Narragansett Electric Rate Classes Description A16 Regular Residential Domestic consumption in individual dwelling or apartment, and churches if not separated by public way A60 – Low Income Residential customers receiving eligible means tested benefits C06-Small C&I Customers less than 200 kW; No demand metering; includes unmetered service G02-General C&I 10kW < Demand <200 kW G32- Lg Demand Demand > 200 kW G62-Opt Lg Demand Optional for Demand > 5 MW Outdoor Lighting (S-05,S-06,S-10,S-14) Company and Customer Owned Back-up Service (B-32, B-62, CHP Minimum Demand) Customer who receive all or a portion of requirements from non-emergency, non-renewable on-site generation

Delivery Service Rates Delivery Service Charges Apply to All Customers Customer Charge Per Month Fixed monthly fee that recovers cost of meter, meter reading, billing services, etc LIHEAP Enhancement Charge Per Month Fund created by Henry Shelton Act to provide assistance to low income customers Re-Growth Charge Recovers cost of Renewable Energy Growth Program Distribution Demand & Energy Per kW/kWh Recovers investment in distribution facilities and annual operating expenses Energy Efficiency Programs Per kWh Recovers cost of energy efficiency programs (Electric charge includes Renewables Fund charge) Renewable Energy Distribution Charge Recovers cost of net metering and long-term contracts with renewable generators Transmission Charge Recovers costs of the high voltage transmission system billed by transmission providers Transition Charge Recovers residual generation-related stranded costs 2

Commodity Charges Supply Services Only applies to customers purchasing commodity from National Grid. Commodity costs are a “pass-through” to customers, i.e. National Grid makes no profit on commodity sales After “Restructuring”, all customers may choose a 3rd party supplier.. Base Standard Offer Service Charge Per kWh Charge combined as a single line item on customer bills Supply provided through combination of load following contracts procured through competitive solicitation and “spot market” purchases pursuant to annual procurement plan approved by the PUC Three customer groups: Residential; Commercial; Industrial with separate procurement strategies and pricing methodologies Reconciling Adjustment Charge Annual filing to reconcile revenue and expense with over/ under balance collected / refunded through factor applicable to each customer group Renewable Energy Standard Charge Cost of complying with Renewable Energy Standard Administrative costs, including bad debt, associated with arranging for Standard Offer Service SOS Admin 3

Base Distribution Rates Rate Class Distribution Rate Design A16 – Reg. Res Monthly Customer Charge / per kWh Charge A60 – Low Inc. per kWh Charge (designed to provide 50% discount from A-16) C06- Small C&I Customer/location Charge / Per kWh charge G02-Gen. C&I Monthly Customer Charge (incl. minimum demand for G02 (10kW) and G32 (200kW) Demand Charge -kW / 90%kVA / 75% ratchet -Peak period applies to G32/62 -Optional Determination of Demand -Voltage Discounts Per kWh charge (except G-62) Back-up Rates G32- Lg Demand G62- Opt Lg Demand

Cost Recovery Mechanisms Filing Due Date Effective Date of Rate Change Filing October 15 January 1 LIHEAP Enhancement Plan Charge October 15/November 1 for new triennial Plan Energy Efficiency ("EE") Charge November 15/May 15 Jan 1/ Jul 1 Long-Term Contracting Charge Oct 15/Jan 15/Apr 15/July 15 Jan1/April1/Jul 1/Oct 1 Standard Offer Service ("SOS") Procurement Filing - Residential, Commercial and Industrial Groups December 31 April 1 Infrastructure, Safety and Reliability ("ISR") Fiscal Year Plan Filing by February 15 Annual Reconciliation Filing (SOS, Transmission, Transition, Net Metering) By February 28 Renewable Energy Standard Charge and Reconciliation May 15 July 1 Revenue Decoupling Adjustment Factor Filing By June 30 Oct 1 Re-Growth Annual Charge Filing and Reconciliation August 1 October 1 ISR Reconciliation Adjustment Filing 5