The HealthPRO Natural Gas Program:

The Natural Gas Industry is experiencing several changes. Pipeline expansions into the U.S. are driving the prices up significantly. In the past year alone, there has been an increase of 2 billion cubic feet of gas per day transported to the mid U.S. This increased demand for Canadian gas has required strategic management of our natural gas direct purchase program.

Performance of the HealthPRO Natural Gas Program

• Since November 1998, HealthPRO saved our participating members over $1,943,000.00 on the direct purchase cost of gas. These savings are the difference between the market price and the HealthPRO price over that period.
• Our volume of over 7.2 million gigajoules allows us to negotiate directly with the gas producers in Western Canada eliminating the use of gas marketers and brokers which add to the cost of gas.
• While Natural Gas prices have increased greatly, HealthPRO with assistance from our Plant Engineering Advisory Committee has been able to secure Natural Gas for our membership at prices significantly lower than Market Price.

Our participants are assured of gas supply
Due to significant pipeline expansion into the U.S., the market is concerned that Western Canada may be "gas short" next winter.
• HealthPRO has secured its gas requirements for the next twenty-four months. Eighty percent of our volume will come from the largest Canadian owned producer in Western Canada.

HealthPRO educates its participants on the Natural Gas Industry
• We pass on intelligence about the gas market and changes in the industry through our Engineering Advisory Committee. This committee is comprised of Directors of Engineering from around the province.
The PRIMARY goal of our program is to look out for YOUR best interest.

We review the market and lock in our price at the most opportune time
• Market Conditions and prices are monitored daily so that we lock in the price of natural gas at the right time. Natural Gas consumption of our members are monitored daily.
• Gas consumption versus volume purchased and delivered to the utility are balanced by year end.
• Our direct purchase strategy protects our participants from retroactive increases from the utility. For example, retro active rate increases for systems gas users.

We take advantage of new opportunities:
Our buying power allows us to negotiate directly with the largest natural gas producers in Western Canada. The strength of our volume gives us the leverage to bring value added benefits to the program such as:

• Transportation Discounts
• Curtailed Delivery Supply
• Off-Peak Storage Program
• Market Intelligence