Midwestern Gas Transmission Company

SECOND REVISED VOLUME NO. 1

Effective Date: 05/01/2000, Docket: RP00-233-000, Status: Effective

Second Revised Sheet No. 94 Second Revised Sheet No. 94 : Superseded

Superseding: First Revised Sheet No. 94

GENERAL TERMS AND CONDITIONS

b) If the present value method is chosen, then Transporter shall evaluate

the Bids and award the capacity based on the following procedures:

Transporter shall determine the bid or bids having the highest present

value ("PV") based on the following formula:

-N

PV = (Bid Rate) x (Bid MDQ) x 1-(1+i)

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where

Bid Rate = for firm releases, the reservation charge that the

Bidder has agreed to pay; for interruptible

releases, the usage charge that the Bidder has

agreed to pay.

Bid MDQ = the MDQ stated in the Bid.

i = interest rate per month (which shall be the then

current maximum yield on five-year U.S. Government

Treasury note divided by 12), (Transporter will post

the current Treasure note rate on PASSKEY); and

N = term proposed by the Bidder.

c) If the net revenue method is chosen, Transporter shall determine the

bid or bids having the highest net revenue (NR) using the following

formula:

NR = (Bid Rate) x (Bid Term) x (Bid TQ)

where

Bid Rate = the daily charge which the Bidder has agreed to pay;

for reservation rate bids, the charge is calculated

by dividing the bid rate received from the Bidder by

30.4 days per month (average days per month in a

365-day year).

Bid Term = the term proposed by the Bidder, in days.

Bid TQ = the TQ stated in the Bid, measured in dekatherms.

d) If a Release Request includes a Prearranged Bidder, then the released

transportation rights shall be awarded to the Prearranged Bidder (a)

if its Bid has a value, determined in accordance with Section 6(a)

equal to or higher than the highest value of the Bids submitted by all

other Bidders, or (b) if the Prearranged Bidder agrees to match any Bid

having a higher value, as applicable, within the time period provided

by Section 8.