���������ֳ�

The Long-Term Issuer Default Rating (IDR) of NSTAR Gas Company primarily reflects the utility’s low risk regulated natural gas distribution business and adequate financial profile. Low Risk Business Profile: The company’s regulated natural gas distribution operations have a low risk business profile. NSTAR Gas has no commodity exposure and benefits from a decoupling mechanism that eliminates the impact of weather and usage patterns on revenue. Fuel supply costs are recovered through a seasonal cost adjustment clause that is reset semiannually. Balanced Regulatory Environment: NSTAR Gas operates in a relatively balanced regulatory environment overseen by the Massachusetts Department of Public Utilities (DPU). The utility operates under a rate plan with a 9.8% authorized ROE. That rate plan includes a $15.8 million base rate increase that became effective Jan. 1, 2016 and enabled NSTAR Gas to implement revenue decoupling, which provides a greater level of stability and predictability to earnings and cash flows.