CUSTOMER NOTICE OF REQUEST TO SUSPEND INTERIM RATE ADJUSTMENT: TEXAS GAS SERVICE PROPOSES CURRENT CUSTOMER RATES REMAIN IN EFFECT FOR SOUTH JEFFERSON COUNTY SERVICE AREA On November 20, 2015, Texas Gas Service Company, a division of ONE Gas, Inc. ( “Company”), made its annual Interim Rate Adjustment (“IRA”) filing with the Cities of Port Arthur, Port Neches, Nederland, and Groves, Texas (collectively, the “Cities”), which together with their environs comprise the Company’s South Jefferson County Service Area. HOWEVER, THE COMPANY HAS ASKED THE CITIES TO SUSPEND THE OPERATION OF THE INTERIM RATE ADJUSTMENT THAT WOULD OTHERWISE BECOME EFFECTIVE ON January 19, 2016. If the Company’s operational suspension request is granted, customers within the Cities 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 Jefferson County 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, public authority, and transportation customers within the Cities. 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 Residential (Rate Schedule 10) Commercial (Rate Schedule 20) Public Authority and Schools (Rate Schedule 40) Transportation (Rate Schedule T-4) Current and Proposed Customer Charge $18.48 $54.02 $105.83 $1,273.83 2015 Interim Adjustment Not Implemented by Texas Gas $1.03 $2.86 $5.20 $222.66 A complete copy of the IRA filing has been provided to each City, and is also available for inspection in the Company’s business office located at 4201 39th Street, Port Arthur, Texas 77642 or 5613 Avenue F, Austin, Texas 78751. Persons with specific questions or desiring additional information about this filing may contact the Company at 1-800-700-2443. Information regarding the IRA filing is also available on the internet at http://www.texasgasservice.com. 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