Midwestern Gas Transmission Company

Third Revised Volume No. 1

Effective Date: 10/01/2003, Docket: RP00-467-002, Status: Effective

First Revised Sheet No. 104 First Revised Sheet No. 104 : Effective

Superseding: Original Sheet No. 104

RATE SCHEDULE LMS-PA

LOAD MANAGEMENT SERVICE - RECEIPT POINTS

6. MONTHLY IMBALANCES (Continued)

(d) Limitation on Charges

Any imbalances caused by an event as set forth in Section 10 of the General Terms

and Conditions, or by Company's actions (including providing the Balancing

Parties inaccurate balancing information), or by Balancing Party's compliance

with an OFO issued pursuant to Section 8 of the General Terms and Conditions,

will not be included in the calculation of the total monthly imbalance for

purposes of determining the appropriate cash-out level and will be cashed out at

the 0-5 percent tolerance level, as set forth in Subsection 6(b) above.

(e) Operational Integrity

Nothing in this Section 6 shall limit Company's right to take action as may be

required to adjust receipts of gas in order to alleviate conditions that threaten

the integrity of its system.

(f) Disposition of Charges

At the conclusion of each annual period, Company will determine the net cashout

activity. All imbalance charge revenues received by Company in accordance with

Subsection 6(b) that are in excess of Company's costs, including, but not limited

to, (i) payments made by Company in accordance with Subsection 6(b), and

(ii) Company's gas costs and fuel and loss costs properly allocable to Balancing

Parties and (iii) administrative costs will be credited against the demand

charges of all firm Shippers, pro rata based on Transportation Quantities. To

the extent that the cashout activity in any annual period results in a negative

balance, such balance will be carried forward and applied to the next annual

determination of cashout activity. At the end of each annual period, Company

will file a report and refund plan with the Commission. At that time all

Balancing Parties/Shippers will have the right to challenge the refund

calculations and allocation methodology.

7. GENERAL TERMS AND CONDITIONS

All of the General Terms and Conditions of Company's FERC Gas Tariff are part of this

Rate Schedule. To the extent there is an inconsistency between a term or condition in

this Rate Schedule and the General Terms and Conditions, the General Terms and

Conditions shall govern. To the extent there is an inconsistency between a term or

condition in this Rate Schedule and the applicable Operational Balancing Agreement,

this Rate Schedule shall govern.