CENTRA GAS MANITOBA INC FIXED-RATE PRIMARY GAS SERVICE RESPONSE TO INFORMATION REQUESTS OF THE PUBLIC UTILITIES BOARD OF MANITOBA

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1 CENTRA GAS MANITOBA INC. October, 00 Page of 00 FIXED-RATE PRIMARY GAS SERVICE RESPONSE TO INFORMATION REQUESTS OF THE PUBLIC UTILITIES BOARD OF MANITOBA PUB/CENTRA Reference: General Please indicate any reservations Centra has with the Board making use of Centra s evidence in the 00/0 and 00/0 GRA and Competitive Landscape Hearings, if the Board bears in mind some data were filed as forecast or estimated and not actual. 0 Centra filed evidence in the course of its 00/0 and 00/0 GRA in support of its request for, among other things, new distribution rates to go into effect on May, 00 and May, 00. Centra also participated along with other interested stakeholders in the PUB s Competitive Landscape Hearing which resulted in the issuing of Order 0/0. Centra s current application is in support of its request for the provision of Fixed-Rate Primary Gas Service. In the interests of managing the scope of the current hearing process for the Fixed-Rate Primary Gas Service, Centra is concerned about generally reopening matters that were previously dealt with by the PUB. To the extent that the PUB or interveners seek specific information and evidence that was dealt with in previous hearings, Centra expects that those requests would be made in the next round of information requests.

2 CENTRA GAS MANITOBA INC. October, 00 Page of 00 FIXED-RATE PRIMARY GAS SERVICE RESPONSE TO INFORMATION REQUESTS OF THE PUBLIC UTILITIES BOARD OF MANITOBA PUB/CENTRA Reference: General (a) Please state and describe the legal authority for Centra to set rates without specific PUB approval. 0 Centra will seek PUB approval of a formula by which rates are determined. The variables of the formula are defined, as follows: () Forward price available as a financial hedge; () Risk premium in the range of % to %; and () Program costs as approved by the PUB and updated from time to time. As noted in the response to Additional Information Question, Section of the PUB Act is permissive, and provides that the Board may fix just and reasonable individual rates, joint rates, tolls, charges or schedules thereof. It also provides that the PUB may fix just and reasonable practices to be observed and followed. Section () is directory and requires that the PUB shall determine rates, tolls or other charges to be charged and shall determine rate base and rate of return on shareholder equity. Rate is not defined in the PUB Act, and as such, there is no prohibition to establish a rate by formula. 0 It is significant to note that section () of the PUB Act contemplates contractual rates, and contemplates a rate, toll or charge established by contract and agreed upon as either

3 PUB/CENTRA October, Fixed-Rate Primary Gas Service Page of a fixed or variable rate, toll or charge, or a maximum or minimum rate, toll or charge and contemplates the present or future supply of an existing or non-existing commodity or service. These broad definitions support the flexibility afforded to utilities and their customers in entering into contracts for commodities and services. Given the ability to contract on the basis of variable prices, or maximum or minimum prices, and the requirement that rates be approved by the PUB, it follows that rates must be construed broadly in order to avoid any internal inconsistency within the Act 0 The PUB may also wish to give consideration to section. () as an alternative, which provides that the PUB may refrain from exercising its power where it finds as a question of fact that there is competition sufficient to preserve the public interest. It is certainly open to the PUB to establish the practice to be followed in setting rates (section ) for fixed-rate contracts by approving the formula as applied for by Centra, and thereafter to refrain from setting individual rates for each service offering made by the utility on the strength of this section. (b) Please comment on whether a process similar to Manitoba Hydro s weekly setting of surplus energy rates is an option that would allow the PUB to set the rates. 0 Centra notes that it is not necessary for the PUB to engage in a process similar to the weekly setting of surplus energy rates because the legislative requirement of the PUB is different under the Crown Corporations Public Review and Accountability Act. In that Act, rate is defined as the price for power. If the PUB were to determine that it is not prepared to grant approval of a formula for the establishing of rates, an interim ex parte process which would result in a rate order on the

4 PUB/CENTRA October, Fixed-Rate Primary Gas Service Page of same day as the application were made may be acceptable. However, it should be noted that in order to advance such an application, Centra will have entered into financial hedge transactions which will commit the company to the purchase of a specified volume of gas at the agreed upon price. If the PUB were to subsequently decline to approve the resulting rate, this would have potentially negative impacts on Centra s net income.

5 CENTRA GAS MANITOBA INC. October, 00 Page of 00 FIXED-RATE PRIMARY GAS SERVICE RESPONSE TO INFORMATION REQUESTS OF THE PUBLIC UTILITIES BOARD OF MANITOBA PUB/CENTRA Reference: General 0 Please file the marketer offerings that were available to residential customers at the start of the 00 Competitive Landscape hearing, and the list of marketer offerings that are currently available, including the prices and durations. The Marketer offerings that were available to residential customers in May 00 were obtained directly from the respective Marketers at that time. Offerings available to customers in September 00 were retrieved from the respective independent Marketers public websites. 0

6 PUB/CENTRA October, Fixed-Rate Primary Gas Service Page of Marketer Product Offerings - May 00 -year Flat Rate: $0./m Direct Energy Manitoba Limited Energy Savings Manitoba Corp. -year declining by $0.0/year: $0. -year Seasonal Flat Rate: Summer Months (May-Oct) $0./m Winter Months (Nov-Apr) $0./m -year Flat Rate: $0./m -year Flat Rate: $0./m -year Flat Rate: $0./m Marketer Product Offerings - September 00 -year Flat Rate: $0./m Direct Energy Manitoba Limited -year Flat Rate: $0.0/m -year Flat Rate: $0./m Energy Savings Manitoba Corp. -year Carbon Neutral Flat Rate: $0./m -year Flat Rate: $0./m -year Flat Rate: $0./m

7 CENTRA GAS MANITOBA INC. October, 00 Page of 00 FIXED-RATE PRIMARY GAS SERVICE RESPONSE TO INFORMATION REQUESTS OF THE PUBLIC UTILITIES BOARD OF MANITOBA PUB/CENTRA Reference: General (a) Please explain why fixed price offerings are not being offered to larger volume customers at this time. Please refer to the response to PUB Additional Question. 0 (b) What are the additional challenges or concerns with offering fixed price offerings to the larger volume customers? Please refer to the response to PUB Additional Question. (c) When does Centra intend on offering fixed price offerings to larger volume customers? No specific date has been established at this time.

