Iroquois Gas Transmission System, L.P.

FIRST REVISED VOLUME NO. 1

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Effective Date: 12/19/2004, Docket: RP05- 78-000, Status: Effective

Fourth Revised Sheet No. 11A Fourth Revised Sheet No. 11A : Effective

Superseding: Third Revised Sheet No. 11A

In the event that Transporter receives a bid at a

Negotiated Rate or a rate under a Negotiated Rate Formula that

includes a revenue guarantee such as a usage charge associated

with a minimum volume commitment, Transporter shall calculate

the present value per unit of the rate generated by such bid,

to the extent of any revenue guarantee such as a minimum

volume commitment, in the same manner that it determines the

present value of the per unit Transportation Demand Rate. In

the event that such a bid also includes a demand or

reservation rate, the present value of such bid shall be the

sum of the present value of the Transportation Demand Rate and

the present value of the rate generated by the revenue

guarantee.

3.4 Transportation Contracting. Submission of

a bid in the form of a Service Request Form pursuant to

Section 3.1 hereof shall constitute a binding offer by the

submitting Shipper to enter into a Gas Transportation Contract

incorporating the terms of the bid. A prospective Shipper,

however, may withdraw its bid prior to the close of the period

set forth in Section 3.1; provided that such prospective

Shipper may not resubmit a lower bid, but may submit a higher

bid for the same capacity. In the event a potential Shipper's

bid is accepted, and such potential Shipper otherwise meets

all availability conditions of Section 1 of this Rate

Schedule, including Transporter's Financial Creditworthiness

criteria as set forth in Section 3 of the General Terms and

Conditions, Transporter shall forward to Shipper for execution

a Gas Transportation Contract which sets forth the terms of

such bid. Shipper shall have five (5) business days from the

date specified in the letter accompanying the Gas

Transportation Contract to execute and return to Transporter

the Gas Transportation Contract; service shall not commence

until the Gas Transportation Contract has been executed.

3.5 Pre-Arranged Deals. Transporter may enter into a

pre-arranged service agreement for capacity with any prospective

Shipper provided that Transporter will post the terms of the

pre-arranged service agreement on its EBB and other parties will

have the opportunity to acquire the capacity by submitting a bid

for the pre-arranged capacity which, if awarded, would have a

higher present value (PV) to Transporter as determined in

accordance with Section 3.3 hereof. For the purpose of its

evaluation, Transporter may consider the aggregate of two or

more bids and award the available capacity to the combination of

bids that result in the highest PV to Transporter. If another

prospective Shipper submits a bid with a higher PV to

Transporter for this pre-arranged capacity, the prospective

Shipper with thepre-arranged service agreement will have a

one-time right within two (2) business day of notification to

match the higher bid?s PV in order to obtain the capacity. If

the prospective Shipper with the pre-arranged service agreement

elects not to match a higher competing bid, the capacity will be

awarded to the highest bidder whose bid, if accepted, would

have a higher PV to Transporter.