Midwestern Gas Transmission Company

Third Revised Volume No. 1

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

Second Revised Sheet No. 101 Second Revised Sheet No. 101 : Effective

Superseding: First Revised Sheet No. 101

RATE SCHEDULE LMS-PA

LOAD MANAGEMENT SERVICE - RECEIPT POINTS

5. DAILY IMBALANCE CHARGE (Continued)

5.2 Calculation (Continued)

(d) Imbalance Tolerance Bandwidth - 120 Percent or Greater

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 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 four 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 in excess of

120 percent of the Balancing Party's ASQ.

5.3 Treatment of Revenue

All amounts invoiced and collected by Company as payment of the Daily Imbalance

Charges assessed under this Rate Schedule, net of incremental administrative

charges, will be treated as LMS penalties and shall be allocated by Company to

Balancing Parties using the methodology set forth in Subsection 23.2 of the

General Terms and Conditions.