November 16, 2022 Workshop

1

METHODOLOGY OF REVIEW PROCESS

1. Reviewed and applied acceptable WYPSC edits-noted unaccepted edits
2. Reviewed and applied acceptable OCA edits-noted unaccepted edits
3. Reviewed and applied acceptable Parrish edits-noted unaccepted edits
4. Reviewed and applied acceptable Supplier edits-noted unaccepted edits
5. Reviewed and applied additional edits from Choice Gas Administrator
• Non-specific edits (questions or comments outside of the scope of the documents) were not used but were retained for future workshop efforts.
• Edits determined to impact more than one document were implemented in all affected documents (whether edits were adding or removing information)
• Edits determined to conflict with the tariff or Choice Gas Administrator were disregarded but retained for future workshop efforts.
• Minor edits for clarity/corrections were for the most part accepted if it did not alter the context in a way that provided inaccurate information.

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2

MATERIAL REVIEW

3

PACKET MATERIAL COMMON THEMES

4

PACKET MATERIAL ACCEPTED EDITS

5

COMMON THEME EDITS

Benefits of Selecting

By making your natural gas commodity Supplier selection during the Annual Selection Period :

1. You can receive immediate confirmation of the natural gas commodity price you choose;

2. You will not receive marketing communications

from Suppliers after completing your selection; and

3. You will have the opportunity to choose from a variety of natural gas commodity prices and price options during the Annual Selection Period

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Risks of Selecting (Added to Automatic Rollover Method Explanation)

When deciding whether to utilize the automatic rollover selection method or choosing a natural gas commodity Supplier, you should be aware that each price option may potentially involve some risk due to market volatility. The natural gas commodity price options offered by natural gas commodity Suppliers may potentially be subject to that market volatility risk or may potentially reflect price stability as a result of wholesale natural gas commodity prices that are subject to increases or decreases that have an impact on prices quoted by natural gas commodity Suppliers.

6

COMMON THEME EDITS Cont’d

Selection Instructions

Supplier Selection instructions

If you’d like to choose a natural gas commodity Supplier to provide your natural gas commodity:

1. Contact each natural gas commodity Supplier

using their contact information which is included on the enclosed selection form, the enclosed letter, or available at choicegas.com.

2. Choose a natural gas commodity Supplier and natural gas commodity price option by obtaining the applicable confirmation code from that Supplier. Verify with your natural gas commodity Supplier the amount of time the confirmation code is valid and finalize your selection within the valid timeframe.

3. Choose a selection method and submit your natural gas commodity selection.

Submission of your natural gas commodity Supplier choice can be completed online at choicegas.com, through your chosen natural gas commodity Supplier, or by mailing the enclosed natural gas commodity selection form using the enclosed postage paid envelope.

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7

COMMON THEME EDITS Cont’d

Automatic Rollover Method Explanation

Automatic Rollover

If you do not make a selection, the automatic rollover selection method takes effect. The rollover selection method results in the continuation of your natural gas commodity price option with the same natural gas commodity Supplier. The final natural gas commodity price from a Supplier will be determined by the Supplier 15 days after the selection period ends and you can contact your Supplier to discuss your price.

By making your natural gas commodity Supplier selection during the Annual Selection Period:

(1) you can receive immediate confirmation of the natural gas commodity price you choose, (2) you will not receive marketing communications from natural gas commodity Suppliers after completing your selection; and (3) you will have the opportunity to choose from a variety of natural gas commodity prices and price options during the Annual Selection Period.

When deciding whether to utilize the automatic rollover selection method or choosing a natural gas commodity Supplier, you should be aware that each price option may potentially involve some risk due to market volatility. The natural gas commodity price options offered by natural gas commodity Suppliers may potentially be subject to that market volatility risk or may potentially reflect price stability as a result of wholesale natural gas commodity prices that are subject to increases or decreases that have an impact on prices quoted by natural gas commodity Suppliers.

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8

COMMON THEME EDITS cont’d

Multi-year Term Explanation

You can select a natural gas commodity Supplier and natural gas commodity price option for a multi-year term. Residential customers may select a term of up to two years and three year terms are available for commercial or industrial customers.

As a customer that may have selected a multi-year term, during the term of your selection, you will not:

• Receive an annual selection packet

• Receive Supplier marketing contact

• Be eligible to make another selection

Multi-year selection terms are nontransferable, due to being customer and service address specific. This means if you move during the term of a multi-year selection, you’ll be eligible to make a selection at your new service address during the next annual Choice Gas Program selection period. Similarly, if you move into a service address whose previous tenant made a multi-year selection, you will be eligible to make a selection during the next annual Choice Gas Program selection period.

Check with your natural gas commodity Supplier regarding multi-year term offers, the applicable terms and conditions, and/or any early termination charges or fees that may apply.

