Eastern Shore Natural Gas Company

First Revised Volume No. 1

Effective Date: 08/01/1997, Docket: TM97-12-23-000, Status: Effective

Eightieth Revised Sheet No 12 Eightieth Revised Sheet No 12 : Superseded

Superseding: Seventy-Ninth Revised Sheet No 12

NOTICE OF RATE CHANGE ADJUSTMENTS

(COMMODITY OR DELIVERY CHARGE) PER DT

-------------------------------------

(Continued)

(Sec.21)(2) (Sec.23)(2)

Rate Base Purchased PGA Transport Transport

Schedule Tariff Gas Cost Adj. Surcharge Gas Cost Adj. Surcharge

-------- Rate(1) Current Cumulative Adj. Current Cumulative Adj.

------- ------- ---------- --------- ------- ---------- ---------

PS-1 Peaking Service

--------------------

3.2 (a) Demand Charge $13.9286 -0- -0- -0- -0- -0- -0-

3.2 (b) Commodity Charge 2.8797 .2705 (.2676) .1020 (.0130) (.0031) (.0009)

8. Excess Delivery Charge 6.2209 .2705 (.2676) .1011 .0461 .0526 .0101

T-1 Transportation Service

--------------------------

3.2 (a) Demand Charge 5.5660 -0- -0- -0- -0- -0- -0-

3.2 (b) Commodity Charge .0690 -0- -0- -0- -0- -0- -0-

(1) The Base Tariff Rate is the effective rate on file with the Commission excluding adjustments approved by the Commission.

(2) Section of General Terms and Conditions of this FERC Gas Tariff.

Estimated average commodity cost of gas in last scheduled PGA: $2.3384. Current estimated average commodity cost of gas in latest PGA

(rate currently being charged): $2.3384.