Eastern Shore Natural Gas Company

First Revised Volume No. 1

Effective Date: 11/13/1995, Docket: RP96-118-000, Status: Effective

Second Revised Sheet No. 246 Second Revised Sheet No. 246 : Superseded

Superseding: First Revised Sheet No. 246

GENERAL TERMS AND CONDTIONS

(Continued)

21. Purchased Gas Cost Adjustment Clause (Continued)

Seller states that it has elected the Unit-Of-Sale

Methodology and will consistently use this methodology for

computing the current adjustment and for determining the

monthly deferrals to the Unrecovered Purchased Gas Cost

Account.

21.1 Filing of Purchased Gas Cost Adjustment

(a) Filing Procedures

Seller's Annual Adjustment shall be filed with the

Commission and posted pursuant to Section 154.207 of

the Commission's Regulations at least sixty (60)

days prior to its annual PGA effective date of

November 1st. This annual filing will contain (1)

revised tariff sheets identifying the amounts of the

adjustment(s) with the resulting currently

effective rates; (2) a report containing detailed

computations showing the derivation of the current

adjustment and the surcharge adjustment utilized in

determining the currently effective rates; and (3) a

report stating Seller's purchasing patterns that gave

rise to the annual projections.

Seller may file a revision to the current adjustment

portion of the annual PGA up to 30 days before

Seller's annual adjustment date of November 1st.

Seller shall file such revision with the Commission

and post it pursuant to Section 154.207 of the

Commission's Regulations.

Seller shall also file with the Commission, and

post pursuant to Section 154.207 of the Commission's

Regulations, at least thirty (30) days before

Seller's quarterly adjustment dates of February 1,

May 1, and August 1 respectively, its Quarterly

Adjustments. These filings will contain (1) revised

tariff sheets identfying the amount of the

adjustments(s) with the resulting currently

effective rates; and (2) a report showing the

derivation of the current adjustment utilized in