Columbia Gulf Transmission Company

Second Revised Volume No. 1

Effective Date: 07/01/2010, Docket: RP10-134-001, Status: Pending

Second Revised Sheet No. 270 Second Revised Sheet No. 270

Superseding: Original Sheet No. 270

GENERAL TERMS AND CONDITIONS (Continued)

• Pipe modifications at compressors and meters designed to reduce CUG and LAUF

• New suction and discharge pressure regulation and piping at compressor stations designed to

reduce CUG

• Load sharing software and non-software investments that improve engine efficiency and reduce

CUG.

• Segmentation meters that help identify LAUF reduction opportunities

• Other capital investments that are installed to reduce CUG and LAUF

(b) Non-Qualified Capital Investments

The following facilities are not Qualified Capital Investments and shall not be used to determine

Shipper Retainage Revenues ("Non-Qualified Capital Investments"):

• Capital investment in compressors, meters, or other facilities that are installed as part of an

expansion or to increase capacity to provide transportation services

• Capital investment that would otherwise be considered normal maintenance

• New meters, gas chromatographs, or other facilities that are installed for new delivery or

receipt points or to replace existing equipment for reasons other than to reduce CUG or LAUF

• Replacement of assets as a result of natural disasters

• Assets in service prior to the filing date of this IFF mechanism set forth in this Section 33

of this Tariff

• Any asset for which Transporter is directly reimbursed for the costs

• Expenses incurred that are not capital investments, including expenses that are incurred to

reduce CUG or LAUF

33.4 Annual Report on Shipper Retainage Revenues

Transporter shall calculate the Shipper Retainage Revenues and submit an annual report ("Annual

Report") to the Federal Energy Regulatory Commission within 60 days of the end of each Annual Period.

If there are Shipper Retainage Revenues realized during the subject Annual Period, Transporter shall

either (a) credit such Shipper Retainage Revenues to Shippers on the next invoice that Transporter

issues to Shippers after submitting the Annual Report to the Federal Energy Regulatory Commission or

(b) send Shipper a check or wire transfer for the value of such credit contemporaneously with the

issuance of such invoice to Shipper. Such Annual Report shall include the following:

• Calculation of any Shipper Retainage Revenues

• Schedule of Cumulative Qualified Capital Investments, including:

( Original cost

( AFUDC

( In-service date

( Accumulated Depreciation

( Regulatory Depreciation Rate