Granite State Gas Transmission, Inc.

Third Revised Volume No. 1

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Effective Date: 03/22/2001, Docket: CP99-238-001, Status: Effective

Third Revised Sheet No. 333 Third Revised Sheet No. 333 : Effective

Superseding: Second Revised Sheet No. 333

GENERAL TERMS AND CONDITIONS

(continued)

33. Recovery of Development Costs for LNG Storage Project

33.1 Pursuant to the Commission's Order issued February 11, 2000, approving

a Joint Stipulation and Agreement in Docket Nos. CP99-238-000 and CP96-610-000,

Transporter is authorized to recover from Northern Utilities, Inc. (Northern

Utilities) to reimburse Transporter for certain costs incurred to develop an LNG

storage project in the Town of Wells (York County), Maine an amount not to

exceed $8,342,241 of which Northern Utilities will collect an amount not to

exceed $4,534,254 from its customers served by its Maine Division and $3,807,987

from its customers served by its New Hampshire Division.

Transporter shall be reimbursed for the LNG storage project development

costs with revenues collected by Northern Utilities pursuant to Surcharges

approved by the Public Utilities Commissions of the States of Maine and New

Hampshire and added to charges for retail sales and/or transportation services

for the specific purpose of reimbursing Transporter. The Surcharges became

effective November 1, 1999, and will continue in effect month-to-month thereafter

until the aggregate revenues received and remitted to Transporter amount to a

total not to exceed $8,342,241 of which Northern Utilities will collect an amount

not to exceed $4,534,254 from its customers served by its Maine Division and

$3,807,987 from its customers served by its New Hampshire Division.

33.2 Not later than the tenth (10th) day of the month following the

effectiveness of this provision, Northern Utilities will advise Transporter's

Controller (or such person as he may designate) in writing or by facsimile of the

amounts collected from its retail sales and/or transportation customers in Maine

and New Hampshire pursuant to the Surcharges between November 1, 1999, and

the date that this provision becomes effective. Transporter will submit an

invoice to Northern Utilities for that amount, which Northern Utilities shall pay

by the twentieth (20th) day of the month in which the invoice is received by

Northern Utilities.

Thereafter, by the tenth (10th) day of each succeeding month, Northern

Utilities shall similarly advise Transporter's Controller of the amounts

collected from its retail sales and/or transportation customers, pursuant to the

Surcharges, during the prior month.

Transporter will submit an invoice to Northern Utilities for that amount

which Northern Utilities shall pay by the twentieth (20th) day of the month in

which the invoice is received by Northern Utilities.

33.3 Transporter shall separately record and account for on its books of

account all revenues received from Northern Utilities in payment of the

obligation to reimburse Transporter for the costs incurred to develop the LNG

storage project and such revenues shall be credited exclusively to the

amortization of the obligation to reimburse Transporter for its development costs

and shall not be considered in the determination of Transporter's authorized

rates and charges for any jurisdictional service.