Carolina Gas Transmission Corporation

Original Volume No. 1

Effective Date: 11/01/2006, Docket: CP06- 71-001, Status: Effective

Original Sheet No. 202 Original Sheet No. 202 : Effective

30. DISCOUNTS

30.1 If Pipeline discounts rates applicable for service under any

Service Agreement, the amount of such discount shall be accounted

for as a reduction of maximum rates; provided, however, any such

discount shall not reduce the rate to a level below the

applicable minimum rate. Absent specification in the Service

Agreement, the amount of such discount shall be accounted for as

a reduction of maximum rates in the following sequence to the

extent any of the following components are included in the

Recourse Rate: reservation charges (fixed cost unit rate

component of base Reservation Rate for firm service); usage

charges (fixed cost unit rate component of base Usage Rate for

interruptible service).

30.2 If Pipeline agrees to discount its rate to Shipper below

Pipeline’s Recourse Rate under any rate schedule, one or more of

the following discount provisions may be reflected on an exhibit

to the Service Agreement without the discount constituting a

material deviation from Pipeline’s pro forma Service Agreement.

Additionally, Pipeline and Shipper may agree that rate components

be adjusted upward or downward to achieve an agreed upon overall

rate so long as the resulting rate components remain within the

applicable minimum and maximum rates specified in the Tariff. A

discounted rate may apply:

(a) To specified quantities under Shipper’s Service

Agreement(s);

(b) To quantities above or below a certain level or to all

quantities if the quantities exceed a certain level;

transported (i.e., that the rates shall be adjusted in a

specified relationship to the quantities actually

transported);

(d) During specified periods of the year or over specifically

defined periods of time;

(e) To specified Receipt Points or Delivery Points, markets,

zones, or other defined geographical areas;

(f) To quantities conditioned on implementation and completion

of a construction project or acquisition of facilities; or