Acct'o '5 to -^cHunriDia's Aoo"calion. toe orooosec P an corta ns six (6) programs with thirty (301 conservator and energy-efficiency measures tnat it

Acct'o '5 to -^cHunriDia's Aoo"calion. toe orooosec P an corta ns six (6) programs with thirty (301 conservator and energy-efficiency measures tnat it est irate'-: w> save 0 3%-0 5% of the Company's ann..a- sa.es each year for the life of the measures Over toe initial three-year tern- of the Plan, the Company p-oposes to spend 59 million or these programs Fq- that expenditure, the Company projects that its customers will save S41 million "over the life of the measu'es fo- a three yea' program cycle, the net present value of which is more than S22 million " The Company fuiner asserts that individual c„stn.me's who participate ■" the vanous measu'es effe'ed unde' the conservation and energy-efficiency programs can save from $90 to S350 per yean and to at tne rest (c a- average residential customer under the CARE P an is approximately S10 per year

Tne c .mpa-’y states that ts proposed Pan includes two p'og'ams for residential customers, including a web-Pased home aud't program and a program Afr rce't »es to' "igh-etf c e"Cy nature gas soace-neatng equipment high efficiency natural gas water heating eaupme"t. and certain home weathenzaton measu'es fund ng fo' Ironing aro educat on to rcrease me number of energy auditors who support government-sponsored tow-income weathenzaton prog-an s and nomDany-sponso'ed educatc-al effods desg-od to ncrease consume' awareness of tne low- ncome weather zafion prog-ams (iii) a comm.,- i, education a"d outreach prog-am a'-d tivi two programs for the SGS customer dass. including a program w th ncentives for .nveslments in "■gr c-ff •; , ecu on e-t arc otoe*high-effcercy measu'es apo icaote to business customers and a program to provide CuStome'-spectfic conservation

: e''e'gv -.-ft r ft scuutions to- a'ger SGF c .stome's wtn customized systems such as central systems process leads or thermal distribution systems

f' » C-.-mpa -y pro: oses ?■ -suant to § 56-602 iDi of the Code, that it recover the incrementa costs associated with Ts conservation and energy-effcient proc'ams nr of a surct-3'ge ca .ec tne CARE Program Adjustment ;“CPA‘j The proposed CPA provides for c'ass-specific projections of the costs of h e r : i : -oposed r.o"servation and enemy eff cent programs to be included on customers’ bills as a surcharge applicable separately to the RS ana SGS custcr r;os SO ' 37 Mcf fo- RS custome's S’d SO 032 Mcf for SGS customers The Company a iso states that § 56-602 D of the Code permits the Com pa: , to -eceive up to ‘S' of the nceoe'XSe'T'y ver f,ed net economic benefits created by its cost-effect ve conservation and energy efficient programs Tne Con piiny proposes tu recover f i tnrougn ai adjustme> I to ts Puxhased Gas Adjustment ("PGA''} mechanism 1

T’ e Cumpa-iv asseds in is App pat on to at de' ts current 'ale design, it is permitted to recover the majonty of its costs based on a charge per cube foot of at v. gas sole ,' tra- sport'-:, eve" for. ,gh r‘ e majo' ty of tne Company's non-gas costs are fixed in natu'e Tne Company states tnat the existing dfesigi ' n*> - ' sinceritive for i fo »"<.'age ts customers to reduce tneir natura gas consumption The Company states that Ts proposed decoupling mei ’ ar- sm e i uves foe "lr«i.ii| ora : si'cer t ve for Cu ,n i>a tu actively promote conservation and energy efficiency by its customers, wthout negative fmanc ai res !• iu sharoho cte's * Sbeofca", foeCc I'pa-y proposes a sales adjustment clause m the form of a Revenue Normalization Ao.ustment that ad,-., sis non-gas ristrfc utior re yen ,.e to a Mowed d-sirb .t of revenue. which >s determined based on the rales in effect unce' the Company's performancebased mg a: 0'« "PBR'; ape roved by the ComnusS'O" Case No RUE-2005-00098

