i i a Gas.

C a p r r a l Expend] t u r e s a n d Comrnl trnents

f a p z t a l expenditures, whlch conslst primarily a i r=xfiera.sl*r,:fiJ- :!- r 7 , e j 2;' I - ,

upgrade the Company's gas distribution systems, were ESB--xr za i i F , . L 5 5 9, ~lilzn-month period ended June 30, 2001, as campared ro S 3 C , 4 i ' l$$! ;~f , L x : =L,c

ngnc-nanth period ended June 30, 2000. Capital expcrzilnsr4-?;. * ~ c l ~ $ir:psC 'Cs-;.; "

W ap9roximately $64 million for all of fiscal: ZBCfT, ay- :-:C@$>.LP$~LE id ' -+4 _ * A

t ~ t - 3 2 of $52.7 million in fiscal 2000. Included In t f i * ! ,%~:~rr*~fx:;~~ i: : i. - - a ,i,

2001 is approximately $14 million related f c ? E)h&s+? t i.c:ix*,;Sr~,.+f , 1. i 1 z

distribution pipeline to bring natural gas s e r v ; ~ : ~ P.);l: :, "TT : - - ' . tkxpora~ion and the nearby towns of South Bay arid Bcbjr: &!&at., i ecb:, I>, T t a l

~fmaining capital expenditure budget for fiscal 20Ql w: t 1 :3f- ti,,ay+d-c.vt :*l *fi4t-: i - 7e

fax the continued expansLon and upkeep of t h e - 2 : I: J

distszbutlon system, as well as certaxn :e;tr,.i:+::cgt23- ; z 4 - f a * -

Environmental. The Company owns or previously owned %;x fsis%srr %-.?Giii ,:r l: h 4

gas plant (MGP) sites in the state of New Jersey imf$ re;: tszax:r RPr;. * + ' T - . ., PI the states of N ~ r t h Carolina, South Carol ina, P e r m s y ~ v n t ~ ~ , ~ ~ , $Zcc 'g t4:p $,x{.-- Baryland- Based on the Company's most recent awessitt@ni;, ?-:t%f8 8";9i-3.:.4--;-,. :,-,-: recorded a total reserve for environmental i n T z e s t i g a t i OW ,isfi8 :*B~Y-z:-.^ ; * Casts of approximately $33 million, which is tho prr;-,tsat;.:a 3e;c;a&!bi?: -,s,;* * * .

Chat the Gompany expects it will expend in the next 20 pears ts :sZr*:?:a5= the Company's MGP sites. O f this reserve, approximately 620 ilu,%iSfor~ gdi ,$s .4@%

Few Jersey MGP sites and approximately $4 mrlaisrn rcRbX-ai?- %SF %%A@ 532

hak@s located o u t s i d e N e w J e r sey . The Company bel.iaites <i4;P$ CI:-A%";

a.ssocistad wi th t h e PIew J e r s e y KGp sites w i l l be recsve;-a$la i;: r;%t+s ic-r TL%l# inscrarrce c a r r i e r s . I n New Jersey , the Company 1s rr.usr.@aZ!f ril.cs.;f?,-:~~~' oFi+@itX?n~an~al c o s t s on a n annusf b a s i s through base ra$.c?s ana cvcr Y::

%%j.&ii+iq $s.ven-year pe r iod through its t+.IGP R,%media::crL ii.ci;;:saf2tut.L !.:: & i ; ~ ? < - . 2%: * - a 132sult, t h e Company has begun r a t e r e c o v e r y of a g j p r - ~ ~ ~ . : ~ z ~ ~ ~ : . + ? : y 5 8 , .? zi.: e. s , I,*, :

of e n v i r o n m e n t a l c o s t s lgcurr-d through J Q I - ' ~ 30 , 2 9 : 3 ~ . 8;; t.: y * ? ~ p v ! : ~ : z : :: ~ E 3 S t . f ; tkiat nay be a s s o c i a t e d w j . t r : r h p WGc; sites !ac;t:atr t,~c,ft.r,id*? t.ii.2. -:,$'+

nf Mew ,Tcrsc.y, 7 h e Corr;pany : iii endi., r .: p,.:~:. .!~e :<..;.:-:*J~-L::; $ r , ~ ~ ? . : : 7 ~ : e . : : . . : : ~ , ~ , . . . : .. ,.

Ear'niet- owners and operatcjrs o f tj-... s i t e s art& f r ~ , . ~ i : r;:;c!&f4;:+? +::,st : ; < ~ r -. fi<>t?$!~9r, t h e C~mpany is fie: a b l e , a ~ p ~ i t s ; "la-, 60 c x ~ : r t k s . ~ f .. .. . ;* k;^;i'?;;g'.:: l.?:

c , 2 - vthittct+t.t-~er any or a i l o f these ~ C ( I G - J , = F ~ , c . ; ~ c z : ~ 2 I,;:: i::.li:;t ,. . . 5- : i E" , :-, ;,-;,: , .. .' ?. :; f :.,. :

6&& Pr<>cwxemenz C ~ n t r a c i s . C e r t a i r ~ o f Cnmpanyis iona- t e rn e' ~< ~.

r h ~ se.jpply, s to rdu r and de i lve r : , o f r i a t u r a l q a s i~;-j'i;:)-p :;$;+;;:$ rt:j:c":!;<=l: 7 ; . ..i.

&$$iQ.Llr$t, tQ appx~:<imate ly $60.5 mijilc:; annualil;. ?ti<. ~ ~ ~ ~ : . ~ ; ~ ~ - ~ 5 ~ : , ~ ~ : - i ' - G * - $ . - ' ' . * - + l , . r ; :

rdcoul.?r~, e e m c i s sto cc;!r inue feca.Jer, c:.!cfi ; ;a;q;.-,,4s -d ~ : . ~ j . ~ : ~ ' c ~ + ~ ~ ? ., ' < . : .. ,.::!

j*T;s p r ; r e h a r ~ d gas adluscmenc (:lauses. .E.s a re..;:;;: t ' . ; r . ~ + ; , : r ! . . - . . . , , . ,..

wr;brzndi Lag of n a t u r a l gas se rv ices i n H e w .Tai-siyi. X " @ ~ i . t i , t i n t h e r e a l i z a t i o n of s t randed costs t i y If;;-

e f fec t Oi? t h e Company's r e s u l t s . The Company a i s o 2s cr at i;ii~r:)..et-related p r i c e s , rninirr~urn q u a n t r l r J . e s of g a s r.;,;~:, ;:: i :+a:-

&,.re approx i .ma~e ly 2 . 6 b i l l i o n cubic fecr [tic: : ;>.E'. --r.,.,.i:- $. . . .:.? 1 . .

CO%.t$ i n the event the rn~ni . inun , q u a n ; :I i p s ari- ;:c::t

@Kpet:C$ t. i )ac mirlj.num demancj orj I tc : ~ T : ~ ~ . ~ ~ ~ : f ;. : 7, :;s, , $ %.+: ,. ;. :. . : csrltract:$ , c o n t i n ~ ~ e ro ~ : < c p p : 2 th.2::;- s.:fi;.~,:~?? r;,.::,,-.-.3..?~..

daj.nr;, Ver:ii.ii-c: ~ i t h Duke Enf.rq)!. Ci;.; .C;zr:: I::;;:, r . i ; i : i r sgx~.em+@i!r, wifh ,2 un i t of j . : - : ..

, . ..-. " , ) :,.

f a c i l L t i , i n s z l r - ~ i l l e , Vlr,qir!;a. ' c .,. : I - d ; * $ + + > z e e c - t r y c .- "-.... <:.-

". t ~ l e r c j y G Z C Transrr~ission (DEGT) h a y e a q r e r b cc $;a!;.$:: . . % e.rf:attz a l i m i t e d l i a b i l i t y compa::y, S&::vrire G&c

transaction is s u b j e c t t c ezecat icn oi

'Fhe agreement will a l low f o r t h e er:pSrjslor: og r k l ~ p;c:ipnt : i 4 i 4 v ; \ i e . t > c : 1

L w i E i t y f r ~ m i t s c u r r e n t capac i ty of 1.; b z l k r ~ ; ~ ~ cc'tsfc, h ~ r t t 5 B42-f: and connect i t t o DEGT's E s s t Tenntssfic Z1Tor~f&j &F' { E Y E ; B c-+u : t *LL, System. kt P u l l c a p a c i t y , the Saltcil :e ~f~:ar; i i ' PIC*:': t L :: i * - delivex up t o 500 m i l l i o n cublc feex 'enf narlrrai ges rfz c ; : c - . ~ R-ZZPS+:"

S g l t v i l i l e f a c i l i t y f e a t u r e s f a s t - ~ n ~ e c t z o n a n 6 fa%t-c:?3:".5:a~~rjeb * - r ~ $ q - , ~ z ! , . l . , i

ozfezed b y s a l t c a v e r n s t o r a g e .

D e v e 3 o p ~ e r : t of t h e S a l t v l l l e f a c l l l t y creel.6:- +Z :-::.%*4*3:, ,.G, - > - $ 'a z -

e n e r g y - t r a d l n g hub f o r N l J I ' s rz.t:oiesale t r a 6 1 ~ ~ a:nr :; 3; $'f3*-ftk$6 3 : - 4 , z T *

T b ~ s w i l l snabie t h e Company ro c a p l t a l l z e on @liar w,. ssakn;p,:, b.?~) - - t r a d i n g and p o r t f o i l o managemefit opport unnz lea : x? i hi. : :>;d:zAiq ff?t:u*-F $-- * Mid-Atlantic reg lon . The additional s t o r a g e capac:t-y @ a : - ~ . : L ~ . h * a b + ?CP I_I.._s/ 9 r

to Reet l the significant demand from iocal ciistrlSut(io!-i rd&$ -Jnrs r4 ,sC e.9. : - - power p l a n t development t h a t i s underway i n t h e reqlckn,

S a l e of Va l l ey C i t i e s Gas and Waverly Gas. On October 4 , ; :4O, $;$? :.:%fig a * V

%GgQ*& t Q se l l t h e a s s e t s of i t s V a l l e y C i t i e s Gas and Wsvcrl y Gas LAC a l l ? d ~ ~ ~ ~ ~ ~ n ~ (VGW) t o ChT E n t e r p r i s e s , I n c . ( C & T ) , o f Fcnnsylvonr& TC.Z 2 t m i ~ ~ . i o r l . C6T w i l l pay ;.a a d d i t i o n a l $3 m i l l i o n to rf;c ton;paay sk6ni.;,rY certain revenue t a r g e t s be a c h i e v e d . T h e t r a n s a c t lor' ~r .:":.:pet:: C& : c : - : - %

Y t h e l & a t t e r por:lon o f f l s f a l 2001 a f t e r a l l r ~ ? b ; ~ L ~ t < : , r ~ , - 3 T f z - \ - . k 3 ~ ~ t r t O b t a j n e d , For t h e n i n e months ended zunp 3 Q , ,;'c70it ?ii'--l' - f f e : , * > , Y j s ~ f I

$ 1 0 . 5 a ~ i l l i n n o f operating r e v e n u e s , $ 3 . 0 l l l o r , o: - ~ p r C ~ f a t i r .7 r-;:*;G: 4 f - k? KI l k r c n of o p e r a t i n g income.

kix?;g.nsifison o f V l r q i n i a Gas S t o r a g e Company arid V;r 'q l r t : a Gas 5; - " *.>< ., ..,,. Ci-afif%3;3y . Dur ing June 200'1, t i c Coy,pany completes ar. aa::tl.ezii>t:t -* A w : ? , % :ti.!-:

- 7 i . x d i v i b u a l s t h a t own oi tlic; r r m z i n i n g 50 pcrcenr i n c ~ ~ : ~ : ; t .;, ::: id :rl;;r- v .,.. - ,c I-,;::;

3%&ragr; Company ( V G S C ) ar,d v i r g i n i d Gas 3isr r ibri t j or? c~~~~~~~~ :?J<;;x : . . :-?..I.-. o * 5 . :

i f i ~ k f . ~ i d t l a ~ ~ e a c h own 2 5 p e r c e n t o f t h e s t o c k of b0r.h '&Sf YCEX', i;@x'&?.; rl:f t h e agrGee;nEnt, t h e Company would pay eaci; owr;er $ ' ? s : $ , G G G ,a?:? 8 ' $ 2, .,,* *? ' ,s . , , . 3a% .- $t.!a~e.s o f 1.JUj Corn,,, S t o c k i r r e:<change Chc1 . r r:;.i:;~.:k :?,I !:.c-:~'- v

. -. , . : - 4 . T h e 1-i-dr.isactio~ is e>:pected r g c i ~ s r . 1.r; ; hc f:ji sAi,;!:j

t."t;:i;i,:jc7tilE'y a p p r o - ~ a ? h a s been obialnec. A:; r:ut& ;r, f ' $ ~ & ~ ~ . r : ~ : < . : ~ ~ d : > px,,! : , . j 5 - ; . - c

3 R c : : ~ R o ~ J ~ c ~ s - A s s e t s Held f o r S a l e " t-Jie c;;,np;2rly : r . ; r e ~ , & ~ t i : . a i : , * . , 1 * , *.., , . <

rad$$tT:::; of: VGDC within t h e n e x t twe lve months.

H&i"k&?f R i s k Exposure

L.< .- c . 4, - Tble c ~ n ? p & n y ' s who1esal.e t r a d l n q s u b : c i dial-)' , i.jfJi E;.:.:>!..;*s* i:? < , : ; , . + . I : , . ~ : . .

d@:1vnt:ives f o r - multiple p u r p o s e s : 2 , 1.o lii?n;.;.; ; . : : . : , - J : S ..-;:,::-::~~,,;::~-~;: f!i.s$'itnii;?~r:! ri.5i.r o f f l u c t u a t i . f i q cjas p r ~ s e s , I,. . : . . I

,.,.i.,U . . . rnsckctr i , r i format ior ; and o p p o r r u n i t i e . ; ic r t i ~ i - ?:~d:-?.*:,;.$-:i,is-.,, . ,, r,i . , . - fll ;i 1 t . 5 t rdii: I - I ~ . ~ SCI-,?~,:~!.,-S arid, t r ; t r r r : fc ,~c. , e':,?;.irt. :,.I.; ; :; 2 2 , . & ;

, ' - . . - - I . : m&XQ.:?\$.. 'j':te.,-; d e : I v a : . l i ; i : ~ f i ~ : r ~ ~ , ~ ~ ~ y ~ :r,gii;<i:- f<:,:~<.<:~"i:.~ : , , . . r - , ? , : ' , :.