8 CENTRA GAS MANITOBA INC. October, 00 Page of 00 FIXED-RATE PRIMARY GAS SERVICE RESPONSE TO INFORMATION REQUESTS OF THE PUBLIC UTILITIES BOARD OF MANITOBA PUB/CENTRA Reference: Tab p. Nexen Contract (a) Please re-file the Nexen contract summary as originally filed in the 00/0 and 00/0 GRA as Tab Attachment. Please see the attached Nexen Marketing ( Nexen ) contract summary as originally filed in the 00/0 and 00/0 GRA as Tab Attachment. 0 (b) Will Nexen remain the physical supplier of gas for Centra s fixed price offerings customers? Yes, at least for the term of Centra s contract with Nexen to October, 00. (c) If not, please explain the new physical supply arrangements that Centra contemplates. Please see the response to Information Request PUB/Centra (a). 0

9 PUB/CENTRA October, Fixed-Rate Primary Gas Service Page of (d) Please confirm whether Centra is able to source physical supply for fixed price offering customers from sources other than through the existing Nexen primary gas supply contract. No, there is an exclusivity clause in Centra s supply contract with Nexen regarding Centra s system supply. The contract language reads as follows: 0... Centra agrees to exclusively purchase from Nexen all quantities of gas from the Western Canadian Sedimentary Basin it requires to meet its System Gas Requirements, which are defined as Centra s in-franchise gas requirements, less its Direct Purchase Supply requirements, as delivered at Empress. (e) Please detail the advantages and disadvantages of Centra sourcing physical supply for fixed price offering customers from sources other than Nexen. 0 Centra has not identified any advantages to sourcing physical supply for Fixed-Rate Primary Gas offerings from sources other than Nexen. In addition to the aforementioned exclusivity clause in Centra s current supply contract with Nexen, Centra also notes that there are disadvantages to sourcing physical supply for Fixed-Rate Primary Gas offerings from sources other than Nexen including an increase in operational complexity and the associated potential increase in operating cost and risk without a corresponding increase in customer value. Some examples of increases in operational complexity and risk include the following: significant increases to the number of individual underlying physical gas supply contracts required to support Fixed-Rate Primary Gas offerings; material increases in the complexity and cost associated with physical gas supply accounting and cost allocation activities; the potential need to prepare and maintain many separate individual

10 PUB/CENTRA October, Fixed-Rate Primary Gas Service Page of purchased gas cost budgets; having to segregate and separately schedule and nominate gas for Centra s system supply customers (i.e., default offering and fixed-price offerings) on the basis of different rate offerings and contract terms; requirements for Centra to fund third party audits of fixed-rate customer consumption and physical supply management activities, as would be required by suppliers under embedded fixed-price/fixedterm/variable volume physical supply arrangements. (f) Please confirm whether Nexen will sell the same volumes to Centra for the same price regardless of Centra s fixed price offering arrangements 0 Confirmed. There will be no change to Centra's physical supply arrangements at least until the expiry of Centra s contract with Nexen on October, 00. Price risk for Fixed-Rate Primary Gas offerings will be managed by way of financial hedges.

11 Centra Gas Manitoba Inc. PUB/CENTRA (a) Fixed-Rate Primary Gas Service Attachment Nexen Contract October, 00

12 Centra Gas Manitoba Inc. PUB/CENTRA (a) Fixed-Rate Primary Gas Service Attachment Nexen Contract October, 00

13 Centra Gas Manitoba Inc. PUB/CENTRA (a) Fixed-Rate Primary Gas Service Attachment Nexen Contract October, 00

14 Centra Gas Manitoba Inc. PUB/CENTRA (a) Fixed-Rate Primary Gas Service Attachment Nexen Contract October, 00

15 CENTRA GAS MANITOBA INC. October, 00 Page of 00 FIXED-RATE PRIMARY GAS SERVICE RESPONSE TO INFORMATION REQUESTS OF THE PUBLIC UTILITIES BOARD OF MANITOBA PUB/CENTRA Reference: Tab p. Supply, Storage, Transportation Contacts Centra s primary gas supply contract will expire in October 00, transportation contracts will expire at various times in the coming years, and the Michigan storage contracts will expire in 0, which are all prior to the expiration of any year fixed price offerings Centra may enter. 0 (a) How does Centra envision future gas supply and storage contracts affecting the fixed price offering program? Centra has commenced its supply re-contracting process to ensure that it has a supply contract in place in advance of the expiry of its current supply contract with Nexen on October, 00. There are a number of key steps that Centra has yet to take, however, to be in a position to respond to this question definitively (e.g., a stakeholder consultation meeting is tentatively scheduled to take place on Centra s supply re-contracting process on November, 00). However, Centra is confident that its Fixed-Rate Primary Gas offerings can be managed within the context of any changes to Centra s future gas supply, transportation and storage contracts. 0

16 PUB/CENTRA October, Fixed-Rate Primary Gas Service Page of (b) Will any limitations be placed on renewing or entering new contracts for supply, storage, and transportation by Centra s fixed price offering obligations? Centra s Fixed-Rate Primary Gas offerings will make Centra s portfolio of financial hedges somewhat more complex simply by virtue of the increased number of instruments; however, this change is inherent in bringing Fixed-Rate Primary Gas offerings to market. There will be few (if any) limitations placed on Centra s contracts for supply, storage and transportation, as a result of its Fixed-Rate Primary Gas offerings, that cannot be managed.

17 CENTRA GAS MANITOBA INC. October, 00 Page of 00 FIXED-RATE PRIMARY GAS SERVICE RESPONSE TO INFORMATION REQUESTS OF THE PUBLIC UTILITIES BOARD OF MANITOBA PUB/CENTRA Reference: Tab p. Operational Disruptions Please elaborate on what operational disruptions Centra envisages or seeks to avoid when acquiring Primary Gas or securing the price for fixed price offering customers. 0 Centra is referring to the avoidance, where possible, of incremental increases in operational complexity and the associated operating cost and risk which offers no corresponding increase in customer value. Please see the response to PUB/Centra (e) for some examples of increases in operational complexity and risk which were considered in evaluating alternative methods of offering Fixed-Rate Primary Gas products.

