Granite State Gas Transmission, Inc.

Third Revised Volume No. 1

Effective Date: 04/20/1994, Docket: RP94- 98-001, Status: Effective

Second Revised Sheet No. 247 Second Revised Sheet No. 247 : Effective

Superseding: First Revised Sheet No. 247

GENERAL TERMS AND CONDITIONS

(continued)

21. TRANSITION COSTS RECOVERY MECHANISM (continued)

21.1 Recovery (continued)

(a) Unrecovered Gas Costs: (continued)

Transporter shall direct bill or in the case of a

negative balance, refund customer for its share of

the unrecovered gas cost, as determined above, within

60 days of the Commission's acceptance of this tariff

sheet. Such amounts are subject to adjustment in or-

der to permit recovery by Transporter of 100% of its

unrecovered gas costs. Transporter shall revise its

billings to permit recovery of out-of-period cost

incurred within nine months from the date its PGA is

terminated. Refunds related to purchases prior to

November 1, 1993 shall be flowed through to the

former CD sales customers regardless of when Trans-

porter receives such refunds.

Customer may elect, in the case of a positive bal-

ance, to be billed in twelve equal monthly install-

ments, in which case, Customer shall also be required

to pay interest on the unpaid balance at the applica-

ble annual interest rate specified in Section 154.67

of the Commission's regulations. Payment of such

billed amount shall be due within 10 days of Cus-

tomer's receipt of Transporter's invoice.

(b) Gas Supply Realignment Costs: All Gas Supply Re-

alignment ("GSR") (including interest) costs incurred

or anticipated to be incurred by Transporter in re-

aligning gas supply contracts as required by Order

No. 636 will be recovered by Transporter by means of

a reservation surcharge contained in its Rates for

firm transportation under Rate Schedules FT-NN and

FT-1; provided, however, that the transportation rate

to be charged for service under Rate Schedule IT-1