Report for Revised 2008 Summer Period Cost of Gas

Northern Utilities, Inc. New Hampshire Division

Report for Revised 2008 Summer Period Cost of Gas

Effective June 1,2008 DG 08-041

Cost of Gas Rate Change Effective June 1.2008

The May 2008 Cost of Gas ("COG") calculation, which reflects the NYMEX Gas Futures prices of May 21, 2008, indicates an anticipated under-recovery as of October 31, 2008, of $2,129,166 or 11.65% of the total anticipated gas costs for the 2008 Summer COG period. To eliminate the anticipated under-collection, Northern is increasing the Residential classes' COG to $1.3231 per therm, an increase of $0.1916 per therm, effective June 1, 2008. Commercial and industrial customers will experience a comparable increase to their rates. This rate change is reflected on Thirty-seventh Revised Page 38, Thirty-seventh Revised Page 39, Thirty-second Revised Page 94, Thirty-second Revised Page 95, and Thirty-second Revised Page 96.

NORTHERN UTILITIES, INC. NEW HAMPSHIRE DIVISION

Calculation of the Projected Over or Under Collection of the Summer 2008 Period Cost of Gas

DG 08-041 June 2008 (Estimated)

Under/(Over) collection as of 05/01/08 - forecasted (1) $ (95.342)

Forecasted firm them sales 05/1/08 - 10/31/08 14,184,780 Current recover rate per them $ 1.1315

Forecasted recovered costs at current rate 05/1/08 - 10/31/08 $ (16,050,079)

Revised projected direct gas costs 05/1/08 - 10/31/08 (2) $ 18,236,605 Revised projected indirect gas costs 05/1/08 - 10/31/08 (3) $37,982

Projected under/(over) collection as of 1013 1/08 (A) $ 2,129,166

Actual gas costs to date $

Revised projected gas costs 05/1/08- 10/31/08 $ 18,274,587

Estimated total adjusted gas costs 05/1/08 - 10/31/08 (B) $ 18,274,587

Under/(over) collection as percent of total gas costs (AIB) 1 1.65%

Projected under/(over) collection as of 1013 1/08 (A) $ 2,129,166

Estimated firm them sales 06/1/08 - 10/31/08 (C) 11,110,040

Change in rate required to eliminate forecasted under/(over) collection (NC) 3 0.1916

Current cost of gas rate $ 1.1315 Revised cost of gas rate - as calculated I % 1.323 1

(1) includes prior period adjustments

(2) Revised as follows:

-May 21 futures prices for June through October.

(3) includes: Working Capital Allowance, Bad Debt Allowance, Production and Storage Capacity, Miscellaneous Overhead, Refunds and Interest.

(4) The Company may adjust the approved cost of gas rate of $1.1 3 15 upward or downward on a monthly basis, but the cumulative adjustments shall not exceed twenty percent of the approved unit cost of gas. The adjusted cost of gas rate shall not be more than $1.3578 per them or less than $0.9052 per therm (Per Order No. 24,853 dated April 23,2008).

N.H.P.U.C No.10 NORTHERN UTILITIES, INC.

Thirtyseventh Revised Page 38 Superseding Thirty-sixth Revised Page 38

CALCULATION OF COST OF GAS ADJUSTMENT New Hampshire Division

Period Covered: May 1,2008 - October 31 2008 Anticipated Cost of Delivered and Produced Gas

I~roduct : - Commodity I Granite State Supply

Domestic Supply

Storage Withdrawals

Peaking Supply

Hedging (Gain)/Loss

Interruptible Included Above

I~roduct : - Demand I Granite State and Others

Delivered: I

' >

l ~ i ~ e l i n e Reservation. I

' Therms j <

Granite State and Others

Istorage & Peaking Demand .-I:. . . I Tennessee and Others

Capacity Release

TOTAL Anticipated Cost of Gas 14,184,780 $1.2856 f 18,236,605

Issued: May 23,2008 Issued by: Effective Date: June 1,2008 Title: President Authorized by NHPUC Order No. 24,853 In Docket No.DG 08041, dated April 23,2008

N.H.P.U.C No.10 NORTHERN UTILITIES, INC.