18 CENTRA GAS MANITOBA INC. October, 00 Page of 00 FIXED-RATE PRIMARY GAS SERVICE RESPONSE TO INFORMATION REQUESTS OF THE PUBLIC UTILITIES BOARD OF MANITOBA PUB/CENTRA Reference: 00/0 GRA PUB/Centra (a) Please update and re-file PUB/Centra from the latest GRA which shows customer numbers, volumes, and average use by class and service. Please include forecast information for future years if available. Please refer to the schedules provided in the attachment. 0 (b) Please provide the forecast volumes for the coldest winter on record and the warmest winter on record by customer class and service. That is, please forecast the current consumption volumes if the only variable that changes is the weather. Weather adjustments are calculated for the following classes. In order to measure the change in weather effect over a long period of historical billing information, System Supply and WTS customers are combined to provide the most consistent sequence consumption figures. The Industrial class also combines HVF, MLF and Interruptible classes because customer transfers between classes distort the true change in weather effect.

19 PUB/CENTRA October, Fixed-Rate Primary Gas Service Page of 00/0 Forecast (0 m ) Class Warmest Year Normal Year Coldest Year Residential SGS, 0,00 0, Commercial SGS,0, 0, Large General Service,,0,0 Industrial (HVF, MLF, Int) 0,0,,0 Power Stations,,, Special Contract,0,0,0 Total,,,0,,, 00/0 Forecast (0 m ) Class Warmest Year Normal Year Coldest Year Residential SGS,, 00, Commercial SGS,0 0, 0, Large General Service 0,,0, Industrial (HVF, MLF, Int) 0, 0,, Power Stations,,, Special Contract,0,0,0 Total,,,0,0,,

20 Centra Gas Manitoba Inc. PUB/Centra (a) Fixed-Rate Primary Gas Service Attachment Number of Customers by Customer Class October, /0 00/0 00/0 00/0 00/0 00/0 00/0 00/0 00/0 00/0 Actual Actual Actual Actual Actual Actual Actual Actual Forecast Forecast System Supply SGS Residential, 00,,0,,0,,0,,00,0 SGS Commercial,0,,,,,00,0,0,, Large General Service,,0,,,,,,0,, High Volume Firm 0 Mainline Firm Interruptible Sales (incl. Curtailable) Western Transportation Service 0 SGS Residential,,,0,,,,0,,, SGS Commercial 00,,,,,, Large General Service High Volume Firm Mainline Firm 0 Interruptible Sales (incl. Curtailable) 0 0 Transportation Service Large General Service High Volume Firm 0 Mainline Firm Interruptible Sales Power Stations 0 0 Special Contract Total Customers,,,00 0,,,,,0,, Note: Actual and Forecast figures report average customer numbers throughout the year and contain a fractional componet. Page of

21 Centra Gas Manitoba Inc. PUB/Centra (a) Fixed-Rate Primary Gas Service Attachment Customer % Change October, /0 00/0 00/0 00/0 00/0 00/0 00/0 00/0 00/0 00/0 Actual Actual Actual Actual Actual Actual Actual Actual Forecast Forecast System Supply SGS Residential -.% -.% -0.% -.% -.% 0.%.% 0.% 0.% SGS Commercial -.% -0.% -0.%.% -.% 0.0% 0.%.0% 0.% Large General Service -.% -.% 0.% -.0% -0.% 0.% 0.% -.% 0.% High Volume Firm -0.% -0.% -.% -.%.%.% -.% -.%.% Mainline Firm -.% -.%.% -.% -.0% 0.0% 0.0% 0.0% 0.0% Interruptible Sales (incl. Curtailable) -.% -.% -.% -.% -.% -.% -.% -.% 0.0% Western Transportation Service 0 SGS Residential.%.%.%.% 0.%.% -.% -0.% 0.% SGS Commercial.%.%.%.%.% 0.0% -.% -.% 0.% Large General Service.%.% -.%.% 0.% -0.% 0.%.% 0.% High Volume Firm 0.0%.% -.% 0.0%.%.%.%.0% 0.0% Mainline Firm 0%.0% -.% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Interruptible Sales (incl. Curtailable).% 0.0% -0.%.% -.% -.% -.% 0.0% 0.0% Transportation Service Large General Service High Volume Firm -0.0% 00.0% 0.0% 0.0%.%.% 0.0% 0.0% 0.0% 0 Mainline Firm 0.0% 0.%.%.% 0.0% 0.0% -.%.% 0.0% Interruptible Sales.% -.% -.%.% 0.0% 0.0% 0.0% 0.0% 0.0% Power Stations 0.0% 00.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Special Contract 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Page of

22 Centra Gas Manitoba Inc. PUB/Centra (a) Fixed-Rate Primary Gas Service Attachment Volumes by Customer Class October, /0 00/0 00/0 00/0 00/0 00/0 00/0 00/0 00/0 00/0 Actual Actual Actual Actual Actual Actual Actual Actual Forecast Forecast System Supply SGS Residential,,0,0,0,0 0, 0,,,, SGS Commercial, 0,0,,0,,,,,0,0 Large General Service,,,,,,,,,, High Volume Firm,0,0,,,,, 0,,,0 Mainline Firm, 0,,,0,,,0,,0,0 Interruptible Sales (incl. Curtailable),,00 0,,,0,,,,0 0, Western Transportation Service 0 SGS Residential,,0,,,,,,0 0, 0,0 SGS Commercial,0,,,,,,,0, Large General Service,0 0,0 0,0,0,,,,,, High Volume Firm 0, 0,,,0,,,,00,0 Mainline Firm 0,,0,,,0,, 0, 0, Interruptible Sales (incl. Curtailable),0,,0, 0,0,00,,,, Transportation Service Large General Service High Volume Firm 0,,0,,0,,,,, 0 Mainline Firm,0, 0,,0,,,, 0,0 0,0 Interruptible Sales,,,,0,0 0,,,,, Power Stations 0,0,00,,0,0,,, Special Contract 0, 0,0,, 0, 0,,,00,0,0 Total Volumes,,,0,,,0,,,,,0,0,0,0,,,0,,0,0 Page of

