Appendix A

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UNION GAS LIMITED

Fiscal 2000 Rates

RP-1999-0017

ISSUES LIST

1.	Unbundling

1.1	Unbundling Overview and Rationale (Including Implementation)

1.2	Upstream Transportation

Southern Operations Area

1.2.1	Upstream Transportation Allocation

1.2.2	Allocation Terms and Conditions

1.2.3	Parkway Commitment / 22 Day Callback

1.2.4	DCC Elimination

Northern & Eastern Operations Area

1.2.5	Upstream Transportation Allocation

1.2.6	Allocation Terms and Conditions

1.2.7	Delivery / Redelivery Services

1.2.8	Unbundling Costs – Threshold Level

1.3	Storage

1.3.1	Standard Storage Service

1.3.2	Standard Peaking Service

1.3.3	Space Allocation

1.3.4	System Integrity Storage Space

1.3.5	Pricing and Annual Storage Space Reallocation / Redistribution

1.3.6	Future Standardization of Storage Contracts

1.3.7	Future Storage Development

1.4	Other Issues

1.4.1	Title Transfers

1.4.2	Allocation of Gas in Inventory

1.4.3	Return to System

1.4.4	Nomination Imbalance Fees

1.4.5	Unauthorized Storage Overrun

1.4.6	Implementation Timing

Appendix A

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2	Performance Based Regulation

2.1	Overview and Rationale (Including Implementation)

2.2	Fixed Price Cap Plan

2.2.1	One-time Adjustments to Base Rates

2.2.1.1	Unaccounted for Gas Variances from Prior Periods

2.2.1.2	Accounting for Pension and Post Retirement Benefits

2.2.1.3	Deferred Tax Amortization

2.2.1.4	Y2K Costs

2.2.1.5	Regulatory Cost Savings

2.2.1.6	1999 Financial Information and Related Base Adjustments

2.2.2	Pricing Formula

2.2.2.1	Inflation Factor

2.2.2.2	Productivity Factor

2.2.2.3	Non-Routine Adjustments

2.2.2.4	Pass-Through Items

2.2.2.4.1	Gas Costs

2.2.2.4.2	Return on Equity Adjustments

2.2.2.4.3	Unaccounted for Gas

2.2.2.5	Monitoring and Reflecting Changes in the Gas Supply Portfolio Under the Quarterly Rate Adjustment Mechanism

2.2.3	Term of the Agreement

2.3	Pricing Flexibility

2.3.1	Service Basket Design

2.3.2	Treatment of Long Term Fixed Prices / Negotiated Rates

2.3.3	Treatment of Market Priced Storage

2.3.4	Treatment of New Services

2.4	Off-Ramp(s)

2.5	System Expansion and Service Quality

2.5.1	System Expansion Plans and Customer Connection Policies under PBR

2.5.2	Service Quality Indicators

2.5.2.1	Pipeline System Integrity Surveys

2.5.2.2	Telephone Response

2.5.2.3	Emergency Response

2.5.2.4	Gas Utilization Infraction

2.5.2.5	DSM

2.6	Additional Risks and Benefits

Appendix A

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2.7	Reporting and Monitoring Requirements

2.8	Customer Review Processes

2.9	Second Generation Price Cap

3	Rates

3.1	Proposed Rates

3.1.1	Allocation of System Integrity Costs

3.1.2	DCC Elimination

3.1.3	Price Cap Adjustments

3.1.4	Allocation of One-time Adjustments and Pass-Through Items

3.1.5	Customer Bill Impacts

3.2	Unbundled Rate Schedules – Southern Operations

3.3	Changes to Existing Rate Schedules (including Rate 100 Load Factor Qualification)

3.4	Rate Harmonization

3.5	Responses to Outstanding Directives

3.6	Rate Seasonalization

3.7	Allocation of Future Pass-Through Items

3.8	Requirement for New Rate - Equivalent to Enbridge Consumers' Gas Rate 125

4	Deferral Accounts

4.1	Treatment of Existing Accounts

4.2	Incremental Unbundling Costs Account

4.3	Disposition of 1999 Balances

5	Other Approvals and Exemptions

5.1	Blanket Approval re: Storage Contracts

5.2	Exemption for Union's Existing Investment in Union Energy

5.3	Approval to Continue Natural Gas Vehicles (NGV), Agency Billing and Collecting (ABC) and Gas Molecule Sales Activities

6	Timing and Process of Unbundling of Billing