Gulf States Transmission Corporation

Original Volume No. 1

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Effective Date: 10/01/2000, Docket: RP00-548-000, Status: Effective

Second Revised Sheet No. 58R Second Revised Sheet No. 58R : Effective

Superseding: First Revised Sheet No. 58R

GENERAL TERMS AND CONDITIONS (continued)

(iii) the maximum reservation charge(s) the party is willing to pay for

the capacity;

(iv) the volume desired; and

(v) the receipt and delivery points.

23.14 Rates. The reservation charge(s) for any released firm capacity shall be

the reservation charge(s) bid by the Acquiring Shipper, but in no event

shall such reservation charge(s) be less than Transporter's minimum or

more than Transporter's maximum reservation charge(s) under Rate Schedule

FT as in effect from time to time, except as provided for in Section

284.8(i) of the Commission's regulations and Section 23.8(c) hereof. In

addition, Acquiring Shipper shall pay the maximum usage charge as well as

all other applicable charges for the service rendered unless discounted

by Transporter. For a volumetric reservation charge, the sum of the

reservation charge(s) shall be converted to a daily rate by multiplying

the Monthly Reservation Charge by 12 and then dividing by 365. For less

than maximum rate transactions only, converting daily rate to monthly

rate is accomplished by multiplying the daily rate times number of days

in rate period; dividing the result by number of months in rate period;

and taking the remainder out to 5 decimals places and rounding up or down

to Transporter's specified decimal place. Converting a monthly rate to a

daily rate is accomplished by multiplying the monthly rate by the number

of months in rate period; dividing the result by number of days in rate

period; and taking the remainder out to 5 decimals places and rounding up

or down to Transporter's specified decimal place.

23.15 Marketing Fee. When a Releasing Shipper requests that Transporter

actively market the capacity to be released, the Releasing Shipper and

Transporter shall negotiate the terms of the marketing service to be

provided by Transporter and the marketing fee to be charged therefor.

23.16 Billing. Transporter shall bill the Acquiring Shipper the rate(s)

specified in the capacity release transaction and any other applicable

charges and such Acquiring Shipper shall pay the billed amounts directly

to Transporter. Further, the Acquiring Shipper who has acquired capacity

on a volumetric reservation rate basis shall be billed the daily

reservation rate(s) plus the usage rate(s) and all applicable surcharges

times the volumes actually transported. Releasing Shipper shall be

billed the reservation charge(s) associated with the released capacity

pursuant to its contract, with a concurrent conditional credit for

payment of the reservation charge(s) due from the Acquiring Shipper.

This bill shall include an itemization of credits and adjustments

associated with each capacity release transaction. Releasing Shipper

shall also be billed a marketing fee, if applicable, pursuant to the

provisions of Section 23.15. If an Acquiring Shipper does not make

payment to Transporter of the reservation charge(s) due as set forth in

Section 7 of the General Terms and Conditions of this Tariff, Transporter

shall notify the Releasing Shipper of the amount due, including all

applicable late charges authorized by Section 7 of the General Terms and

Conditions of this Tariff, and such amount shall be paid by the Releasing

Shipper.