1. Revenue Refunding Bonds February 21, 2013

2. Sale of Refunding Bonds $143.9 million in refunding bonds sold competitively on February 12 and 13 Refinance bonds sold in 2005 and 2006 at lower interest rates Debt service savings of $24.6 million ($16.9 million net present value) Refunding bonds rated Aa2 by Moody’s; AA+ (Gas AA) by Standard & Poor’s

3. Refunding Transactions RefundingRefunded RefundingBonds Debt ServiceIssuance SystemBondsAvg. Rate SavingsCost Wastewater$113.3M3.19%4.88%$20.5M$279K Gas$11.6M2.65%4.43%$1.6M$99K Water$9.3M2.79%4.51%$1.3M$85K Electric$9.7M2.64%4.42%$1.2M$97K Total$143.9M $24.6M$560K

4. Bids on Wastewater Bonds True Interest Cost Citigroup Global Markets3.1905% J.P. Morgan Securities3.2446% Wells Fargo Bank, NA3.2500% Bank of America Merrill Lynch3.2592% Barclays Capital3.2817% Robert W. Baird & Co.3.2913% Morgan Stanley & Co.3.2967% Raymond James & Associates3.3436% Hutchinson, Shockey, Erley & Co.3.5642%

5. $113.3M Wastewater Refunding Bonds Millions ($) Fully mature in 2037 Average life of debt reduced from 18.9 to 17.7 years Callable beginning 2022 Refunded Debt Service$201,024,000 New Debt Service$177,962,000 Savings$20,548,000

6. Bids on Gas Bonds True Interest Cost Bank of America Merrill Lynch2.6517% Raymond James & Associates2.6996% Hutchinson, Shockey, Erley & Co.2.7042% Robert W. Baird & Co.2.7340% UBS Financial Services2.8356% J.P. Morgan Securities2.8569%

7. $11.6M Gas Refunding Bonds Millions ($) Fully mature in 2031 Average life of debt reduced from 11.8 to 11.3 years Callable beginning 2022 Refunded Debt Service$17,358,000 New Debt Service$15,773,000 Savings$1,585,000

8. Bids on Water Bonds True Interest Cost Bank of America Merrill Lynch2.7915% Citigroup Global Markets2.7960% Piper Jaffray2.8056% Hutchison, Shockey, Erley & Co.2.8105% Robert W. Baird & Co.2.8299% J.P. Morgan Securities2.8572% Raymond James & Associates2.8586%

9. $9.3M Water Refunding Bonds Millions ($) Fully mature in 2030 Average life of debt reduced from 12.8 to 12.5 years Callable beginning 2022 Refunded Debt Service$14,197,000 New Debt Service$12,917,000 Savings$1,280,000

10. Bids on Electric Bonds True Interest Cost Bank of America Merrill Lynch2.6404% William Blair & Co.2.6416% Raymond James & Associates2.6648% UBS Financial Services2.6667% Piper Jaffray2.6732% Robert W. Baird & Co.2.7092% Hutchinson, Shockey, Erley & Co.2.7252% J.P. Morgan Securities2.7293%

11. $9.7M Electric Refunding Bonds Millions ($) Fully mature in 2031 Average life of debt reduced from 11.7 to 11.1 years Callable beginning 2022 Refunded Debt Service$14,323,000 New Debt Service$13,115,000 Savings$1,208,000

12. Issuance Costs CostProfessional FirmFee Financial AdvisorCumberland Securities$175,000 Bond CounselBass, Berry & Sims$152,000 Rating AgencyMoody's$98,000 Rating AgencyStandard & Poor's$66,000 AccountingSouther & Newhouse$12,000 Paying AgentRegions Bank$5,000 $508,000 Other Costs (POS, OS, Advertising, Misc.)$52,000 $560,000