Eastern Shore Natural Gas Company

First Revised Volume No. 1

Effective Date: 07/01/1993, Docket: RP92-227-002, Status: Effective

Original Sheet No. 254B Original Sheet No. 254B : Superseded

GENERAL TERMS AND CONDITIONS

(Continued)

23. Transportation Cost Adjustment Clause (Continued)

23.2 Determination of Current Transportation Cost Rate

Adjustment

(b) Current Demand Transportation Cost Rate

Adjustment

The Current Demand Transportation Cost Rate

Adjustment for the Calculation Period shall be

computed using the following steps: (1) Determine

the change in Demand Transportation Costs by

calculating the difference between (a) Seller's

projected Demand Transportation Costs for the

Calculation Period and (b) the Demand Transpor-

tation Costs reflected in Seller's currently

effective rates. (2) Multiply the change in the

Demand Transportation Costs by the juris-

dictional allocation factor approved by the

Commission. (3) Divide the result by Seller's

jurisdictional Demand Billing Determinants for

the Calculation Period to determine the Current

Demand Transportation Cost Rate Adjustment. Such

adjustment shall be stated to the nearest one-

hundredth of a cent ($.0001) per dt.

Adjustment

The Current Commodity Transportation Cost Rate

Adjustment for the Calculation Period shall be

the difference between (1) the projected weighted

average transportation cost for the Calculation

Period and (2) the weighted average transportation

cost reflected in Seller's previously scheduled

PGA filing. The projected weighted average trans-

portation costs shall be determined by dividing

the projected transportation cost by Seller's

gas purchases in dekatherms for the Calculation

Period. The projected transportation cost

shall be adjusted to reflect Seller's net

injections and withdrawals from storage. Such

adjustment shall be stated to the nearest one-

hundredth of a cent ($.0001) per dt.