NEU Regulatory Update

NEU Regulatory Update ComEd Files 2017 Formula Rate Update On April 13, 2017 Commonwealth Edison Company ( ComEd ) filed its 2017 Formula Rate Update ( FRU ) with the Illinois Commerce Commission ( Commission ). In this annual filing, ComEd is requesting to increase rates by $78.8 Million on January 1, 2018. This represents an overall rate increase of 3.0%. The table below is a summary comparison of revenue approved in ComEd s 2016 FRU to proposed 2017 FRU revenue. Results show ComEd has included in its proposed total revenue a reconciliation adjustment of $84.1 Million. This adjustment reflects an under-collection in approved 2015 revenue. ComEd s Revenue Requirement Comparison 2017 Approved vs. 2018 Proposed Annual Revenue ($ Millions) Approved Proposed ComEd Proposed 1/1/2017 1/1/2018 Annual Revenue Requirement $2,573.5 $2,637.5 Reconciliation Adjustment $69.2 $84.1 Net Revenue Requirement $2,642.8 $2,721.6 Change / Increase for 2017 Rates $78.8 2.98% The Energy Infrastructure Modernization Act ( EIMA ) signed into law in 2010 allows ComEd to increase its rates each January 1 to reflect infrastructure modernization investments made the prior year. ComEd is investing approximately $2.5 Billion for infrastructure modernization over a 10-year period that began in 2012. Proposed rates effective January 1, 2018 are shown in the following table. These rates will be adjusted by any rate design changes ordered in ComEd s current Rate Design Investigation before the Commission (see March NEU bulletin). Page 1 ComEd Delivery Service Charges Comparison Rate DSPP, Delivery Service Pricing and Performance Medium Load Delivery Class (100 kw - 400 kw) Approved Proposed Jan. 1, 2017 Jan 1, 2018 Customer Charge $19.51 $24.68 Standard Metering Service Charge $29.30 $28.36 Secondary Voltage Distribution Facilities Charge ($/kw) $6.83 $6.68 Primary Voltage Distribution Facilities Charge ($/kw) $3.84 $3.87 Primary Voltage Transformer Charge ($/kw) $0.18 $0.23 Large Load Delivery Class (400 kw - 1 MW) Customer Charge $92.91 $109.74 Standard Metering Service Charge $30.36 $29.81 Secondary Voltage Distribution Facilities Charge ($/kw) $7.10 $7.00 Primary Voltage Distribution Facilities Charge ($/kw) $5.23 $5.38 Primary Voltage Transformer Charge ($/kw) $0.26 $0.29 Very Large Load Delivery Class (1-10 MW) Customer Charge $496.84 $586.25 Standard Metering Service Charge $31.06 $28.24 Secondary Voltage Distribution Facilities Charge ($/kw) $7.06 $7.10 Primary Voltage Distribution Facilities Charge ($/kw) $5.24 $5.71 Primary Voltage Transformer Charge ($/kw) $0.26 $0.31 Extra Large Load Delivery Class (> 10 MW) Customer Charge $1,205.16 $1,269.44 Standard Metering Service Charge $67.81 $52.16 Secondary Voltage Distribution Facilities Charge ($/kw) $5.01 $5.39 Primary Voltage Distribution Facilities Charge ($/kw) $5.53 $5.58 Primary Voltage Transformer Charge ($/kw) $0.30 $0.36 High Voltage Customer Charge $493.21 $524.14 Standard Metering Service Charge $40.00 $42.77 HV Distribution Facilities (less than 10 MW) $0.24 $0.33 HV Distribution Facilities (10 MW and greater) $0.16 $0.18 HV Transformer Charge (less than 10 MW) $2.89 $1.77 HV Transformer Charge (10 MW and greater) $0.90 $0.81