Thirty-seventh Revised Page 39 Superseding Thirty-sixth Page 39

Calculation of Anticipated Indirect Cost of Gas-New Hampshire Division

Working Capital Calculation Total Anticipated Direct Cost of Gas-Commodity Total Anticipated Direct Cost of Gas-Demand Interruptible Profits LESS Anticipated Direct Costs assigned to Non-Grandfathered Transportatic ($5,154,055) Total Direct Cost of Gas $1 3.082.550

Total Direct gas Costs Working Capital Percentage (NHPUC No. 10 Section 4.06.1) Working Capital Allowance (NHPUC No. 10 Section 4.06.1) Plus: Working Capital Reconciliation Total Working Capltal Allowance

Bad Debt Calculation Total Anticipated Direct Cost of Gas Plus: Total Working Capital Subtotal

Bad Debt Percentage (NHPUC No. 10 Section 4.06.1) Total Bad Debt Allowance Plus: Bad Debt Reconciliation Total Bad Debt Allowance

Working Capital Allowance Bad Debt Allowance Miscellaneous Overhead-23.157% Allocated to Summer Season Capacity Reserve (Forecasted Transportation Therms ' $0.0055) Production and Storage Capacity Prior Period Underl(0ver) Collection Refunds Interest Total Anticipated Indirect Cost of Gas Total Anticipated Direct Cost of Gas-Commodity Total Anticipated Direct Cost of Gas-Demand Total Anticipated Period Cost of Gas

Forecasted Off-Peak Period Therms-Firm Forecasted Non-Grandfathered Therms Forecasted Therms-Total Forecasted Transportation Therms

Forecasted Summer Season Cost of Gas Rate: COGS-Commodity COGS-Demand COGS-Indirect COGS-Total June 1 Rate Adjustment June 1 Billing Rate

C&l Residential Low Winter High Winter

Minimum $ 0.9052 $0.8914 $0.9458 Maximum $ 1 . 3 ~ 8 $ 1.3372 $1.4186

Issued: May 23,2008 Effective: Wflh Sewice Renked On and AHerJune 1,2008 Authorized by NHPUC Order No. 24,853 In Docket No.DG 08-041, dated April 23,2008

Issued by: Title: President

NHPUC No. 10 -Gas NORTHERN UTILITIES. INC.

Thirty-second Revised Page 94 Superseding Thirty-first Revised Page 94

NORTHERN UTILITIES - NEW HAMPSHIRE DIVISION SUMMER SEASON RESIDENTIAL RATES

Summer Season May 2008 -October 2008

Residential Heating Tariff Rate R 5: Monthly Customer Charge

First 50 therms All usage over 50 therms

LD AC Gas Cost Adjustment:

Cost of Gas

Tariff Rates

$9.50 $0.4102 $0.2990

$0.0194

$1.3231

$3.80 $ 1 .SO66 $ 1.4621

Residential Heating Low Income Tariff Rate R 10: Monthly Customer Charge

First 50 therms . . All usage over 50 therms

LD AC Gas Cost Adiustment:

Cost of Gas

Residential Non-Heating Tariff Rate R 6: Bimonthly Customer Charge


Monthly Customer Charge First 10 therms All usage over 10 therms

LDAC Gas Cost Adiustment:

Cost of Gas

Issued: May 23,2008 Issued by: Effective: With Sewice Rendered On and After June 1,2008 Title: President Authorized by NHPUC Order No. 24,853 In Docket No. DG 08-041. dated April 23.2008

Residential Non-Heating Low Income Tariff Rate R 11: Bimonthly Customer Charge

First 20 therms All usage over 20 therrns



Cost of Gas

Total Delivery Rates

(Includes LDAC)

$ 9.50 $0.4296 $0.3184

$3.80 $0.1641 $0.1196

$0.0194

$1.3231

$19.00 $0.4067 $0.3082

$9.50 $0.4067 $0.3082

$0.0194

$1.3231

Total Billed Rates Tariff Rates, LDAC Plus Cost of Gas

$9.50 $1.7527 $1 541 5

$ 3.80 $0.1835 $0.1390

$1 3.80 $0.3084 $0.2335

$6.90 $0.3084 $0.2335

$0.0194

$1.3231

$19.00 $ 0.4261 $0.3276

$9.50 $ 0.4261 $0.3276

$ 19.00 $1.7492 $1.6507

$9.50 $1.7492 $1.6507

$13.80 $0.3278 $0.2529

$6.90 $0.3278 $0.2529

$13.80 $1.6509 $1.5760

$6.90 . $1.6509

$1.5760

NHPUC No. 10 -Gas NORTHERN UTILITIES, INC.