+srs.d :j~h';a~s .

r i s k cissoc:~ a t e d w l t h uncovered d e r ~ v a r ivi! ;,: r,:' r + f s . , - &

morratorcd on a d a l l y h a s l s , a n d conirtl.i lr<,2 j r i .?,-r:.-1 ~ ~ 1 . i : - 1 , .< a I:

3 k e ' R3 ~k P!anagement P o l i c y . T h l s pol 1 c y h-tas. t;crnn s 1 L 3 ~ 1. I:*

* - "' ~~4 'mp~ iny ' s Eoard o! Directors a n d dictates polic~es krsd ;:r# S&";it!;l?g , ? c t l v l t l e s . The p o l i c y d e f l n e c both v a l ~ c . - < $ ~ - r ; : i "' I . T > ' ,

3 . ; t m h t s , a n d a l l t r a d e r s a r e r e q u l r e d t o read ar.d :oL i e w L!:A:- { , . rt-nb (uE e a c h d a y , a l l t r a d l n g p o s i t i o n s a r e markcb-to-mark*-% c%n-k + 'i~:i

esXcuIated. T h i s ~ n f o r m a t l o n , a s we11 a s t h e seacu" i J i g r " * 9 ! ' .

d x s x e m i n a t e d t o s e n l o r management d a i l y .

MU% E-rresgy B r o k e r s u t i l i z e s t h e v a r i a n c e / c o v a r i a f i c e V a Z f;d;.:'.':r,-!.',rocp>= ii;$:-

a 95 p e r c e n t c o n £ l d e n c e i n t e r v a l and a one-day t lmr? nor? ~ o I : , i i f ds,-r,c 1 ,

2001, NU1 Errergy Brokers ' V a r i was $250, OiiC).

Farward-Cooking S t a t e m e n t s

'k"hl t; 6rrc~rnent c o n t a l n s f o r w a r d - l o o ' v , i n ~ s t a t e m e n t s . '~I;c~~c?c * . F - 4 i n 3 . f p * v - f - 2 i%%stl.rl on management ' s c u r r e n t e x p e c t a t i o n s an6 tnrssE.;J: A .i. *: 2% z ~ r : ? , a V . ~ z i d D k e a n d a r e be l l e i r ed t o be r e a s o n a b l e and axe nsdtt k f : t y a f ~ i :, However, t h e f o r w a r d - l o o k i n g s t a t e m e n t s a sukjec? ? e. - r u n c e r t a ~ n t i e s t h a t c o u l d c a u s e a c t u a l r e s u l t s to dl f f e r n ~ t t u r t a i ; f r =

those p r o j e c t e d i n t h e s t a t e m e n t s . F a c t o r s that may make Ei:a: actva$$ r@:,i-t%. di Eier fforri a n t i c i p a t e d results i n c l u d e , but are not: I kmrx-r*fiqi ? C,J, z p z G , r ~ j - L - conditions; competition from o t h e r p r o v i d e r s o f ssmr l ex pr cr;:uf:r :L; ,m*: a z s i , ~ - .

uncal-'taintias, a l l of which a r e d i f f i c u l t t o predict arkd 8P,m& if % ~ t , t s , Z . 3 : ' .

beycrRd a u r c o n t r o l . For t h e s e r e a s o n s , you should na% re: y sn Ft ,g=-

forward- lo~king s t a t e m e n t s when making investmealt d a e L s ~ osrs. $a- + k v - f 5-+ "expectr * b e l i e v e , " ' p r o j e c t , " " a n t i c i p a t e , " "inrend, " "shonrLb," '~arj-; r:, "

2 % YB?l& Q f iarit: f;Of s u c h words and similar expressions, are kntr-rtdefi f.0

kb$2~%di fy Pt3rwar--ioaking statements. We do not undertake any obligation tc &:$3&2~@ p3,?132$.63.y any forward-looking statement, either as a resuit of n e w B ~ I ~ r r n t t t ~ t u r e events or otherwise.

PART I I - OTHER IMFORW..TIOI~~

f 2::~ & :., f x:?: r.-a i- -. ;:11c1 Reports on Form 8-K

i 2i E .; .. 6gfi.j i::; t s .

Z.,?{ ... 3.;$ffi<*> > s .'$ <-, >. . L - 1.. , ,.fit;: Company f i i ec i c, F'firn; b - Y , Z ? . P Z . ':, . . 7 l , , ' . : . . . . . . . 6 rB ,,,a; : : .-h # . t ,;. $';*:> F. ; :q. t$i..! ; i-larj r e a c f ~ e c ~ 2 d e f lr-!lt. l v e agreemei-.;: b;: r !. T !.F, r:,.; ; c , : A ? :,

<3%&-+?$ af T'IC.: t i : ; tgrpi . lses, LL,C to acquire ou t s i a r id i r :~ ; ':; t~ r : : , - e : : i t i . r : ! : , ; " >

H :y; r? F - ~ , ~ ~ : ?, ,:.i: T'!i- i t d i d no; r - .wn.

JOHN KEA3, J f t , Prexiden; afid [I t : : e: i':xfZi; b,i: ; .F+

O f f i re!:

EXHIBIT E

Proposed Tariff

SOUTH DAKOTA TELECOMMUNliCATIO%S 'Tr%El[FF

I Zits 'FdrrR eontams the descriptions, regulations, and rates appl~cablc to the fitrnlsfring r r ! , i + ~ ~ s ~ : c 3?1~r!

fr?clhQrs ibl- xelecotnn~unlcations seivlces wlthin the State of fuulk G'lat;crt:% kp X i $ ! bc".ci:iw~i, f t ~ ~ :

f,"l;C'~~"i~~~ilr~y"I. Th~s Tariffis on file wit11 the Sou111 Dakota Public Ufriitjes C~>~rmt~sran , anrf c~rprc~. Pir;ti- , a f A , x + he n.tspec\eil. during 11onnal buslness hours, at the follu\viag tocatton: 560 I ~ U U I C 2fi33!ffT ISlrrrl i l t i ) 2 1 1 c * .

'I%tdmtristsr, NJ '37921.

Issued by: Richard M. Boudna, Presrdrr~l NU1 Te!ecom, Inc. 550 Route 202-206,3nd k3iooi. Bedminster. NJ (1792 1

CHECK SHEET

F $ 1 ~ ' ~ t k j~ageand pages 1-39 lnclus~ve of thts Tariff are effect~ve as sf the date t;lrrrv-i? 4?nps'i,ll3fi45 rc r :.*i;' ~tk2et5, a?; tftrncd bclow. conprlse all changes from the ongtnal Tarrffin ef$iei.c; on rtte dnze i ; : i t $ i~~ i : i . i :

)-,I; t ..-- REVISION SHEET RLlr1SIC3~

Original Original Original Original Original Original Original Original Original Original Original Original Original Original Original Original Original Original Original Original Original

' % t ~ or Revlsed Sheets

Issued by: Rtchard M. Boudr~n, lktirdcni WUI Telecon~, Inc. 550 Route 202-206,2tld flit::^

% $p,% , S , t ~ ~ $ & j , $%CIS S.D.P.U.C. TariffNo. 1 Original P a g No. 3

i - . ,4J4,, 4. ~ % ~ d r i r r u , i e 2 u 3 ~ ~ - " - . - ~

5" J-%f :JIl\t$J&$& rl'C>NNECTTNG AND OTI-IEK PARTICIPAI-ING CARFUEI'S

CONCURRING CARRIERS:

No Concurring Carriers

CONNECTING CARRIERS:

No Connecting Carriers

O'f'l-I ER PARTICIPATING CARRIERS:

No Participating Carriers

Issued by: Richard M. Boudria, Preside111 NiJI Telecom, Inc. 550 Rcsute 202-206,2nd Floor n-~ . - - : - -~ - - X T T n7n-I

S.D.P.U.C. TmSf-No. i Original Page No. 4

TARIFF FORMAT

"krc:, ?Ciz:rd%rrkig - Sheet n~rnlbtrs appear m the uppcr rlght hand comer of the page. Shcets are nuc?i~crt:d d ~ i d ffam I ~ C an ttnle new pages may be added to the Tanff. %%en a new page i s added

i*+-~.r:s~sgr P%Akxcfrh~g ~ ~ Z C S , r ; ~ drc~rnaf 1s addcd to the precedrng page number. Far example. a nccv Flag*. added s *

~*-;:-~.*,x3~~t $t>ea.; ? arud 1% wizuld Ire numbered 3.1 .

a5.w s~,-,.,% c 6 . ~ g i , r i ~ 3;-tjrttkxr mg Serju~~?ce - There are nine levels of paragraph codlng. Each level of c0dli.i~ i: d 2 2 x : i ~ t t : i t ~ ~ ~ to its ilcat htphcr level:

t-&xk ?+!%f;efr - When a 'Tanff filing IS made with the Comrnlssran, an updated chcck shc"~! ~ ~ U C W ~ M P I : C , - ; t l : ~ %-;.%G 64~1~b:. 711 t~hcck sheet lists the pages contamed In the Tar~f f~ with a cross rcfcrencc shc CU~T~"":-:

*i;.s-k~o,ra~~l sliiazkr Mihen ncw pages are added, the check sheet IS changed to reflect the re5 tsislil, sEi rcr r * r w r j i

r;,ta4-: :r: ;i g;.,r\rn rilrng ore des~gnated by an asterisk (*). There wliI be no othri- symhois tacrcX tjrt iX;.i- pizjjc il i E ? c ~ ;~;ct' I ~ V only cf~anges made to it. The Tariff ~ ~ s e r sl~ould refer to the latest chcck shcci to fmtl r ~ l l - l 1:

,s ~ ? : ; r ~ f ~ i ~ r ~ ~ & p 1 " % ,,gs t * o:% t1w rmost current on file with the Comm~ssron.

Issued by: Richard 'M. Boudna, President NUI Telecom, Inc. 550 Route 202-206,2nd Floor Bedminster, NJ 07921

S.D.P.U.C. Tarii'fKn. 1 Original Page No. 5

APPLICABILITY

9-3 sf*ri- %ai.;if cnmalttfc thc S c ~ v ~ c e offerings, rates, terms and cond~trons appIicabie to &hc fuurntsirrng of ~:seuriitarr- ra1~:rexck,iege tctccomrnur~tcat~ons services within the State ofSouth Dakota by hTil7'oIecom. Int: $ - k <i$$7pjxgt;77'z 1

Issued by: Richard M. Boudria, President NU1 Telecom, Inc. 550 Route 202-206,2nd Floor n - I . A x r r n - ~ t - e .

EXPLANATION OF SYMBOLS

r V-1) 1 t l +rgt~t!j. tiiscvn~tnued materlal

i f r Lrl stgmfy n rate or charge :ncrease

r'M.Si Ttl stgn~&. rtlntcr~al relocated w~thout change in text or rate

{S't Tn grgntfj. netv mater~al

ti:i Tn stgntf"4. a ~ e d u c t ~ o n

i I'D srgn~fy a change in text but no change in rate or regulat~on

Issued:

Issued by: Richard M. Boudria, Presrdrnt NU1 Telccom, tnc. 550 Route 202-206, 2nd Fiemr Bedrnmster, NJ 07921.

3t'% '$i'E%,Ef:Oi$%, INC.

TABLE OF CONTENTS g ; c = c s

f i j%h;t+€yftf4 l%f;, I.'OI\INECTTNG AND OTHER PARTICIPATING CARRIERS . .

X 4RI . it: r)I; 2:fTN'T'EN'TS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . t 'T'ECIIXXC'AL. 1A,-.---u....3 TERMS AND ABBREVIATIONS . . . . . .

-7 * -u‘&&A.L- R'i [l FS 4I\iX3 REGULATIONS . . . . . . . . . . . . . . . . . . . . .

2 . i DCSC~ID~IQZI and L ~ m ~ t a t ~ o n s of Serv~ces 4 . . . . . . . . .

2 . 2 Other Terms and Condlt~ons . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2.3. Liability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ,... . . . . . . . . 2~ : *p '% 2.4. Canceliat~on of Service by a Customer . . . . . . . . . . . . . . . . . . ~ . * q = -.

2 . 5 . Cancellation for Cause by the Companv "* C . . . . . . . . . . . . . . . . . . . . . %*

2.6. Qednt Alloavance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . :;

I " 2 . 7 . IJse of Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . , d

2.8. Pavment Arrangements . . . . . . . . . . . . . . . . . . . . . .

2.9. Assignment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2.10. Tart and Fee Adiustments . . . . . . . . . . . . . . . . . . . . . . . :63

2.11. Method for Calculation of Alrllne M~lezee 1 t - . . . . . . . . . .

1.12. T ~ m e of Day Rate Penods . . . . . . . . . . . . . . . . . . . --%

2.13. Specla1 Customer Arrangements . . . . . . . . . . . . . . . +

Issued by: Richard M. Boudna. President NUT Telecom, Inc. 550 Route 202-206,2nd Ffour Bedmmster. MJ 0792 1

- > 2 14. 1nsr;ectron . . . . . . . . . . . . . . . . . . . .

2 . \ 5 c_'iistorner Inquires and Comola~nts 'I . . . . . . . .

QESCRjPTIQN OF SERVICES . . . . . . . . . . . . . . . . . . * 4

3 . wide Area ("WATS") and Messaec CuMTS") l'oll S c n ~ a .')

3.2. S* itched Inbound Servlce . . . . . . . . . . . . . . . . . . .

3 3. Sw~tched Outbound Sesvlce . . . . . . . . . . . . . . .

3 4. M l c a t e d Inbound Senrrce . . . . . . . . . . . . . . . . t

3 5 . Dedicated Outbound Serv~ce . . . . . . . . . . . . . . .

3.6. Call~ng, Card Semce - i . . . . . . . . . . . . . . . . . . . . .

3.7. 11tn1ng of Calls . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -

3.8. M ~ n ~ ~ n u r n Call Completion Rate I 1 i r . . . . . . . . . . . . . . . .

4 3 . RATES AND CHARGES . . . . . . . . . . . . . . . . . . . . . . . ~ ,

4 1 . Usage Rates . . . . . . . . . . . . . . . . . . . . . . . .

1.2. Swltched Inbound Usage Rates t . . . . . . . . . . . . .

4.3. Sw~tched Outbound Usage Rates . . . . . . . . . . . . . . 1 ,

4 Dedicated Inbound Usage Rates . . . . . . . . . . . . . . . 4 - 4.5. Dedicated Outbound Usage Rates . . . . . . . . . . . . . . . I fL

4 6 C a l l m ~ Card Usage Rates . . . . . . . . . . . . . . . .

4.7. Recurring Charges . . . . . . . . . . . . . . . . . . . . . . . ! :

4.8. Non-secumng Charges . . . . . . . . . . . . . . . . . , *

4.9. Special Prornot~onal Offenng . . . . . . . . . . . . . . . . . . .

4.10. Emergency Calls . . . . . . . . . . . . . . . . . . . . . . . .

Issued by: Richard M. Roodri;b, Pra'+rifm~i MTI TeIecom, 'fnc. 550 Route 202-2Q.tjc2r2d I:I:sr:r Bedminstcr, NJ 0792 1

4 I I !'amhone Use Service Charge . . . .

4 12, Un~versal Connectrv~ni Charrre . . . . . . . . . . .

Issued by: R~ctlard M , J3wttk~.~ra, I'r ~5;~~iai-~ hWT Telecitm, I r s c 550 Rtautr 2Qj2-20h 2imA Fl:xv R~rlrr%rnctt?.r XI I$"%% I

%Ui "I"EI,1SCOM, ENC. 5.r:I p [- [" 7 e s f g f f %%: 2 0 1 2 gPlteah' "",,3 I

p-, --*=--=-- T. = 4 a#

1 - I'FlTHNYC'AI, TERh4S AND ABBREVIATIONS

For the ptlrpose of t h ~ s Tariff, the foliow~ng definit~ons lvtlf appiy

Access Coordination - Provides for the design, ordering, lnstallat~on, cuordrna~inre, pre-scr.ircr r~.rl!ig. rcl; ;;r t ; : :r; ,ig .:pi;

maintenance on a Company or Customer pros~ded !.acmE ~$cccs.t rhannci.

hdrn~nr strat~ve Change P

?i change in Customer b~lllng address or contact namc.

