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0" ;vie & 2009 Co--mb.a &as of V-'g na. .nc '"Columbia" or "Company*), filed with the State Corporation Commisson ('Commission') an Application Du^art to Chaoter 25 cf T.t>e 56 of the Core of V rgir.ia :'Code"i seeking approval to implement a natural gas conservation ano ratemaking effioency pian "CARE P a"' O' 'Pian"). which, indudes a cecoup'ing mechanism The Company states in its Application tnat the Plan "induces a poffo io of programs and ncent ves designed to promote cc''se'vat>or and enercy eff-cency among Columba’s residential ("RS"! and sma-l genera service ("SGS") customer classes anc a Oecoupi-ng mechanism that adjusts actual non-gas d sir bution revenue for participating Customer Classes to the allowed d stnbuton revenue previously approved oy the Comnmssor " The Company p-eposes hat the Plan pe approved for th-ee calendar years (2010-2012) at which bme the Company would return tc the Commission seeking further approval to continue o- modify the Plan Columoia has requested that the Commission approve the Company's CARE Piar effecbve December 3' 2009 (he frst billing unit for he Company's January 2010 tailing cycle)

Accord eg to he App cation, the Company's P ar r-as five principal components (i) a variety of cost-effective programs designed to promote conservation and energy effcter-cy among he Company's RS and SGS customer classes, (ii) provisions to address the needs of ow-income -essential customers, (ill) a mechanism tc -ecove" She costs assoc ated with those programs on a timely basis; (iv) an annual performance-based incentive mechanism for the delivery of conservat cn and energy-efficiency De^efts when >s based upon a verfication process that measures conservation results on a weatner-normalized Oasis and jv, a atural gas decoupling mechanism r t~e fern cf a sa-es adjustment clause that la) adjusts actual non-gas distribution revenue per customer to 'allowed d str nut on revenue" as defneo ir § 56-600 of the Code, (b) is revenue neutral, and (c) does not shift annualized distributee revenue between customer casses The Applicator a sc states f at the P an nciudes measures to ensure that non-pa*1iapaling casses of c-stome’s are not adverse'y impacted

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