Iroquois Gas Transmission System, L.P.

FIRST REVISED VOLUME NO. 1

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Effective Date: 10/17/2006, Docket: RP06-177-000, Status: Effective

First Revised Sheet No. 75A First Revised Sheet No. 75A : Effective

Superseding: Original Sheet No. 75A

12.3 Deferred Asset Surcharge. The rates set forth

in Rate Schedules RTS, ITS, and HUB shall be adjusted from

time to time to reflect the collection by Transporter of

the amortization of a deferred regulatory asset (Deferred

Asset), comprised of the net of certain operating costs and

revenues related to the phasing in of Transporters services

during its initial year of operations, plus associated

carrying charges, as established and approved by orders of

the Federal Energy Regulatory Commission, dated March 11,

1991, May 23, 1991, and December 21, 1992, in Docket Nos.

CP89-634-004, et al. Transporter shall be entitled to

amortize the beginning Deferred Asset balance of $3,573,597

over a period of nineteen (19) years commencing November 1,

1992. Transporter shall file with the Federal Energy

Regulatory Commission revised tariff sheets and supporting

working papers to reflect changes in the Deferred Asset

Surcharge, in accordance with this Section 12.3, to become

effective November 1 of each year during the 19-year

amortization period.

(a) The Deferred Asset Surcharge shall be

calculated on an annual basis, for the 12-month period

commencing November 1, by dividing the Annual Requirement

allocated to each of Transporter’s Zones by the

corresponding Projected Throughput Quantity assigned to

such Zone, such that:

The Annual Requirement shall equal the sum of: (i)

$188,084, representing one year’s amortization of the

Deferred Asset; (ii) the aggregate of monthly carrying

charges for the surcharge year, computed in accordance with

paragraph (b) of this Section 12.3; and (iii) any

adjustment (positive or negative) representing the net

cumulative difference between each prior years Annual

Requirement, used as the basis for a previously effective

Deferred Asset Surcharge, and the recalculation of such

prior years Annual Requirement pursuant to paragraph (c) of

this Section 12.3.

The Annual Requirement shall be allocated to Transporter’s

Zones pursuant to the interzone allocation factors used in

deriving Transporter’s then-effective rates.

The Projected Throughput Quantity attributable to each of

Transporter’s Zones shall equal the product of (i) the sum

of the demand entitlements of all firm Shippers for such

Zone under long-term contracts (more than 30 days) as of

the date of the filing; multiplied by (ii) the applicable

load factor used in deriving Transporter’s then-effective

rates.