ComEd Files Updated Transmission Rate for June 1, 2017 On April 13, 2017 ComEd filed with the Federal Regulatory Energy Commission ( FERC ) its updated transmission rate effective June 1, 2017. The proposed updated rate is $34,286 per MW year which is a 3.5% decrease from the June 1, 2016 rate. ComEd s formula transmission rate uses updated FERC reported costs to adjust the rate each June 1. A summary of historical transmission rates is shown in the following table. ComEd Transmission Rate History Effective % Change Date MW-Year kw-mo. $ kw-day Over Prior Yr 6/1/2006 $1.02 $0.03353 6/1/2007 $1.54 $0.05063 50.98% 6/1/2008 $20,692 $1.72 $0.05669 11.97% 6/1/2009 $20,982 $1.75 $0.05748 1.40% 6/1/2010 $19,608 $1.63 $0.05372-6.55% 6/1/2011 $19,275 $1.61 $0.05281-1.70% 6/1/2012 $18,730 $1.56 $0.05132-2.83% 6/1/2013 $21,732 $1.81 $0.05954 16.03% 6/1/2014 $24,025 $2.00 $0.06582 10.55% 8/1/2015 $31,532 $2.63 $0.08639 31.25% * 6/1/2016 $35,543 $2.96 $0.09738 12.72% 6/1/2017 $34,286 $2.86 $0.09393-3.54% * June 1, 2015 rate of $31,470 was adjusted on August 1, 2015. Page 2 ComEd Files Rider ZEA Zero Emission Adjustment On April 17, 2017 ComEd filed proposed Rider ZEA, Zero Emission Adjustment ( ZE Adjustment ) with the Commission. Rider ZEA will recover the Zero Emission Credit ( ZEC ) payments to Exelon. Exelon s Future Energy Jobs Act ( FEJA ) included incentives to keep its Quad Cities and Clinton nuclear power plants running. Exelon had threatened to close these plants without special incentives. The ZEC payment and adjustment on ComEd customer invoices will apply for a 10-year period beginning in June 2017. (See the January NEU bulletin for a detailed description of the FEJA and the ZEC component). In its Rider ZEA filing ComEd has calculated a base ZE Adjustment of 0.195 per kwh ($1.95 per MWH) applicable to all ComEd customers beginning with the June 2017 billing period. The ZE Adjustment will be updated each June 1 based on forward PJM prices and a rate increase cap. Included in the ZE Adjustment formula is a ZEC cost of $16.50 per MWH that is based on the social cost of carbon. This ZEC cost component will increase by $1.00 each year beginning June 1, 2023. The ZE Adjustment is less than the ZEC cost because Exelon ZEC payments only apply to kwh generated by the Quad Cities and Clinton nuclear plants and the costs are spread across all customer kwh. Preliminary estimates indicated that the 10-year average ZE Adjustment would be 0.192 per kwh. The Commission will likely review this filing, but in all reality may not have much ability to make changes since the law allows Exelon to collect the ZEC payments and ComEd to recover them. Several parties including wholesale generators are challenging the ZEC payments to Exelon. Exelon held out the Quad Cities plant from PJM capacity auctions because of its pending closure. Now the plant will continue to run and Exelon will obtain ZEC payments rather than PJM capacity payments.

