Midwestern Gas Transmission Company

Third Revised Volume No. 1

Effective Date: 11/01/2003, Docket: RP03-618-000, Status: Effective

Original Sheet No. 100C Original Sheet No. 100C : Effective

RATE SCHEDULE LMS-PA

LOAD MANAGEMENT SERVICE - RECEIPT POINTS

5. DAILY IMBALANCE CHARGE (Continued)

5.2 Calculation

(a) Net Pipeline Position

By 12 Noon CCT each day, Company shall provide on its Informational

Postings web site a notice of the net pipeline position on Company's

pipeline system for the previous Gas Day.

The net pipeline position is the sum of the total positive and negative

Cumulative Imbalances, based on SCADA data, at all Balancing Party

interconnections subject to the Daily Imbalance Charge for such Gas Day

under Rate Schedules LMS-MA and LMS-PA.

A positive net pipeline position indicates that gas has been stored on

Company's pipeline and is due others. A negative net pipeline position

indicates that gas is due Company.

Company will post a notice that the Daily Imbalance Charge will not be

applicable for a given Gas Day, if Company determines that inaccurate

SCADA data exists for such Gas Day to calculate a net pipeline position.

(b) Allowable Swing Quantity (ASQ)

The Balancing Party's ASQ for a given Gas Day is the greater of

(1) 1000 Dekatherms or (2) 10 percent of the highest daily Scheduled

Quantity at such designated interconnect(s) during the prior 15 days.

On a given Gas Day, a Balancing Party may take gas in excess of Scheduled

Quantities or not take delivery of all Scheduled Quantities at the

interconnect(s) listed under the Balancing Party's LMS-PA Agreement up to

its ASQ.

On a Gas Day that the net pipeline position exceeds plus or minus

25,000 Dekatherms, any Balancing Party subject to the Daily Imbalance

Charge under this Rate Schedule, whose Cumulative Imbalance is 1) equal to

or greater than 110 percent but less than 120 percent of that Balancing

Party's ASQ and 2) has a Cumulative Imbalance in the same direction

(positive or negative) as the net pipeline position, will be notified by

Company of its Daily Imbalance position no later than 5:00 p.m. CCT the

following Gas Day.

If the notified Balancing Party fails to take corrective action during the

Gas Day following Company's Daily Imbalance position notice pursuant to

this Subsection, such Balancing Party shall be assessed a Daily Imbalance

Charge per Dekatherm equal to two times the currently effective Maximum

Rate under Tennessee Gas Pipeline's Rate Schedule PAL. The Daily

Imbalance Charge under this Subsection shall apply only to those

quantities of the Cumulative Imbalance that are equal to or greater than

110 percent but are less than 120 percent of the Balancing Party's ASQ.