NORTHERN UTILITIES - NEW HAMPSHIRE DIVISION SUMMER SEASON C&I RATES

Summer Season May 2008 -October 2008

C&l Low AnnuallHigh Winter Tariff Rate G 40: Monthly Customer Charge



Cost of Gas

C&l Low AnnuallLow Winter Tariff Rate G 50: Monthly Customer Charge

First 75 therms Ail usage over 75 therms


Cost of Gas

Tariff Rates

$18.70 $0.3077 $0.2007

$0.0138

$1.3738

C&i Medium AnnualIHigh Winter Tariff Rate G 41: Monthly Customer Charge

All usage (Summer) LDAC Gas Cost Adiustment:

Cost of Gas

$18.70 $0.301 8 $0.1969

$0.0138

$1.3059

C&i Medium AnnuallLow W~nter Tariff Rate G 51: Monthly Customer Charge



Cost of Gas


(Includes LDAC)

$18.70 $0.3215 $0.2145

C&l High AnnuallHigh Winter Tariff Rate G 42: Monthly Customer Charge

All usage (Summer) LDAC Gas Cost Adiustment:

Cost of Gas

Issued: May 23,2008 Issued by:

Effective: With Service Rendered On and After June 1,2008 Title: Authorized by NHPUC Order No. 24,853 in Docket No. DG 08-041, dated April 23,2008

Total Billed Rates Tariff Rates, LDAC Plus Cost of Gas

$18.70 $1.6953 $1.5883

$1 8.70 $0.3156 $ 0.2107

$60.30

$1 .SO00

$60.30

$0.1124 $0.0138

$1.3738

$60.30 $0.1112 $0.0780

$ 0.01 38

$1.3059

C&l High AnnuallLow Winter Tariff Rate G 52: Monthly Customer Charge

All usage (Summer) LDAC Gas Cost Adjustment:

Cost of Gas

President

$ 18.70 $1.621 5 $1.51 66

$60.30

$0.1262

$254.00

$0.0964 $ 0.0138

$1.3738

$60.30 $0.1250 $0.0918

$254.00

$0.0653 $0.0138

$1.3059

$60.30 $1.4309 $1.3977

$254.00

$0.1102

$254.00

$1 A840

$254.00

$0.0791

$254.00

$1.3850

NHPUC No. 10 - Gas NORTHERN UTILITIES, INC.


NORTHERN UTILITIES - NEW HAMPSHIRE DIVISION SUMMER SEASON DELIVERY RATES

Summer Season May 2008 - October 2008

C&l Low AnnuallHigh Winter Tariff Rate T 40: Monthly Customer Charge

First 75 therms All usage over 75 thems

(Capacity exempt Customers Only) Capacity Reserve Charge LDAC

Issued: May 23,2008 Issued by: Effective: With Service Rendered On and After June 1,2008 Title: President Authorized by NHPUC Order No. 24,853 in Dock& No. DG 08-041, dated April 23,2008

C&l Low AnnualILow Winter Tariff Rate T 50: Monthly Customer Charge



C&l Medium AnnualIHigh Winter Tariff Rate T 41: Monthly Customer Charge

All usage (Summer) (Capacity exempt Customers Only) Capacity Reserve Charge

LDAC C&I Medium AnnuallLow Winter Tariff Rate T 51:



C&l High AnnualIHigh Winter Tariff Rate T 42: Monthly Customer Charge


LDAC C&l High AnnuallLow Winter Tariff Rate T 52:

Monthly Customer Charge


LDAC C&l Interruptible Transportation Tariff Rate IT:

Monthly Customer Charge First 20.000 therms All usage over 20,000 therms

Tariff Rates

$18.70 $0.3077 $0.2007 $0.0055

$0.0138


(Includes LDAC)