23 Centra Gas Manitoba Inc. PUB/Centra (a) Fixed-Rate Primary Gas Service Attachment Volumes % Change October, /0 00/0 00/0 00/0 00/0 00/0 00/0 00/0 00/0 00/0 Actual Actual Actual Actual Actual Actual Actual Actual Forecast Forecast System Supply SGS Residential -.%.% -.%.% -.%.0%.% -.% -0.% SGS Commercial -.%.% -.0%.% -0.%.%.% -.% -0.% Large General Service -.0%.% -.%.% -.0%.%.% -.% -0.% High Volume Firm -.%.% -.% -.% -.%.%.% -.%.% Mainline Firm -.% -.% -.% -0.% -.% -.%.% -.% 0.0% Interruptible Sales (incl. Curtailable) -.% -0.0% -.% -.% -.%.% -0.% -.%.% Western Transportation Service 0 SGS Residential.%.% 0.%.%.% -0.% -.% -.% -0.% SGS Commercial.%.%.% 0.% -.% -.%.% -.% -0.% Large General Service.%.% -.%.% -.0% -.%.%.0% -0.% High Volume Firm.% 0.% -.%.%.% 0.% 0.% -0.% -0.% Mainline Firm 0%.% -.% -.% -.% -.%.%.% 0.0% Interruptible Sales (incl. Curtailable).% -.%.%.% -.% -.%.% -.0% -0.% Transportation Service Large General Service High Volume Firm.%.0% 0.%.%.0%.0% 0.%.% -.% 0 Mainline Firm -.%.%.%.% -0.0% -.%.% 0.%.0% Interruptible Sales.%.% 0.0%.% -.% -.% -0.% -.%.% Power Stations 0.0% 00.%.% -.% -.%.% -0.%.% 0.0% Special Contract -.%.% -.%.0%.0% -.%.% -.% 0.0% Page of

24 Centra Gas Manitoba Inc. PUB/Centra (a) Fixed-Rate Primary Gas Service Attachment Average Use per Customer October, 00 Volumes are stated in m 000/0 00/0 00/0 00/0 00/0 00/0 00/0 00/0 00/0 00/0 Actual Actual Actual Actual Actual Actual Actual Actual Forecast Forecast System Supply SGS Residential,00,0,,,,0,0,,, SGS Commercial,,,,,0,0,,,0, Large General Service,0,,00,0,0 0,0,,, 0, High Volume Firm,,,,,,,0,0,,,0,,,,0,0,,0,, Mainline Firm,,0,,,0,,,0,,0,,000,0,,,,0,0,0,0 Interruptible Sales (incl. Curtailable),,,0,,,,,0,,,,,,0,0,0,,0,, Western Transportation Service 0 SGS Residential,,0,0,,,0,0,,,0 SGS Commercial,,,,,,,,,, Large General Service 0, 0,,,,,,,,, High Volume Firm,0,0,0,,,,,0,,,,,0,,,,0,,0,0 Mainline Firm 0,,0,0,,0,0,,,0,00,0,,,,,0,,0 Interruptible Sales (incl. Curtailable),0,,,,,,,,,0,00,0,0,,,,,,, Transportation Service Large General Service,, High Volume Firm,,,,,0,,00,0,0,0,,,,,,,0,, 0 Mainline Firm,,,,0 0,,,,,,,,0,0,0,0, 0,0, 0,0, Interruptible Sales,,,,,,,,,,,0,00,,0,,,,00,,00 Power Stations 0,0,0,0,,00,,,,0,0,0,,0,,0,,0, Special Contract 0,, 0,0,,,,,000 0,, 0,,00,,,00,,0,,0, Page of

25 Centra Gas Manitoba Inc. PUB/Centra (a) Fixed-Rate Primary Gas Service Attachment Average Use % Change October, /0 00/0 00/0 00/0 00/0 00/0 00/0 00/0 00/0 00/0 Actual Actual Actual Actual Actual Actual Actual Actual Forecast Forecast System Supply SGS Residential -.0%.0% -.%.% -.%.0%.% -.% -.% SGS Commercial -.%.% -.% 0.% -.%.%.% -.% -0.% Large General Service -.%.% -.%.% -.%.%.0% -.% -0.% High Volume Firm -.% 0.% -.%.% -.%.%.% -.%.% Mainline Firm -.%.% -.% -.%.% -.%.% -.% 0.0% Interruptible Sales (incl. Curtailable) -.%.% -.% -.% -.%.%.% 0.%.% Western Transportation Service 0 SGS Residential -.% -0.% -.%.% -.% -.%.% -.% -.% SGS Commercial -.% -.% -.0%.% -0.% -.% 0.% -.% -0.% Large General Service -.% -.% -0.%.% -0.% -.%.% -.% -0.% High Volume Firm -.% -.% -.%.% -0.%.% -.% -.% -0.% Mainline Firm 0% -.% 0.% -.% -.% -.%.%.% 0.0% Interruptible Sales (incl. Curtailable).% -.0%.%.% -.% -.%.% -.0% -0.% Transportation Service Large General Service -.% -00.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% High Volume Firm.% -.% 0.%.% -.% 0.% 0.%.% -.% 0 Mainline Firm -.% -.%.%.% -0.0% -.%.0%.%.0% Interruptible Sales.%.%.% 0.% -.% -.% -0.% -.%.% Power Stations 0.0%.%.% -.% -.%.% -0.%.% 0.0% Special Contract -.%.% -.%.0%.0% -.%.% -.% 0.0% Page of

26 CENTRA GAS MANITOBA INC. October, 00 Page of 00 FIXED-RATE PRIMARY GAS SERVICE RESPONSE TO INFORMATION REQUESTS OF THE PUBLIC UTILITIES BOARD OF MANITOBA PUB/CENTRA Reference: Tab p. Direct Purchase Contracts Please file the numbers of customers, with corresponding volumes, who are currently signed up to,,, and year Direct Purchase contracts. 0 Filing the requested information by contract type will result in the production of competitively sensitive information. Based on current levels of active customers on WTS Direct Purchase contracts, the attached schedule depicts the estimated average number of WTS customers by customer class for Centra s 00/0 fiscal period and the forecast annual volumes they would consume under normal weather conditions.

