FREQUENTLY ASKED QUESTIONS ABOUT A WNA

The WNA is designed to reduce the volatility of customers' natural gas bills due to changes in weather conditions. Mountaineer Gas will adjust customers' bills - through the use of a credit or surcharge - to reflect normal, rather than actual, weather conditions for service rendered from October 1 to May 31.

When base rates are established, the rates are determined assuming normal weather. The revenues from these rates are used to pay for costs to provide safe, reliable gas service to customers and the community. While a utility can control most of its costs, it cannot control the weather and the related revenue impact. Thus, a WNA provides revenue stability to the gas utility. When weather is warmer by more than 2%, residential and general service customers will be billed a surcharge on the base rate charge only. Conversely, when the weather is colder by more than 2%, residential and general service customers will receive a credit on their gas bill.

Customers will see a "WNA" line on all bills for service rendered from October 1st to May 31st including the WNA Mcf volume (two decimals) and the customer's respective base rate charge. If the weather is within 2% of normal, then no WNA will be assessed; the WNA line will still show on the bill as "0.00" along with a zero WNA volume amount and the customer's respective base rate charge.

Mountaineer uses a 10-year system-wide average temperature from information provided by the National Oceanic and Atmospheric Administration (NOAA) from measuring stations located throughout the Mountaineer service territory. Next, Heating Degree Day differences, as discussed below, are calculated from this average to predict and plan for normal customer heating requirements.

The BLMM is the daily base load factor for usage not related to heating. It is determined by using each customer's usage during the summer and dividing that usage by the number of days related to that usage. This usage represents gas used by a water heater, a range, or clothes dryer. This usage is expected to be constant during the year. Thus, base load usage is not subject to the WNA factor.

Heating Degree Days (HDD) are used to measure how cold it is on a given day. HDDs are calculated by subtracting the average temperature for the day from 65°F. Below 65°F is considered a threshold at which heat would typically be necessary for the average customer. The system-wide average for years 2013 to 2022 (or Normal HDDs) was used to determine the revenue increase approved in the Company's 2023 base rate case and will be used to determine the WNA, if applicable.

No. Customers served under rate schedules RS (residential service,) GS (general service,) and GST (general service transportation) cannot opt out of participation.

No. The WNA is designed to be "revenue neutral" over time because it reduces bills when the weather is colder than normal and adds a surcharge to bills when the weather is warmer than normal. Mountaineer's base rates are designed assuming normal weather conditions, and the WNA more closely aligns actual rate base rate revenues with those granted in rate proceedings. The calculations used to determine these amounts are based on the method and data approved by the Public Service Commission of West Virginia on April 11, 2024, in Case No. 23-0280-G-42T.

While the WNA will impact your bill, it will not impact your monthly payment. With the Budget Payment Plan, you are billed a fixed amount each month based on your average annual gas usage. In June, we simply look back at your total gas usage for the most recent 12 months and normalize that amount for the weather; your existing account balance is added to determine an estimated annual bill based on our current rates. We then divide this annual estimated bill by 12 to arrive at a monthly amount.

No. The WNA adjusts the base rate charge and does not impact the gas commodity charges (the amount a customer pays for the supply of natural gas used). The WNA only adjusts the base rate charge, subject to the 2% temperature threshold. Mountaineer’s cost for purchasing natural gas is reviewed annually by the PSC, and any changes are passed through to customers with no markup or profit margin. These costs include charges for natural gas, transportation, and storage.

Yes. Customers do benefit from energy conservation in two ways. First, when a customer conserves gas during the winter months, for example by turning down the thermostat, the customer is reducing the temperature sensitive portion of their bill. The temperature sensitive portion of the bill is what is adjusted for normal weather within the WNA calculation. Although a customer may still see a WNA charge on their bill, the amount charged in a warmer than normal scenario will be less than it otherwise would have been with higher temperature sensitive usage. Second, customers will see a direct benefit on their purchased gas cost portion of their bill for their energy conservation efforts. Purchased gas cost charges are based on a customer’s actual usage and are not impacted by the WNA. Any reduction in gas usage because of conservation measures will lower the purchased gas cost charges. Mountaineer continues to encourage customers to take conservation efforts whenever they can.