Award Proposal - City of SB Natural Gas Supply - Interstate Gas Supply, Inc.

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Page (7 F. Procurement IGS Energy works hard for our commercial and industrial customers in creating and implementing a procurement strategy that best fits their individual business objectives. We understand that the procurement of natural gas is not a "one size fits all" approach and procurement strategies need to be reviewed on an on -going basis due to the volatility of the natural gas market as well as an ever -changing business climate. We have been managing the gas supply for many commercial, industrial, and municipal customers within the NIPSCO service territory since 2009, to include The City of South Bend since 2012. The IGS representative will continue to be proactive in setting up face-to-face meetings or conference calls to provide market projections, discuss load changes, communicate existing hedging strategy, discuss and review hedges, and discuss any changes in the City's business objectives. a.We will continue to provide The City of South Bend with weekly market updates to include price projections and the most recent market news. b.IGS will continue to provide immediate and fully transparent email notifications as each hedge is made. (Please see the sample notification below) "Good afternoon, As a member of IGS Energy's Active Commodity Allocation Program ("ACAP'), you know that we continually monitor the natural gas futures market to best manage your risks as a natural gas consumer. As such, we are pleased to inform you that we have hedged more of your future natural gas needs. Last year, from early November 2016 to late December 2016, we saw the first quarter of 2017 prices go from the $2.80s all the way up to the $3.80s with the cold weather that we experienced before the new year. This year, forecasts are showing another December with below normal temperatures, but with a very different story in prices. Just less than one month ago, the January 2018 — March 2018 strip traded as high as $3.29 and since then 2018 first quarter prices have decreased more than 35 cents. Additionally, as seen below, NOAA is showing a below normal forecast far January 2018 through March 2018. Considering this recent downturn and current forecasts, we have purchased an additional 10% of your January 2018 through March 2018 natural gas needs at $2.93. This purchase brings your total hedged position for that term to 80% at $3.096. If you do not wish to hedge an additional 10% of your January 2018 through March 2018 expected usage for your NIPSCO locations at the above price, please contact IGS Energy by 5: 00 PM eastern time on December 6, 2017 at 877-245-1068. " 6100 Emerald Parkway, Dublin, OH 43016 1 p 877-923-4447 l f 614-659-5125 I IGSENERGY.COM