CUSTOMER NOTICE OF REQUEST TO SUSPEND INTERIM RATE ADJUSTMENT: TEXAS GAS SERVICE PROPOSES CURRENT CUSTOMER RATES REMAIN IN EFFECT FOR SOUTH TEXAS SERVICE AREA ENVIRONS On December 7, 2015, Texas Gas Service Company, a division of ONE Gas, Inc. (“Company”), made its annual Interim Rate Adjustment (“IRA”) filing with the Railroad Commission of Texas (“Commission”), for the approximately 233 residential, 26 commercial, one industrial, and one standard transportation customer within the environs of the Company’s South Texas Service Area (“STXSA”), which includes the environs of Cuero, Gonzales, Lockhart, Luling, Nixon, Shiner, and Yoakum, Texas (“Environs”). HOWEVER, THE COMPANY HAS ASKED THE COMMISSION TO SUSPEND THE OPERATION OF THE INTERIM RATE ADJUSTMENT THAT WOULD OTHERWISE BECOME EFFECTIVE ON FEBRUARY 5, 2016. If the Company’s operational suspension request is granted, customers within the Environs will experience no increase in gas utility rates as a result of this filing. Pursuant to TEX. UTIL. CODE ANN. § 104.301, this annual adjustment is designed to allow the Company to recover the incremental cost of its new investment made in the South Texas Service Area for the twelve-month period ending December 31, 2014. Unless the Company’s operational suspension request is granted, this annual IRA would increase the monthly average bill for all residential, commercial, industrial, and transportation customers within the Environs. The Company’s calculation of the IRA amount that would be added to the current base charge on customer bills absent the Company’s operational suspension request is shown in the table below. Rate Schedule Current and Proposed Customer Charge Residential (Rate Schedule 1E) Commercial (Rate Schedule 2E) Industrial (Rate Schedule 3E) Commercial Transportation (Rate Schedule T-2) Industrial Transportation (Rate Schedule T-3) $21.11 $47.34 $124.65 $551.05 $702.69 2015 Interim Adjustment Not Implemented by Texas Gas $2.52 $9.02 $25.09 $148.54 $265.07 A complete copy of the IRA tariff filing made with the Railroad Commission of Texas is available for inspection in the Company’s business offices located at 1100 Main Street, Cuero, Texas 77954. Persons with specific questions or desiring additional information about this filing may contact the Company at 1-800-700-2443. Information regarding this IRA filing is also available on the internet at http://www.texasgasservice.com. Any affected person may file written comments or a protest concerning the proposed interim rate adjustment with the Oversight & Safety Division, Gas Services Department, Railroad Commission of Texas, P.O. Box 12967, Austin, Texas 78711-2967. Nota al cliente: La compañía Texas Gas Service por este medio notifica su intención de no implementar un aumento a la tarifa de gas que le provee. Para obtener una copia de este aviso en español, por favor llame al número gratuito 1-800-700-2443 o envíe un mensaje de correo electrónico a la dirección [email protected]. TEXAS GAS SERVICE COMPANY