&fernate Access

hltunate Access IS a form of Local Access except that the prc~~~afauol i';r.c S~:rr;;t e - * x: ;-:lit:: ,

~ h a n thc Local Exchange Can-ier, autha~zed or j-tcrmitted togarorlds such %z-~*F 1 r(:r ix -L-glF-it:,- :t

"Illemate Access may be subject to pnvare agrecmcrsr ranhcr than ptabii..Ztc,.C rg ="f;,-,.~i "31 r i ;*

pelnl~tted by appl~cable governme~~tal ~ules.

A~plrcation for Senrice

A standard Company order form whlch mcludcs all perlrncnl krfitng. rre2t~;ccS as4 n;i.i-r 4 ~ 1 2 : ~ ~ ? ~ i ? i - 6 . ~nfomlat~on which w~l l enable the Co~npany to provide a csrnrn3;;s%gx,tkG '1'5r"::~"v ,a* '+:r, : . 'a"!

ASM (Access Servlce Request) means an ordcr pPacsd w i ~ % a I_oi;;kl ~"a,;~*~~,, Pl-... $.fr-. I*-* j; <%:.,a:

Access.

Authorized User - A person, firm, corporat~on cr other ent~ty that clther rs ntlifroaurt8 b) tii? I ts,-.liiia,-r ti. jic? ,6 r 1; .+- send com~nunicat~ons or IS placed in a poslrlan by the f rzsrul.r,cr, rrtbs ;i:n*;x~:bt ~ ~ s t ~ ;,s -;I$- . :.-:t. to send or receive communicat~ons.

Bandwidth

The total frequency band, In hertz, aIlocsted for n cha~~ncl.

-"--I

f ssued:

Issued by: Richard M . Roudr~a, Prc~tc!~nr NU1 Telecorn. Inc. 550 Route 202-206,Znd Fkw Bedmrnster, NJ 0792 f

Vhc dare on which brlling lnformatlon 1s comprled and sent tn the C-usromr's

:I conapletcd connection between the Call~ng slnd Calir-d Stattons

I'!w ~ctephone nunsher called.

Shc iclcphone number from wh~ch a Call orignates,

~La~rc'cI tat ion of Order

i'l cut;torner ~nitiated request to discontinue processing a Service urdcr, ~"lthcr l i b j4;rri i)r i t t :C*-- cntirrty, prior to its complet~on. Cancellation charges w ~ i t be asscssed IL7r ~ * " t S h i. S~C*.;-',:"~:E::J %it

fledrcated Access line canceled from an order prior to its completion by the f'trmyuf;?, rrrdt,:~ :kc f'rtllotving circumstances: (1) ~f the LEC has confinned in ivrirtng t t ~ rhi* C:'nsrrpg~.~ that iitie ?ic ~1.:1.

cnd or Dedicated Access i ~ n e will he ~nstalled: or (2) if the Cornparry has afrcady a c i ~ f r i ~ ~ ~ ! ~ + * l i :itrai:;~~.+ orders to an Interconnect~ng telephone company.

4 ctcd~cated communrcatlons path behveen two or more points having 3 FRaidu rdlh itr i :5ii'r~F~::L.~iii~ir:

Speed spec1 fied m t h ~ s Tarr ff and selected by a Customer.

South Dakota Publ~c Utilities Cornrnisslon

NU1 Telecam, Inc.

Issued by: Richzrd M. Boudna, Prcstdcnr NU1 Telecom, Inc. 550 Route 202-266, 2nd FIocjr Bedmrnster, PZJ 0792 1

Conl~anv Recognized National Holidays

. , The follow~ng are Company Recogillzed Nnt~onal ISt~lrds~s sj~ir '~tlkl~t;,.:i 3: :4:4- i~r%="::*" &I.-

- , **:.*A,,:, % - " - ortg~nator of the Call: New Year's Day, Martin I -u thr Krng i'tay, fS~eqiilm:'- $I,:;= 1 '_*--*-b

Independence Day, Labor Day, Columbus Day, Veteran's Ila:;, .I?rar;l,,i.;gxa, is",: K -2,:; f 'i:i:%~ii:., i LA

117e evenlng rate 1s used unless a lower rate would nom~atiyappty tb?Yk:ea :* C f i i i ; i ~ p u : , - - a * + -; $=irk r *

per~od and ends In another, the rate in effect In each rare pc~!r;d ai_fpSte~+ 1ti T ~ C q%'if-tS-~z 1: - *=7: occurring withrn that rate penod. In the event tkat a mtm;ulik iz spirt kzs:t:\rc:,*l. r 3 t i c rzpr pa.::;? -, :',: rate In effect at the start of that mlnute applles.

Customer

'The person, firm, corporation or govemnentaf urrrt tvhscfi order2 St: t 'cmi m;ii$ ~ a i x c k :i ilc;? a*-:*~'i

for the payment of charges and for complrartce ivlrh the Company'-: %fi~?lit~yut~i$:ir:~i i B fi; .rp-;:

I S cons~dered to be an account for b~lllng purposes. '1%t rcmr C ' C ~ : T B ~ W C ~ .kI.a.gi tll;?i,;-k I -ar; tc~*:i. I-.=:

remalns presubscribed to the Company Serv~ce afta.1~5 accori;lt(sj arc rt:lttp+ r ; " ~ i !hi:*k>.;t. f r$i:?::-~-* - b~lling system, subsequently continues to use C:"om~zariy's newatk, sr?& w i%ai!t\i I$+.. x is ; ; . c:-*-,

carrler for such use, or othenvlse uses Sercrrce f i r x~t.'~rch rial- atbqi F-tl.;brlrrit,gF G; ;li*it.-!'c ! - - compensate Company.

Customer Premises/Custarner's Premises

Locat~uns des~gnated by a Customer where S c w ~ c ~ rs araptn;:;;rmi t ~ f r ~ , ~ ~ : k % k ~ r i k \ i " - ~ i - t : i ~ &-%? 9"-:h -, r L ~ -1

co~nmun~cations needs or for the use of ~rs rcsaie cuset2nra.ts

DCS means Digtal Cross-Connect: System.

Dedicated Access/S~ecial Access

Dedicated Local Access behveen t2lc Customer's Psi3rr.rzscs sr scrnap birr s a ; ~ sriF! ${,,I : , e q : ~ ;-A . Point-of-Presence f ~ r onglnatlon or terninairan nf'c"altrrr

DS-0 means Digital S ~ p a l Level 0 Senwe and IS a ik-h Kbp5 +s~i:~~E

Issued:

Issued by: R~chard M . U<~udn:z, P~it;t&cnl NU1 Telecam, Enc, 550 fiot~tc 202-2436, 2nd 1"mr Bcdmlnstcr. NJ 0792 1

DS-1 means D~gital Signal Level 1 Service and IS a t .5& Mbps stgnat

DS-O with VF Access

DS-0 Service with VF Local Access facilltles provides For &c ~ ~ R ~ C I ~ ~ ~ Z E J I I at arz ,~ i s%: rs?ik c V , -4 Le data w ~ t h ~ n 300 Hz to 3000 Hz frequency range.

m-0 with DDS Access

\ i .

DS-0 Servlce with DDS .Access fac~litic?~ prov!dcs for the rr;rsli.tnrsrtt>;% i-*fdvs:r;,ri $ d t ~ u ~ t' - 3 ' ~ : ~ ~ ~ . ,+

4.5,9.6 or 56 Kbps.

Due Date

- n ~ e Due Date IS the date on which paynent 1s due.

A Servsce order initiated at the request of the Cust~rner %bar 2s p r t ~ c ~ s s l ~ 5 % 5 brtw p-;z;i'f~\ - .*=v than the Company's standard Service internal.

FCC .-

Federal Comn~unications Commission

Ind~vidual Case Basis fIC13)

-*& *?$;:-- 4.$'+::::* ; -- Ind~v~dual Case Ras~s (ICB) detem~inations ~rtvolvc sdu,%t.tarfs wif1rrc ~iizt~%pI:et i tjL+ ri*

Company arrzngements are requlred to satisfacront y sunv the Ctif~m;?i. f Ige fi*~~iitfs*i.f+i-r-,:% %<?; ,,,

,$.* - 7 rcqulrements makes ~t d~fficult or tmpossiblc to establish gencat am!> $:~~ikrq:w-t~ P ~ I ' - . c~rcumstances. When it becomes posslbie to detcranlnu sp%jfic Fe$Tzlr ;ls& i 5 2 1 ~ % k ~ i ; z ~ i 8 ~ ~ ' ? r 2;~: 1~ ,:

offerings. they w~l l be offered pursuant to such rerms and coniStt:crr>~

The connect~on of a Circuit, Dedicated Acccss 1111~~ ~r ;tr$ra hci5~. R~*%I <$L%R;:CJ 5.); , > d i i &-LT$ ; -aY,,.zr

Service.

Issued by: R~chard Itl. Woudna, ~ L T M ~ ~ F I ;

hWf Telecom, Irte, 550 Ro~,zte 202-2436, 2nd F~,CKIY Bedrn~nster, HJ 0792 1

Intercschange Service means that portion of a communrcatlons channel 'rarrurcr~ a f'i~lr:ykli"+ dcsipaled Pomt-of-Presence In one exchange and a Pomt-of-Prew~cc m an&at%~cr c;tckz~p:

intenupilon shall mean a condition whereby the Serv~cc or a parrron $i?erct?l' !". :Ticl$Ps'Ji:xC

beginnrng at the time of cotice by the Customer to Csmparsy that such Scwtcr F ~stq~:r~~2i>r ' t f b * i

ending at the trmc of restoranon.

1,WA (Local Access Transport Area)

.4 g e o g ~ p h ~ c a l area estabhshed for the provlsron and adrnrn~str~t~orr s>fcc~mracr%trazri~n+ S~;i:,rb. 11, e t:?

a local cschange company.

L.ocal Access --

Lacal Access means the Senrce between a Customer Prem~srs and a C'cri~?ptzn;c tkiz;.5-igt:,3'in5 F'~,e--i-ci?.-

Presence.

Local Access Provider

L.ocal Access Provider means an entity proslding LacaF .~'le.ccss

Local Exchange Carrier (LEC)

&I(' bCfTSi"Q'5, The local telephone utility that provides telephone exchap_

Megabits per second.

Multiplexing IS the sequential combining of lowcr bit rate Przvritr i.?iic %+r% t;e$ g b ; r r a :I ?:::ii:+la;md 2,:: rate Pnvate Line Service for more efficient facility capacrty rr.iagr it: :. tco ae+a

Issued:

Fssued by: Richard M. Boudrra. f2rcwitei;:, NU1 Telccom. Iac. 550 Route 202-24fR,Znfi Fiot122lr

%i.3 "fP:I,ECQM, INC. S.D.P.U.C. Tariff Ncr. i Original Page So. 3 5

z.=l*m--r~- -

&r! re~ur r~n~ Charges

Nanrrcurrlng Charges are one-time charges.

Pj_hmcnt Method

.- %

'I hc manner which the Customer designates as the means of bltlrng chargcs t ai i* ~r~rw rkc f czmpany's Servtce.

Ph~srral Change

'Re modification of an existing Circuit, Dedicated Access l~nc or pcm, ai $hi.* I ~ l i j i i C G 8 5 ' !j14*

Customer, requlnng some Phys~cal Change or retemllnatlon.

Pomt-of-Presence (POP) a-

A Company-designated locatron where a fac~lity 1s mainrarncd far i h ~ purpc,se ai prc~: rdzrrp :~--~4-:1'1

tn tts Serv~ce.

Prrmarv Route

'Fhe mute which, in the absence of Customer-designated rotltmg ar tcrmlx3rary 't"C-rtMiW-g tpitc~ici h'ru: used by tile Company in the prov~sion of Service.

A dedicated transmlssion channel furnished to a custamer wlrjiour rntcmwgJrslr- >tur~rt~rs~c arrangements for full-time customer use.

Pnvate Line Service

A ded~caied f~~ll-time transmission Service util~z~ng dedicated acccss ajTsngerrrcrsr::

&are Center

A s~ecified geogl-aphical locat~on used for de~errr~in~ng mileage mra$j:remvnis

Issued by: Richard M. Boudria, Prcs~dcnt NU1 Telecom, Inc. 550 Route 202-206,2nd Fluor Bedminster, NJ 07921

Re~uested Service Date L..

The Kequrstcd Servrce Date 1s the date requested by the Custctn~rr tktr Cr'*mi7.1rYsieF?rcf:i a i , P CC:; :L*:

and agreed to by the Company.

Ti> make Senice operat~ve fol!owtng an in tenuptlon by repar. ri-ass-rgas:aeE%,., re-: nrrfrn? ~ 9 . xG%c:.rxtdn?:i r- nfcamponenr pans. or o then~~se , as determrned by the canreris) arrrtif~~d.

= - .s,- * l i FF ' T l.we chznnels whrch are fumtshed partially or entrrelq over Iwa ph:;s?ciiEl:+ Zsp+ti,&:b 3f* , t3r

Sewrcc means any or all Service(~) prowded pursuant to this kir~f'i*

Sewrce Commitment Period

-1he tenn elected by the Customer and srare:d on d ~ e Sewtce order dunas ~+Ztz i -P~ tk* 1 k.++::;,.pi-i -- p'ov~de the Services subscribed to by the Custon-ler. TXTxu tern\ e;m Pc snu8~f~tki5 cr: :w :Brr ;I,.IET r-:

Pr~rrate Line Services for a perrod of up to 5 yezrs.

SneciaI Promotional Offerings

- z Special trtal offerings, discounts, or mod~ficat tm~ of Eta rrgujar ' t l ~wtc~~ :I,~J:zc:,:I:Q. r ~ * : . - ' - . i,

Company may. fiom trme to time, offer io r t s Cfusinmers fix nl. 19as""tl;itiktf Sc9 -.r;r* h c >; r 3 ? * it- - e 8 .$-

may be lirnrted to certain dates, tlmes. and locations.

Start of Service Date

The Requested Senwe Date or the date Senr~cc first rs rsnde avartat~tc by IPW C % 9 m p ~ : ~ 3 ?+.;L:~ I G':

1s later.

Tariff

The current Intrastate Services Tanff and effective rei.lsrnes ~ h c r ~ ~ ~ > fik$ $3) $&:: 5 \ib':$i;rti li, ,?i: 7 ,

f omrn~sston.

Issued:

Issued by: Richard M. BouJrra, P~i . s id~r~ i M J I Telecorn, fnc. 550 Route 202-286.2nd f;tr+io~ Bedminster, %J 0792 1

.T'rar~sm~sslon Sueed --

Data transmlsslon speed or rate, in bits per seconds f bps]

Two-Way Conversation

A Two-Way Conversat~on 1s a telephone cunveT.rsstrr_ln hemeen rsr ~ ~ T ? I E I , ~ ;%%LO I~z-P:'s' ;:aci:a'

VF 1s voice frequency or vo~ce-grade Senlcc dcsrg~td Gar ~~a3alh'-:tri~ i ? ~ i " it-: .-45;-,

transmission I S m the 300 hertz to 3000 hem frequency h;n~3<3,.

