Common use of INTRODUCTION AND PROCEDURAL HISTORY Clause in Contracts

INTRODUCTION AND PROCEDURAL HISTORY. 1.1 On April 2, 2021, pursuant to RSA 378:3, RSA 378:28 and N.H. Code Admin. Rules Puc §§1600 et seq., Unitil filed testimony, supporting data, and revisions to its Tariff NHPUC No. 3 – Electricity Delivery. The filing requested approval of: (1) a permanent annual increase to its distribution revenues of $11,992,392; (2) a three-year Rate Plan with an initial step adjustment to be implemented on the effective date of permanent rates, and step adjustments thereafter on or about April 1, 2023 and 2024; (3) certain changes to its rate design and select tariff components, including a Revenue Decoupling Mechanism (“RDM”), four new Time of Use (“TOU”) rates, and new rates for Light Emitting Diode (“LED”) fixtures; (4) several new programs including an arrearage management program and a residential behind the meter electric vehicle supply equipment incentive program; and (5) a temporary revenue increase of $5,812,761 million effective as of June 1, 2021, to be recovered on a uniform per kilowatt hour (“kWh”) basis from all rate classes until completion of the proceeding. 1.2 On May 7, 2021, Unitil filed a Stipulation and Settlement Agreement with the Commission, including agreement on a total annual temporary distribution revenue increase of $4,451,667 collected through a uniform per kWh surcharge of $0.00384 applied to all of Unitil’s current rate schedules, including those not normally billed for distribution service on a kWh basis. On May 27, 2021, the Commission issued Order No. 26,484, approving the Settlement on Temporary Rates, effective June 1, 2021, subject to reconciliation based on the outcome of the permanent rate case. 1.3 Following multiple sets of discovery and technical sessions, the DOE, OCA, Clean Energy New Hampshire, Conservation Law Foundation and ChargePoint Inc. filed written testimony on November 23, 2021. Productive settlement discussions on Permanent Rates took place during January and February 2022, which ultimately led to this Settlement Agreement.

INTRODUCTION AND PROCEDURAL HISTORY. 1.1 On April 2July 1, 20212020, Liberty filed with the New Hampshire Public Utilities Commission (“Commission”) a Notice of Intent to File Rate Schedules pursuant to RSA 378:3, RSA 378:28 and N.H. Code Admin. Rules Puc §§1600 et seq.1604.05. On July 31, Unitil 2020, the Company filed its Petition for Permanent and Temporary Rates (“Petition”), including proposed tariffs and rate schedules, testimony, attachments and other information supporting data, and revisions to its Tariff NHPUC Nothe Petition. 3 – Electricity Delivery. The filing Liberty’s Petition requested approval ofthat the Commission grant: (1) a permanent annual increase in Liberty’s distribution rates effective with service rendered on or after September 1, 2020, designed to its distribution revenues yield an increase of $11,992,39213,497,250 in annual revenue above the then total Distribution Revenue of $86,698,2601; (2) a three-year Rate Plan temporary rates effective with service rendered on or after October 1, 2020, designed to yield an initial step adjustment to be implemented increase of $6,500,000 in annual revenue pending the Commission’s final determination on the effective date of Company’s request for a permanent rates, rate increase; and step adjustments thereafter on or about April 1, 2023 and 2024; (3) certain changes a step adjustment in rates designed to its rate design and select tariff components, including a Revenue Decoupling Mechanism (“RDM”), four new Time of Use (“TOU”) rates, and new rates for Light Emitting Diode (“LED”) fixtures; (4) several new programs including yield an arrearage management program and a residential behind the meter electric vehicle supply equipment incentive program; and (5) a temporary revenue increase of $5,812,761 5,680,641 in annual revenue to recover costs associated with approximately $38 million of capital expenditures projected to be placed in service during 2020, to be effective as of June no earlier than August 1, 2021, and two additiona l step adjustments for capital expenditures projected to be recovered placed in service in 2021 and 2022. The Petition requested approval of a 10.51 percent return on a uniform per kilowatt hour equity (“kWhXXX”) basis from all rate classes until completion ), and a capital structure consisting of the proceeding50.15 percent equity and 49.85 percent debt. 1.2 On May 7July 8, 20212020, Unitil the OCA filed a Stipulation and Settlement Agreement with the Commissionletter of participation in this docket pursuant to RSA 363:28. The Commission received no petitions for intervention in this docket by other parties. 1.3 On August 19, including agreement on a total annual temporary distribution revenue increase of $4,451,667 collected through a uniform per kWh surcharge of $0.00384 applied to all of Unitil’s current rate schedules, including those not normally billed for distribution service on a kWh basis. On May 27, 20212020, the Commission issued Order No. 26,48426,395 suspending Liberty’s proposed gas service tariff for temporary and permanent rate increases pending further investigation. 1.4 On September 16, approving 2020, the Settlement Commission held a hearing on Temporary Ratestemporary rates at whic h Liberty amended its request such that temporary rates would be set at current rates, effective June 1and to approve a revenue requirement for temporary rates of $92,890,325, 2021with the $4,994,290 increase in allowe d revenues accomplished by adjusting the allowed revenue per customer (“RPC”) amounts for each of Liberty’s rate classes.2 On September 30, subject to reconciliation based on 2020, the outcome Commission issued Order No. 26,412 1 The Distribution Revenue of $86,698,260 does not include revenue from Indirect COG Revenue and Other Revenue although both are included in total revenue requirement for the permanent purpose of a distribution base rate case. 1.3 Following multiple sets of discovery and technical sessions, the DOE, OCA, Clean Energy New Hampshire, Conservation Law Foundation and ChargePoint Inc. filed written testimony on November 23, 2021. Productive settlement discussions on Permanent Rates took place during January and February 2022, which ultimately led to this Settlement Agreement.