ANR Pipeline Company

Second Revised Volume No. 1

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Effective Date: 11/01/2006, Docket: RP06-613-000, Status: Effective

Fourth Revised Sheet No. 187.01 Fourth Revised Sheet No. 187.01 : Effective

Superseding: Third Revised Sheet No. 187.01

GENERAL TERMS AND CONDITIONS

(Continued)

29. DEFERRED TRANSPORTATION COST ADJUSTMENT PROVISION

(a) Purpose. This Section establishes the mechanism ("Deferred

Transportation Cost Adjustment") for the passthrough by

Transporter of the over/underrecovery of costs related to

FERC Account No. 858 capacity that Transporter is authorized

pursuant to Commission orders to maintain or replace, as

defined in Section 29(a)(1), below, ("Qualifying

Transportation Costs"). The base rates and charges

applicable to all Rate Schedules shall be adjusted, where

applicable, by Transporter on an annual basis to reflect an

adjustment of Qualifying Transportation Costs