Algonquin Gas Transmission, LLC

Fifth Revised Volume No. 1

Effective Date: 12/01/2009, Docket: RP10-117-001, Status: Effective

First Revised Sheet No. 590 First Revised Sheet No. 590

Superseding: Original Sheet No. 590

GENERAL TERMS AND CONDITIONS

(continued)

32. FUEL REIMBURSEMENT QUANTITY

32.1 General. The Fuel Reimbursement Quantity ("FRQ") shall be determined by multiplying

Customer's receipts at the Point(s) of Receipt by the applicable Fuel Reimbursement

Percentage ("FRP"), except in the case of Backhauls and/or Forwardhaul components of

transportation on the HubLine Mainline facilities in which case the FRQ shall be zero.

During the term of the Service Agreements executed hereunder, Algonquin will

periodically track changes in its requirement to retain gas in-kind in compensation for

the quantities of Company Use Gas used to provide service for Customers.

32.2 Fuel Reimbursement Percentage (FRP). The FRP shall be as quantified pursuant to this

Section 32 and as set forth in the currently effective Sheet No. 40 of this tariff,

shall be separately stated for system services and for each incremental service as

required by Commission order. The FRP shall be subject to adjustment hereunder for

service under all rate schedules unless otherwise explicitly provided in the rate

schedule. The FRP shall include any increment added pursuant to a flow order issued

pursuant to Section 29 of these General Terms and Conditions.

Specified Calendar Periods. FRPs shall be established distinctly for the duration of

two calendar periods as follows: (i) winter period--December 1 through March 31 and

(ii) spring, summer and fall period--April 1 through November 30.

32.3 Calculation of FRP Adjustments. FRPs shall be calculated and filed pursuant to this

Section 32 on an annual basis for each calendar period specified in Section 32.2 above.

32.4 Calculations of FRP. For each filing hereunder for each specified calendar period

Algonquin shall calculate the FRP, with separate calculations for system services and

for each incremental service as required by Commission order, as the quotient obtained

by dividing (a) the projected annual quantities of Company Use Gas for each specified

calendar period by (b) the projected annual throughput for each specified calendar

period.