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IRP Workshop

February 25, 2014

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2014 IRP

February 25th - IRP Schedule- Review of IRP Order- December 5th Weather Event- Wexpro II- Master Planning of System

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2014 IRP Schedule

April 2nd - Gas Control Coordination - Clean Air- Heating Season Review- Monticello Event

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2014 IRP Schedule

April 30th - Annual Demand & Peak Day Forecasting

(Impact of Energy Efficiency)- Report on Lakeside- Review RFP

June 25th - Present IRP to Utah PSC

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Review of IRP Order

Wexpro Gas Need for New Capacity Impact of Energy Efficiency (EE)

Programs on Peak Demand Lost-and-Unaccounted for Gas (LAUF)

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Definition

Company Use – Compressors, etc.

Loss due to tear-outs

Lost and Unaccounted

for Gas

“The difference between the gas injected into a distribution system and the gas measured at customers’ meters.”

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Possible Causes – NRRI Report June 2013

Pipe Leaks Measurement Error

- Temperature and pressure difference- Heat value conversion- Meter inaccuracies

Accounting error Company use Third-party damage Cycle Billing Consumption on inactive meters Stolen Gas “Blowdown”

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Calculations – Most Recent IRP

QGC QGC QGC QGC QGC Loss & Total Sales, Customer Customer Total Sales & QGC Use Loss Due Unaccounted Transport, Company

Year Sales Transport. Receipts Transportation Acct. 810&812 To Tearouts For Gas Usage and L&U2009-2010 116,891,696 57,431,097 174,322,793 173,831,634 241,077 23,346 226,736 174,322,7932010-2011 115,784,799 54,875,429 170,660,228 169,816,873 236,702 16,335 590,318 170,660,2282011-2012 107,765,322 57,613,566 165,378,888 164,193,992 188,196 23,351 973,349 165,378,888

Total 340,441,817 169,920,092 510,361,909 507,842,498 665,975 63,032 1,790,404 510,361,909

Lost-&-Unaccounted-For-Gas % 0.351% Company Use and Lost-&-Unaccounted-For-Gas % 0.494%

QGC Estimated Company Use and Lost-and-Unaccounted-For-Gas CalculationThree Year Rolling Average

Total Recorded at City Gates

Table 3.5 (page 3-9) in most recent IRP

Recorded at

customer meters

What we know or can estimate LAUF

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Recent ResultsYear Lost &

Unaccounted For

Company Use Lost & Unaccounted For

AGA Lost & Unaccounted for

2007 3.23% 3.43%

2008 1.63% 1.78%

2009 .88% 1.06% 1.53%

2010 .13% .28% 1.18%

2011 .35% .49% .90%

2012 .59% .72%

Year Lost & Unaccounted For

Company Use Lost & Unaccounted For

2006 - 2007 3.23% 3.43%

2007 - 2008 1.63% 1.78%

2008 - 2009 .88% 1.06%

2009 - 2010 .13% .28%

2010 - 2011 .35% .49%

2011 - 2012 .59% .72%

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Measures to Decrease LAUFSource Company ActionPipe Leaks -Pipeline Integrity Program

-Infrastructure replacement tracker

Measurement Error -Meter testing program-Installing temperature- compensating meters-New temperature/elevation policy in 2010

Third-party damage -Larger penalties for line damage-Constant training of blue stakes employees

Stolen Gas -Tamper proof meters-Automated checks in billing system (usage on inactive meters, etc)

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8am 12pm 8pm 12am 8am 12pm 8pm 12am

- December 4,2013 - December 5, 2013

Timely Nominations (Cycle 1)

Sent by 10:30 amto the TSP by 10:45 amScheduled at 3:30 pm

8:00 am GD2 Gas Flow

Evening Nominations (Cycle 2) Sent by 5:00 pm to the TSP by 5:15 pm

Confirmations by 8:00 pm Scheduled by 9:00 pm

8:00 am GD2 Gas Flow

Intraday 1 Nominations (Cycle 3)

Sent by 9:00 amto the TSP by 9:15 am

Confirmations by 1:00 pmScheduled by 1:00 pm

4:00 pm GD2 Gas Flow

Intraday 2 Nominations (Cycle 4)

Sent by 4:00 pmto the TSP by 4:15 pm

Confirmations by 7:00 pmScheduled by 8:00 pm

8:00 pm GD2 Gas Flow

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Gas Day 1 Gas Day 2

December 5, 2013

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Gas Supply Prices1-

Feb

2-Fe

b

3-Fe

b

4-Fe

b

5-Fe

b

6-Fe

b

7-Fe

b

8-Fe

b

9-Fe

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11-F

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12-F

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13-F

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14-F

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15-F

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16-F

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17-F

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18-F

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19-F

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$-

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

Equity (Cost/Dth) Clay Basin and Aquifer Storage (Cost/Dth) Baseload Purchases (Cost/Dth)Spot/Peaking Purchases (Cost/Dth)

Wexpro

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Wexpro – IRP Order

What is the maximum manageable percentage of Wexpro production without excess gas?

What are the costs of excess Wexpro gas?

What percentage of Wexpro production causes significant increases in shut-ins?

How much Wexpro gas can feasibly be shut in?

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Wexpro II

Trail Unit II became a Wexpro II property as of February 1.

Wexpro and the Company are tracking and accounting for this property separately.

Coordinating to establish procedures to sell cost-of-service production

Potential properties may be available in this low-cost environment.