NEU Regulatory Update ComEd Files Rider REA Renewable Energy Adjustment On April 17, 2017 ComEd filed proposed Rider REA, Renewable Energy Adjustment ( RE Adjustment ). The filing of proposed Rider REA will allow ComEd to begin recovering costs associated with Renewable Portfolio Standards ( RPS ) compliance. The Future Energy Jobs Act ( FEJA ) shifts RPS compliance and cost recovery to the Illinois Power Agency ( IPA ) and the local distribution company. Retail electricity suppliers are currently responsible for RPS compliance by making an Alternative Compliance Payment ( ACP ) to the Illinois Commerce Commission for a minimum of 50% of their kwh sales to retail customers. The remaining 50% compliance is met by procuring renewable energy in the wholesale market. Beginning June 1, 2017, RPS compliance responsibility will transfer to the Illinois Power Agency ( IPA ) and the RPS costs will be collected by ComEd on customer invoices. This will be a phased-in process for non-residential customers. Beginning June 1, 2017 the IPA will purchase renewables for 50% of the required 13% RPS requirement. On June 1, 2018 when the RPS requirement increases to 14.5% of a utility s total load, the IPA will purchase 75% of the requirements for non-residential customers, and on June 1, 2019 the IPA will purchase 100% of the renewable requirements for all utility customers. This process means that a non-residential customer should see a reduced RPS charge from their supplier beginning in June and a new RE Adjustment charge on their ComEd invoice. Page 3 The proposed RE Adjustment for the June 2017 to May 2021 period is 0.189 per kwh for customers taking service under ComEd s bundled Rider BES, Basic Electric Service. These customers are typically residential and small commercial customers. For all other customers the proposed RE Adjustment is 0.094 per kwh for the June 2017 to May 2018 period. The RE Adjustment increases to 0.142 per kwh for the June 2018 to May 2019 period. Beginning June 2019 and extending through May 2021 (two years) the RE Adjustment for all customers is 0.189 per kwh. Starting in June 2021 a formula will be used to calculate the RE Adjustment each year, presumably increasing the charge. Illinois Commerce Commission NextGrid Initiative On March 22, 2017 the Illinois Commerce Commission initiated NextGrid, a statewide collaborative to transform Illinois energy landscape and economy. NextGrid is an eighteen month collaborative study to identify future technological advancements and utility and regulatory models. This process should help identify new technologies to modernize Illinois electric grid. ComEd and Ameren are currently upgrading their systems through the Energy Infrastructure Modernization Act ( EIMA ), a ten year program that began in 2012. Both utilities are spending billions to install smart metering and other infrastructure modernization equipment. NextGrid will allow stakeholders from various consumer and environmental groups, utilities, governmental agencies, technology companies, and other interested parties to participate. An initial study is expected to be released this summer with interim and final orders issued early and late 2018, respectively.