T*e Company a so asvr'ts ts Application |-at t nas noudeo a provision in tne Plan requiring it to perform a second earnings sharing test on pehaT of ~on-p?.'t'C pat ng c asses of customers Tne Company states that ’[.]f the snarabte earnings calculated under this CARE Plan Earnings Test for any non-pad'C paling customer class aro groate- tr-an the snar-we earn mgs that 'esuit from the current PBR Earnings Test calculation, the difference will be added to the PBR snarabie ear rings for that non-pad c,paimc customer class " The Company asseds that this ensures that the 'ales and services of non-pad r pat" g r asses of ' 'trie's are not ad-verse v impacted by the Plan The details of these and other proposals are set forth in the Company's App icato' suppodmg testimvr » ar : exhibits Irle'ested persons a'e encouraged to review the Company's Application and supporting testimony for details of the Company’s proposals

T'e Company's Appi caticr s docketed and assigned Case No PUE-2009-00051 Interested persons are encouraged to review the Commission's Order for Not ce and Hearing for the details on how to pad <. pale r thus proceeding Interested persons may also review a copy of the Application and the Commission's O'der for Not ce and Hearing in the Commission's Document Control Center, located on the First Floor of the Tyler Building, 1300 East Mam Sl'eet Richmond. Virgir- a between me hours of 8 ‘5 a m and 5 00 p m Monday through Friday A copy of the Application may also be obtained at no cost by interested pe'sons by making a w-tten request to the Company's counsel James S Copenhaver Esquire Columbia Gas of Virginia Inc 1809 Coyote D'ive, Chester Virginia 23836 f acceptable to the requesting party, the Company may provide the Application, with or without attachments by electronic means in addil on. the Company's Application, the Commission's Order For Notice and Hearing, Hearing Examiner Rulings, and other orders entered in this docket the Commission's Rules of Practice and Procedure as well as other information concerning the Commission and the statutes it administers, may be vewed on foe Commission's website at httpVfwww see Virginia aov/case

A public hear ng shah be.convened on October 19 2009, at !0 00 a m , before a Heanrg Examiner in the Commission's Courtroom Second Floor. Tyler Bu Wing, 1300 East Mam Sheet Richmond Virginia. to rece ve comments from members of the public and to receive evidence in the above-referenced docket Any pe-son not participating as a respondent as provided for below may give oral testimony concerning this case as a pubic witness at the heanng

Pubic witnesses desiring to make statements at the pubic rearing need only appear in foe Commission's Second Fioo' courtroom in the Tyler Building at the address set forth above pno' to 945 a m'on the day of foe neanng and identify himself or herself to the Ba l fT

Any T terestefi person may parte pate as a respondent in this proceeding by filing, on or before August 4, 2009. an original and fifteen (15) copies of a notce of partcipation with the Clerk, Slate Corporation Commission, c/o Document Control Center PO Box 2118 Rchmond. Virginia 23218-2118, and shall simultaneously serve a copy of foe notce of partcipation on counsel to Columbia at the address set out above Pursuant to Rule 5 VAC 5-20-80 of the Commission's Rules of Practice and Procedure any notice of participation shall set forth (i) a precise statement of the interest of the respondent; (ii) a statement of the speerfe action sought to the extent then known, and (ni) the factual and legal basis for the action Interested parlies shall refer in all of their filed papers to Case No PUE-2009-00051

On or before September 17, 2009 each respondent may fie with the Clerk of the Commission at the address above an original and fifteen (15) copies of any testimony and exh bils by whch the respondent expects la establish its case and shall serve copies of the testimony and exhibits on counsel to the Company at the address above and on ail otner respondents The 'espondent shall comply with the Commission's Rules of Practice and Procedure, including 5 VAC 5-20-140, Filing and service. 5 VAC 5-20-150 Copies and format, and 5 VAC 5-20-240 Prepared testimony and exhibits

On or before October 13. 2009 any interested person may file with the Clerk of the Commission, at the address set forth above wntton comments on the ApDlfoation On or before October 13, 2009 any interested person desinng to submit comments electronically may do so by following the instructions found on the Commission's website http Awww see Virginia gov/case and referring to Case No PUE-2009-00051

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