Iroquois Gas Transmission System, L.P.

FIRST REVISED VOLUME NO. 1

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Effective Date: 01/01/1997, Docket: RP97-126-001, Status: Effective

Sub. Third Revised Sheet No. 13 Sub. Third Revised Sheet No. 13 : Effective

Superseding: Third Revised Sheet No. 13

RATE SCHEDULE RTS (continued)

(4) Inter-Zone Transportation Commodity

Rate. A separately stated Transportation Commodity Rate, equal

to the sum of the Zone 1 Transportation Commodity Rate and the

Zone 2 Transportation Commodity Rate, shall apply to each Dth

of Scheduled Equivalent Quantity at any Delivery Point located

in Transporter's Zone 2 which corresponds to a Dth of Scheduled

Input Quantity at any Receipt Point located in Transporter's

Zone 1 and to each Dth of Scheduled Equivalent Quantity at any

Delivery Point located in Transporter's Zone 1 which

corresponds to a Dth of Scheduled Input Quantity at any Receipt

Point located in Transporter's Zone 2.

(b) Transportation Demand Rates

(1) Maximum and Minimum Transportation

Demand Rates. The Maximum and Minimum Transportation Demand

Rate for each Dth of the Maximum Input Quantity at each Receipt

Point shall be the Maximum and Minimum Demand Rates reflected

for Rate Schedule RTS from time to time on the currently

effective Sheet No. 4 of this FERC Gas Tariff.

(2) Discounted Transportation Demand Rate.

The Discounted Transportation Demand Rate for any Dth of the

Maximum Input Quantity at each Receipt Point shall be the

dollar amount per Dth of Maximum Input Quantity specified by

Transporter in a notice to Shipper, which amount shall be less

than the Maximum Transportation Demand Rate but equal to or

greater than the Minimum Transportation Demand Rate. Except as

otherwise mutually agreed between Shipper and Transporter, the

Discounted Transportation Demand Rate shall apply to all

quantities which Shipper nominates under its Gas Transportation

Contract to be received and delivered by Transporter at the

Receipt Point(s) and Delivery Point(s), respectively, specified

in such notice to Shipper. The Discounted Transportation

Demand Rate shall not apply to any quantities which Shipper, or

any Replacement Shipper that has acquired capacity released by

such Shipper under its Gas Transportation Contract pursuant to

Section 28 of the General Terms and Conditions of this tariff,

nominates to be received or delivered under its Gas

Transportation Contract at a Receipt or Delivery Point not

specified in such notice to Shipper. For purposes of applying

this paragraph, the daily Maximum Transportation Demand Rate

shall be determined by multiplying the Maximum Transportation

Demand Rate reflected from time to time on the currently

effective Sheet No. 4 of this tariff by twelve (12) and

dividing the product by 365.