El Paso Natural Gas Company

First Revised Volume No. 1-A

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Effective Date: 04/01/1993, Docket: RS92- 60-013, Status: Effective

Substitute Second Revised Sheet No. 241 Substitute Second Revised Sheet No. 241 : Superseded

Superseding: First Revised Sheet No. 241

TRANSPORTATION GENERAL TERMS AND CONDITIONS

(Continued)

21. ANNUAL CHARGE ADJUSTMENT PROVISION

21.1 Purpose - This Section 21 establishes an Annual Charge

Adjustment Provision ("ACA") which will permit El Paso to

recover from its Shippers the annual charges assessed to

El Paso by the Commission under Part 382 of the Commission's

Regulations.

21.2 Applicable Customers - The ACA is applicable to each rate

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

Gas Tariff as identified on Sheet Nos. 20 and 21, and Sheet

Nos. 1-D.2 and 1-D.3.

21.3 Adjustment Date - The ACA unit charge shall be filed with the

Commission by El Paso 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, El

Paso shall increase or decrease the ACA unit charge to each of

the applicable rate schedules as authorized by the Commission

to be recovered by El Paso. For those rate schedules with a

two-part rate, the ACA unit charge shall only apply to the

usage component of such rate.

21.4 Effective Date - The ACA unit charge shall become effective

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

Commission if:

(a) El Paso has paid the applicable annual charge in

compliance with Section 382.103 of the Commission's

Regulations; and

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

refund obligation.

21.5 Accounting for Annual Charges Paid Under Part 382 - El Paso

shall account for annual charges paid by charging the amount

to Account No. 928, Regulatory Commission Expenses, of the

Commission's Uniform System of Accounts. Any annual charges

recorded in Account No. 928 shall not be recovered by El Paso

in a Natural Gas Act Section 4 rate case.