Iroquois Gas Transmission System, L.P.

FIRST REVISED VOLUME NO. 1

 Contents / Previous / Next / Main Tariff Index

Effective Date: 09/20/2002, Docket: RP02-504-000, Status: Effective

Sixth Revised Sheet No. 11 Sixth Revised Sheet No. 11 : Effective

Superseding: Substitute Fifth Revised Sheet No. 11

3.3 Present Value Calculation. For purposes of

evaluating and determining the best bid in accordance with

Section 3.2 hereof, the present value of the Transportation

Demand Rate to be paid over the term of the proposed service

shall be calculated in the following manner:

1-(1+i) -n

PV = A x ---------

i

where: PV = present value of the rate

A = fraction of unit rate, such that:

proposed rate

A = --------------

maximum rate

i = monthly equivalent of Transporter's approved

overall rate of return

n = term of the agreement, in months.

In evaluating bids associated with the open season, any

request for a change in primary Receipt Point or Delivery Point

under Section 7.2 or 7.4, respectively, of the General Terms and

Conditions will be considered to have an NPV of zero (0) when

comparing requests for service and awarding capacity, unless:

a) Shipper has agreed in conjunction with its request to

increase its MDQ or;

b) Shipper has agreed to extend the term of its firm

contract;

in which case Transporter will consider the term of such MDQ

increase or contract extension when evaluating the NPV.