NEU Regulatory Update ComEd Suspends Rider EDA, Efficiency and Demand Response Adjustment Charge On April 7, the Commission approved a petition that was filed by ComEd on March 10, 2017 to reduce the Rider EDA charge to 0.00 per kwh. According to ComEd s petition, as of December 31, 2016, ComEd had a balance reserve of $141 million. As a comparison, ComEd expected to collect about $159 million for the period June 1, 2016 to May 31, 2017. Future Energy Jobs Act to Change Energy Efficiency Program The FEJA signed into law on December 7, 2016 included some significant changes to ComEd s energy efficiency and demand response program. ComEd and Ameren are required to file a new fouryear plan within 30 days after June 1, 2017 with an effective date of January 1, 2018 through December 31, 2021. Two additional plans will be filed at later dates to meet energy efficiency savings requirements through December 31, 2030. ComEd s current three-year plan that was set to expire on May 31, 2017 will continue through December 31, 2017. When ComEd first implemented its energy efficiency program and assessed charges under Rider EDA, ComEd would adjust the EDA charge during the year in an attempt to balance collections with expenditures. However a few years ago ComEd asked for special permission from the Commission to retain over collections to avoid mid-year or year-to-year charge adjustments. This process would provide ComEd with better certainty of funds availability for future energy efficiency expenditures. ComEd has been required to file an updated plan with Commission every three years. Each plan year runs from June 1 to May 31. One of the issues that ComEd and other parties have raised during ComEd s energy efficiency plan approval process has been the ability to find new projects to meet ComEd s spending goals. ComEd s approved goals are actually less than statutory requirements because of the cost to obtain the statutory goals. Large industrials customers who participated in the review process last fall showed that ComEd was actually returning less than 15 towards projects for each dollar collected from their large customer group. Much of the money collected was spent on overhead and marketing type costs. Under the FEJA over 10 MW size customers are exempt from energy efficiency charges after May 31, 2017. Page 4 ComEd will file a new cost recovery rider shortly after June 1, 2017 that will replace Rider EDA on January 1, 2018. It is unclear how ComEd will deal with any unspent Rider EDA funds on January 1, 2018. ComEd s required cumulative savings is 21.5% through 2030. Below is a summary ComEd s cumulative savings goal for each year. ComEd Energy Efficiency Savings Goals Calendar Cumulative Year Savings 2018 7.80% 2019 9.10% 2020 10.40% 2021 11.80% 2022 13.10% 2023 14.40% 2024 15.70% 2025 17.00% 2026 17.90% 2027 18.80% 2028 19.70% 2029 20.60% 2030 21.50%

NEU Electric and Natural Gas Price Update $ / MWH Jan-11 May-11 Sep-11 Jan-12 May-12 Sep-12 Jan-13 May-13 Sep-13 Jan-14 May-14 Sep-14 Jan-15 May-15 Sep-15 Jan-16 May-16 Sep-16 Jan-17 May-17 Short-Term Energy Price Outlook Electric: Short-Term Outlook The Energy Information Agency ( EIA ) in its May 2017 Short-Term Energy Outlook reported that the average daily Henry Hub natural gas price during April was $3.10 per MMBtu, up $0.22 from the March price of was $2.88 per MMBtu, The EIA is predicting an average Henry Hub price of $3.17 per MMBtu in 2017 and $3.43 per MMBtu in 2018. Natural gas storage inventories at the end of April were 2,256 Bcf compared to 2,615 last year, a 13.7% decrease. The five-year average level of 