Issued by: Rlchard M. i3nudris, is^.-rifz:wn NUI Tclccom. Inc, 550 Route 202-206,ZnB %"bi*t

Redrninstsr, Nf 07822

11fjl.ES AND REGULATIONS

2.1.1 . intrastate Telecornmunrcations Ssrvlcr ["Sen.rrcn i r i i thr f~rii;'.~i:%:;: 5 . 5 3 s - : : ' ~

-- s communication Services contarned herem bet\% een ~p*:~fic;ii; i r + ~ , r t : a ~ i l v : : I ' r !e ';-+. '

thls Tanff.

. ' t h y member of the general publ~c {~nelud~ni,! zny r~nnnrltdi $ter?.b%n CK il:g.~fii <v~.)-.;:i?fi'<.j ~7::'-

such as a corporauon. pamershlp, or got~a-nmcfi&l bitdyj a.-en~rt.:ic$ i'rs$ e+ *:w.i 'icic ibf i . C l,:;~' t h ~ s Tariff, provtded that the Company rcsctvcr; the rr;:hi to rk:?y %;--'; :;L- ;. 3 3 ? f i l ..,.?

Customer that, In the Company's reasonriblc opmzesn.. prcCsernr~ zFt ~ ~ Y I ~ I X C J-.& ;Tr+fl-" 3"*> - - - - -- ' (B) ~n circumstances rn which the Compstny hw reason tr;l $CIFCBL" F~E; ;3i* xi.; ' $ 2 a :: q L . ~ v : - l % . & would v~olate the provisions of f h s Tariff or any zpf~Ire:ikic "rb% * iy t: J ~ X ~ Y ' ~ ~ , - ; : -a ! : - 2.:

, <

restricts or prohibits provision of the Scrvlce, 01- ft-5 ~!"s~~~fft're:grnr f3,::;:1~+;~. ,a f:.,~ id

to pr-ovrde the Serv.~ce (in such cases Campany shafl nszki: *a+s+f ~ ~ u i s ~ c , ~ 8 - s 4. r r.k:s:*~:- --i,.: r-.-;

needs of all potential Customers by rnrtans of $EC+!:~> rrng>rtT\ ~~~j.rctr,% ::+ ;-:,L ?. &: : '.: capacity, if such efforts will, m the C'o~nprry's i )p tp~t"~~~;~ prilrlcsg?,e :E4: ); . ~ i l i h ~ , t ~ . , : .->

reasonable return on its expenditwcs), b ~ a safy far f m g 3% a:~\:!t ~~1, . -~, ) i2+t~r i - t , . .. ;:.-

2.1.3. Company, when act~ng at the Guslomer's requcsr ;ad sh ~ C Y I :r:ql:rif~-*+ LZ &EF":-: ti- i f f t i ~ i i

reasonable efforts to arrange for Sewice f C ~ ~ ! ~ ~ m C i 4 ; i s F SUSR ,is ' ? " u ~ z + . x r a i "-' ~~.@,r:~g f , t s~%-~.Jr r . -

Alternate Access. or circuit condit~an~ng.

2.1.4. Sen~ice is offered In equal access exchanges w~t.i;ecr to "ax &~fi~lsh:i~;~-, "2 f~i.lcsk:t:a:4 2b:r:' :i.-

prov~sions ofthis Tanff. Company rescfies tht ~.gg$t tart;g$~.$&? pr*:$&: 'ki: I,;C 3). r.C f.

any location where the necessary faerlrtres :tnd:ar c q ~ ~ p ~ t ~ e f a : ;IZC mii3-?t 2.5 d~L*~~lr t

2.1.5. Senlice may be discontinued af'ter five bt,tlsrn~"fg duyh :vntbci: ~ t r " , g t i ~ " ~ r i F?{+:. i i!:ft-~1::4: r.

2.1.5 .A. the Customer 1s using the Scrvree rn %tuPaxrct:i. hf t%ig% f U$z~t:: <r:

2.1.5.B. the Customer IS usmg the ~cr+l~ec t t ~ \ s ~ ~ I!;~!(UPFZ ~ a f 2 % ~ &++L ilr; 1~ s ~ a t , ~ * z : ~ ",r;:rSg

regulation.

2.1.6. Service beg~ns on the date that billing bwc~rncs c1"i-cctfa'a: fzeid 4 % ~ S ~ A ~ L Z C ~ ! t ~ i j 5:': +i i i r t *

mlnimumpenod ofatleast onemonth, W Iantrr"s16crJa) Pit: t$e ; ~ ~ t ~ ' ; ? i . a ~ Z - ~ r ~ ' i d : ~ : ~ > p i : z r I s

charges in this Tanff, a montll is crrnsidercd trs ka%r SCt $ s r p

2.1 .?. Service will be prov~ded iintil canceled, hy the f_'ai,itcj;l'i~r~ LFB E:$*[ i i r ~ ~ : ~ Iirs?k 1S4:r'*qL ; "i t :i_r - n-ntten not~ce from the date of postmark on ibc !etaii;r grvnwy rhitt;;.- ~ Y Z ? w , , r + : : ~ ~ I"

1 ssued by: Richard M.. Houdria, P~cstbcprr NU1 Telecom, Inc, 550 Route 202-2Q0, Ztnd B'Fa,gtis.

Bcdminstcr, NnJ 04112 i

2 k x Noth~ng here~n. or 111 any other p ~ o v ~ s ~ o n of thls Tanff, or arn any marker~ng niateri31.5 I 3si:ct.i I,) ~ h c I'clmpany shall give any person any ownership, ~nicrrst. or propr1c:aq I !gi": v: .i::t code t-rr EiOO number ~ssued by the Company to ~i-5 Customers.

2 1 The Company reserves the rlgtlt to discontinue fumish~ng Services or biilrng optrun%, r;l;rrr:

tvrftlen notlee. when necessitated by cond~t~ons beyond ~ts control. C'onci1rron.4 hcy im~j !IC

h"ompanyls control include, but are not lim~ted to, a Customer's hav~np ('all voitirr:~ ctr ;:

calllng pattern that results, or may result. in network blackage or orher 5a~st .c Jep-3iJasitu~ kvhlch adversely affects Servlce to fhe calllng parzy. the Customer. or ari~cr c'tisrt>:l;?m* c t f

the Company

? f I f ) F-sccpt 3s otherw~se prov~ded rn t h ~ s Tanff or as speclficd In svntrng Erv t h t p;:~-t> ,:firixit"if

io rccri\re Service, notlce may be given orally or In wnt~ng to the pcrsnns zt htts*. i13~4?3:7 .i:;ii

tsusiness addresses appear on the executed Service order and the cffccerz t. ciare cr!'~tn:, r;cdxii*

sl~oll be the date of dellvery of such nonce, not the date of rna~ling. Ry V . W ~ C ~ . F J J S ! : ~ ~ ~ ~

('ompmiy or Customer may change the party to receive notice andior tile alldre~s tr) M i l r l ~ b such rlotrce IS to be delivered. In the event no Customer or C'ampz~y; ~ddrct . .~~ 14 prm ra i~c!

1i-1 the executed Service order. notice shall be given to the lzsi knim*r; >u*I!IG~~- *tz17,k c x $ 3 $1 C'ilstanicr or, 3s appropriate.

2 . Cathor Terms and Cond~tions

7 ' 1 ,, , Ttlc name(s) of the Custonler(s) des~rlng to use the Servrcr lraust tic hq?&i / ,$ !%?5! : ~ 5 :i!;'

12pplrcatlon for Service.

2 2 . The Custotner agrees to operate the Con~pany provided equ~pvrccnr in ncp:r~r,'rmcc ~ c i ~ i ;

rnst~uctions of the Company or the Company's agcnt. Falture to iio st-? 8 ~ 1 l i LO", c?kc C'on~psny i iab~l~ty for lntemptron of Sew~ce and may make CLIS~Q:IIC'; rt.,iptrn%jhl: r s g r

daniage to equipment pursuant to Sect~on 2.2.3 beiow.

2 2 7 . Customer agrees to return to the Company all Company-pnvldod Cqulprtii.nt tlcfr~crt,4 ~ 7 %

I"ustomer with~n five ( 5 ) days of terminat~on af thc Semlce in eclnnccticrn n I:!:: ~$S i ,k i:-,! eqttipment was used. Sald equipment shall be In the same condrtrsn as n hc;a rIcir\ r:crl ' i s

Customer, normal wear and tear only excepted. Customer shall reunhttrsc [Re i;!~tp.i:: upon demand, for any costs Incurred by the Company due to Custitrner's t':irk.::rt: rt7i <ii:!"i?iiLi

with this provision.

2 2,-f A Customer shall not use any service-mark or trademark of the C'onlpany ;.car refer l a 7 i i lc - 5 Conipany in connection with any product, equipment, proniotron, c?r put>!iin~.rra: r r i tc:c

Customer wlthout prior written approval of the Company.

Issued by: Richard LI. Boudna. Pres~dent NU1 Telecom, Inc. 550 Route 202-206.2nd Floor Bedminster, FIJ 07921

2 :! 5 It1 the event suit is brought or any atrorney is rewtned by the Contpany cniiarca. t i i t - r;-r.::,k of this Tar~Tf, the Company shall he entitled to recover. tn addrrictn rcp arili r.t;rztr W : - L ' retmbursemen~ for reasonable artorneys' fees, court costs. costs of rnvcl+trg;?X!u:l :di:d * > ! D n . t

re tated expenses incurred in connection rherewlrh.

3.2 fi 7he provision of S e ~ ~ l c e wrll not create a partncrsitlp orjoini valhzrr k~wee:;t :Tit* <-irrra?&t!;, and the Customer nor result In jolnt Service offer~ngs io ihcir respeir;'ir: C'rrsf~>:r;ea.-

2.2 The rate or volume d~scount level appl~cable to a Customer fkr. s p:rnici:i~~ 5.srn~,;t- 1.:

Sen,ices shall be the rate or \rolurne dtscount level in effect at IJIC bi:t*f~~~eng ai :I:c n.::t~t:asrE) billing per~od applrcable to the Customer for the par.t~cular Ycwtcc r.sr Scn:cr;.. %'= P4t?: a Set-we is subject to a minimum monthly charge. accotint efiargc, PSX? ci~:ifir!~: ~ C * F k l l f ; c * recurr~ng charge or Nonrecurring Charge for both intrastate itnd fnterstare !Str\ rrv, ~JTS;~

such charge shall apply per account and that charge sf~aIl bc tile antcrsiate ch~sf:e

2.2 8. Service requested by Customer and to be prov~ded pursuant to ttwrs 'Fan3 f :hdl Elc < ~ a : i ; ~ d S ~ ~ z

on Company Service Order ferns in effecr from trmc to t~me or C'ustc~.:~rst~;t"'~ fikr:??: arT~i:p:i:-2 In wrihng by an authorized headquarters rcpresentat1-i.t. of tEtr: C't.tmpta:> ~,rir56,.i : i i ~ ~ c

refcrrcd to as "Service Orders").

2 2.9. if an ent~ty other than the company (e.g., another camc'r r3i. a s:rp~!~tr f :nff-c; as^-*- ;;~,x;;.: ; rb

111e Company rn connection ~ v ~ t h a Sen-ice that entln's C!I;;T~CT M 1 1 1 iw p;riiia"J t : ' % : ~ i i : ,rb \,F:"',

C-ustomer also.

2.2.10. The Serv~ce Commitment Penod for any Srn8rcc shaH Iyr c2k1ih!t:~het$ Fy fiw %CE: ~c;. E k5=: T

relevant thereto and commence on the Start of Sewice Dare 1 "tsn ce~p~~tbioft, ritcb 3 ~ : : 1.7

C'omrnltment Period for such Sewice shall nutomatrca!ty kc esrcr;dcd szrlqec~ Irk w:-:t:,;~ notice of term~nataon by elther Company or C ustorncr 8s nf a dati: Prctn fc34 fimr :$rsrsl : k s ~ days after dellvery of said notlce to the other. The charges for In~erc;.\;i:hu*bi~ ;%CIP=~.-IS igij? ,fig any such extension shall not exceed the then current C:ottzp;fn) rz:o:~rR-ii>~~i~~:~th * ' i i ~ t ~ , + ~ , applicable to such Servlce.

2.3.1 Except as prov~ded otherwise in this Tanff. the Company t.sh311i Ere kc It'lskIt: :.I%, %-a?*J:ty~tc: t15

any other person, firm or entity for any faiIure of pcrf~rnla13ct. hcrcatndcs tf&!f&-h !,itf:+t~: : J

due to arzy cause or causes beyond the reasonable contrtd of fbe f'tnmpztnt %t:c%-~ d;~;:,tc-- shall mclude, wltl~out 11mitation. acts of God, fire, txplosron, mt~dalrm., i;,kqafr :I:!; L:~e:e:

-,s ..* g,! :f;c. or other slmilar occurrence, any law, order. regtlla~~on, d~rcc~'e"~on, 2ct1z,ii"r t c r ~ , ~ 1 , _

United States government or of any other governrncnt or srian:+ e.t\:% emr r;irFi:;c:, ata:hir~i:~ uabonal emergencxes. lnsurrectlons, nots. wars, str~krs, lackours oz xrxb 4~i~p$~!tl:i'*t kiE : L;$-~:S

labor difficult~es, supplrer failures, shortages, breaches or dctsy5, ttr ~ ~ r . ~ ~ : i ~ > t : t r ; i : r ! ' ~ ~ , t - : : i ~ . ~

Senlees to restore senwe In compliance with Pan 64, Su!,p;rm I), r2lxi2~ttrlair 4. c*: : 5 j ~ * t '-d

Rules and Regulafions.

Issued by: Richard M. Boudrra, Pscsidcn~ IWI Te!ecom, Inc. 550 Route 202-206.2nd Floor R~rlmlnc. t~r N l n703 1

S.D.P.L;,(-. T;irkCf3Jck. ! Original Page No. 2 i

2 I k t e C'ompany 1s riot Irable for any act or omiss~on of any other cornpan!. r)r iOMiIzI:t?%

!ti~tlilding any Company af'filtate that is a particlpatlng or concurring carr~er) f u m ~ i h n ~ g pt%r[ron of the Sel-vlce or facllltles. equipment, or Services associated xvith sucti Sri-; icc

' . thc C'irstomer is responstble for taking all necessary legal steps for interconnrcilng the (-uston~er provrded terminal equrpmsnt with the Company facilii~cs. The Custolxst"r <haif snsure that the srgnals emrtted Into the Company's network do not damage Cor-r~paal) c*qr~tp~-rletit, injure personnel or degrade Serv~ce to other Customers. The C'usron.it.i. as

rcvponsible for secunng all I~censes, permits, rights-of-way. and other arrailgcr?ri8nt; nt7ecssnry for such interconnection. In addition, the customer shall comply w ~ t h appti~;th!rc 1 I:t' srglaal power Itmitations.

