ON-SITE
CUSTOMIZED SEMINARS FOR YOUR COMPANY

Attachment I — Seminar
Attachment II — Materials and Fee Description
Attachment III — General Information & Responsibilities of XYZ Electric and Gas
Attachment IV — Questions to be answered by XYZ Electric and Gas to customize Seminar
Attachment V — Participant Form
Attachment VI — Info Sheet for Instructor
Attachment VII — Classroom Setup Description
Attachment VIII — Instructor's Vita

QUESTIONS & MATERIALS TO CUSTOMIZE PROGRAM

Please have someone from the Rate Department (Regulatory Affairs,etc.) provide written answers for the following questions. Please answer the following questions on a separate sheet if needed.

1. Prepare a chart similar to the one below for every jurisdiction (e.g. FCC or FERC, New York State, etc.) and/or for each type of utility service offered (e.g., Gas, Electric, Telephone). What were the last stated allowed returns if none were stated in the last rate case.

Jurisdictions/Services	FERC	STATE 1	STATE 2
Percent of Company Revenue
Date of Last Rate Order
Overall Allowed Return
Allowed Return on Equity
Allowed Return on Debt
Allowed Return on Preferred
Test Year Used

What would it cost today for the utility to borrow long term?

What would today's cost of preferred stock be?

What is the company's bond rating?

2. For the Jurisdictions above, what type of test year is generally used (historic, projected, etc.)?

3. If known, what test year will be used for the next rate case?

4. When will the next rate case be filed? Label this as to whether it is a known date or guess.

5. Why will the next rate case be needed?

6. What were the major issues in the last rate case in each jurisdiction?

7. What will be the major issues in the next rate case?

8. Are there any court actions between the company and any commissions with respect to rate issues?

9. Which industrial or business customer is the largest for each jurisdiction?

10. Who are the parties to the last rate case in each jurisdiction?

11. What is the name of the individual and the name of the group he/she represents which intervenes in your rate cases on behalf of residential rate payers (List this for each jurisdiction)?

12. What activities of the utility in each jurisdiction are non-regulated as to rates? What percent of the utility's revenue are generated from such services?

13. What potential areas for future deregulation in each jurisdiction exist?

14. What kinds of non-regulated activities do separate subsidiaries of the parent corporation engage in? What percent of total parent corporation revenue is involved in these non-regulated activities? Be sure to identify the name of the parent subs.

15. Have any of the jurisdictions in which the company operates attempted to limit the earned return on equity which the company will be allowed to keep? Please explain.

16. What action if any has each jurisdiction taken with respect to the decrease in the income tax rate to 34% in 1986?

17. What action if any has each jurisdiction taken with respect to the excess deferred taxes?

18. Indicate whether the company has excess capacity or shortage of capacity. Give any relevant figures (e.g. peak vs capacity).

19. If the company has significant off balance sheet obligations like take-or-pay contracts please indicate the nature of these, the amount and the present value amount if available.

20. If the company has potentially stranded costs please indicate the estimates for: a. regulatory assets whether on or off the balance sheet b. purchase commitments for gas or fuel c. purchase power obligations d. high cost plant e. other

FOR EACH JURISDICTION IN WHICH THE COMPANY OPERATES, INDICATE:

a. Whether there is a fuel adjustment clause or purchased gas adjustment clause (or other adjustment mechanism).

b. What is the clause called?

c. What are the additional charges or credits called on the ratepayers' bills?

d. What is the definition of fuel cost in this adjustment clause? (What costs are covered?) You may respond using FERC or NARUC Uniform System of Account classifications.

e. How long is the lag between the incurrance of the costs and the billing of the ratepayers for the cost?

f. Is the collection through an automatic procedure or does the company have to request approval from the Commission?

g. How does the clause handle an improvement in the heat rate? (e.g., is savings given to the ratepayer through the clause?)

PLEASE SUPPLY 2 COPIES OF THE FOLLOWING:

a. last rate order from each jurisdiction and if the last rate case was settled the rate order from the last fully litigated case

b. cost of capital testimony from the last rate case or an upcoming rate case

c. any summarization of results of the last rate case (e.g., an internal memo sent to executives after the rate order)

d. any testimony or major issues in the last rate cases which would be important to discuss at the seminar

e. the latest Annual Report of the company (this is the report which is sent to stockholders and/or bond holders)

f. the latest Annual Report of any parent corporation or of all regulated subsidiaries of the company

g. 10-K of the company and any 10-Q's issued this year

h. 10-K and 10-Q's of the parent or of a regulated subsidiary

i. a statistical summary of the company, parent and/or subs that are normally sent to financial analysts on Wall Street

j. Several pages from a detailed Budgeting and Control Report. This should be the kind of report which the attendees at the seminar would normally see. If different attendees would get reports which are different, provide the one which most would get. This report should have both actual and budget figures on it. (Use your judgment on which pages. The only reason for this request is to illustrate the nature of these detailed internal documents).

k. Pages 204-234 of the FERC Form 1 of the company. (Electric Utilities Only).

l. A few pages from the list of retirement units of property and the dollar amount above which items which are not part of retirement units nor retirement units themselves are capitalized.

m. A sample bill sent to a customer and a written description of how to read this bill (if one exists).

n. Copies of any recent financial analyst research reports from "Wall Street" firms about the company.

o. Copies of any financial press releases in the last year.

p. A videotape, audiotape or (if neither available) a transcript of the last annual meeting of shareholders.

q. A videotape, audiotape or (if neither available) a transcript of the last presentation by company management to the financial community.

r. An existing description of the Fuel or Gas Adjustment Clause (if one exists).

s. A sample of computer output from any standard program used at the company for making capital investment decisions as well as any documentation on how the process and analysis is carried out.

TO THE EXTENT THE COMPANY IS ABLE TO SUPPLY THE MATERIALS BELOW, THE PROGRAM CAN BE CUSTOMIZED FURTHER:

1. A description of the company's budgeting process including timing, who participates, approvals and review process.

2. A copy of one generating plant's budget or evaluation report including:
- costs versus budget (variances)
- performance measures such as available capacity, forced outage rates, safety, heat rate.

3. Any analysis available of fixed versus variable costs at a plant.

4. A description of the company's overhead allocation process.

5. A description of any transfer pricing policies.

6. A variance analysis report.

7. Analysis of the company's cost of capital (i.e., discount rate in the engineering economics analysis).

8. What is the hurdle rate used for capital budgeting decisions? Is it the same for all projects?

9. Policy of the appropriate amount of fuel or materials & supplies in inventory. Any optimal order quantity procedures.

10. Illustrations of benchmarking or comparisons with other companies.

11. A description of a contract with a customer.

Name of person completing this request __________________________________

Title ____________________________ Phone Number ______________________

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