Rockies Express Pipeline LLC (Entrega)

Second Revised Volume No. 1

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Effective Date: 09/01/2007, Docket: CP06-354-002, Status: Effective

Original Sheet No. 278 Original Sheet No. 278 : Effective

GENERAL TERMS AND CONDITIONS

38. PERIODIC RATE ADJUSTMENT (PRA) - FL&U REIMBURSEMENT (Contd.)

38.5 UNRECOVERED FL&U REIMBURSEMENT ACCOUNT (Contd.)

A. (Contd.)

(4) Actual carrying charges on the current deferral and

amortizing sub-accounts, taking into account the

prior Month's balance, actual deferred income taxes,

the effective annual FERC-approved interest rate

prescribed in Section 154.501 of the FERC's

Regulations and quarterly compounding of interest

charges; and

(5) Estimated carrying charges on the sub-account to be

amortized, as applicable, which will be calculated

taking into account the projected average balance for

the applicable period, projected applicable interest

rate, quarterly compounding of interest charges and

the applicable accumulated deferred income tax.

B. The Monthly deferral of a dollar amount associated with

Transporter's actual under- or over-recovered FL&U for each

zone or facility for which a FL&U% is charged shall be

calculated as follows:

(1) Transporter shall determine the actual FL&U incurred

that Month, to be stated in dollars. The Actual FL&U

volume is multiplied by the MIP for the applicable

Month to determine the dollar amount for actual FL&U.

(2) Transporter shall then determine the amount of FL&U

Reimbursement recovered ("FLURR"), stated in dollars,

as follows: the amount of FLURR shall be determined

by multiplying the Current FL&U Reimbursement

Percentage in effect during the deferral Month, by

the appropriate actual quantities of total receipt

quantities during the Month. The quantities of FLURR

recovered in-kind will be multiplied by the MIP for

the applicable Month to determine the dollar amount

for the FLURR.

(3) The Monthly deferral cost amount shall be determined

by taking the difference between the dollar amounts

derived in Section 38.5B(1) and (2), herein. The

resulting amounts shall be reflected in Transporter's

current deferral sub-account. Transactions that are

not assessed the maximum FL&U percentage hereunder

shall not be included in the calculations of the

actual under- or over-recovered FL&U sub-account.