Midwestern Gas Transmission Company

SECOND REVISED VOLUME NO. 1

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Effective Date: 07/01/1996, Docket: RP96-247-000, Status: Effective

First Revised Sheet No. 38 First Revised Sheet No. 38 : Effective

Superseding: Original Sheet No. 38

RATE SCHEDULE LMS-PA

Load Management Service - Receipt Points

(b) If the % monthly imbalance is due to an excess of receipts

relative to Scheduled Quantities, Transporter shall pay the

Balancing Party in accord with Schedule A below. If the %

monthly imbalance is due to a deficiency in receipts

relative to Scheduled Quantities, the Balancing Party shall

pay Transporter in accord with Schedule B below. In

addition to correcting the monthly imbalance in cash, (a)

the Balancing Party shall pay to Transporter the

"Transportation Component" if deliveries are greater than

Scheduled Quantities, or (b) Transporter shall pay to

Balancing Party the "Transportation Component" if

deliveries are less than Scheduled Quantities. The

"Transportation Component" shall be equal to the commodity

rate pursuant to Tennessee Gas Pipeline Company's Rate

Schedule FT-A for transportation from Zone 1 to

Transporter's system multiplied by the monthly imbalance

plus an additional amount to cover the cost of gas for the

system fuel and use and lost and unaccounted for gas. The

additional amount shall be calculated by multiplying (1)

the amount of fuel necessary to transport the imbalance on

Tennessee's system by (2) the Index price.

Schedule A

Transporter Pays Balancing Party

% Monthly Imbalance Following % of the Index Price

0-5% 100%

>5-10% 85%

>10-15% 70%

>15-20% 60%

>20% 50%

Schedule B

Balancing Party Pays Transporter

% Monthly Imbalance Following % of the Index Price

0-5% 100%

>5-10% 115%

>10-15% 130%

>15-20% 140%

>20% 150%