Algonquin Gas Transmission, LLC

Fifth Revised Volume No. 1

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Effective Date: 11/30/2009, Docket: RP10-77-000, Status: Effective

First Revised Sheet No. 565 First Revised Sheet No. 565

Superseding: Original Sheet No. 565

GENERAL TERMS AND CONDITIONS

(continued)

23. SCHEDULING OF SERVICE (continued)

(b) Hourly. To the extent that deliveries to Customer during any period of one Hour

exceed 104 percent of 1/24th of the scheduled daily quantity (or .06 multiplied

by the scheduled daily quantity in the case of Service Agreements resulting from

the conversion pursuant to Order No. 636 of entitlements under former Rate

Schedules F-1 and WS-1) without the consent of Algonquin, Customer shall be

subject to a charge equal to the maximum applicable rate under Rate Schedule AIT-

1 per Dth by which the deliveries to Customer exceed 104 percent of 1/24th of the

scheduled daily quantity (or .06 multiplied by the scheduled daily quantity in

the case of Service Agreements resulting from the conversion pursuant to Order

No. 636 of entitlements under former Rate Schedules F-1 and WS-1).

Such charge shall be in addition to any daily scheduling charge assessed,

provided that such hourly charge shall not be applicable unless Algonquin has

first provided one Hour's notice on its Internet Web Site that system operating

conditions require adherence to the Customer's hourly flow obligation in order to

enable deliveries of scheduled quantities to all firm Customers. Any such notice

shall specify the period during which such penalties shall be in effect, and the

Points of Delivery to which such penalties will be applicable and that the notice

is being posted pursuant to the provisions of Section 23 of the General Terms and

Conditions.

not apply to Customers receiving service under Rate Schedules AFT-E or AFT-ES,

provided that all of the operational conditions specified in Section 5 of those

rate schedules have been met.

(d) Exception for Flow Control. The scheduling penalties described herein shall not

apply to excess deliveries at Points of Delivery where Algonquin has installed

remote electronic flow control equipment that is operational at the time of such

excess deliveries.

(e) Credit of Penalties Received. Any penalty revenue collected by Algonquin

pursuant to this Section 23.4 will be credited to those firm and interruptible

Customers that did not incur penalties pursuant to this Section 23.4 in the Month

for which penalty revenues were received ("Non-offending Customers"), based on

the ratio of the Reservation and Usage Charges paid during that Month by each

Non-offending Customer to the total amount of such charges paid during that Month

by all Non-offending Customers. An operator that has executed an Operational

Balancing Agreement and a transportation service agreement with Algonquin shall

be eligible to receive penalty revenue credits as a Non-offending Customer for

any Month in which the operator was not liable for penalties pursuant to this

Section 23.4 under its own transportation service agreement(s). Such credits

shall be calculated for each Month of the twelve (12) month period ending July 31

of each year and will be included on the Non-offending Customers' invoice for the

Month following the date of the final Commission order approving Algonquin's

penalty disbursement report; provided, however, that Algonquin will calculate and

include such credits on Non-offending Customers' invoices for a period shorter

than twelve months in the event and to the extent that the total accumulated

amount of penalty revenue collected pursuant to this Section 23.4 by Algonquin as

of the end of any Month exceeds $1,000,000. Algonquin will file a penalty

disbursement report within sixty days of July 31 or sixty days after the end of

the Month in which the revenue collected exceeds $1,000,000. Any penalty revenue

credited to Non-offending Customers pursuant to this section shall include

interest calculated in accordance with Section 154.501 of the Commission's

regulations.