1,953 Bcf was 15.5% lower than current. April gas storage injections were about 10 Bcf per week higher than injections in April 2016. An end of October storage level of 3,667 Bcf has been forecasted by the EIA, which would be about 5.0% below the five-year average. The May 2017 NYMEX No.2 heating oil contract price settled at $1.50 per gallon compared to $1.56 per gallon for April. No. 2 heating oil is the standby fuel for natural gas for many commercial and industrial customers, even though it is rarely used because of the cost difference when compared to natural gas. The equivalent May natural gas cost would be $10.82 per MMBtu assuming 138,800 Btus per gallon. Propane settled at $0.5729 per gallon (NYMEX - Conway, KS) for May, which is about $6.30 per MMBtu assuming 91,000 Btus per gallon. Total electric generation in 2016 averaged 11,150 GWHs per day in 2016 and is expected to increase by 1.2% in 2017 and 2.3% in 2018. Wind energy capacity is expected to increase from 81 GW in 2016 to 102 GW by the end of 2018, and utility-scale solar capacity is expected to increase from 21 GW in 2016 to 32 GW by the end of 2018. The NYMEX Northern Illinois Hub 12-month forward price at the end of April for the May 2017 to April 2018 period was $29.94 per MWH (2.994 per kwh). Twelve-month forward peak and off-peak prices were $35.84 and $25.11 per MWH, respectively. Forward prices have been relatively flat since last summer. PJM ComEd Zone Day-Ahead hourly index prices in April averaged $26.48 per MWH and Real-Time prices averaged $25.27 per MWH. Day-Ahead peak period prices in April averaged $31.65 per MWH and off-peak prices averaged $22.35 per MWH. Real-Time peak prices averaged $29.72 per MWH and off-peak prices averaged $21.72 per MWH in March. $60 $50 $40 $30 $20 $10 NYMEX Northern Illinois Hub Electric Prices 12-Month Forward Prices Through April 2017 April 28, 2017 $ / MWH Peak $35.84 Off-Peak $25.11 Average $29.94 Page 5 $0 Peak Off-Peak Round-the-Clock

NEU Electric and Natural Gas Price Update $ per MWH ` PJM Day-Ahead and Real-Time Prices Day-Ahead LMP ComEd Zonal Price - $/ MWH Real-Time LMP ComEd BES-H Mo. Avg Peak Off-Peak Mo. Avg Peak Off-Peak Mo.Avg Dec-15 $22.87 $26.79 $19.03 $23.64 $28.47 $18.93 $25.44 May-16 $22.27 $27.53 $17.95 $22.10 $27.44 $17.71 $23.67 Jun-16 $25.14 $30.05 $20.45 $26.54 $31.35 $21.93 $28.42 Jul-16 $30.86 $40.04 $23.31 $28.49 $34.81 $23.29 $30.51 Aug-16 $30.09 $37.19 $23.15 $31.56 $40.66 $22.65 $33.80 Sep-16 $29.29 $36.65 $22.26 $29.55 $35.45 $23.90 $31.64 Oct-16 $29.82 $36.61 $24.23 $28.52 $34.73 $23.41 $30.55 Nov-16 $24.78 $28.79 $21.28 $23.93 $27.97 $20.41 $25.63 Dec-16 $30.13 $35.17 $25.60 $28.52 $32.59 $24.87 $30.54 Jan-17 $28.42 $31.77 $25.41 $27.11 $31.07 $23.57 $29.04 Feb-17 $24.80 $28.03 $21.86 $24.25 $26.75 $21.97 $25.97 Mar-17 $28.13 $32.44 $23.89 $28.03 $31.36 $24.75 $30.01 Apr-17 $26.48 $31.65 $22.35 $25.27 $29.72 $21.72 $27.07 Cal '15 $28.01 $33.95 $22.69 $28.21 $34.11 $22.91 $30.75 Cal '16 $26.47 $32.05 $21.53 $26.03 $31.57 $21.12 $27.88 Cal '17 $27.01 $31.04 $23.41 $26.22 $29.81 $23.00 $28.08 PJM Day-Ahead Prices for ComEd Zone Daily Average Hourly Prices Through April 30, 2017 $200 $180 $160 $140 $120 $100 $80 $60 PJM balancing operating reserve ( BOR ) costs in April averaged $0.00 per MWH for Day-Ahead energy and $0.17 per MWH for Real-Time energy. Suppliers generally include the Day-Ahead BOR cost in their ancillary service