$18.70 $0.3215 $0.2145

$18.70 $0.3018 $0.1969 $0.0055

$0.0138

$60.30

$0.1124 $0.0055

$0.0138

$60.30 $0.11 12 $0.0780 $0.0055

$0.0138

$254.00

$0.0964 $0.0055

$0.0138

$254.00

$0.0653 $0.0055

$0.0138

$170.21 $0.0407 $0.0347

$18.70 $0.3156 $0.2107

$60.30

$0.1262

$60.30 $0.1250 $0.0918

$254.00

$0.1102

ir

$254.00

$0.0791

$170.21 $0.0407 $0.0347

Northern UUlnleS - NEW HAMPSHIRE DIVISION

Summaw of Demand and Suoolv Forecast I 2 1. Gas Volurma 3 A. Flnn Demand Volumes (Therms) 4 Firm Gas Sales 5 Losl Gas (Unaomunled For) 6 Company Use 7 lnlermptible 8 Non-Grandfathered TranspM(aliin 9 Unbilled Therms 10 Total Firm Demand Volumes 11 12 8. Supply Volumes (Net Therms) 13 Plpellln Gas: 14 GSGT PNGTS Deliveries 15 GSGT TGP Niagra 16 GSGT TGP Niagra via Chicago I7 AGT FT Deliveries via Chicago 18 AGT FT Deliveries 19 TGP Gulf Coasl 20 Tennessee @ Draart 21 Hubline 22 Sublolal Pipeline Volumes 23 Slorage 24 TGP FS Slg 25 TETCO Slg (SS1. FSS) 26 MCN Slg 27 Olher 28 Other 29 Ocher 30 Olher 31 Sublolal Storage Volumes 32 Peaklng 33 Dornac 34 LNG (indudes boiloft) 35 Propane 36 Duke 37 Other 38 Other 39 Subtotal Peaking Volumes 40 41 Total Flrm SaleslSendoul Volumes 42 43 11. Gas Costs 44 A. Demand Costs 45 PlpellnelSupply Related Demand Costs 46 Gran~te 47 PNGTS 48 Algonquin 49 lrcqUOiS

50 Tennessee 51 Texas Eastern 52 Trans Canada 53 Transco 54 Vedor 55 Union 56 B 57 C 58 Omer 59 TCPL 60 Sublotal Pipeline Demand Coals 61 62 Storage 63 TGP FS Slg 64 TETCO Slg (SSI. FSS) 65 Granite Slg €6 Other 67 Other 68 Other 69 Sublolal Storage Demand Costs 70 71 Peaking 72 B 73 C 74 A 75 Other 76 Other 77 Sublolal Peaking Demand Costs 78 Capacity Release 79 OW System Credlls 80 81 Total Demand Costs 82 83 8. Supply Commodity Corls 84 NH Allocetlon Fadon 85 Pimline Purchases 86 GSGT PNGTS Deliveries 87 GSGT TGP Niagra

Northern UUlltiar -NEW HAMPSHIRE DMSION

Summarv of Parnand and Su~olv Forecast 8B GSGT TGP Niaga via Chicago 89 AGT FT Deliveriff via Chicaoo 90 AGT FT Deliveriff 91 TGP Gulf Coast 92 Tenmassee @ Dmmi 93 Hubline 94 Tolal Pipeline Purchase Sf 95

Storage Withdraw* TGP FS Sla TETCO SI~(SS~. FSS) MCN Stg Other Other

Total Slorage Withdrawal Sf

Peaking Domac LNG Propane Duke Other Olher

Tolal Peaking SS

lntermptible lnduded above

Hedging (Gain)Ross

Total Commodity Costs

Tolal Dlred Cwts

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NORTHERN UTILITIES DETERMINATION OF INVENTORY FINANCING FROM MONEY POOL

January XX)6 $24.086.979.18 February 118.828.997.42 March $18.840.802.10 April $16.520.492.98 May S20.108.871.55 June $23.085.518.85 July $25.882.456.38 Awusl S29.204.580.62 . . ~ei lember $32;431.230.38 30.817.905.50 October $34.408.830.82 33.420.03O.W November 132.210.878.49 33,309.854.66 December S28.048.151.70 30.129.515.10 January 2007 $22,795.293.76 25.422.222.73 Februaw 516.695.984.32 19.746.139.04 M a M April May June July August Seplember October November December January February March April

$1 1.390.179.94 $13.456.800.22 $15.879.186.84 S18.287.500.27 $20.543.318.48 $22,513.231.65 S24.314.936.95 S26.146.W.97 521.584.648.61 114.756.722.42 $8.436.498.94 13.215.255.77

5301.655.73 $5.583.935.58

PROPANE l n m l w y - Llqvid P-ne l m a l w y - LLqud P-ns LNG InVUllW. LW6Cd NPWRI Gas NATURAL GAS

5151146115 NabnalGas Un6mgnnnd- SSl sndFSSl 515116 N W G a l U n ~ m u n d - SSNE 515113 N a t d Gas Underpround - MCN 518525 Warhinglan 10 pspaid

Money Pool Financed by Ava Flnanced lnlernalty lnlemsl lfneresl lo ~ V O f bywh FlnaMed Rale Defer NH ME

Documents

Report for Revised 2008 Summer Period Cost of Gas