Iroquois Gas Transmission System, L.P.

FIRST REVISED VOLUME NO. 1

Effective Date: 12/23/2004, Docket: RP05- 88-000, Status: Effective

First Revised Sheet No. 65B First Revised Sheet No. 65B : Effective

Superseding: Original Sheet No. 65B

A Negative Imbalance occurs when the allocated receipt quantity

is less than the allocated delivery

(A) Netting and Trading between Transportation Contracts. In the

event that Transporter has a Receipt Point or Delivery Point on

its system without an OBA in effect, Transporter shall allow

Shipper to net imbalances or trade imbalances with another

Shipper where such transaction would result in all contracts

involved in the trade having an imbalance quantity that is closer

to zero or where such transaction results in the net quantity

being closer to zero. The Shipper owing imbalance quantities to

Transporter prior to the transaction shall be responsible for

reimbursing Transporter for any loss of potential transportation

revenue that may result from such transaction. Transportation

charges for netting and trading across rate zones will be imposed

only when the appropriate transportation fee for the service has

not already been paid. When a firm Shipper is responsible for a

transportation charge for imbalance netting/trading, the Shipper

shall only be responsible for paying the Maximum Commodity Rate

unless one or more of the following conditions are met:

i) the monthly MDQ of the firm contract is exceeded as

a result of the net/trade, or

ii) the zone rights of the contract do not encompass

the zone of the contract being netted/traded against.

A Shipper who is long one month and short the next month cannot

offset the two months with his own contracts or another Shipper?s

contracts. Each month's imbalance can only be offset with an

opposite imbalance incurred for the same month.

The following examples are provided to show those instances when

the netting and trading of interzone imbalances results in no

additional transportation charges (i.e. the Transporter has not

lost any transportation revenue due to the net/trade).

i) Netting example: A Shipper with a Zone 1-2 RTS contract

receives transportation in Zone 1 only at the Maximum Demand

Rate and the Maximum Commodity Rate on the first gas day of the

month which results in a Positive Imbalance of 100 Dths. The

same Shipper later receives transportation under the same RTS

contract between Zone 1 and Zone 2 at the Maximum Demand Rate

and the Maximum Commodity Rate on the fifth gas day of the month

which results in a Negative Imbalance of -100 Dths. The netting

of these two imbalances would impose no cost.