El Paso Natural Gas Company

Second Revised Volume No. 1A

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Effective Date: 04/01/2010, Docket: RP10-454-001, Status: Effective

Original Sheet No. 329 Original Sheet No. 329

TRANSPORTATION GENERAL TERMS AND CONDITIONS

(Continued)

17. MISCELLANEOUS SURCHARGES

17.1 Annual Charge Adjustment Provision

(a) Purpose - This Section 17.1 establishes an Annual Charge

Adjustment Provision ("ACA") which will permit Transporter

to recover from its Shippers the annual charges assessed to

Transporter by the Commission under Part 382 of the

Commission's Regulations.

(b) Applicable Customers - The ACA is applicable to each rate

schedule contained in Volume Nos. 1A and Volume No. 2 FERC

Gas Tariff as identified on the Statement of Rates in each

volume.

(c) Adjustment Date - The ACA unit charge shall be filed with

the Commission by Transporter at least thirty (30) Days

prior to the proposed Adjustment Date unless a shorter

period is specifically requested and permitted by the

Commission. The Adjustment Date shall be October 1 of each

Year or as directed by an order of the Commission. On the

Adjustment Date, Transporter shall increase or decrease the

ACA unit charge to each of the applicable rate schedules as

authorized by the Commission to be recovered by Transporter.

For those rate schedules with a two-part rate, the ACA unit

charge shall only apply to the usage component of such rate.

(d) Effective Date - The ACA unit charge shall become effective

October 1 of each Year or as directed by an order of the

Commission if:

(i) Transporter has paid the applicable annual charge in

compliance with Section 382.103 of the Commission's

Regulations; and

(ii) the ACA unit charge is not subject to suspension or

refund obligation.