`
`
`
`
`
`
`
`Report of Independent Auditors
`
`
`
`To the Board of Managers and Management of East Tennessee Natural Gas, LLC:
`
`We have audited the accompanying financial statements of East Tennessee Natural Gas, LLC (the
`“Company”), which comprise the balance sheets as of December 31, 2019 and 2018, and the related
`statements of income, of retained earnings, and of cash flows for the years then ended, included on pages
`110 through 122.14 of the accompanying Federal Energy Regulatory Commission Form No. 2.
`
`Management’s Responsibility for the Financial Statements
`
`Management is responsible for the preparation and fair presentation of the financial statements in
`accordance with the accounting requirements of the Federal Energy Regulatory Commission as set forth
`in its applicable Uniform System of Accounts and published accounting releases described in Note 1.
`Management is also responsible for the design, implementation, and maintenance of internal control
`relevant to the preparation and fair presentation of financial statements that are free from material
`misstatement, whether due to fraud or error.
`
`Auditors’ Responsibility
`
`Our responsibility is to express an opinion on the financial statements based on our audits. We conducted
`our audits in accordance with auditing standards generally accepted in the United States of America.
`Those standards require that we plan and perform the audit to obtain reasonable assurance about
`whether the financial statements are free from material misstatement.
`
`An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
`the financial statements. The procedures selected depend on our judgment, including the assessment of
`the risks of material misstatement of the financial statements, whether due to fraud or error. In making
`those risk assessments, we consider internal control relevant to the Company’s preparation and fair
`presentation of the financial statements in order to design audit procedures that are appropriate in the
`circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s
`internal control. Accordingly, we express no such opinion. An audit also includes evaluating the
`appropriateness of accounting policies used and the reasonableness of significant accounting estimates
`made by management, as well as evaluating the overall presentation of the financial statements. We
`believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
`audit opinion.
`
`Opinion
`
`In our opinion, the financial statements referred to above present fairly, in all material respects, the
`financial position of East Tennessee Natural Gas, LLC as of December 31, 2019 and 2018, and the results
`of its operations and its cash flows for the years then ended in accordance with the accounting
`requirements of the Federal Energy Regulatory Commission as set forth in its applicable Uniform System
`of Accounts and published accounting releases described in Note 1.
`
`
`
`
`
`
`
`
`
`PricewaterhouseCoopers LLP, 1000 Louisiana, Suite 5800, Houston, Texas 77002-5021
`T: (713) 356 4000, F: (713) 356 4717, www.pwc.com/us
`
`

`

`Basis of Accounting
`
`We draw attention to Note 1 of the financial statements, which describes the basis of accounting. As
`described in Note 1 to the financial statements, the financial statements are prepared by East Tennessee
`Natural Gas, LLC on the basis of the accounting requirements of the Federal Energy Regulatory
`Commission as set forth in its applicable Uniform System of Accounts and published accounting releases,
`which is a basis of accounting other than accounting principles generally accepted in the United States of
`America, to meet the requirements of the Federal Energy Regulatory Commission. Our opinion is not
`modified with respect to this matter.
`
`Restriction of Use
`
`This report is intended solely for the information and use of the Board of Managers and Management of
`East Tennessee Natural Gas, LLC and the Federal Energy Regulatory Commission and is not intended to
`be and should not be used by anyone other than these specified parties.
`
`
`
`
`April 21, 2020
`
`
`
`
`
`
`page 2
`
`