Berkshire Gas 2016 Price Letter

December 2016

Dear Customer,

With the winter heating season just ahead, we wanted to let you know what you can expect with regard to natural gas supply prices. We also wanted to pass along some of the options available to help you manage any change in natural gas supply prices or increased use should there be colder-than-expected weather.

Natural Gas Supply and Prices

This year, we are happy to share some good news with you. Despite national forecasts of higher natural gas prices, those prices will be partially offset by a credit on your monthly winter heating bill. This credit was agreed upon with regulators as part of our 2015 merger agreement.

The rate credit will be $8.33 per month and will be applied to customer bills from November 1, 2016 through April 30, 2017.

Barring any unforeseen changes or disruptions in energy markets, Berkshire Gas customers can expect that prices will be stable for the heating season.

A Note about Weather

Your monthly heating bill is affected by the price of natural gas and the amount of natural gas you use to heat your home or business. Your consumption of natural gas could be higher or lower than previous winters depending on the severity of the weather – the colder the weather, the more natural gas you are likely to use, particularly for heating.

It is important to note that last winter was unusually warm. Consequently, overall heating season costs were lower than can normally be expected during the winter months. Despite stable natural gas prices, a return to more normal winter temperatures would likely result in overall higher heating costs as compared to last winter due to the need for increased usage to keep your home warm.

It should be noted that Berkshire Gas does not make any profit on natural gas supply. Our revenues are earned from providing the delivery service. Compared with other fuels, natural gas continues to be a solid energy value.

How You Can Save Energy and Money

We are committed to working with our customers to help manage energy use and costs.

Control Your Heating Costs - You can control your heating costs by using energy wisely and making sure that both your natural gas-fired equipment and your home are as efficient as possible. Taking some simple steps, like turning down your thermostat whenever possible, can go a long way toward helping you manage your energy costs.

Budget Billing - The best way to manage your energy costs is through our Budget Billing Program. Budget payment plans allow you to spread your energy costs evenly over 12 months. To learn more and find out if you are eligible, please call our Customer Care Center at (800) 292-5012.

Payment Assistance Information - With this letter, we have provided information on our payment options and payment assistance programs. I encourage you to read these documents and take action right away.

Enclosed you will find important information about the energy efficiency programs we offer and energy saving tips for your household.

Natural gas is the affordable choice to cleanly and efficiently heat our homes now and for years to come. We appreciate your business and look forward to continuing to serve your natural gas needs.

Sincerely, Karen L. Zink President