I ! 4 Tlrs Catnpalty may rely on Local Exchange Carr~ers or other third partics fix the pt"rf'orrnancc of other Services such as Local Access. Upon Cusionlclr repuesf and k.xe<uJickrl :itid delive'iy of appropriate authorizing documents. the Company may acr as rtgcn: hi t 'ustonicr rn obtalntng such other Services. Customer's llabrl~ty for charges hcrr:rinckr si:*i!i not bc reduced by untrmely Installation ornon-operation ofCust0n1c.r proi~tdcd iaunir"i:r~~ ; ! i ~ g i

cqulprnetrt

5 % - : l l ~ e h ~ i u r e to glve notice of default. to enforce or insist upon conipliariee ';ii~;iit an) r ) ? tt:c

it.rr;~s or condittons herein, the waiver of any term or conditions here~t%, or the gmntirig c r t

;in cxfensron of t ~ m e for perfonltance by the Company or the Custon~er shnil no! sa,ni:r;iirt.

ilac permanent \irarver of any term or condttion herein. Each ofthe pmtrlslnns ~ h s l i f ~ i : ~ ; i t : ?

at all tillie In full force and effect until mod~fied m twttlng.

9 -2 C l frai tilt. event parties other than Customer (e.g., Customer's customers) shall iiavt: us?: tvt'tb.5:

Scri rco drrectly or indu-ectly through Customer, then Custon~er agrees to forc~ct. nndc1t:~it~ and hold C'ompany and any affiliated or unaffiliated tlxrd-party, thircf-pany i7:rn id{:$ r*:

apcratar of Sac~lit~es employed in provision of the Service i~armlcss from ;m{J * i g : i ~ ~ ~ : , t :if?>

and all clalnis, demands. sutts, actions, losses, damages. assessntents or I>a;:mr.;rts ~ : s t c i ;

may hc asserled by s a d parties ar~sing out of or relating to any Defects.

- . In the extent that Company IS requ~red to perfonn a C~rcult redeslgn duc insrc;rr,rai. 1~1lbl7nation provided by the Custonier: or. c~rcumstances In whrch such c t ~ s t x znst ~;~Ic"TP-I:-

arc caused by the Customer or reasonably Incurred by the Company fbr thy blirneii: i a b I I ~ L t'usromer. the Customer is responsible for the payment of all suclr chargcs.

Issued by: Richard M. Boudria, President NtTI Telecom, Inc. 550 Route 202-205,2nd Floor Bedminster, NJ 0792 1

5.U.Y.U.t . 1arrrt r ~ o . 1

Original Page Xo. 22

4 t lf a t 'ustomcr csncgls a Se.n.rce Order before the Se~vice begins, before cornpiction ~ i ' t h i : Xlsnrt1ruri7 Pcrrod, or before conipletion of some other period mutually r?gsed upon b) the ('rrstartler and tlie Company, a charge will be levied upon the Custorncr {'or lilt ::~nrccfrvwahIe portions of expendltui-es or lrabil~tles Incurred expressly on behzlf of !iic C'tibrnrner by tllc Company and not fully reimbursed by Installation and monrhly charge, If, l~nscd on a Service order by a Customer, any construct~on has erther begun or lice13 icjl:~ptctt.d, but no Scrvices prov~ded. the nonrecoverable costs of such constriictlon 3liuii i>c home by [he Customer.

" E 2 1 l p ~ ~ ~ ~ a11~rl-y ( 30) days' prior wntten notice, either Customer or Conipany sllall hayc the rryhr. ivtrhou! cancellation charge or other liability, to cancel the affecred portmon o!'~he i jerx~~cc~ t C t i le Cnrnpany 1s psohlbited by governmental authority from furnishing sald portion, 01. ri

, rn'tct ir, itny matorral rate or term contained here~n and relevant to the affected 5 s:rhsrantially changed by order of the hlghest court of conipetenr junsdlcuon lo n hlch :hi. rr%aikrcr 1s appeal, tlic Federal Communicat~ons Commission, or other local. stntc or fc$ib'rz! Sovcrnment authority.

1 4 ' 5,:;x~~gcliation for Cause by the C o m m

2 5 i 1 ipct;n nonpsrynient of any sum owing to the Company. or upon a vtolatlc~n of any of rhc pro\ isinna governing the fun-ilshrng of Senrice under this Tariff. the Company ma), ~:;scif:

fi%.r" ls1t~ir1e.s~ days twrtten nohfication to the Custome~. except rn cstrcme ca-wr;, x\-~:l?ntii incurring any liability. lmmedlately discont~nue the furntshing: of such S c n ~ c c Xnc rx-rtticrl nrsticc nray be separate and apart from the regular monthly brll for servlcc Cusrtlmer s i rd l he dctmcd to have canceled Senr~ce as of the date of sucl~ disconnccticm and i9lrall !tc i r a l i i~ fix any cnnccllation charges set forth In thls Tariff.

T $ 5 , . ,, \i'lthoi.it rncun.1ng any Ilabrllty, the Company may dlscont~nue thc fuinishrr~g cr! Scr~-icc:ci to a Customer upon five business days nmtten notlce I f the Con~pany declns rl~at suci: ftCilri:l

rs necessary to prevent or to protect agarnst fraud or to olhcrwlsr: protect nis pi*r'.ionttfl agents, facilities or Serv~ces under the following circumstances, exccpt under e.;trr:?ric br:ITil:t";i"s<'.i

whcrc the customer may be disconnected immedtately and ~vithout notice":

2 . 5 . 2 A. ~f the Customer refuses io furnrsh lnforn~ation to the ('ompai::, regrrr,l:ay the Customer's cred~t-wortli~ness, ~ t s past or currcr~r use rtf coa~rrzu-- q i L*:~E?C;

communications Senrices w Its planned iisc of Servrcr(st;

15.2 .B . ~f the Customer provrdes false ~nfonnation to rhc {.'ampany rcgsrtbrr:? TI!:: Customer's ident~ty. address. credlt-worthiness. pzsf or clnETt'n1 LJ:C t i :

Customer communications Services. or ~ t s planned use rjS' the C'itmjsiirr)

Senr~ce(s);

Issued by: Rlchard M. Boudna. President NU1 Telecom, Tnc. 550 Route 202-206.2,nd Floor Bedrninstcr, NJ 07921

2 3 2 c i f the Customer slates that i t iv111 not cornpi> 151!13 G reqW5T O< ?la3:

f'oinpany for reasonable securit), fbr the paymen1 fbr 5rn.ie~isj .

2 5 . 2 !>, lf the Customer has been gwen five bus~ness da:;s ssnnun ncrti.;th 11: ,:

separate malllng by the Coinpany of any past due arnounf f i x hich ~L'T;I~~T:-

i~npaid in whole or In part) for any of the Company's con?n:~~::i;:,l;i~:~- Services to which the Customer either subscrthes or hrid sutsscri!~e.d t t r

used:

2 5.2.E. ~n the event of unauthorized use.

?, 5 2.1;. Fol!owing the disconnection of sen-lce f ~ r an; of tlzetc. rcsr;cu;-. +i:-tt

C'oi~~pany or the local exchange ut~ltiy acting as Campan) agent, is j i; t:+ ti;;:

the telephone user/customer that servlcc was discor~nccred 2nd t ktp notlce ~ 1 1 1 include a11 reasons for the d~scanncction arid n-rll rnc%ir\ic ;I :cjii free sum ber where an end user/customer can ohta In addlriar.;af I ilfi): Silk:?. iil

Noi~ce shall be deemed given upon deposir. posragr p~l>iiid, i i !hi: f 5 Mall to the end user's/customer's last kno~vn addrew a;lJ 17.1 6:i ~f~:pi'.r:?i.~ w ~ t h the Commlssron's rules.

2 4 " 1 7 ~ d~scnntrnuanee of Servlce(s) by the Company pursuant ro rhls Swiic~li dt:lc* : i r i \ :ral!: h-

iirc C'ustomer of any obl~gat~ons to pay the Company far charges drrc ;t::i$ ci'c!:if:

!~cn-tce(s) fui~l~shled up to the tlme of d~scontlnuance. 'The remcdics scr i:>nlia kcrctn -F:si:

no[ be esclus!ve and the Company shall at ail tlmes be ent~tled rtr ell rmshtb ans;itl;lhi-; sir ii

under either law or equity.

2 3 CrcC'ril Allowance

2 f'i i C'rcd~t allowance for the lnterruptlon of Serv~ce is subj~cl to the gcnel-r!i ijab~tE~ty p:ii\ j - : rq : :*

set forth In this Tanff. Customers shall recelve no credrr allo~%anilc fix 111c a:rtc:;'nq+l:zri U S ?

scnlice ~ ~ h i c h IS due to the Company's testing or abjust~ng, t~egl~geilce ol rite t 'iih;rr:z:::i $1:

tn rhc failure of charinels or equipment prowded by the f'usclorncr. ^The (-'~nstx~:-rrer st\r,iiii.r notif?; fhc Cor-npany when the Customer 1s aware of any rnterruption In Scrs ;CC IOP T.$:IC~?

a credit allowance is deslred. Before gyving such notrce. rhc Cul;romsr ahall alcr:Pssrr.i :LJ: rhe trouble IS not being caused by any actlon or on?lssl.on with~n C'wsiornca.'s ~4;!16?('16,~ i ~ i :- nor In ulnny or equipment, ~f any, furn~shed by the Customer la? cc,imzck:rin w:fki fh: C'ompany's Sen~lces.

2 t r 2 Yo crrd~r is allowed In the evenr service milst be rnternaptcd ttrdsr gxri); .:i; F,i;iii:lii, s e n x e quality or related investigations.

Issued by: Richard M. Boudria, Prestdent NU1 Telecom, Inc. 550 Route 202-206,2nd Floor Bedminster. NJ 0792 1

BkjB TElf,ECQM, BNC.

2.6.3. No credit shall be allowed:

2.6.3.A. For failure of services or facllttres nf Cusicra.isr: r1.r

2.6.3.B. For fa~lure of services or equrpment ~ , ; i u ~ e ~ f by Lhe ~t~g'tl:r;i::=a*~ r r a r t :"< .?

acts of Customer.

2.O.J. Credit for an intermptlon shall commence after i'rr~ra~ecr z l l r t f f r n = % i i i i iG:&-Xg?i : ' I

~ntcrruption and ceases when senrlces have been rc.;to~e,.el

2.6.5. Credits are applicable only to that portion of SCWIC~ rntsr%$?l~rf

- * A -

2.6.6. For purposes of credit compuration, cvay rnonlh sheiil br: cnn~:drrc:rf rc% F k . t % i - :-) l - l y - i i .

2.6.7. Nu credit shall be allowed for an intermptfon nt'a &i?,"%!tnu?tirr:is ttu?*r:srter <.-' I - , 5 % ~ . ,z P , , , 1 -..-

hours.

2.6.8. The Custon~er shall be credited for an la7terrupr:afn a B' t rm hc.~;:?b rst nii"rte :r;f ; r-4% .: t " f- b:h

of the monthly recunulg charge for ;he scrwet aM"ec~ed &IF s;tet:: hntrt <A:" c:a.~+ !r+-"tii.

thereof that the interruption cnntmues. C'a'lcutatra n% g31r 63r:ib rhaj' is; r-rdi~B-

accordance w ~ t h the folloiwng formula.

Credit Formula:

"A" = outage time in hours "B" = total monthly charge for affected facl ia~

The Services offered herein may be us business, governmental, or other use. Services. However, the Customer rc nohvithstanding such sharing or resale and r The Company shall have no l~ablliry ta only as set forth in Section 2.3, 'fie Crt, Senrice in a manner that could intcrkrewith the facilities of the Company or a t f x ~ .

Issued:

Issued by: R~chatci M . RottBraa, EYes:dcns NU1 Tclccarn, f ~ t c 550 Rniite 202-PO&, 2ftd F IS wra Bcdmmsicr, NJ 0732 f

Pi;k:$ TEII,ECOklG INC.

2 7 2 Serv~ce furnished by the Company may be alrangcd foi- ;am: isir: r*: L:i:?i:-.-r- :I: .A

jolnr user or Authnr~zed User shall be pcrniitrcd to use suckg Scrt :ce zi: :5i, .- -z. P : A " .. Ihc Customer, but subject to the hl low~ng.

2 7 Z.A. One joint user or Authorized Ilser rnut;f bc dtstpniucd .s* :ire + I;&-,- 1

2.7.7.B. All charges for the Serv~ce ~ ~ 1 1 1 bc rfiz~~putcd :is a s [ it>- acrr ~ : s t . ~ c ~ ~ ;hi.

billed to one Cuszomer. 'Thej~tnl wer or :%rrehar~:~d I %.i:r ~kty:, h :;,r, L-cr:,' des~gnated as the Customer xr1i br' iliiif:d ir7t" :$I! ~ t s r e p i s n ~ ? i : - ? P . . 'w- , -I c

and a11 11 be responsible f i r aJI paymcr?rs ica ihr I * r ' ~ ~ > j t ; i d : i a G f:; t 3; r :, L- ! ' -4 - the dcs~gnated Cuseamcr falls tcr p q !he d *snrrgs;r?!, s,~, 'r ;.I::*: : :;- u*

Authorized User shall be liable tn f 'iig~span;, law :ri:lf s t i , .~sLc~,c I:", . a result of its use of rhc r"oi~pany'5 Scn-ice

2.7.3 Inadd~~lontothrotherprov~s~onsi11thls~rrff.d.'usaiirrter.ss~~s!liny~i~riifi,;~s~ 4 : 1 ' . - , . shall be responsible for all ~nteract~on and ~nrcrkcc. wrih ihcrrrrxsxl E S ~ : ~ ~ L C ~ ~ F ~ C r e .. ~i::~-l;" :J

Thc provision of the Servlce will not crca!.c a partt~ershlp clrjrPrrt'ii VFE'IU~C 15~3%~~::: G i t L : _. ,'- and Customer nor result In a jatnt cornmuntcatruns Se:-eltrt affcn$&: ttr 3:;- 6 -:.*.l?i'r- i . . - ,

elther the Company or the Customer.

1.7 3 Ser;iice furnished by the Company shalI faor be mttd fna xr r , ;;f%E:t~r i l i r ;

purposes.

