East Tennessee Natural Gas, LLC

Third Revised Volume No. 1

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Effective Date: 08/02/2010, Docket: RP10-946-000, Status: Effective

First Revised Sheet No. 378 First Revised Sheet No. 378

Superseding: Original Sheet No. 378

GENERAL TERMS AND CONDITIONS (Continued)

system. Transporter shall also file with the Commission a

Transportation Cost Filing (the "Annual Transportation Cost

Filing") to provide for the reconciliation under Section 25.6(d)

hereof. The annual Transportation Cost Filing shall include a

Transportation Cost Rate Adjustment (TCRA).

25.2 Affected Rate Schedules - Affected Rate Schedules shall be Rate

Schedules FT-A and FT-GS.

25.3 Filing of Transportation Cost Rate Adjustment - The effective TCRA

under the Affected Rate Schedules shall be shown on the Notice of

Rates and Other Tariff Rate Changes. Each TCRA shall be effective

on 30 days notice, unless shortened by the Commission for good

cause shown. Concurrent with each Annual Transportation Cost

Filing, Transporter shall include computations showing the

derivation of the TCRA.

25.4 Calculation Period and Rate Determinants - The TCRA Calculation

Period for each TCRA Filing shall be the twelve-month period

commencing with the effective date of that filing. The term

Billing Determinants, is used herein, shall refer to the projected

Demand and Commodity billing units for the Affected Rate Schedules

for the TCRA Calculation Period.

25.5 Determination of Transportation Cost Rate Adjustment - The Current

Transportation Cost shall be the estimated Demand and Commodity

Account No. 858 amounts attributable to the Affected Rate

Schedules for the Calculation Period.

(a) The Current Transportation Cost Rate shall be determined by

dividing the Current Transportation Costs by the Billing

Determinants under the Affected Rate Schedules for the

Calculation Period; provided that the Initial Transportation

Cost Rate shall be determined on the basis of the applicable

costs and billing determinants reflected in Transporter's

Section 4(e) rate filing to Docket No. RP91-204.

(b) The Current Transportation Cost Rate Adjustment reflected on

the Notice of Rates and Other Tariff Rate Changes shall be

determined (1) in the first TCRA filing by subtracting the

Initial Transportation Cost Rates from the Current

Transportation Cost Rate, (2) in succeeding filings by

subtracting the Transportation Cost Rate in Transporter's

preceding TCRA filing hereunder from the Current

Transportation Cost Rate. Such Transportation Cost Rate

Adjustments shall be applied to all of Transporter's rates

under the appropriate Affected Rate Schedules in a manner

that maintains Transporter's then effective cost allocation

and rate design.