Great Lakes Gas Transport, L.L.C.

Second Revised Volume No. 1

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Effective Date: 11/01/1993, Docket: RP97-157-006, Status: Effective

Sub. Original Sheet No. 156 Sub. Original Sheet No. 156 : Effective

Superseding: Original Sheet No. 156

GENERAL TERMS AND CONDITIONS

FOR TRANSPORTATION SERVICE

(cont'd)

17. TRANSITION COSTS

Pursuant to Order Nos. 636, et seq., issued by the Commission, Transporter

is authorized to recover Transition Costs from its Buyers as set forth in

this Section. This Section shall be applicable until such time as

Transporter has recovered all of its Transition Costs.

17.1 Stranded Costs

Transporter shall seek to recover costs that are stranded as a result

of complying with Order No. 636, et seq., together with interest (to

the extent allowed by the Commission), through a method to be

determined in a general Section 4 rate filing(s).

17.2 Gas Supply Realignment ("GSR") Costs

(a) Transporter shall recover from its customers under the EFT and FT

Rate Schedules its Gas Supply Realignment ("GSR") costs in

accordance with this Section 17.2. GSR costs are those costs

attributable to realigning Transporter's gas supply contracts as

permitted by Order No. 636.

(b) Transporter will make periodic filings after the effective date,

seeking necessary Commission authorization to recover any GSR

costs actually incurred, plus carrying charges calculated from

the date of incurrence of such GSR costs to the projected date of

payment as determined pursuant to Section 154.67(c)(2) of the

Commission's regulations.

(i) Ninety (90) percent of such GSR costs shall be allocated to

Transporter's shippers under the EFT and FT Rate Schedules,

based on the ratio of the Shipper's Contract MDTQ to the

total Contract MDTQ of surcharged Shippers under Rate

Schedule EFT and FT. GSR Costs shall be recovered from

shippers under Rate Schedules EFT and FT by means of a GSR

Demand Surcharge per Contract MDTQ over a three-year

amortization period commencing on the date authorized by the

Commission. At the end of the three-year period,

Transporter shall continue to charge or refund to the extent

necessary to cause the under or over-collections to be

adjusted such that Transporter fully recovers its GSR Costs

allocated to Shippers under the EFT and FT Rate Schedules.