1 7.5 The Customer wril be billed d1rectl.j by the I.I',Ce frvr uerti'ira': ji %dii , 3 ~ 4 E r%i~-i:-- j : f , t : . ~ : :r ,:I

selected by the Customer for the provlsloning sf Jt~er ' t ;~GCC?.- ~ L / P D ~ ~ ~ ~ : ~ P ~ - E : ~ ~ ~ I ti; rf3,r

Instances where the Company at the C'usronter's rc~pkk*s: :;I;::, 48s " $ 3 ,i.g~u,t :it ;iw l~:,,t:r-lt, - - such arrangements. the Company 3 ~ 1 1 1 hll rht. C'~r.Gns.~.scr iI quai F%:-ICI:~T ~h3f~'i''r-

7.8. Payment r\rranfiements

2 1 'fhe Customer IS responsible for payment o!: a!! ~h:argrh !*rr "%r.ri r i c : i ' r d - i r .:x, i - - : v

Customer or tts jomt 01- ,4utl-ror1zed Users. *l'l.sts r c k p t l r r i rii"r8 ; t;~z:~+r+I ~.:i-~ rr , , 't

mlsuse, or abuse of the Custonser's Serv~cc ar C'tt%?ismer pi;tasi~%,:+i c ~ ~ i ; i r p ~ - - ~ s - : "; i

part~es, the Customer's employers, or ~ h c pubfrc

2 5 . 2 . The Company's b~l ls are due upon rcceipl. :'rrnarrssr> w r : p:k:ii $5 : ~ I L s : I hf* Lkrljp J * , P l i 3 t

Date of the lnvolce ~ ~ l l be consrdercd past t h e t. tiht<~ri.iP;i !ah- - T ~ ~ ~ % . F I a +. - past due amounts in the amount not lo cxcced !hc :?3;tttrn%xiirE 5:h%t !'jrP' " S + S ~ :,:-kfilJ ;+Y 5:.

state law. I r a Customer prrsenls an u11due rrsk tr; rtrjrtpJ341S;ke%1 ;%P, r ~ : t > :;"i: S;:~L 1 - i 3 -,:,%I

may require that Customer to pay 11s bdts ~\rthna 11 ~p:-rtfi~:e! DLI;XI~~- , -~ fii ;ii% a" : -3 F

such payments rn cash or the equ~valenr of cas5

Issued by: R~chard kl. Batrdsn;t. frrcsr&w.:t, hXIE Tclecr\n, kt: 550 Rar~te 2f)2-20i-rq 2nd 17e%iitr Bedr~~~nster , NJ 11"tcI2 1

N1'i 'B'CI,ErC'O%f, INC.

2.8 3 in dotenninlng whether a Customer p;esents an undue nsk oirmfip<jt msnf. :k f ' ~ i ~ ~ . t i C '

shall constder the following Factors: f X) the f ustctrner'r p:s>mrln: ilnsroq ( kia+ny i :; -16 ei:;i C'ompany and ~ t s affiliates, (E) Customer's zb111ty to bernclrrsrrars aber$r-aata. aP.;l;.r:, TP~-;&; :SF:

thc Service. (C) credit and related ~nfom-iatlor~ pmvlkcd kl C'~a4lkfll~i". ai,;l% :'iYr:*PC.

horn thlrd partles or publ~cly available. and (131 nnir9n;znzrcri.t :c,")&:5$ trr r a~:~,.z?,,-. ., management. owners and afiil~ates ( ~ f any).

13 11.3 Disputes wlth respect to charges must be presented in tile C ampan) I:? v%::t",r%g ~".eilkrr, I+: days from the date the lnvolce 1s rendered or suoll 1n3:r3nssr wi"i iazs ri.t.c.n:rfi!i *tip bn'- ,ii3::6-, . 3 1 , *

b~ridlng on the Customer.

I ) 2 8 .5% If a LEC has established or establ~shes a Special tziicess stirchar*:. ihg 1 i?f*Eg1.F1': r l ; 5 . r11c surcharge beginning on the effectrve date nf srlc'tl \rrrcbatrgs fnzj S~i i~=;r i arrangements presently In Service. The Company wlil cc~l;c* htk$rrr!: q2)l*;:-;i ,i;, ,- := surcharge upon rece~pt of an Exemptrart Ccrtifica~t. ar t T t h c v~~-~:i:i:ar$r< "'. i < f Q i . j c :.:' $*: "I:-

LEC.

2,S.e In the event the Company Incurs fees or cxpenseit.bA ~n~leidtnp ;t.iirlmt?i '. h - c ~ 4 i - * L ~ ? L ,,

i * or attempting to collect, any charges oared the c'ompanc. rare %"ii+ririruc;. ;vG3 :* ' '" C'ompany for the payment of all such fees and e s p c n w ~.b.asswt+~l*le :ti~~::r.:t,:

2.8.'? Company 1 ~ 1 1 1 not require deposits or rsd~a~ricc peyw:ciliq b) t ' X i - + 1 $ ~ . ~ t i " r !EL! %.ZZ :+ L

1 9.1 The obl~gat~ons set forth In this Tarrffshali be bmrirrxg ir$qiru rto:iri" fir 15:g +-?il~~-:i* I , * -:" part~es hereto and thelr respectwe successors ar tssstgrrb, prib\~%ktl, htz:irarr; st--$ F s d .>- . ' I~~. . r shall not asslgn or transfer I& nghts or ohlrg~ti<.raa e%r0ntxt1r tic ~ E ~ G P :T*$ a:si;; P . g ~ t ; n ~ ~ : : -;'

Company.

2.10. Tax and Fee A d i u s t m m

3.10.1. All state and local taxes (1.e.. gross receipts tax, snles fsx, antnz:crp$ :,;rei$!:.c*+ t,:i : ,s:sb 1 . ' : : ~ :

as separate line Items and are not l i lclud~d m the Y B S Z ~ ~ C I X r3t61

2.10.2. If at any future tllne a mun~c~pa l~ ty acquires t t r ~ kgai cgkt rll rraip,.rq.,: t:;7Ct!:ir-:ir+i-i *.: 'i

llcense tax, perm~t fee, franchise fce or other sinliEas alnn~gz ctj>itr$ the r m ~ ~ ? r , ii; I+:;**<=.L the sanie by ordlilance or othenvlse. such taxes, fees cre ~ktq;t:~ :.4r;aii 4~ k5.i:~-.' : +

I

users recelvlng service wlthin the tci~~torlal Inntta a$lat;a:I;. mgt:~s:~ip;xdi$) i.;;:sT, ~+-:!-i.=: . -.,J allocate the tax, fee or charge amorig mci user5 uaa.rt~wmIy an tkk- k4-,:4 c;ii C J . ; ~ . t:t.f - < I -

monthly charges for the types of service ~nade: ?;ub~es.a. I ~ P ' ' , i i ~ I t :$? PI b?ie#2 ;*

issued:

Issued by: R~chard M. Boudm, 13re$!dcwl NU1 Telccom. Inc. 550 Route 202-,7(SA, 2nd I"tr+r;

Bcdmtnster. Kd 0792 1

1 I [ ) 3 ff at any future t ~ m e a coenty or other local taxing, authority aequtri-5 the icgai ri$r :e impose an occupation tax, license tax, permit fee. franchise fee morhcr a:;rri!~; <R;t i~+: 3i+7i:

ihc <'airier, and Imposes the same by ordinance or oihei-v~lsc, wclz taxei.. kc= r.1 ~,!i~1~*:2-i'-

sl~nll bc b~llcd to tlic end users recelvlng servrce wtthrn the temtcsnal I r ~ z - ; ! i r ~ i y n ~ ! : t - i . i = : i : - *

01- other t a s~ng authornty. Such b ~ l l ~ n g shall allocatc the fax, fcc or chrtrsr" :i?srrxng ~ r i r ! ;;.,r: %

unlforn?ly on the bas~s of each end user's monthly chargcs for thc t y p t 5 of WPICC t"rgtitb

si~bject to such tax, fee or charge.

l . l ( I .4 . When utll~ty or telecom~nun~cat~ons assessments. franclrisc fct.5, or prrsklcgc lrt:czr-: occupational, excise, or other similar taxes or fees. based on rntcrsrare nr snEr.r-ZakL ft:b%':$'

are ~mpnscd by certaln taxlng jurisdlct'lons upon the C'ampany ar U ~ P M f i~c~ i j ~ x ~ i ' i , z ? - : : l l i ~

companies and passed on to the Con~pany through or xs~th 111~15l;ld~: W-T ~n!t;zim::t!~- .ibiLttw

charges, the amounts of such taxes or fees will be brfled lo ( '~asi~~mcr* ::pu +t:::R ,r :.,% ;.il:

jurlsdict~on on a prorated b a s s The amount afcharge that rs p f ~ ~ ~ t ~ a ! t t + ~ ; i h i ? b 8 .b-tit:z--, r

bill IS determined by thc interstate or Intrastate telecon1nmnc3tit'tn::ic~~i~*';hrt'~~~i3t:sl.:=~,S ~ r i . .rqY.i % * L C - > '=%.:ti- *t~$; brlled to an end user/customer service 1ocatiol-r In suctr a rzxtng j t ~ r 1 ; ~ 3 t i ~ ~ t ~ ~

aggregate of such charges equal to the amount of the tax or fc"c irnpr7~td stjai.io i;-t pLtu.c,: +-;I

ti) the Company.

2 1 0.5. When any munic~pal~ty, or other political subdlvls~art, local rtgmr.> ck! !:stq+ CtSzyi l~ :I% a*-

department of publrc ut l l~t~es imposes upon and ~oltt'ctu frctm rjrc C 'tnnrj?sfz$ a gr+tl-%r e;u:-kg):t

tax. occupation tax. license tax, pernut fee, fianchlsc fi-c or regrtiainry k e , %ic!.r ;dtih+. ,ii-:,s;

fees shall, Insofar as practicable. be b~lled pro rata io thr: Crsmpny's i'eusu~~acs :CCS:?~ :YF 2 . service wlthin the territorial llmits of such munrcipality, uzhcr pi191~rca6 ~ti&b~'~-x:-+x!!f~. c+"-~.v

agency of government, or public utility cornmisstun.

2. I0.6. Tile C:ompany may adjust ~ t s rates and charges or impose addirtonaf rates xktxdbk,%~2r'*k%~ if .

Customers in order to recover amount it 1s requncd hy gauenlmefatal 4% ~ii+es-::-~z~~u,+;~~+::::~:;*" szuthonties to collect from or pay to olhcrs m support of sasarkrrory garr ~cgrrktttq PFkrg;iJri:lf.~ i~szmples of such programs mclude, but are no1 Irrruted In, the: ~:RE%CF%!! S6rw$"4: !l:s:r.h ?i:--

Primary Interexchange Carner Charge, and cornyensatran 1s payt~linne CCIT let: pi t- t d - 4 ~ ; tri; use of the~r payphones to access the Company's scw~ccs.

7.1 \ . Method for Calculation of Airline Mileam

2.1 1 . 1 . The airl~ne mileage behveen two cltles can bc ci~lctllotcd tatng r f ? ~ : "f'r-r-r;'iiai i',!% ! m.t 1401-~zontal (H) coordinates of the servrng wire cenirrs a~bj~~~f3tkrd tw?h t!~e ff ittl~igsi*t;:<-b ;l-!:ri.

locations. The method for calculating the, airl~nc ntiIcage 85 ~h$:iltav,"r,$ !bi5 tsrr::~::>'+ :rr

AT&T's Tar1ffF.C.C. No. 10 in accordance fvlth the foirJtarwrng fr)rrn;rktc

Issued by: Richard M. Boudrta, Prcsrdcnt NU1 Telecom. 7nc. 550 Route 202-206, 2nd Fiorrr Bedminster, NJ 07921

tile sqrrare root o$ ~ v I - v ~ ' $ + ( f f --* { - f f ~ f S -... 10

where V 1 and HI correspond to the %'&H ~mt-;&g~tee rfm'g i ,,t::: h.rt ztr.? la: . Y % -;- +;zd

to the V&H coordmates of City 2,

Example: -- 'i: -kjAm City 1 SQO4 $ aOPtfk

Crty 2 59$7 3424

Vie result IS 709.83 miles. Any <ra~tmnaf I X B & C ~ +~bw r,,szgirark,k dip :- +. '::,:4~ + -.I ,-". number; therefore. the arrliile rutlcagc for thri; I:XZG~IP :- * I e k *-+:f;. .

2.12. Time of Dav Ratc Per~ods

3.1 2.1. T ~ m e of Day Ratc Periods are dctrsn~rsne~4 $75 ;kc i"irtlg t;?t$a? I,:C 6 {.n;g9. E --' , , -'._

Statlon.

The rates shown tn S.t-cnon 4 apply Cc~%Ba~%rs:

DAY: From 8:Ul AM ts S:#J4:% P5E %f%%a&j F Y & ~

NICiHTi WTEKEND: From I f $1 P$+ tiv 8:QO Ahk: EkezyM*

From R:O I Ail4 tiu I f 438 Zf&5 ;%~%tipdb:v

From 8:0 1 AM m S:@Q FP%f %&f%l&i,

2.1 3. Specla1 Customer ,bran~ernents

2.13.1, In cases where a Cuscomcr rcqucsu I $ b~&cr;sf 42: ~ j @ t $ t l ~ I ~ ~ ~ ~ ~ ~ ~ ~ z ; ~ ~ ~ % ? ~ R T * ? : pi*? - . .:%

englneenng. conditronlng, Instal!atrfin. con%$Fwct$~3!%,, in&$f;iacs~ s t-4ft$$f4+t. kt: 4, :T~S 76 + ji- 2 .- of faci Iities and/or otlter spcc~al Scrt.~ces nr?~ crifgrk~j qra&,ig t i a p 3 ~P:Z& tbp s - a ~ ;?P ! - 2 ,-::I

opt~on, may prowde the scqucsted +a~p;".; ~ ~ q i t c s ~ ~ ~ i ~ ~ i c ~ & ~ p ~ r 3 ~ ; > -*'~*s: I-, ; - N~nrecurnng Charges and o t h ~ ~ . teml-s ~ ~ Q ~ & ~ ~ ~ I ~ , * , 2*38g !cw C!GT~;T% 1 5: tcr:.. r ;; ~ - 1 - -

for the provis~an~ng of such arrangcP?Jenls

Issued by: kchard M. $3 ~rudrra, Zsr~asdc~5-a: 'I"~.~cco~I, IRC.

550 Koaxnc 2QZ=Zf,Ya, 23a4 E-Iuos

Bedmmsrer, N1 V 9 f 1

3%; 1 'Y'EH,ECBM, INC.

3. $4. Xnsnection

I t 1 -The Company may, upon notice, make such tests and ;12sperdE!~1185 ;+i. x:a? 5s; ts.-;- %ai: \ - 3 ;

drtemnne that the reqi~~rements of thrs 'T'anfi are ki5 ;g . c<3an'iptia:rl: .il-:'fI~ L;; %?if Y i " i r , k i , ' i : ' d t :

operailon or marntenmce of Customer or rhc Campany cqu~p~en t F-hr t 'r'i::~;",,:;? ~'i",,,

ln tenapt the Senrlce a: any t~me. without ptmzity EQ &r C'aznp"rr:% .hi si l i j . i$ d t:*iitir:il~r tia* i" J( : any pravrslon herem.