27 Centra Gas Manitoba Inc. Fixed-Rate Primary Gas Service PUB/CENTRA Schedule October, 00 Fiscal 00/00 Average Active WTS Customers & Forecast Normal Weather Consumption Based on: Current Active WTS Customer Levels as at July 00 Forecast 00/00 Forecast 00/00 Western Transportation Service Active Customers Normal Consumption (0 m ) SGS Residential,0 0,0 SGS Commercial,0,00 Large General Service 0,0 High Volume Firm Service,00 MainLine Firm Service 0,0 0 MainLine Interruptible Service 0 0 Interruptible Service,0,,0

28 CENTRA GAS MANITOBA INC. October, 00 Page of 00 FIXED-RATE PRIMARY GAS SERVICE RESPONSE TO INFORMATION REQUESTS OF THE PUBLIC UTILITIES BOARD OF MANITOBA PUB/CENTRA 0 Reference: Tab p. Customer Attrition (a) Please explain how customer attrition is forecast. 0 Centra forecast monthly customer attrition for the small volume customers classes (SGS & LGS) is based on historic average system-wide monthly customer move statistics. Customer move statistics indicate that on average, approximately one per cent of customers who may enter Centra s Fixed Rate Primary Gas Service can be expected to exit that agreement prior to its maturity each month during the life of the agreement. (b) Please estimate expected customer attrition for,, and year contracts. The foregoing answer in part (a) implies the following customer attrition, as a percentage of the total customers who originally sign up for the offering at its inception, for each term of fixed-price agreement by the time of its maturity. 0 -Year = % -Year = % -Year = 0%

29 CENTRA GAS MANITOBA INC. October, 00 Page of 00 FIXED-RATE PRIMARY GAS SERVICE RESPONSE TO INFORMATION REQUESTS OF THE PUBLIC UTILITIES BOARD OF MANITOBA PUB/CENTRA Reference: Tab p. Full Subscription (a) Please clarify how an offering becomes fully subscribed by number of customers and their associated typical volumes, by the forecast volumes based on historical consumption of the actual customers that have contracted, or another method. 0 An offering becomes fully subscribed when customer enrolment volumes are equal to the volumes hedged. Customer enrolment volumes will be estimated based on historical usage of the actual customers that have been contracted. As customer forecast volumes and hedged volumes will normally not be exactly matched, cut-offs will take place when forecast enrolment volumes are within plus/minus % of hedged volumes. (b) Please explain how first-come first-served is determined amongst the different contracting methods. 0 Subject to the process described in part (a) above, when more customers enrol than volumes are hedged, customers will be given priority based on when Centra receives the application. To facilitate this process, contracts will be date and time stamped in order to determine first-come, first-served basis.

30 PUB/CENTRA October, Fixed-Rate Primary Gas Service Page of (c) In the event that the fixed price offering becomes fully subscribed, please describe Centra s future communication with customers who have signed a contract but who missed out, including marketing efforts directed to these customers for future offerings. Centra will contact the customer to inform them that a specific product offering is no longer available. The customer will also be informed of products that are then available.

31 CENTRA GAS MANITOBA INC. October, 00 Page of 00 FIXED-RATE PRIMARY GAS SERVICE RESPONSE TO INFORMATION REQUESTS OF THE PUBLIC UTILITIES BOARD OF MANITOBA PUB/CENTRA Reference: Tab p. Timelines Please expand on the timeline that begins with going to the market for placement of hedges, when the offering becomes available and closes for consumers, and when their new PG arrangements take effect. 0 The offering will typically become available to customers within one business day of the placement of hedges, and will be communicated on Manitoba Hydro s website. At the same time, this information will be provided to the PUB for updating the website anticipated to be developed by the PUB to inform customers of all product choices in Manitoba. The offering will close at the earlier of full subscription or days prior to flow. New Primary Gas arrangements will take effect under the same guidelines being used for customers enrolling with a broker. Centra will process customer applications and submit those applications to Centra s Direct Purchase Department for processing in the same manner as marketer submissions. Fixed-Rate Primary Gas can be expected to flow approximately 0 days after submission of the application by the customer to Centra.

32 CENTRA GAS MANITOBA INC. October, 00 Page of 00 FIXED-RATE PRIMARY GAS SERVICE RESPONSE TO INFORMATION REQUESTS OF THE PUBLIC UTILITIES BOARD OF MANITOBA PUB/CENTRA Reference: Tab p. Pricing (a) Please confirm whether the fixed price offering price could ever be less than the default system supply price for Primary Gas, and describe any conditions that would need to be present for this to occur. 0 Confirmed, the situation could occur in a market environment where the consensus opinion of the market, as reflected in futures market prices for future delivery, is that natural gas prices will decline in future periods. Should average futures prices three or five years into the future be sufficiently lower than average prices one year out, there may be cases where offering prices for Centra s three and/or five year Fixed-Rate products are lower than the current and/or upcoming Quarterly Primary Gas rate. 0 As the attached chart indicates, by applying Centra s recommended formulaic rate setting approach, along with a Volumetric Risk Premium of % and a Fixed-Rate Primary Gas Service Program Cost Rate of $0.00/m, there would have been quarterly instances where Centra s -year Fixed-Rate Primary Gas offering would have been lower than the Quarterly Primary Gas rate during the period from May 000 through October 00. This is approximately % of the time during the period. The pro-forma -year fixed-rates depicted in the chart assume the quarterly placement of hedges for each fixed-rate offering on the

33 PUB/CENTRA October, Fixed-Rate Primary Gas Service Page of first of the month, three months prior to commencement of flows under each new -year agreement. (b) If the fixed price offering price is less than the default price, please state whether Centra would still market this product. Centra would still offer the product to its customers, even if the Fixed-Rate Primary Gas offering is less than the default rate.

34 Centra Gas MB Inc. Fixed Rate Primary Gas Service PUB/Centra (a) Attachment October, 00 Primary Gas Rate Comparison Centra Pro-Forma Fixed Rate % Risk Premium vs. Centra Actual Historical Quarterly Primary Gas Billed Rates May 000 Through October 00 $0.000 Pro-Forma Centra -Yr. Fixed Rate Primary Gas Service Offering Rates $0.00 Primary Gas Rates ( $ / cubic metre ) $0.000 $0.00 $0.000 Quarterly Residential Primary Gas Billed Rates $0.00 $0.000 May-00 May-0 May-0 May-0 May-0 May-0 May-0 May-0 May-0

35 CENTRA GAS MANITOBA INC. October, 00 Page of 00 FIXED-RATE PRIMARY GAS SERVICE RESPONSE TO INFORMATION REQUESTS OF THE PUBLIC UTILITIES BOARD OF MANITOBA PUB/CENTRA Reference: Tab p. Volume Estimates (a) Please explain how volumes and customer numbers for fixed price offerings are estimated. Customer enrolment forecasts are based on information obtained through market research and management judgment. Customer volumes will be forecast based on historical usage. 0 (b) List and describe the sources of information that are used to prepare these estimates. Volume estimates will be prepared on information from the customer and historical usage. Customer enrolments will be estimated based on market research undertaken, particularly research undertaken during 00; Manitoba Hydro Natural Gas Customer Research Report, June, 00 and Natural Gas Customer Review, Focus Group Report, July 0, 00.

