Algonquin Gas Transmission, LLC

Fifth Revised Volume No. 1

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

Third Revised Sheet No. 568 Third Revised Sheet No. 568

Superseding: Second Revised Sheet No. 568

GENERAL TERMS AND CONDITIONS

(continued)

24.CURTAILMENT (continued)

(6) Scheduled service under all firm service agreements.

24.5 Order of Curtailment Within Categories. Algonquin shall reduce service to those

Customers affected by insufficient capacity beginning with requests within category (1)

above, and continuing through the order listed above in Section 24.4. In the event

that sufficient capacity is available to provide partial service in any of the

categories defined in Section 24.4 above, then the available capacity shall be

allocated within such category as follows:

(1) The capacity available for park and loan service under Rate Schedule PAL to

the Customers affected within category (1) of Section 24.4 above shall be

allocated among such Customers on the basis of net present value, with the

transaction yielding the highest net present value receiving priority over

transactions yielding a lower net present value. Net present value shall

be calculated on the basis of the present value of the daily PAL charge per

Dth to Algonquin for the term of the transaction as specified in Exhibit A

of the PAL Service Agreement. PAL transactions yielding the same net

present value shall be scheduled pro rata based on scheduled quantities.

In making the determination of net present value, Algonquin shall apply the

rate, as of the date of the review, stated in accordance with Section

154.501(d) of the Commission's regulations, to all bids.

(2) The capacity available for service to the Customers affected within

category (2) of Section 24.4 above shall be allocated among such Customers

as follows: first, pro rata among firm Customers paying the maximum rate;

next, on a first-come/first-served basis among interruptible Customers

paying the maximum rate; and next, among firm and interruptible Customers

paying a discounted rate based upon the size of the discount, with the

Customer paying the higher rate having the higher priority, subject only to

the election of another interruptible Customer that is paying a discounted

rate to pay the applicable maximum rate in order to afford its scheduled

quantities a higher priority for the purposes of this subsection (2).

(3) The capacity available for service to the Customers affected within

categories (3) and (4) of Section 24.4 above shall be allocated among such

Customers, who have scheduled interruptible quantities pursuant to Section

23, on a prorata basis based on the quantities scheduled for such

Customer(s), subject only to the election of another interruptible Customer

that is paying a discounted rate to pay the applicable maximum rate in

order to afford its scheduled quantities a higher priority for the purposes

of this subsection (3).