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9

COMMON THEME EDITS cont’d

Difference between Black Hills Wyoming Gas, LLC & Black Hills Energy Services (BHES)

Black Hills Wyoming Gas, LLC (the regulated Utility) is the local natural gas utility and is regulated by the Wyoming Public Service Commission. Black Hills Wyoming Gas, LLC (the regulated Utility) is the administrator of the Choice Gas Program. Black Hills Wyoming Gas, LLC (the regulated Utility) supplies natural gas commodity to its Choice Gas Program customers under the Gas Cost Adjustment (GCA) regulated rate natural gas commodity price option. Black Hills Wyoming Gas, LLC (the regulated Utility) provides the natural gas commodity and does not receive any profit on the natural gas commodity price.

Black Hills Energy Services (“BHES”) is a non-regulated Choice Gas program natural gas commodity Supplier. Although BHES (the non-regulated Supplier) is affiliated with Black Hills Wyoming Gas, LLC (the regulated utility), BHES is a legally separate company.

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10

COMMON THEME EDITS cont’d

Control Number Retrieval Explanation

You’ll need your account number to get your control number through one of the following methods:

• Call 877-245-3506. Provide your account number and the last four digits of the account holder’s Social Security number.

• Visit choicegas.com. Click the button for the Wyoming Choice Gas Program, then click “Sign Up for Choice Gas” to see the option to obtain your control number. Click on the highlighted here field. On the next screen enter your account number and choose the method by which you want to receive your verification code. Check your email or text message for the verification code, enter it online and your control number will be provided.

*Both of the above methods for control number retrieval are successful only if the account holder’s Social Security number or email address or phone number have been provided to Black Hills Wyoming Gas for your utility account.

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At completion of the packet material revisions process, the applicable edits will be transitioned to the Choice Gas website for consistency between the two information resources.

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11

FEW CHARGE PLACEHOLDER

The below verbiage is taken from the Choice Gas website and will be subject to revisions after the Commission’s approval. The revised version will be placed in the packet Letter and Guidebook, as well as the Choice Gas website.

What you should know about the impact of the February Extreme Weather rate on the Gas Cost Adjustment (GCA) regulated rate price option.

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The Wyoming Public Service Commission has approved a February Extreme Weather  (‘FEW’) Rate of $0.1226 per therm, on an interim basis, effective September 1, 2021, for a period of three years.  The FEW Rate is for the recovery of the significant increase in gas costs related to Storm Uri in February 2021 caused by extremely high demand and production interruptions.   Premises where the customer was receiving service under the Regulated GCA option on February 28, 2021 will be subject to payment of the FEW Rate for the duration of the effective period.  If these premises subsequently select a Choice Gas Supplier during the FEW Rate effective period, the premises will still be subject to the FEW Rate.  Premises where the customer was receiving service under a selected Choice Gas Supplier on February 28, 2021 will not be subject to the FEW Rate for the duration of the effective period.  If these premises subsequently select to receive service under the Regulated GCA option during the FEW effective period, the premises will continue to not be subject to the FEW Rate.  Additionally, any new premises adding service after February 28, 2021 will not be subject to the FEW Rate for the duration of the effective period. 

12

PACKET MATERIAL UNACCEPTED EDITS

13

MAILING LIST & MARKETING AGREEMENT

14

PROPOSED EDITS UNRESOLVED

The issue of immediate confirmation of customer selections is not resolved. Further discussion to address:

• Timing
• Some selections receive immediate confirmation
• Sending confirmation to coincide with receipt of the final balloted file
• Include default customers in confirmation process
• Electronic communication vs mailing
• Customer bills provide supplier name and price billed for commodity
• Mailing expense and customer contact information tracking vs customer billing invoice
• Managing customer confusion
• Customer moves out
• Customer requests supplier to change their price option
• If confirmation is sent at time of selection, and price option change takes place after the selection period is over, customer would receive incorrect confirmation
• Supplier ends up duplicating selection confirmation efforts
• Customer has requested to be released from supplier selection

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15

COMPLETION OF CHOICE GAS ISSUES

Administration issues that have been addressed and considered resolved:

• Program materials should contain same information
• Selection packet improvement-GCA not explained sufficiently
• Firm date to suppliers for packet material data changes
• Suppliers record all calls
• Prohibit suppliers from marketing safety & reliability
• No Delegation Agreements for residential
• Four-week marketing and enrollment period
• Marketing period should remain eleven weeks & not coincide w/selection period
• GCA customers should not pay for CG administration
• Delegation Agreement use for commercial customers with more than one account
• GCA is regulated by WYPSC
• Clearly describe supplier is providing gas & utility provides additional services
• BHES clearly delineated from the Utility

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16

TAKEAWAYS

Mailing List & Marketing Agreement

Parties to provide final edits by 12/1/22

Choice Gas Administrator to provide Agreements to Suppliers week of 12/12/22 for the 2023 program year.

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Choice Gas Packet Materials

Parties to provide final edits by 12/5/22

Approval of FEW charge for appropriate edits to FEW placeholder in Letter & Guidebook

Choice Gas Administrator to provide final material drafts to communications team for formatting fixes, spelling, etc.

Final review by Choice Gas Administrator

Final pdf’s provided to vendor for printing

17

QUESTIONS

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Black Hills Energy – Wyoming Operations

Natural Gas Utilities

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Wyoming

178,540 customers

56 communities served

433 employees

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