2.1 5. Customer Inau~res and Com~lamts

2 I 5 . I . Customers may dlrect mqulnes and cclmplarnts tn tfrc c e m p ~ ~ y r~r ti+< t $i-irri:;s;.z a;:: 9 - A 4

the address and toll free number set forth betclu:

NU1 Telecom, Tnc. SoutIl Dg$;ctya rk/;L~:?in 1 .:t23f2p4 r, eil.-;?:-- , fldi

550 Route 202-206, 2nd Floor State C'apilnl Htrildmg Bedminster. NJ 07921 500 East C'apt~~~f h,kz*~kw

(800 j 768-2852 Prenc, Srrurlt Ikkoi:~ $ " " 5 ~ B (8octj 332- 17'82

Issued by: Kir.hard M. Boudrta4 ~~rc~.-r;nr;iers~ WE Telcccrrn, lac. 550 Rcl~itc 20'2-206. 2nd f*ltx~a Redrnlrastcr. Nf c15792 1

2 E The Compaiiy may, upon notlee, make such tests and 1nspec;Inns s m a t Is;c cc,.ce*--,i!:= ;:is

dciilmrnne tlla~ tfie requirements of thls Tarlff are be~rig cumptrrd :wtk in &a' bf~*:lfi,~fw~:s 0per:ttlora or maintenance of Customer or the Company cqutpmel-rl. fbrc i:"4'tr@%: 2 ~ i ; i ; ~

irtt-itrr~pt the S m c c at any tlrne. wlthout pemI~r to the Clsmpwy, ~km;i$ I , ~X+~~SZ:XT 5 : 4 ~ 4 : f i ~ i 1

any pl-ovrslon herein.

7 f 5 Customer liiquires and Complaints

1. i 5.1 . Customers may direct inqulnes and contpla~nts to the Company ar the I:"src!ri??i?ts:sl?: Srrh ,. .;-I-

the address and toll free numbw set forth below:

NU1 Telecom, Inc. South Dakota t%trfic UzrE;i~eq f *fimfm-.i1-~,jf'

550 Route 202-206, 2nd Floor State Cap~tol Bualdtnp Bedmrnster, NJ 0792 1 500 East Capital Avcnur: (800) 768-2852 Pierre. South Dakota "7.'. 0;

(8001 332- 1752

Issued by: Richard M. Bottdna. Frcs~dcr~r NU1 Telecorn, Inc. 550 Route 202-206.2ncl Xrlanr Redmtnster. N3 Ct792 1

-4 -. . DESCRIPTION OF SERVICES

3.1 . Wlde Area C" WATS") and l i i iesai:~ f "X4'f i;t"j-&ijA.2:-:z2

3.1.1. The Company offers WATS and M7S xn#3a%"f;itu an~bir%ct?~~~l,i~s:i: Ld+i%?t,f .i,c:a5.e; :I: ;

utillzlng switched or dedrcatcd aeees a5r3~ge33e3t< k n x q e ~ ~ %Pr? +:+$~:Z:~$JC:-~ #vg7rrc,, :,: . .-: ; the Company's facif itles for csll a r q g ~ ~ ~ ~ ~ ~ ~ t*-i~4f ICB~T:;JI~; i r ; ; 5, kd~r.rr;;z~ wb~L * ' # - ., 6 =

combination of Company fan11dc.s ant$ f,%iC* gtf7tevk;3d Z G ~ T I : ~ ~ : . d ; ~ b ~ g ~ ~ ~ c ~ : " c .

3.2. Switched Inbound Scwlcc

3.2.1. Sw~tched ~nbound senrlce pemxis an~sczrd ~1i!~9.lig +L$,x kz%* ." - .., .;"-ii- "-- : .- - ' . ut~l~zlng prernltim switched, Ft7;fture Crlcrrixp a1 :~~e+r ; $ 5 ~ '"%$re triiL%

3.3. Switched Outbound Service

3.3.1. Switched outbound s t ~ ~ l ~ e s i.f,cgzIrrs cau?iagr& c;k"dti:f%i -g~:!:piri+: pga*W8;,t?: z- i - * r i . ' -- t Group D access on t ~ ~ t h the ~ ~ ' i g z n a ~ ~ ~ g and ti ,"r~~i~+;fr<~g gy-64

3.4. Dedicated Inbound Ser.rlicc

3.4.1 . Dedicated mbound sewlet p m ~ ~ t i rnstard gglkgs,: 5 %a,; z+L%?- Lqii;c5i: $ 3 ~t i q ~ k - ~ = :E- :-:- ; v . 7-

featuring the use of a d-f.dlcol&, s~eqzof agqc+aa QW gqf;;-mgg~::~~~: B M 6 ~ ~ 4 ~ : - r ~ . ~ J r - i - ; j~,1 -=

Customer shall be revonsgbjr: fc+r 32 f,lit'"%h;f,rfjpb ';3 prjFjft:-,i.~?:. ~ Q I tlr2r 15i,:v-.-~~i:' $= "..- .. recumng and Usagt charges st:{ ft>'i;D"ir krei~3fic~

3.5. Dedicated Outbotmd Sen=

3.5.1. Dcdlcated outbound sen-~ce pcmlres i.,u~+z~s'$ s::tj$~sr& ?+ ;L>-rrf!r,s"t: ;-r -i i : 3 7, I Lm ,, : : 9 - Dedicated outbound seplcc 5s dtsunpzas!sed friil,sg+3 1;~5%?iqt ~2 r:*~ ~~~3 lLSt ti~c vi* L4 T - 3

' 7 - ded~cated. special access cannt.~3rfen iliw g~x& gtr ~~~~~+~if:?g,-g + $ x ~ f i &q s ;ygwp : 2 1 8 ; - ;--i- _ i ,

, - - LEC charges in add~tlon ter tile f&cgrrki~g, %r~0-rcat@:it19 dsfp;$ k;>i;'.g~ L?:s+~;x-~ ;": - ' - , I

heremafter.

3.6. Calling Card Service

3.6.1. The Company's Callz~tg Cad S~rs;iu;se FXPT$"E,X~"~. < & : ~ : J I B ~ ~ ~ J C ~ ~ $ 2 .

utilizing Company issued Calling Cord% &a btf%mg FE~<):~A$?G.

Issued:

Issued by- Rsch~rc% 3%. R~t:utrrli, f%cr;$mr Pi:t:l. 'Fciccstn, Znr. 550 Wcer;c 2@2-2Ws, kvif 874pa78 W cdrrjrnsicr, 3l.l @%C! 1

3.7 T~minrr of Calls

! 7 1 Long distance usage charges are based on the scriitd rz.qs8 crbi' ~t'icr I cl :~p ,~ r~ , .< C*.;:=Z.-~.

Chargeable nme heg~ns when a connecttan is estahli$hrta bcfv.ecrr %Fir d'pfi;~a.,: w,,$Y _$:r~J

the CalIed Statlon. Chargeable time ends 'cvhcr~ errF~rr psc.~" @"itng3 ti?'' :%a:*usisi * ~ f : ~ ~ ~ - i ~ ; ~ - . =( *,.

the network connection.

3.7.2. Unless othenvrse specified in t h ~ s Tarrff. the mrntnlirm ea!T dtif':i'qta>rt ie3x h:Thm ~4:i(y*-i~ - elghteen (18) seconds. In addttlon. unless othefivlse spck.rGcd ia :ha- I ~ i i i , >,r+~::':~ - . measured thereafter In SIX (6) second ~ncrernents mrsndeill t t r 'vine iaa.*,r Z%g-:"ttia aC"- I F - :

second penod.

3 . S . M~nlrniln.~ Cal! Cornplet~on Rate

3 R I A Customer can expect a call colnpictlon rate of'nur Iri;~ tilan 91r" rG t i ~ l n ~ i 9c.i;; :J I-.;;; *p:

for all services.

Issued:

Issued by: Rlcilard M. ~os&na, i ' f~c l r f~t81

Nl,Tl Tttecurn, Isxc. ,450 Rnirtc 282-206, 2s;ri I.Sq:v~h~r

Bedrntnsttc-r, %J W92$

4. R4TES AILFD CHARGES

4. I . Usaee Rates

I . I, - 4 . 1 . . 'Fhe folIowxng arc ths per mmute iis-3.g,rf ~k33rg-e~ %Z.~%$C;% ~g&!, $e r~$,b;x,i - ; ::;-e: 'L, , - s

h-t .. " 2 P' In add~ t~on to the Nan-recurra;g c?a~rgcs 2nd &@~41n:~g +q3:h:tc q h q + - - " -

Issued:

4.2. Sw~tched Inbound Usarre Rates

. ~ - ~ t ~ ~ * - ~ - ~ ~ * ~ ~ m w m ~ ~ . s ~ - ' ~ ? r ~ e : ~ ~ ~ ~ ~ = - w 7 . ~ ~ ~ ~ ~ ~ ? ~ ~ , ~ . : ~ r . ~ , 7 , ; ~ ~ , > ':.:z:z:~s;,:$-

Issued: i ; c,:< *. Jyr<+7c.:3 -. . :;:

Issued b) : Richard M , Btw.$n&, k ' d 5 4 : ~ k i ; ~

2%; f 'T~~~:CCJF~ < $$;G - 55(1 Rsrrtc ?&J-3jf3r E....b f "YJ:.. f$e:i.it-t.rxr~acz"~ Sf C?Q% 5

4.3. Switched Outbound Usage Rates

, Mileage ! Hraiiiai 18 Seconds f AddEAonwl - - - - - . T i . - 4 ti S ~ c e g d a :a

i

Ail I 0.0529

CU___(C__ -- 1~..Vr^?llzlriI-I-I-I..X~,:-.?--%,L-iii5:?$~.:1:

Issued: % : I .-,?*, g ~ . , , ? , zu3 = *.:. .:.

Issued by: Rrchard M. Boitdrra, FBru:s&srit NU1 Tclecorn, lnc. 550 Rautc: 21fZ-20ti32rti.4. Fl iwv Bedminster, MJ B792 1

. I2ed-rcated Inbound Usage Rates

EUSHNESS DAY

Issued by: Richard M. Boudt~a, ~fesrde~lt NUT Telecom, Inc. 550 Route 202-206,Znd Iqlosr Bedminster, NJ 0792 1

4.5 IJedrcated Outbound Usage Rates

BUSINESS DAY

Issued by: Richard M. Boudna, Prc,.prda.at NUT Telecom, Inc. 550 Route 202-2OCs.Znd F!irrkr Bedn~instcr, NJ (I7921

S.D.P.U.C. TariffNo. i Original Page No. 37

I&usI[MEss DAY 1EVENBFdCIPI1[CH'kWEE~ND

Iss~aed by: Richard M. Boudria, President NUI Telecom, Inc. 550 Route 202-206,2nd Floor Bedminster. NJ 0792 1

S.D.P.U.C. TarifSXo. i Original Pagc No. 3 b

.L '? 1 IZe~t~rved far future use.

2 R t Rcscr~~cd for future use.

4 S~ecciol Promot~onal Offering

-; Q 3 'Phc Company may from trlne to t~me engage in Specral Promat~onal Offerings or I n d licrtrrcc Ofienngs llrnlted to certain dates. ttmes or locat~ons desiped to attract nett %uZzscnbers or mcrcase subscriber usage when approved by Coin~~l~sston. Cornpan;? v. ti! rwr Irmr special pronlotional offenngs for more than 90 days in any 12 mont'n perxcrd. In 311

q-uch cases, the rates charged will not exceed those specified m Sectron 4 hereof.

I 0. !&yrf.renc\l Calls

4 I l l . I . Customer shall configure its PBX or other switch vehicle from \srh~ch a ctlslolxev place; a call so that 91 1 emergency calls, where available. and similar emergency calls wifl bi: sutsmatically routed to the emergency answering point for the geogaphrca'r Iocarrort x\ilerr the call originated without the ~ntervention of Company.

Issued by: Richard M. Boudria, President NU1 Telecom, Inc. 550 Route 202-256,2nd Floor Bedminster, NJ 0792 1

"sag I"%::.:bat t*oll.'BiT (PiiC. S.D.P.U.C. T a r ~ f % N o 1 Original Page No 3'1

q 1 r , 1 ~ ~ n ~ l m r i ~ Use Sel-vrce Charge

4 "r 1 ~3 Payphone Use Serv~ce Charge appl~es to each completed interLAT.4 and ti~ir:il-.'i 1 ,I non-scnt paid message made over a pay phone owned by a utrlrty or Customer Ov.ncJ Pay 'Tc\sphone (COPT) Service. This rncludes calling card servrce, collect ~3115. calls billed to i k third number. completed calls to Directory Assrstance and Prepald Card Sewtce calls. rhrs charge 1s collected on behalf of the pay phone owner. All Customers nt1I pay rhc C'crn~pany a per call serv~ce charge of $0.30.

6 f 2 1. Scrv~ces provided pursuant to this tariff are subject to an undrscou~~tahlc rnnn~hly I_'rsite:?\;tl C'onnectrv~t?; Charge. This n~onthly service charge IS equal to I O.OO,/O of .tt~e Cusic~~r-iur's !~jrsl net ~ntrastate, interstate and ~ntmational charges. aftsr applrcation of titi appiicahtc discounts and cred~ts.

4 12.1.A. 71ie Company ulill waive the Un1\7ersal Connecttvrty Chltrgc ulrtP1 rerilylcct, to sprcl ficaily identr fied Cornpa~~y charges to 111c cxte171 t11ii1 thc ( t~%tu!~ticr

demonstrates to the Company's reasonablc sat~sfact~on that,

1. the Customer has filed a Universal Service Worksheet tt-rth tiic Universal Service Administrator covering the ~XVC! frh tnonih, pr;rlr to the month for which the Custon~er sccks the watt1er;

2. the charges w ~ t h respect to which the walvcr is sct~,rglzt ;ire fi,tb

services purchased by Customer for rcsale: and

3. the Customer will file a Uni\.ersal Serv~cc 15'ork~irncet tvxtir :fit Universal Service Admin~strator m which trhe reporlcci Brlicr; revenues wlll rnclude all billed revcnues associated w t f ~ I?'IL-

Customer's resale of seiwces purchased frtlrn the Ct~rnp;trry

3.12.1.B. The Un~versal Connectrv:ty Charge wrll no{ be tvalvcd wtth T~?~~XLC"C!&F

1. charges for services purchased by the Customcr thr 1% own uaiz ;i-t

an end user; or

2 , charges for which the b111 date is on. prior ta. ctr wrtiltnr r'ittocrn -.

after, the date on whlch the Customer appllcs ibr a tb%atir*:. H . I , ! L ~ respect to those charges.

Issued by: Richard M. Boudria, I-'resrdent NUT Telecom, Inc. 550 Route 202-206,2nd Floor - . - . - - - - .

South Dakota Public Utilities Commissiarr

WEEKLY FILINGS For the Period of December %3,2OQ? through December 19,2001

iif you vlsfsd a carnplete copy of a filing faxed, overnight expressed, or mailed to you, piaxso cr;rrtf&c$ Dalaina Kaibo within five business days of :his filing. Phone: 605-773-3703 Fax:

605-773-3809

CONSUMER COMPUfMTS

C'FQP 439 In the Matter of the Complaint filed by Donald R. Carstansen, Owanka, South Dakota, against Direct One Com.tong Distance Regarding UrraulFaorP~ed Taiecommunicatie~ns Charges and Services.