charge but will separately add the Real-Time BOR cost to Real-Time energy purchases. $40 $20 $0 (a) (b) (c = b-c) (d) (e) (f = e-d) (g = c+f) Balancing Operating Reserve Costs PJM Index Prices - ComEd Zone Net Increase Average BORs Day-Ahead Real-Time RT less DA DA RT RT less DA in RT Costs Jan-15 to Dec-15 $0.12 $1.05 $0.93 $28.11 $28.31 $0.20 $1.14 Jan-16 to Dec-16 $0.07 $0.30 $0.23 $26.45 $26.01 -$0.43 -$0.20 Dec-16 $0.10 $0.20 $0.11 $30.13 $28.52 -$1.61 -$1.50 Jan-17 $0.04 $0.23 $0.19 $28.42 $27.11 -$1.30 -$1.12 Feb-17 $0.03 $0.07 $0.04 $24.80 $24.25 -$0.55 -$0.51 Mar-17 $0.01 $0.26 $0.26 $28.13 $28.03 -$0.10 $0.16 Apr-17 $0.00 $0.17 $0.17 $26.48 $25.27 -$1.21 -$1.04 Daily Average Month Average Page 6

$ per MMBtu Jan-08 May-08 Sep-08 Jan-09 May-09 Sep-09 Jan-10 May-10 Sep-10 Jan-11 May-11 Sep-11 Jan-12 May-12 Sep-12 Jan-13 May-13 Sep-13 Jan-14 May-14 Sep-14 Jan-15 May-15 Sep-15 Jan-16 May-16 Sep-16 Jan-17 May-17 NEU Electric and Natural Gas Price Update Settlement Prices ($/MMBtu) May-17 Sep-17 Jan-18 May-18 Sep-18 Jan-19 May-19 Sep-19 Jan-20 May-20 Sep-20 Jan-21 May-21 Sep-21 Jan-22 May-22 Natural Gas: Short-Term Outlook The closing 12-month forward Henry Hub NYMEX price for the May 2017 to April 2018 period was $3.388 per MMBtu. The forward 12- month Chicago price for this same delivery period was $3.262 per MMBtu including a Chicago basis of -$0.126 per MMBtu. The May 2017 NYMEX Henry Hub futures contract settled at $3.142 per MMBtu, down $0.033 per MMBtu from the April 2017 settlement price of $3.175 per MMBtu. The May Chicago price settled at $2.92 per MMBtu compared to $3.01 per MMBtu in April. NYMEX Natural Gas Settlement Price Comparison $4.0 $3.5 $3.0 NYMEX futures prices, local distribution company gas costs, storage volumes and rig counts are summarized in the following graphs and tables. $16 $14 $12 $10 NYMEX Natural Gas 12-Month Forward Price Trend April 30, 2017 May - Last Day Settlement 12-Month NYMEX Forw ard $3.388 Chicago Basis -$0.126 12-Month "Chicago" Total $3.262 $2.5 $2.0 $1.5 $1.0 May-17 settlement prices Apr-17 settlement prices Closing Settlement Price May 1, 2017 NYMEX Close $3.142 Chicago Basis -$0.222 Chicago Price $2.920 $8 $6 $4 $2 $0 Prompt Month 12-Month Forward Page 7 The following chart compares the monthly price of the NYMEX Henry Hub futures contract to the NYMEX Chicago price. NYMEX offers a futures contract that is settled at the Platt s Inside FERC monthly index price for Chicago. As shown in the following Chicago Basis chart, the forward Henry Hub and Chicago prices are relatively close. The 12- month forward average basis (Chicago price less Henry Hub price) was -$0.126 per MMBtu at close of the April NYMEX contract. The actual basis price a supplier offers may differ from the NYMEX calculated price because there is not a significant amount of price transparency in basis offers.

$ per MMBtu Jan-14 Mar-14 May-14 Jul-14 Sep-14 Nov-14 Jan-15 Mar-15 May-15 Jul-15 Sep-15 Nov-15 Jan-16 Mar-16 May-16 Jul-16 Sep-16 Nov-16 Jan-17 Mar-17 May-17 Jul-17 Sep-17 Nov-17 Jan-18 Mar-18 May-18 Jul-18 Sep-18 Nov-18 NEU Electric and Natural Gas Price Update $12 $10 $8 $6 $4 Chicago Basis NYMEX Chicago vs. NYMEX Henry Hub Prices Forw ard Basis Starting May 1, 2017 12-Month -$0.126 24-Month -$0.165 36-Month -$0.177 Actual settlement prices for Jan-14 to May-17 period. Forward prices for Jun-17 to Dec-18 period. Forward Prices Natural Gas