36 CENTRA GAS MANITOBA INC. October, 00 Page of 00 FIXED-RATE PRIMARY GAS SERVICE RESPONSE TO INFORMATION REQUESTS OF THE PUBLIC UTILITIES BOARD OF MANITOBA PUB/CENTRA Reference: Tab p.- Hedging (a) When Centra hedges primary gas for fixed price offerings, will system hedge volumes be reduced by a corresponding amount? 0 Yes. The forecast baseload volumes that would have otherwise been hedged under the Derivatives Hedging Program for Primary Gas on behalf of customers electing Fixed-Rate Primary Gas Service will not be hedged as long as these customers remain on this rate alternative. (b) Please confirm whether Centra will hedge more gas volumes than will be consumed if the weather is warmer than normal or if the fixed price offering is not fully subscribed. Confirmed. The reverse would be true in cases where the weather is colder than normal and customer consumption is greater than forecast. (c) Please explain the implications of such a scenario described in (b). 0 The implications of Centra s being over or under-hedged on any specific Fixed-Rate Primary Gas offering depend on whether the actual market price in any individual month

37 PUB/CENTRA October, Fixed-Rate Primary Gas Service Page of during the contract term in question is less than or greater than the strike price of the fixed price swap instrument placed at the inception of the specific offering in order to hedge Centra s exposure to changing market prices. 0 For example, in a month with colder than normal weather resulting in higher than forecast consumption, if the actual market price is less than the strike price of the swap, thereby requiring payment from Centra to its hedging counterparty, the financial impact would be positive. This is because the consumption in excess of that which was forecast would fully benefit from the lower actual market price. Alternatively, if that month s actual market price is greater than the strike price of the swap, resulting in a payment to Centra from its hedging counterparty, the impact would be negative as the excess consumption would be fully exposed to the higher market price. 0 For a month where weather is warmer than normal resulting in consumption lower than forecast, the relationships described above are reversed. Lower than hedged consumption combined with a market price higher than the swap price would spread the benefits of the hedge settlement due to Centra from its counterparty over the smaller volume consumed by customers, a net positive. Conversely, a market price lower than the swap price would spread the hedge settlement payment due from Centra to its counterparty over a smaller consumed volume, which would be negative. Centra s modeling of the results of its recommended approach across the May 000 through March 00 historical period incorporates examples of one or more of these four possible sets of circumstances each month throughout the approximately eight year period in question. These results are summarized in the response to PUB/Centra (c).

38 PUB/CENTRA October, Fixed-Rate Primary Gas Service Page of Examples of the extremes encountered during the period are provided in the response to Additional Question from the PUB. With respect to the response to PUB/Centra from the Additional Questions, Centra would like to correct the figure stated on Line, page of, which stated that the results in the table above were based on completed simulated contracts. That figure was stated in error and should have read 0 completed simulated contracts. 0 (d) Since the inception of hedging, please provide a table reflecting the impact on gas costs for each year related to the hedging activity in a format similar to that shown in Competitive Landscape IR PUB/Centra 0. Please refer to the attached schedule. (e) Please explain whether Centra intends for the hedged volumes to change month to month or year to year based on consumption, conservation, and attrition. 0 In the normal course, Centra does not intend to unwind or otherwise dispose of existing hedges placed in support of its Fixed-Rate Primary Gas offerings. It is expected that differences between volumes hedged and actual customer consumption due to weather, conservation, attrition that differs from that originally forecast will be typical and should be expected on an ongoing basis. Centra s Volumetric Risk Premiums are expressly intended to act as the mechanism by which to address these risks, thereby mitigating the need to continuously adjust hedge levels throughout the life of each agreement.

39 PUB/CENTRA October, Fixed-Rate Primary Gas Service Page of It is expected that fixed price hedges would only be unwound in extraordinary circumstances, such as unanticipated legislative or regulatory developments bringing a premature end to customers obligations under Centra s existing Fixed-Rate Primary Gas agreements. 0 (f) Please clarify whether Centra will obtain a single hedged price for the duration of the contract, or will there be separate hedged prices on a monthly or yearly basis. Centra intends to obtain a single hedged price for the duration of each contract that will settle each month relative to the AECO 'C' and Nova Inventory Transfer monthly spot index price.

40 Centra Gas Manitoba Inc. Fixed-Rate Primary Gas Service PUB/CENTRA (d) Schedule October, 00 Centra Gas Manitoba Inc Derivatives Hedging Program For Primary Gas Actual Settled Financial Results Period of April 00 through September 00 Settled Results Fiscal Period Addition/(Reduction) From To to Gas Costs Apr-0 Mar-0 ($,,) Apr-0 Mar-0 ($,,0) Apr-0 Mar-0 ($0,0,) Apr-0 Mar-0 ($,,) Apr-0 Mar-0 $,0, 0 Apr-0 Mar-0 $,, Apr-0 Sep-0 ($0,0,) Net Total = $,,0

41 CENTRA GAS MANITOBA INC. October, 00 Page of 00 FIXED-RATE PRIMARY GAS SERVICE RESPONSE TO INFORMATION REQUESTS OF THE PUBLIC UTILITIES BOARD OF MANITOBA PUB/CENTRA Reference: Tab p.- Sample Calculations (a) Please provide examples of the calculations used to determine the final selling prices of Centra s fixed price offerings. Beginning with the current future gas price strip, and in the absence of obtaining real quotes for the derivative hedges, estimate the cost of the hedges. Please provide one example for each contract duration (,, and year). If any assumptions are made in the calculations, please list them and provide a brief support of the assumption. 0 Please refer to the attached schedule, which utilizes futures market settlement prices as of the August, 00 market close. (b) Using the highest future gas price strip of July 00, repeat the example calculations in (a). Please refer to the attached schedule, which utilizes futures market settlement prices as of the July, 00 market close, which was the high point for market prices during July (c) For the, and year examples in (a), please provide hypothetical examples of the high and low extremes, along with average results, with respect to how each of these contracts would have historically settled for each of the small volume

