Great Lakes Gas Transmission Limited Partner

Second Revised Volume No. 1

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Effective Date: 06/01/1997, Docket: RP97- 55-002, Status: Effective

Substitute First Revised Sheet No. 49 Substitute First Revised Sheet No. 49 : Effective

Superseding: ORIGINAL SHEET NO. 49

GENERAL TERMS AND CONDITIONS

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(continued)

18. Annual Charges Adjustment

18.1 Purpose

Section 3401 of the Omnibus Budget Reconciliation Act of 1986 provides that the

Commission establish annual charges for each fiscal year ending September 30, in an

amount equal to all costs incurred to operate FERC for the fiscal year.

For the exclusive purpose of pass through of Transporter's annual charge, this section

establishes an Annual Charges Adjustment (ACA) to be applicable to all of

Transporter's Transportation Rate Schedules.

18.2 Basis of the Annual Charges Adjustment

This commodity (utilization) charge factor is reflected on Sheet No. 7 of Second

Revised Volume No. 1 of Transporter's FERC Gas Tariff. The monthly billing amount

related to these charges is determined by multiplying the unit based charge factor,

established annually by the FERC, by the quantities delivered to the respective customers

each month.