Price Summary Comparison May 2017 ($ per MMBtu) Burner-Tip $/MMBtu NYMEX Final Settlement Price $3.142 NYMEX Chicago Basis ($0.222) Chicago City-gate Price (b) $2.920 Local Distribution $ (a) $2 $0 -$2 Peoples Gas Burner-Tip Price Rate 2 - Utility Supply Service, 3,500 MMBtu $5.870 $2.950 Rate 4 - Utility Supply Service, 15,000 MMBtu $5.831 $2.911 Rate 4 - Utility Supply Service, 60,000 MMBtu $5.689 $2.769 Rate 2, SST, 29 Days Storage, 3,500 MMBtu $5.610 $2.690 Rate 4, LST, 29 Days Storage, 15,000 MMBtu $5.381 $2.461 Rate 4, LST, 29 Days Storage, 60,000 MMBtu $5.225 $2.305 NYMEX Chicago Citygate Utility Natural Gas Supply Costs May 2017 ($/Therm) Gas Supply Costs: Peoples Gas North Shore NICOR Bundled Gas Supply Cost $0.3696 $0.3988 $0.4100 Commodity Gas Charge $0.3263 $0.2771 $0.3463 Non-Commodity Charge $0.0442 $0.1217 $0.0638 Standby Demand Charge $0.2403 $0.6127 $0.5813 Storage Gas Charge $0.0057 $0.0119 Environmental Surcharges Rider 11, Peoples and North Shore $0.0209 $0.0032 Rider 12, NICOR - Small C&I $0.0047 Rider 12, NICOR - Large C&I $0.0013 Rider VBA - Balancing Adjustment ($0.0011) ($0.0098) Hub Service Credit - Sales ($0.0009) Hub Service Credit - Transportation ($0.0002) NICOR Transportation Service Adj. ($0.0003) NICOR, Rider 5 Storage Adj. Factor ($0.0001) Qualifying Infrastructure Surcharge 11.08% 0.00% 14.14% Page 8 North Shore Burner-Tip Price Rate 2 - Utility Supply Service, 3,500 MMBtu $4.797 $1.877 Rate 3 - Utility Supply Service, 60,000 MMBtu $4.709 $1.789 Rate 2, SST, 24 Days Storage, 3,500 MMBtu $3.884 $0.964 Rate 3, LST, 24 Days Storage, 60,000 MMBtu $3.735 $0.815 NICor Burner-Tip Price Rate 6 - Utility Supply Service, 15,000 MMBtu $4.466 $1.546 Rate 7 - Utility Supply Service, 60,000 MMBtu $4.525 $1.605 Rate 76, 0% Standby, 15,000 MMBtu (c) $3.604 $0.684 Rate 77, 0% Standby, 60,000 MMBtu (c) $3.671 $0.751 (a) Local distribution charge = burner-tip less city-gate price. Includes all taxes, city fees and gas loss costs. (b) NYMEX last day settlement price plus NYMEX Chicago basis sw ap last day settlement price. (c) Assumes 31 days storage in place of standby service.

Billion Cubic Feet (Bcf) Jan-12 Mar-12 May-12 Aug-12 Oct-12 Dec-12 Mar-13 May-13 Jul-13 Sep-13 Dec-13 Feb-14 Apr-14 Jul-14 Sep-14 Nov-14 Jan-15 Apr-15 Jun-15 Aug-15 Nov-15 Jan-16 Mar-16 Jun-16 Aug-16 Oct-16 Dec-16 Mar-17 NEU Electric and Natural Gas Price Update # of Rigs 07-Jan-05 02-Sep-05 28-Apr-06 22-Dec-06 17-Aug-07 11-Apr-08 05-Dec-08 31-Jul-09 26-Mar-10 19-Nov-10 15-Jul-11 09-Mar-12 02-Nov-12 28-Jun-13 10-Jan-14 05-Sep-14 24-Apr-15 18-Dec-15 12-Aug-16 07-Apr-17 EIA Weekly Storage Report January 2012 through April 28, 2017 Natural Gas Rig Count January 2005 Through April 28, 2017 4,000 3,500 2,500 2,000 Nat Gas 3,000 2,500 1,500 2,000 1,000 1,500 1,000 500 500 0 0 Current Five-Year Average Last Year 4/28/2017 Difference BCF BCF % Change Current Total 2,256 Last Year 2,615 (359) -13.7% 5-Year Average 1,953 303 15.5% Page 9 April 28, 2017 Rig Count on 4/28/17 4/29/16 % Change Gas 171 87 97% Oil 697 332 110% Misc. 2 - Total 870 419 108% NEU Energy Price Update is prepared by: Brad Fults and Charles Drake, NEU Staff Support, Email: bfults@progressiveenergyllc.com; Phone: 763-424-2377 Contact either Brad Fults or Charles Drake if you have questions about information in this bulletin or if you would like information about the NEU. Charles Drake can be reached at (630) 631-7963.