42 PUB/CENTRA October, Fixed-Rate Primary Gas Service Page of customer classes (Residential, SGS Commercial and Large General Service) on a per typical customer basis. The different examples or scenarios should reflect the actual weather, consumption, and market price extremes that occurred throughout the retrospective period since May 000 as tested by Centra. For each scenario, please indicate the per customer profit or loss for the offering. As well, please provide statistics indicating the suitability of the conditions during the period since May 000 for use in stress testing Centra s proposed approach such as: variance of actual versus forecasted weather, variance of actual versus forecast consumption, variance of actual market price versus hedged price, etc. 0 The attached schedule first provides a table of the average, upper and lower bounds of Volumetric Risk Premiums for each of the small volume customer classes and term of the fixed-rate agreement, along with the risk hurdle that each would have achieved on an historical basis during the period of May 000 through March 00. The tables that follow in the schedule indicate the best case, average and worst case gain/(loss) per customer that would have been realized across all completed agreements throughout the historical period noted by applying the different risk premiums that would have satisfied each of the three risk hurdles. 0 Please refer to the response to the Additional Question, for statistics indicating the suitability of the May 000 through March 00 period over which to stress test Centra s proposed approach.

43 Centra Gas Manitoba Inc. Fixed-Rate Primary Gas Service PUB/CENTRA (a) Schedule October, 00 Indicative Fixed-Rate Primary Gas Service Billed Rates For First Flows Effective November /00 Futures Market Prices as at August /00 -Year Fixed -Year Fixed -Year Fixed Volume-Weighted Average Fixed-Rate Swap Price ($/GJ) $. $. $.0 Median Embedded Dealer Hedge Margin ($/GJ) $0.0 $0.0 $0.0 Volume-Weighted Average Fixed-Rate Swap Price + Median Embedded Dealer Hedge Margin ($/GJ) $. $. $. Fixed-Rate Volumetric Risk Premium (%).0%.0%.0% 0 $ per GJ $. $. $. $ per M $0.0 $0. $0. Fixed-Rate Primary Gas Service Program Cost Rate ($/m ) $0.00 $0.00 $0.00 Fixed-Rate Primary Gas Billed Rate $0.0 $0. $0.

44 Centra Gas Manitoba Inc. Fixed-Rate Primary Gas Service PUB/CENTRA (b) Schedule October, 00 Indicative Fixed-Rate Primary Gas Service Billed Rates For First Flows Effective September /00 Futures Market Prices as at July /00 -Year Fixed -Year Fixed -Year Fixed Volume-Weighted Average Fixed-Rate Swap Price ($/GJ) $.0 $.0 $0. Median Embedded Dealer Hedge Margin ($/GJ) $0.0 $0.0 $0.0 Volume-Weighted Average Fixed-Rate Swap Price + Median Embedded Dealer Hedge Margin ($/GJ) $.0 $. $0. Fixed-Rate Volumetric Risk Premium (%).0%.0%.0% 0 $ per GJ $. $. $0. $ per M $0. $0. $0. Fixed-Rate Primary Gas Service Program Cost Rate ($/m ) $0.00 $0.00 $0.00 Fixed-Rate Primary Gas Billed Rate $0.00 $0. $0.

45 Centra Gas Manitoba Inc. Fixed-Rate Primary Gas Service PUB/CENTRA (c) Schedule October, 00 Volumetric Risk Premiums For the Historical Period: May 000 through March 00 Maximum Risk Mitigation Hurdle: 00% of Concluded Fixed-Price Agreements Ended with Zero Instances of Net Under-Collection of Allin Costs Mid-Range Risk Mitigation Hurdle: Average of 0% of Concluded Fixed-Price Agreements Ended with Zero $ Under-Collection of All-in Costs Across All Terms and Customer Classes Minimum Risk Mitigation Hurdle: Zero $ Under-Collection of All-in Costs on Average Across All Concluded Fixed-Price Agreements Across All Terms and Customer Classes 0 Rate Class -Year -Year -Year SGS Max. Risk Mitigation Hurdle.0%.0%.0% SGS Mid-Range Risk Mitigation Hurdle.0%.0%.0% SGS Min. Risk Mitigation Hurdle.0%.0%.0% SGS Max. Risk Mitigation Hurdle.0%.0%.0% SGS Mid-Range Risk Mitigation Hurdle.0%.0%.0% SGS Min. Risk Mitigation Hurdle.0%.0%.0% 0 Large General Max. Risk Mitigation Hurdle.0%.0%.0% Large General Mid-Range Risk Mitigation Hurdle.0%.0%.0% Large General Min. Risk Mitigation Hurdle.0%.0%.0% Range of Historical Gain/(Loss) per Customer: All Completed Maximum Risk Mitigation Hurdle Rate Class -Year -Year -Year SGS Residential 0 Best Case per Customer Gain/(Loss) $0 $0 $ Average Case per Customer Gain/(Loss) $ $ $ Worst Case per Customer Gain/(Loss) $ $ $ % of Completed Agreements Ending With No Net Loss 00% 00% 00% SGS Commercial Best Case per Customer Gain/(Loss) $ $0 $ Average Case per Customer Gain/(Loss) $ $ $0 Worst Case per Customer Gain/(Loss) $0 $ $ % of Completed Agreements Ending With No Net Loss 00% 00% 00% 0 Large General Service Best Case per Customer Gain/(Loss) $,00 $, $,0 Average Case per Customer Gain/(Loss) $, $,0 $ Worst Case per Customer Gain/(Loss) $ $0 $ % of Completed Agreements Ending With No Net Loss 00% 00% 00%

