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Tariff for Gas Service TXU Gas Distribution RATE SCHEDULE: I Weather Normalization Adjustment No. 4208-3 ~,PPMCABLE TO: East Region Distribution System REVISION: 0 DATE: EFFECTIVE DATE: PAGE: I OF 1 WEATHER NORMALIZATION ADJUSTMENT Effective with bills rendered during the October 2001 through May 2002 billing months, and annually thereafter for the October through May billing months, the residential and commercial consumption rates for gas service, as adjusted, shall be subject to a weather normalization adjustment each billing cycle to reflect the impact of variations in the actual heating degree days dudng the period included in the bi]ling cycle from the nermal level of heating degree days during the period included in the billing cycle. The weather normalization adjustment will be implemented on a per Mcf basis and will be appliceble to the heating load of each customer during the period included in the billing cycle. It will be determined separately for residential and commercial customers based on heating degree data recorded at the official weather station for each town. The adjustment to be made for each billing cycle will be calculated according to the following formula: WNA = NOO..4DO x M x AHL ADO Where: WNA= NDD= ADD= M= AHL = Weather normalization adjustment Normal heating degree days during the period covered by the billing cycle Actual heating degree days during the period covered by the billing cycle Weighted average margin per Mcf included in the commodity portion of the rates effective during the October through May billing months Actual heating load per customer The heating load to which the weather normalization adjustment is to be applied for rasidential and commercial customers is determined by subtracting the base load for the customer from the tctal volume being billed to the customer. The base load of a customer is the average level of nonheating consumption, The weather normalization adjustment is subject to a 50% limitation factor based on temperatures being fifty percent warmer or colder than normal. The weather normalization adjustment will be calculated to the nearest $.0001 per Mcr.