________________________________ Burl W.

Haar, Executive Secretary

STATE OF MINNESOTA PUBLIC UTILITIES COMMISSION

APPROVAL OF INTERIM RATES CUSTOMER NOTICE AND NOTICE TO COUNTIES AND MUNICIPALITIES
Issued: September 20, 2013 In the Matter of an Application by CenterPoint Energy Resources Corp., d/b/a CenterPoint Energy Minnesota Gas for Authority to Increase Natural Gas Rates in Minnesota PUC Docket Number: G-008/GR-13-316

Case Background: On August 2, 2013, CenterPoint Energy Resources Corp., d/b/a CenterPoint Energy Minnesota Gas (CenterPoint), filed a request to increase rates for natural gas service in Minnesota that included a proposed customer notice for interim rates and a proposed notice to counties and municipalities. On September 18, 2013, CenterPoint electronically (informally) submitted a final revised customer notice for interim rates and a final revised notice to counties and municipalities. CenterPoint worked with Commission staff in the development of these notices, and has informally submitted revisions to its original proposal prior to submitting the versions attached. On September 12, 2013, at its agenda meeting, the Commission delegated authority to its Executive Secretary to approve notices for the duration of the proceedings in this matter. CenterPoints revised customer notice for interim rates and revised notice to counties and municipalities are approved, as attached to this notice. Filing Requirements: Utilities, telecommunications carriers, official parties, and state agencies are required to file documents using the Commissions electronic filing system (eFiling). All parties, participants and interested persons are encouraged to use eFiling. Full Case Record: All documents filed in this docket are available on the Commissions website at www.puc.state.mn.us, select Search eDockets, enter the year (13) and the docket number (316), select Search. Subscribe to the Docket: Receive notification when new documents are filed in this docket at www.puc.state.mn.us, select Subscribe to a Docket, and follow the prompts.

PHONE 651-296-7124 TOLL FREE 800-657-3782 FAX 651-297-7073 CONSUMER.PUC@STATE.MN.US

121 7TH PLACE EAST SUITE 350 SAINT PAUL, MINNESOTA 55101-2147

www.puc.state.mn.us

PUC Docket Number G-008/GR-13-316

Page 2

Submit Public Comments: E-mail to PublicComments.PUC@state.mn.us. Persons without e-mail access may send by U.S. mail to Burl Haar, Executive Secretary, Minnesota Public Utilities Commission, 121 7th Place East, Suite 350, St. Paul MN 55101-2147. Please include the Commissions docket number in all communications. Questions about Commission process and procedure? Contact Commission staff: Robert Harding at robert.harding@state.mn.us or 651-201-2237 or Clark Kaml at clark.kaml@state.mn.us or 651-201-2246. This document can be made available in alternative formats (e.g., large print or audio) by calling 651-296-0406 (voice). Persons with hearing loss or speech disabilities may call us through their preferred Telecommunications Relay Service.

PHONE 651-296-7124 TOLL FREE 800-657-3782 FAX 651-297-7073 CONSUMER.PUC@STATE.MN.US

121 7TH PLACE EAST SUITE 350 SAINT PAUL, MINNESOTA 55101-2147

www.puc.state.mn.us

 ommerce-Division of Energy Resources (DOC). Public notice of the hearing dates C and locations will be published in local newspapers in the companys service area, in a bill insert, and on our website at CenterPointEnergy.com. You may visit CenterPoint Energys ofce at 800 LaSalle Avenue, 14th oor, M inneapolis, Minn., 55402, to examine the current and proposed rate s chedules. Our b usiness ofce hours are 8 a.m. to 5 p.m., Monday through Friday. You may also provide comments to the Minnesota Public Utilities C ommission, 121 Seventh Place East, Suite 350, St. Paul, Minn., 55101-2147, email PublicComments.puc@state.mn.us, telephone 651-296-0406 or 800-657-3782, or your preferred Telecommunications Relay Service. Comments will be made available to the public on the MPUCs website, except in limited circumstances consistent with the Minnesota Government Data P ractices Act. The MPUC does not edit or delete personally identifying i nformation from submissions. You also may contact the Minnesota Department of Commerce, 85 Seventh Place East, Suite 500, St. Paul, telephone 651-539-1534, your preferred Telecommunications Relay Service or visit the website at www.edockets. state.mn.us/EFiling/search.jsp (Select 13 in the year eld, enter 316 in the number eld, click on search, and the list of d ocuments will appear on the next page), to examine the ling. Alternatively, you may examine our current and proposed rate schedules and our ling for new rates by visiting our website at CenterPointEnergy.com/RateCase. Anyone who wishes to formally intervene or testify in the case should contact the Administrative Law Judge, the Honorable Laura Sue S chlatter, Ofce of Administrative Hearings, P.O. Box 64620, St. Paul, MN 55164-0620, telephone 651-361-7900, TDD 651-361-7878. You do not need to contact the Judge if you simply want to attend the public hearings, provide oral comments at the public hearings or submit comment letters to the Administrative Law Judge. Written comments are most effective when the following three items are included: 1) the section of CenterPoint Energys proposal you are addressing; 2) your specic recommendation; and 3) the reason for your r ecommendation. Please be sure to reference docket number G-008/GR-13-316 in all correspondence or requests.
2013 CenterPoint Energy 131516

