Granite State Gas Transmission, Inc.

Third Revised Volume No. 1

Effective Date: 05/07/2020, Docket: RS93- 1-001, Status: Accepted

Original Sheet No. 246 Original Sheet No. 246 : Effective

GENERAL TERMS AND CONDITIONS

(continued)

21. TRANSITION COSTS RECOVERY MECHANISM

This Article establishes procedures under which Transporter

will recover the costs incurred as a result of implementing,

in connection with implementing, or attributable to the re-

quirements of the Commission's Order No. 636, as it may be

modified or amended ("Order No. 636"), (such costs hereinafter

referred to as "Transition Costs").

21.1 Recovery

Any Transition Costs incurred by Transporter shall be

recovered under this Tariff in the following manner:

(a) Unrecovered Gas Costs: Unrecovered Gas Costs

(including interest) will be allocated as follows

among applicable Shippers under Rate Schedule FT-

NN:

(i) The portion of deferred gas cost that re-

lates to demand charges shall be allocated

on the basis of each customer's Maximum Dai-

ly Quantity under Transporter's former CD

sales rate schedule in effect on the day

before the effective date of this tariff

sheet; and

(ii) The portion of deferred gas cost that re-

lates to commodity charge shall be allocated

on the basis of each customer's purchases

under Transporter's former CD sales rate

schedule during the twelve months immediate-

ly preceding the effective date of this tar-

iff sheet.