Citizens Gas Variable-Rate Supply pricing is predicated on:
1. Citizens Gas Variable-Rate Gas Supply Service became effective with July 2003 billing for Gas Rate D3, D4, & D5 customers.
2. The Approved Tariff City Gate Price for Gas Rates D3, D4, & D5 (A, B & C) is the monthly Rider A as approved by the IURC. Rider A represents forecasted commodity gas supply costs for the approved month, including fuel (for compression), basis risk (the difference in cash and future prices) and demand and transportation costs to Citizens Gas' city gate.
3. Actual commodity gas costs will vary. The Approved Tariff City Gate Prices (A, B & C) are subject to reconciliation in future periods.
4. The Usage Balancing Service - Gas Supply Charge which is Gas Rate A2 (D) reflects our weighted average pipeline cost and is approved by the IURC in each GCA filing.
5. The Approved Tariff City Gate Prices (A, B & C) and Usage Balancing Service - Gas Supply Charge (D) do not include delivery costs from the city gate to the customer's meter set, billing demand charge for Gas Rate D5, the monthly facility charge, or any special charges authorized by the IURC.

NYMEX
(New York Mercantile Exchange) pricing is predicated on:
1. The settlement pricing at the Henry Hub in Erath, Louisiana, 3 business days prior to the beginning of the month.
2. Does not include fuel (for compression), basis risk (the difference in cash and futures prices), margin (for the energy marketer), peaking, demand or transportation costs to Citizens Gas' city gate.
3. Does not include delivery costs from the city gate to the customer's meter set, billing demand charge for Gas Rate D5, the monthly facility charge, or any special charges authorized by the IURC.