NEW INTERIM RATES EFFECTIVE OCT. 1, 2013

On August 2, 2013, CenterPoint Energy led a request with the Minnesota Public Utilities Commission (MPUC) to change its rates for utility distribution service. If approved by the MPUC, the proposed new rates will result in an overall increase in revenue of $44.3 million, or about 5 percent annually. The requested increase would add about $4.00 to a typical residential c ustomers monthly bill. CenterPoint Energys last request for an overall increase in its base rate was in 2008. The 2008 rate request was approved by the MPUC in January 2010, and implemented in July 2010. The MPUC is generally allowed 10 months to issue a nal decision on general rate lings. Interim (temporary) rates will begin October 1, 2013, following MPUC approval. If the nal rates are lower than interim rates, we will refund customers the difference with interest. If nal rates are higher than interim rates, customers will receive no additional charges for natural gas used while interim rates were in effect. See below for details of the proposed changes and how they will affect your natural gas bill.

Interim rates begin October 1, 2013

State law permits CenterPoint Energy to charge interim (temporary) rates while the MPUC considers our request for new rates. The MPUC has approved an overall interim rate increase of $42.9 million, or 4.88 percent for all CenterPoint Energy customers. The increase is effective for service rendered on and after October 1, 2013.

Proposed rates will help the company recover increased costs

Regulated utilities are authorized by state law to recover the costs of operating a safe and reliable natural gas distribution system. This rate ling is needed to recover the signicant capital expenditures CenterPoint Energy is making in the State of Minnesota in compliance with federal and state pipeline safety and integrity regulations. The capital expenditures are necessary to maintain a safe and reliable distribution system that is aging, to respond to signicant levels of public improvements made by local governments, and to modernize our systems with technology improvements.

Proposed revenue decoupling rate adjustments

CenterPoint Energy has proposed a Decoupling Rider that, if approved, will allow the Company to automatically adjust its rates for residential, commercial and small industrial customers each year. These annual rate adjustments, if approved, will allow CenterPoint Energy to match the actual revenue the Company receives each year from these customers to the amount of revenue allowed in this rate case. The purpose of these rate adjustments is to reduce the Companys disincentive to promote energy conservation and energy efciency and stabilize the Companys revenues.

Changes proposed for residential monthly Basic Charge and Delivery Charge
Customers pay for natural gas delivery service in two ways. The rst way is a monthly Basic Charge, which recovers a portion of xed costs that do not change with the amount of natural gas used. The second way is the Delivery Charge, a per therm charge which recovers the costs not recovered in the Basic Charge. The total Delivery Charge amount changes each month with the amount of natural gas used. CenterPoint Energy is proposing to increase the monthly Basic Charge and decrease the per therm Delivery Charge for most of its customers. CenterPoint Energy proposes to increase the Basic Charge for residential customers from $8.00 to $15 a month and to decrease the Delivery Charge from the current $0.17127 per therm (which includes the $0.00490 per therm for the Gas Affordability Service Program) to $0.12943 per therm. This chart shows the current and proposed Basic Charge and Delivery Charge for each customer type:
Customer type (usage in therms) Residential Commercial/Industrial Up to 1,500/year 1,500 to 5,000/year 5,000 or more/year Current Proposed Current Proposed monthly monthly delivery delivery basic charge basic charge charge/therm charge/therm $8 $12 $18 $43 $15 $0.17127 $0.12943 $15 $0.15170 $0.16046 $21 $0.14912 $0.13997 $43 $0.13852 $0.15103 $60 $0.09941 $0.11163 $90 $0.09420 $0.10642 $600 $0.04270 $0.05492

Heres how the rate change will affect monthly bills:

The proposed rate changes will affect individual monthly bills differently depending on natural gas use and customer group. Bills will also vary because the wholesale cost of natural gas changes each month. Customers bills contain three parts: Basic Charge, Delivery Charge and cost of gas, which is passed through directly to customers without mark-up. The proposed Basic Charges and Delivery Charges recover only the cost of providing utility distribution service to our customers about 40 percent of the bill. They do not include wholesale gas costs about 60 percent of the bill. The chart below shows the effect of both the interim and proposed rate changes on monthly bills for residential, commercial and industrial customers with average natural gas use:
Customer type (usage in therms) Residential Commercial/Industrial Up to 1,500/year 1,500 to 5,000/year 5,000 or more/year Avg monthly Avg monthly usage in bill: current therms rates 73 60 226 1,136 $57.50 $51.50 $166.50 $774.25 Avg monthly Avg monthly bill: interim bill: proposed rates rates $60.25 $54.00 $174.75 $812.00 $61.50 $55.00 $167.25 $788.50

Small Volume Dual Fuel Sales Service Up to 120,000/year $60 120,000 or more/year $90 Large Volume Dual Fuel Sales Service $600

Small Volume Dual Fuel Sales Service Up to 120,000/year 3,799 $2,114 $2,217 $2,161 120,000 or more/year 13,743 $7,449 $7,813 $7,617 Large Volume Dual Fuel Sales Service 125,750 $59,200 $62,089 $60,736
* Figures above are rounded (residential and commercial/industrial customers are rounded to the nearest $0.25 and dual fuel customers are rounded to the nearest whole number).

* The current and proposed per therm delivery charges includes the per therm charge for the Gas Affordability Service Program (residential and commercial/industrial customers) and does not include the per therm Conservation Improvement Program Adjustment Rider that is used to recover CIP costs not included in base rates.

How to learn more

Public hearings will be scheduled and overseen by an Administrative Law Judge. Customers and others will be given the opportunity to comment on our rate ling at the hearings. The public is invited to attend and provide comments. Other regulatory agencies that generally comment include the Ofce of the Attorney General-Antitrust and Utilities Division and the Minnesota Department of

FOR CENTERPOINT ENERGY CUSTOMERS Notice to Counties and Municipalities Under Minn. Stat. 216B.16, Subd. 1 BEFORE THE MINNESOTA PUBLIC UTILITIES COMMISSION STATE OF MINNESOTA In the Matter of an Application by CenterPoint Energy for Authority to Increase Natural Gas Rates in Minnesota. NOTICE OF APPLICATION FOR RATE INCREASE MPUC Docket No. G-008/GR-13-316

On August 2, 2013, CenterPoint Energy, a division of CenterPoint Energy Resources Corp., (CenterPoint Energy), filed a request with the Minnesota Public Utilities Commission (Commission) for a general rate increase of $44.3 million or 5.0 percent. At its meeting on September 12, 2013, the Commission accepted CenterPoint Energys filing as complete. In accordance with Minn. Stat. 216B.16, Subd. 3, the Commission has approved a total interim increase of $42.9 million or 4.88 percent. CenterPoint Energy customers will receive a 4.88 percent increase on their bills. Below are examples of the affect of the proposed and interim increase on typical bills for CenterPoint Energy customers. Individual changes may be higher or lower depending on actual natural gas usage. Rate Type (usage in therms) Average Average Average Average monthly monthly bill: monthly bill: monthly bill: usage in current rates interim rates proposed therms 73 $58 $61 $61 60 226 1,136 3,799 13,743 125,750 $52 $166 $774 $2,114 $7,449 $59,200 $55 $174 $812 $2,217 $7,813 $62,089 $55 $167 $788 $2,161 $7,617 $60,737

Residential Commercial/Industrial - up to 1,499/year - 1,500 to 4,999/year - 5,000 or more/year Small Volume Dual Fuel - up to 119,999/year - 120,000 or more/year Large Volume Dual Fuel

The Commission will determine the amount of the final rate increase on or before June 2, 2014. If the final approved rates are less than the interim rates, the difference will be refunded to customers, with interest. To examine the current and proposed rate schedules, visit CenterPoint Energys office at 800 LaSalle Avenue, 14th Floor, Minneapolis, Minn., 55402. The Companys business office hours are 8 a.m. to 5 p.m. Monday through Friday. The filing may also be examined at the Minnesota Department of Commerce, 85 Seventh Place East, Suite 500, St. Paul, Minn., 55101, telephone 651-539-1886 or your preferred Telecommunications Relay Service or at the eDockets Web site at www.edockets.state.mn.us. The current and proposed rate schedules and filing for new rates may also be examined by visiting the Companys Web site at www.CenterPointEnergy.com/ratecase. An administrative law judge will schedule public hearings. Public notice of the hearing dates and locations will be published in local newspapers in CenterPoint Energys service areas. Persons who wish to intervene or testify in this case should contact the Administrative Law Judge, the Honorable Laura Sue Schlatter, Office of Administrative Hearings, Post Office Box 64620, St. Paul, MN 55164-0620.