Gaf~plsrnant alleges that he was billed on his credit card for unauthor~zed long dntanf2 5r;rvrccs Tpc %cmpany has failed to provide hrm credits for the unauthorized charges. Complarnant rs rE+~E!st.t!Z; 4 cx:+:Trpfo!a refund cf unauthor~red charges in the amount of 5240 26 and S5Ctf3 00 for Ika t f ;cc~v~::+~f~: ;;t*

aria b r r$nonng h ~ s requests to refund the charges for services that were not want& ~:OP ~cqr;~aie.S:

Stag Anaiyst: Charlene Lund $:;$if Attar.n@y Kelly Frazier Dafe Docketed 1211 3/01 inte?d~ntier; Deadl~ne: NIA

CT4"fOBQ In the Matter of the C~rnpiaint fiied by Don 8. Larseru, Slsliaiitrpn, S@eslhl Dwkesia, against AT&T Communications of the Midwest, Inc, Ragarding D~tay9td ScmEaao,

Ckrnpiamant states that on October 27, 2001, he made arrangements to have tlcs 80@& v~ngfst!ea fPi;*T:

?'tts business In Canada to his business in South Dakotz effectwe November 2 , 2001 t>or;.:pi~ky~.a~; ?;z:~~Bs ! ? a t although th~s transfer did take place, it lasted for only a cauple of days Carlers b e g s ~ reccnliiqg a ~ocord~ng slating that the number had been disconnected. Complainani made sev9rar csks ta R i a ?:: c=.r:~rrecj the situation with no success. Finally on December 4 2001, Campfainant's 96;iQ* b q a r ;y3tkr";? ?re$ business. Because of the 800# not work~ng, Complainant states that h e has drasi575,SOG OG rr i

slistness. Compla~nant feels that AT&T knows that they are at fau!t as they 6:d not t;eixi grsaer' d~c~rn~,nt; l t ion to h ~ s provider In Canada to make the BOW switch Campfarna~; wdnts FFT&T ;Q sy3k:i n:?: a reasonable offer to offset the loss in business.

SSafr" Analyst Mary Healy %&fS Attorney Karen Creamer Bate iaacketed: 'I 21 1910 1 !nrantent!on Deadline: NIA

CT@Y 4 6 4 In the Matter of the Complaint Filed by Todd Wagner, St. L~wr~r , ce , %nut@ B.;sb:al:;i, against AT&% Communications of the Midwest, Inc. Regarcling &Xnatt%hsrfx~ed 6liitng for Services.

Comple~nant states that since he began his service, that he has never at:thart;r,ed kP&W kt: ~ : " r !+:. I:'-; aewrces. Complainant requests that the Public Utilities Commission review t r a ca~gizt;ite ant: 2sga i : . *-R-

af his rights Under South Dakota law 49-31-93, the company that rnblt~ites the tirai':*:tx~zt:,'t% :F ti-3 f*- + , pr.raducks and services shall pay the consumer $1,000.00

S;aiLf Analyst: Mary Heaiy Saff Aaarney Karen Cremer Date Docketed. 1211 910'1 !nt@a*s;ntrian Deadline: NlA

E ~ R I . ~ . LENNON, CROCKER & BARTOSIEIVICZ, P.L.C. A T T O R N E Y S A T L A W

900 COhlEll1~A B\Jll.Dl>G KA1,AMAZOO. MIC'HIGAN 490074752

TELEPHONE (616) 381-8844 FAX 1616) 349-8525

14l)ttE. fY.T M. TA\'l.ON RCIS H KlllIrIRFA. F k l l l l l h D T I I N K E N %%llttE\X .I. VORRIlICH lTBF4' It. (-IIDNEY ~PlJ.l.t.\hi 1%. .IOIIXSON ST RVFR P I BNOWh 1<1t19 rkw I, 1;ETTING

kYii1i;rdrr;a Bt~tt;zrsf, Jr, k: 7 i ~ i , ~ t t ~ ~ i : 13irecfclr ,";;~.snf4x IPako2,2a Pt~blic Utilities Cornmission Mi$!! c+ c'ik~31tx21 Bui ltli11g PIHI i:siif Cnpitnl Avenue !'!ef'p;e, S~ltjfh Dakota 57501 -5070

Etc: NUT TELECQM, INC. TCO1-193

March 5,2002

1 ~ 1 ~CSPIIIXSC 10 c~rrcspondence dated February 2 1,2002 from staff imemhcr. Liciilivr K I;omc,k. rr+g,rr& i i.: $11er.~uss illm NU1 obtain and provide the Commission with a $25,000 bond. v+c iespsr?firll> n ' q ~ i ; ~ ! rl:.i?

thi: rrpr.r.2mrssion waive the bond requirement. As stated in the Co~?pauy's SDPtjC 'Tar:4'r'N43 'a. tY;tsc Xi ,l isp $cclrot~ 2.8.7, attached hereto as Attachment 1, the "Campany wiif not W ~ L J ~ F C ticpcw!* k,r( * ! i i ~ i ~ : i ; .

py%e~trs by C~storllet-s fOr Services."

.%!so cf~~losecl is an exact duplicate of this filing. Please date-stomp thc clrtpticakc and r~:%rkrrt ::;tillrq i ~ 7 st ! r:.

itii the ettciased postage pre-paid, addressed envelope.

nceming this filing, please ccll~tact ixc

& BARTOSIEWTCZ. P.L.C.

ATTACHMENT l

2 8.J l i t deternitnrng whether a Customer presents an u r ~ d u ~ : risk r1frtai1jr3:~trari-i:. :2rc t t+::lu-i!;r

shall consider the follow~ng factors: ( A ) the C'uskornrr'5 png t;rcttr ia~-i;-sr-jr i F $ ,I~z!= I it, $ 4 1 " : i : i

Company and ~ t s affil~atcs, ( B ) C'ustonicr's abillty tocicmonstratr a~?c~~tt~tz;i,!~s$ri= . e ~ l - ~ ~ : r ti*:

thc Service, (C) credit and related ~nforn~ation pro% idcd hy C'ltstiru:~~', ?;tvbis:Elj ~I!~?,;: : :~~~

j:'0171 tl111-d panics or publicly ava~lablc, and (Tr) ir.iibn~t;izirrn ~~Ia tr~ : ; ; tip 5 t ;%i t t t . ib -

nqnnagenieni, owners and affiliates ( ~ f any j.

2 3 . 4 Dispiites w ~ t h respect to charges must be prcsentrd Ir> rht: ('rtarjpaa~y i+:j;ri~,: **:, i , i j ~ > ; i b r i -

days from the date the lnvolce is rendercd or s~lcfi tnvtllce w i i I bc f f i ' c~ t ;~~? ;tr 3;" v 3 i ~ * " : : .t::.*

l~nding on the Customer.

2.5.5. If'a 1-EC has established or establishes a SpcciaI ;ZCCC:C"",F stfrc'f2;1rgi . i h ~ Q t'tSiF?iS-:Eb :butt ' 5 r i F - *

thc surcharge beginning on the cffect~vc date of sucll iusc:h;tr.t!p: i t i t I " i j t i : i t~ ! BL cr nirangements presently in Service. The Company rvilf etast: kriErar;g rlts %pet-:-& /k--, - . surcharge upon recerpt of an Exemption C'ert~ficatr: or if rh: sc~rclian!*i;,. z., IC??:L>~. , -? : \ ,

LEC.

2 3 . . Iii the evcnt the C'onipany Incurs fees or expenses, inctud:ng ~ l f t t ~ r r ~ ' i ~ ; ' ~ = k;~- ;;I vb i:-'l: G

or attempt~ng to collect. any charges uxted the C'on~patly, fhc L ~bitiar~trt ib hi.! k:r I''i+i-;r, ei *

Coii~pany for the payrnent of all such fees and c?tpaw% reasnr;;rhi; en; ur7srgi

2 7 . C'ompany will not require depos~ts or advance payrzrcn~5 $738 I'rs.i?tfrnrrq Bsr: 4<.^1k,ii,

2 . 9 . 'Fhe obl~garions set fort11 in th!s Tariff shall he binding t t l ' c t ~ k ;i:a-r! t-ri+t~;* ti': iei, &, ri~:t:- a c k '-,=

parties hereto and their respective succcssors trr asslgfki, jare+:dv$- $ ? W V ~ T ~ C ; , the i ii;l:'ct,~ ;

shall not assign or transfer 11s r~ghts or ob!rgatranb w~thelu~ thz4 prr?crr utiBtctr .~&lb'++t.*!+? i.: :!+Y

Company.

2. .! 0. Tax and Fee Adiusm~ents

b . 7.10 1 . All state and local taxes (1.e.. gross rcceipt,s tax, sales :ax, ?r%t.t~a:i'~/l.z i i i r i t t : i i r . r. ,r ; .:, . , p r

as separate line items and are not 1nc1udc.d In thc clt:r~ic$ riktcr

1.10.2. If at any futt~se time a munic~pality acctuircs tllc tcgzi rrght ~ 1 3 ~aqffpli.~ .in CP% ;.jii, lsi - : : i ~ % i i * - -%, * g T " ,J?'&~,: L9-1 :;,, 7 $ a l~cense tax, permit fee, franchise fee or orfier hrrnllnr ciuirgc ttpg211 ihc 4

the same by ordinance or othenvlse. such rase+, ke .5 ar t.har..,.r- ik1811 $ 3 ~ P%rii:ci4 5 ~ : i e - : ;:-*

users receiving servicc within the Icnl1orr:ii Ikn:lli ai'sr*rIr fflrl~:k:lls.t!d:t~ * x C + F * : - I : - , *>> . , allocate the tax, fee or charge among erld uscrs ~in;rcl~f~tl) erR ~ht: i L t b s r , - tar i a * ~ b .. I :--.I .,I..

monthiy charges for the typcs of servfce rnadc stttqtbcu an ;iiii~ ti^-3. 5 ~ ~ 1 ; a)! ni:%;. -::c

Issued by: Ricliard M. Bondria. I3rcsttStni MJI Telecom. 1 : ~ .

EARLPI. LENNON, CROCKER & BARTOSIEWLCZ, P.L.C. 4 7 T O R F i E Y S A T L A W

900 COMERICA RUII.DING KAI,AMA7,00, MICHIGAN 490074752

TE1,EPKONE (616) 381-lB44 FAX (616) 349-8525

RC.W,RT M. TAYLOR IW?N W. KIWBREL P 'irn711Cli D, tROCKER l>w?x'cu J. VORRRlCGI I%REW R CDDFIEV %'%LislAYl D .IOIINSON S'TTVEFi Sf. BRClWN KRISmY L CETTiNC

March 59, 2002

!Y,'rlHi@.%x Bruliarrt, Jr. E1~eciftive Dircctar Sar~tft Dakota Public Utilities Commission Sratc rl'-'&pitoI Blrildir~g Sqgk E:~sl Capitol Avenue f&t~tr~r:, Sc3rytth Dakota 5750 1-5070

Re: NU1 TELECOM, INC. TC01-193

D a a Mr. Butlard:

Xn acilwdance with the reco~n~~lendatioll in correspondence d a t ~ d krlar~b 6, 20192 fRmt st,& .earerb;h~r . f kiorn2frcr K. Fomey, we hereby respectfully withdraw our request that lflc Cartomi%aisn %.t;ztrre tik: kb&;11t-l

re$j~~iren~ei~t. MS. Forney has advised that the request is unnecessary, ant! that Staffwifi ~~1"&~1ts$fsrs:li,f $btt C"sa~rrrit;gicbn place such language in the final order.

A,hs enclosed is an exact duplicate of this filing. Please date-stamp the duplicriis and r~ia,:l:irzx .-,yt?ti: r ik $PL:B*

r lz t f ' t ~ enclosed postage prepaid, addressed envelope.

SP:oa\tI yaa lmaile any questions concerning this filing, please contacr IXC.

BEFORE THE PUBLIC UTBLlTlES COW&q%SStOM OF THE STATE OF SOUTH DAKOTA

fM THE PdATTER OF THE APPLCCAf16N QF 1 ORDER GRANTING NUt TELEGBM, BNC. FOR A CEWT lFlCATE QF 1 CERTSFjCBTE OF AUTHOWjTY TO PROVIDE INTEREXCHANGE AUTHQWW "SEEECBMMUNICATiOM SERVBCES IN 1 SOUTH DAKOTA 1 TCOI -333

On December 17, 2001, the Public Utilities Cam~itssron (L:~mnrtssr~nj r8r

eccardance with SDCL 49-31-3 and ARSD 20.10:24.C12. recetveb an &pp!!f:azia:~ hf 8 certificate of authority from NU1 Telecorn, Inc. (NUI),

,b--"*rl"Pr73- il-i,i-*" h.4' - NU1 proposes to offer a full range of "I +" rnterexchangs @kc+dTfir +,%#la r t + c 4 q s w ~ : rs services on a resale basls Specifically, NU1 seeks aufhorrty to prsvsbe 8&f S ir.-b*dA $2; out-WATS and Calling Card Services A proposed tariff was s'd~id by MJT T s i c

Commiss~on has classified iong distance service as fufly mmpsttfiif@

On December 20: 2001, the Commissran eteclr~nicalily "Irarssrn&tisb WshrCe k?i

filing and the intervention deadline of January 4, 20S2, to tnter~stgb gnbi.rifJ1.,;2!5 arYG entities No petitions to intervene or comments were ?"r!@ET and st k4acd"s 2% 33C2 tneeting, the Commission considered Nut's request for a C E ~ ~ E ~ ~ G B ~ B b a f 36,~Anarriv Cammission Staff recommended granting a certificate af au%t2k;torttya subj8a 8~ tth@ GGW&!fQi4

that NUl not offer a prepaid calling card or require deposits sr advarhcs paytn6bnt$ @i2!P";~a? prior approval of the Commission.

Q" $;* , , The Commission finds that it has jurisdiction aver this fna:S@r QufSaBr'iiC t t %~53 .! Chapter 49-31, specifically 49-31-3 and ARSD 20.'10:24 02 and 20 tQ 24 Q:% ?t:+ Commission finds that NU1 has met the legal requirements astabrtshad for ",;ct gP&jf\trr%;; .c$ a certificate of authority. Nl l l has, in accordance with %OCL 49-37-3- aat%B:-+atxatsd sufficient technical, financial and managerfa! capabffrtrs ts offer k@i@i:a~!?"nk~~k;f~k~(!~% services in South Dakota The Commiss~an approves NUl's app%te&$gag? far a ce:",r8rt:ggme: c.r; authority, subject to the condition that Nut not affer a prepaeb s~fihls.2 e$?$ n: rd8q:j:ra$

deposits oi- advance payments without prior approval or" the C a r n r n ~ % ~ f t As fw: Commission's final decision in this matter, it ts therefore

ORDERED, that NUl's application for a cart-ificate of autl?orrfy 6s ~p@fgt~j+ 4353s:36;,.53 subject to the condition that NU1 not offer a prepaid attrng tatd ar ,PBf!;drtlik $:$r~3:?i:$ LZ:'

advance payments without prior approval of the Commrsstgm I; a%

>~r,*.f~\ii: - g $ 5"' FURTHER ORDERED, that NU1 shall file infarmattanat rapass af farrf.:l cr.,,, -..+ 7 t v - , *

the Commission as the changes occur.

Dated at Pierre. South Dakota, this qd day of April, 2002.

i$ ?= l i h ~ undersigned hereby certifies that th~s dWatrcrrit t@% &en served today upon all partles of rmwd st the docket, es l~sted on the docket sennce Wt, by f~rst class mail, In properly addressed

(OFFICIAL SEAL) II

BY ORDER OF THE CBMMISSION - rt 1

ROBERT K SRMR. commtssisner