Iroquois Gas Transmission System, L.P.

FIRST REVISED VOLUME NO. 1

Effective Date: 08/01/2004, Docket: RP04-366-001, Status: Effective

Sixth Revised Sheet No. 30 Sixth Revised Sheet No. 30 : Effective

Superseding: Fifth Revised Sheet No. 30

RATE SCHEDULE ITS (continued)

Intra-Zone Transportation and Inter-Zone Transportation Commodity

Rates.

(e) RESERVED FOR FUTURE USE.

4.4 Discounted Rates. For purposes of administering rates

under this Rate Schedule ITS Transporter shall have the right to

discount the Maximum Transportation Commodity Rates for

interruptible transportation service under this Rate Schedule

ITS and to charge a lower rate for some or all of the services

performed under this Rate Schedule, so long as such discounting

is necessary to meet competitive conditions existing at the time;

provided, however, that in no event shall rates charged under

this Rate Schedule be less than Transporter's system weighted

average variable costs, specified herein as the Minimum

Transportation Commodity Rates for interruptible service.

Transporter shall not be obligated to offer service at discount

rates; however, to the extent such discounted service is offered,

it shall be offered on a non-discriminatory basis. For each

transaction discounted pursuant to this provision, the amount of

the discount shall be applied to the base rates. Unless otherwise

specified, a discounted rate does not apply to alternate Receipt

or Delivery Points.

4.5 Negotiated Rates. For purposes of administering

rates under this Rate Schedule ITS, Transporter shall have the

right to reach an agreement with a Shipper to charge Negotiated

Rates or rates under a Negotiated Rate Formula. Such rates

shall be governed by Section 32 of the General Terms and

Conditions of Transporter's Tariff.

5. GENERAL TERMS AND CONDITIONS

Shipper shall provide Transporter with such information as

is needed to meet the requirements placed on Transporter pursuant

to 18 CFR Part 284. All of the General Terms and Conditions of

Transporter's effective FERC Gas Tariff, and any revisions

thereof that may be proposed