46 Centra Gas Manitoba Inc. Fixed-Rate Primary Gas Service PUB/CENTRA (c) Schedule October, 00 Range of Historical Gain/(Loss) per Customer: All Completed Mid-Range Risk Mitigation Hurdle Rate Class -Year -Year -Year SGS Residential Best Case per Customer Gain/(Loss) $ $ $ Average Case per Customer Gain/(Loss) $ $ $ Worst Case per Customer Gain/(Loss) ($) ($) $ 0 % of Completed Agreements Ending With No Net Loss % 0% 00% SGS Commercial Best Case per Customer Gain/(Loss) $ $ $ Average Case per Customer Gain/(Loss) $ $ $0 Worst Case per Customer Gain/(Loss) ($) ($) $ % of Completed Agreements Ending With No Net Loss % 0% 00% Large General Service Best Case per Customer Gain/(Loss) $, $, $ 0 Average Case per Customer Gain/(Loss) $ $ $ Worst Case per Customer Gain/(Loss) ($) ($) ($) % of Completed Agreements Ending With No Net Loss % 0% % Range of Historical Gain/(Loss) per Customer: All Completed Minimum Risk Mitigation Hurdle Rate Class -Year -Year -Year SGS Residential 0 Best Case per Customer Gain/(Loss) $ $ $0 Average Case per Customer Gain/(Loss) $ $ $ Worst Case per Customer Gain/(Loss) ($) ($) ($) % of Completed Agreements Ending With No Net Loss % 0% % SGS Commercial Best Case per Customer Gain/(Loss) $ $ $ Average Case per Customer Gain/(Loss) $ $ $ Worst Case per Customer Gain/(Loss) ($) ($0) ($) % of Completed Agreements Ending With No Net Loss % 0% % 0 Large General Service Best Case per Customer Gain/(Loss) $, $, $ Average Case per Customer Gain/(Loss) $0 $ $0 Worst Case per Customer Gain/(Loss) ($) ($) ($) % of Completed Agreements Ending With No Net Loss % 0% %

47 CENTRA GAS MANITOBA INC. October, 00 Page of 00 FIXED-RATE PRIMARY GAS SERVICE RESPONSE TO INFORMATION REQUESTS OF THE PUBLIC UTILITIES BOARD OF MANITOBA PUB/CENTRA Reference: Tab p. Hedging Principles and Procedures (a) Please state the number of counterparties that Centra deals with when hedging primary gas according to the Derivatives Hedging Program Operating Principles and Procedures. There are currently eight approved counterparties that Centra can deal with when hedging Primary Gas. 0 (b) Please file the current Derivatives Hedging Operating Principles and Procedures for Primary Gas, and note any changes that have been made to any policies and procedures since this document was filed in response to PUB/Centra in the 00/0 and 00/0 GRA. Attached is the current Derivatives Hedging Operating Principles and Procedures for Primary Gas, dated January, 00. No changes have been made since this document was filed in response to PUB/Centra in the 00/0 and 00/0 GRA. Changes will 0 be made however, if the fixed-rate offering is approved, as set out in the Application and the answer to Part (c) below.

48 PUB/CENTRA October, Fixed-Rate Primary Gas Service Page of (c) Other than the operating principles that have already been articulated in this Application, please state any differences between the hedging principles and procedures for system supply and for fixed price offerings. The only other difference between the operating principles for system supply and for fixed- rate offerings that was not articulated in the Application (Tab, page ) is with regard to the definition of eligible volumes. For gas rates adjusted quarterly, eligible volumes will 0 be restricted to baseload Primary Gas volumes (i.e., those volumes forecast to be purchased at the AECO C and Nova Inventory Transfer monthly spot index price) excluding volumes hedged for fixed-rate offerings. For fixed-rate offerings, eligible volumes will be restricted to forecasted total customer Primary Gas volumes under normal weather conditions. (d) Please file the Derivatives Hedging Policy for Fixed Price Offerings, if such a document exists. The current Derivatives Hedging Policy for Primary Gas has been tentatively updated to accommodate the application of derivatives for fixed-rate offerings. This attached draft 0 document will be finalized and followed if the fixed-rate offering is approved and implemented. (e) Has Centra sold or unwound any derivatives contracts since the current mechanistic hedging program has been in place? No.

49 Centra Gas Manitoba Inc. Fixed-Rate Primary Gas Service PUB/Centra (b) Attachment October, 00 CENTRA GAS MANITOBA INC. DERIVATIVES HEDGING OPERATING PRINCIPLES & PROCEDURES FOR PRIMARY GAS.0 Operating Principles. Principles and practices that will be applied in the application of derivatives are: Derivatives will be used for the purpose of mitigating natural gas price volatility. Derivatives will not be used for the purpose of speculation; there must be an underlying physical requirement for the gas that is being hedged. Eligible volumes will be restricted to baseload Primary Gas volumes (i.e., those volumes forecast to be purchased at the AECO C and Nova Inventory Transfer monthly spot index price). Only Over-The-Counter (OTC) derivative instruments will be utilized for placing hedge transactions. The instruments that may be used pursuant to the Derivatives Hedging Policy are price swaps, call options and cashless collars. As a matter of course, cashless collars will be utilized on a quarterly basis. The Executive Committee must approve use of an instrument other than the cashless collar. Pursuant to the Derivatives Hedging Policy, Centra will have hedges in place for up to 00% of eligible volumes. As a matter of course, 00% of eligible volumes will be hedged. The Executive Committee must approve the action of hedging less than 00% of eligible volumes. As a matter of course, the upper bandwidth on hedges will be based on out-of-the-money (OTM) coverage calculated at % of the mid-point of the discreet one-dollar range within which the futures market price of natural gas is trading at the time of the transaction(s). The Executive Committee must approve hedge coverage other than % OTM. Page of

50 Centra Gas Manitoba Inc. Fixed-Rate Primary Gas Service PUB/Centra (b) Attachment October, 00 Once a derivatives contract is put in place, that contract will not be sold or otherwise dealt with (i.e., unwound) except in unusual circumstances. In such cases, OTC instruments other than those referred to above may be used subject to Executive Committee approval. Hedgeable price indices will be limited to underlying physical price indices. Derivative positions may be placed for up to a twelve-month duration. Quotes will be solicited from a minimum of three counterparties.. The Company will maintain a stringent control environment to manage risks associated with the application of derivatives, as follows: Independent oversight of the derivatives hedging program will be provided by the Gas Supply Risk Management Committee, an independent Middle Office and Internal Audit. There will be clearly defined segregation of duties between employees transacting and those confirming, recording and reporting on derivative positions. The Treasury function will be responsible for the credit management functions and it will coordinate the development and execution of the appropriate contracts with the approved counterparties. Appropriate legal agreements will be in place. Credit exposure dollar limits by counterparty will be set and monitored. Management reporting of derivative transactions, results and risk exposures will be provided..0 Operating Procedures. Independent oversight of the derivatives hedging program will be provided by the Gas Supply Risk Management Committee, an independent Middle Office and Internal Audit. Gas Supply Risk Management Committee The Gas Supply Risk Management Committee will provide a forum for discussing issues and guiding activities associated with the management of gas supply price risks. Page of