East Tennessee Natural Gas, LLC

Third Revised Volume No. 1

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Effective Date: 04/20/2008, Docket: RP08-277-000, Status: Effective

Second Revised Sheet No. 178 Second Revised Sheet No. 178 : Effective

Superseding: First Revised Sheet No. 178

Rate Schedule LMS-MA

Load Management (Market Area) Service (Continued)

8.5 Monthly Imbalances: The LMS-MA Balancing Party's monthly

imbalance shall be the net total of daily variances from all

points covered by the LMS-MA Balancing Party's OBA(s) adjusted for

make-up quantities and imbalance trades, with the exception that

monthly imbalances created on that portion of Transporter's system

not designated as an Incremental Lateral shall not be netted

against monthly imbalances created on that portion of

Transporter's system designated as an Incremental Lateral. For

supply aggregators under Rate Schedule SA, the daily variance

shall be the difference, by Pooling Area, between actual

deliveries under the Supply Aggregation Service Agreement and the

actual quantities received at all points covered by such

Agreement. In addition, unless Transporter and the Balancing

Party mutually agree to correct the imbalance in kind on a

nondiscriminatory basis, each Month Transporter and the Balancing

Party shall "cashout" any imbalance between Scheduled Quantities

and actual deliveries. Transporter shall divide the lesser of the

monthly imbalance based on Operational Data or the actual monthly

imbalance by the total scheduled volumes for the Month for all

applicable points, then multiply by 100, to determine the %

monthly imbalance.

(a) If the monthly imbalance is due to an excess of Scheduled

Quantities relative to actual deliveries, then the monthly

imbalance shall be considered a "positive" imbalance and

Balancing Party shall sell to Transporter, and Transporter

shall buy from the Balancing Party, in accordance with the

formula listed in Section 8.5(c) below. If the monthly

imbalance is due to an excess of actual deliveries relative

to Scheduled Quantities, then the monthly imbalance shall be

considered a "negative" imbalance and Transporter shall sell

to the Balancing Party, and Balancing Party shall buy from

Transporter, in accordance with the formula listed in

Section 8.5(c) below. In addition to the cash out of the

monthly imbalance: (A) Balancing Party shall pay to

Transporter the "Transportation Component" if total actual

quantities delivered are greater than Scheduled Quantities,

or (B) Transporter shall pay to the Balancing Party the

"Transportation Component" if total actual quantities

delivered are less than Scheduled Quantities. The

"Transportation Component" shall be equal to (1) the

commodity rate pursuant to Tennessee Gas Pipeline Company's

Rate Schedule FT-A for transportation from Tennessee's Zone

1 to Transporter's system multiplied by the monthly

imbalance plus, (2) Transporter's commodity rate under Rate

Schedule FT-A, FT-GS, or FT-L, as applicable, multiplied by

the monthly imbalance, plus (3) an additional amount to

cover Transporter's cost of gas for the system fuel and use

and lost and unaccounted for gas. The additional amount

shall be calculated by multiplying (1) the amount of fuel

necessary to transport the imbalance on the systems of both

Tennessee and Transporter by (2) the Average Price as

defined in Section 8.5(c)(i) below.