North Penn Gas Company

First Revised Volume No. 1

Effective Date: 10/01/1992, Docket: RP91-111-006, Status: Effective

Fourth Revised Sheet No. 15H1 Fourth Revised Sheet No. 15H1 : Effective

Superseding: Substitute Third Revised Sheet No. 15H1

(b) Adjustment to TOP costs:

(i) The TOP costs Seller will recover will be reduced by 42.04% of "Corning-

related" offsets. The formula to determine the Corning-related offsets is

explained and set forth in Section 2.3(b) and Appendix D of Seller's March

13, 1992 settlement offer in Docket Nos. RP91-111 et al.

(ii) The TOP costs Seller will recover will also be reduced by the monies

North Penn collected from its jurisdictional customers through its TOP sur-

charge proposal in RP91-111 et al. during the period April 1, 1991 through

March 13, 1992.

The annual TOP surcharge shall not exceed $.40 per Mcf for any Buyer of

Seller's jurisdictional sales service. Seller will be entitled to increase

its surcharge that would otherwise be applicable to all other Buyers to

prevent any TOP cost absorption arising from the $.40 per Mcf limit.

(d) For all but the initial annual filing to be submitted in 1992, Seller

shall also include in its development of an appropriate surcharge, any

"qualified overrecoveries or underrecoveries" of TOP costs during the prior

12-month period. Such "qualified overrecoveries or underrecoveries" include

those arising due to (1) the difference between (a) actual jurisdictional

volumes of Seller during the prior 12-month period and (b) the projected

jursidictional volumes underlying the TOP surcharge imposed during that

period; and (2) the difference between (a) the carrying charges applicable

to the prior 12-month period based on actual data, i.e., the actual applica-

able FERC interest rate and unamortized balance on TOP costs and (b) the

carrying charges included in the TOP surcharge imposed during that period.

Such "qualified overrecoveries or underrecoveries" will also include add-

itional TOP costs and refunds incurred/received by Seller that have not at

that time been reflected in Seller's TOP surcharge.

In addition to annual filings described in 17.2, Seller will file to adjust

its TOP charges to track increases or decreases in TOP charges billed to

Seller by its upstream pipeline suppliers.

(a) Within 60 days of the end of the last 12-month period (i.e. within 60

days of March 31, 1995) Seller will submit a filing to recover or credit to

Seller's then-existing Buyers any "qualified overrecoveries or underrecover-

ies" of TOP costs (as defined in Section 17.2 above) that arose in the last

12-month period. (b) Thereafter, Seller will file to recover or credit to

Seller's then-existing Buyers any additional TOP costs or TOP refunds

Seller has incurred/received. Such filings will be submitted within 60 days

of the incurrence/receipt of the additional TOP costs/refunds.