b-
09
Ma
r
-
0
9
Ap
r
-
0
9
Ma
y
-
0
9
J
u
n-
09
PGC Rate
NYMEX*
Comparison of actual
gas prices (NYMEX)
to current rate
charged to customers
(PGC Rate) Solution: Align Current Rate Charged to Customers
to Reflect Actual Market Conditions

$-
$2.00
$4.00
$6.00
$8.00
$10.00
$12.00
$14.00
$16.00
$18.00
$20.00
Ja
n
-
0
8
F
e
b-
08
M
a
r-0
8
A
p
r-0
8
Ma
y
-
0
8
Ju
n
-
0
8
Ju
l
-
0
8
A
u
g-
08
S
e
p-
08
Oc
t
-
0
8
Nov
-
0
8
De
c
-
08
Ja
n
-
0
9
F
e
b-
09
M
a
r-0
9
A
p
r-0
9
Ma
y
-
0
9
Ju
n
-
0
9
PGC Rate
NYMEX*
Future increases
to be offset by
savings from gas
pre-pays
Graph illustrates
proposed adjustment
to PGC to reflect
actual market pricing Comparison of PGC Rates with Peer
Companies

$-
$2.00
$4.00
$6.00
$8.00
$10.00
$12.00
$14.00
$16.00
$18.00
City of Richmond
Columbia Gas
Virginia Natural Gas
Washington Gas
$-
$2.00
$4.00
$6.00
$8.00
$10.00
$12.00
$14.00
$16.00
$18.00
City of Richmond
Columbia Gas
Virginia Natural Gas
Washington Gas
Existing Rate
Currently the City of
Richmond has the
lowest PGC rate among
peer companies
Proposed Rate
City of Richmond
Will have the 2
nd
lowest
rate among peer
companies Impact to Customers: The net increase to the average
residential customers bill will be 17%

Monthly Bill for Average Residential Customer Using 70 ccf (17%)
$100.00
$105.00
$110.00
$115.00
$120.00
$125.00
$130.00
$135.00
$140.00
Current Rate
Proposed Rate Summary
Todays market pricing for natural gas is above
current price DPU charges its customers
Market trend is projected to continue
Sale of natural gas to customers below cost is
causing under recovery of expenses
Under-recovery of expenses will impact ability to
purchase gas, impact the financial viability of utility,
impact utility bond rating and impact ability to make
payment in lieu of taxes to General Fund
Solution is to align gas cost charged to customers to
reflect market pricing