1. CSEP Transportation Charges 11 th August 2014

2. Background Action NEX0604 from 18 th June PN UNC requested Xoserve to provide a presentation on how Supply Point aggregation is applied for a CSEP The following slides provides an overview of the CSEP hierarchy and how DN LDZ transportation charges are calculated –Does not include iGT transportation charges

3. CSEP Relationship Diagram Max AQ & SOQ for the CSEP

4. CSEP Data

5. CSEP DN Transportation Charges LDZ System charges for transportation to Connected System Exit Points (CSEPs) are identical to those for transportation to direct loads In the calculation of LDZ charges payable, the unit rate commodity and capacity charges are based on the supply point capacity equal to the CSEP peak day load for the completed development irrespective of the actual stage of development. The SOQ used is therefore the estimated SOQ for the completed development Therefore, for any CSEP each Shipper will pay identical LDZ unit rates regardless of the proportion of gas shipped or capacity booked Rates are applied to deemed/measured energy and Nominated/derived SOQ

6. CSEP Transportation Charges DN LDZ Transportation charges for CSEP’s; –Capacity charge: Supply Meter Point SOQ x by the rate using the MAX SOQ for the CSEP –NDM LDZ Commodity charge: Deemed energy x by the rate using the MAX SOQ for the CSEP –DM Commodity charge: Measured energy (based on daily reads) x by the rate using the MAX CSEP SOQ