Gas Transmission Northwest Corp.

Third Revised Volume No. 1-A

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Effective Date: 06/01/2007, Docket: RP99-518-102, Status: Effective

Second Revised Sheet No. 20 Second Revised Sheet No. 20 : Effective

Superseding: First Revised Sheet No. 20

STATEMENT OF EFFECTIVE RATES AND CHARGES

FOR TRANSPORTATION OF NATURAL GAS

(Continued)

NEGOTIATED RATE AGREEMENTS UNDER RATE SCHEDULES FTS-1 AND LFS-1

Explanatory Footnotes for Negotiated Rates

under Rate Schedules FTS-1 and LFS-1

/11 The per-Dth Reservation Rate shall be determined daily and will equal [the

Gas Daily Midpoint Price (the Gas Daily Midpoint Price is the price survey

midpoint for PG&E, Malin and Stanfield, OR as published in Gas Daily for the

day of gas flow. Weekend and holiday prices will be determined using the most

recently available Gas Daily publication) for PG&E, Malin minus the Gas Daily

Midpoint Price for Stanfield, OR, minus the sum of the following]:

1) an allowance for the per-Dth cost of GTN system fuel

2) an allowance for the per-Dth cost of delivery of volumes on the GTN

System equal to the maximum delivery rate applicable under GTN's FTS-1

Tariff for the volumes transported, multiplied by the distance

transported

3) an allowance for ACA of $0.0016/Dth

The allowance for GTN System fuel shall be computed as follows:

The Gas Daily Midpoint Price for Stanfield, OR, multiplied by the

applicable fuel and line loss percentage for the actual path utilized to

transport gas.

Fuel shall be reimbursed in kind at the applicable monthly percentage as

posted on GTN's website.

On any day when the foregoing Reservation Rate calculation produces a result

less than or equal to $0.08/Dth, the Reservation Rate shall be deemed to be

$0.03/Dth. On any day when the foregoing Reservation Rate calculation produces

a result greater than $0.08/Dth, the Reservation Rate shall be deemed to be

equal to the calculated per-Dth Reservation Rate minus $0.05/Dth. To determine

the Index Rate calculation applicable to volumes not nominated or scheduled,

the Stanfield to Malin mileage will be applied to the calculation's mileage-

based components.

In addition to the Reservation Rate as calculated herein, PPM Energy shall pay

the Delivery Rate for volumes transported equal to the maximum delivery rate,

plus the ACA charge as applicable under GTN's FTS-1 Tariff. PPM Energy shall

provide fuel in kind in accordance with GTN's FTS-1 Tariff.

In the event that the indices for PG&E, Malin and/or Stanfield, OR are not

published on any given day (other than a weekend or holiday), prices will be

determined based on the last published information for such index. In the

event that the indices for PG&E, Malin and/or Stanfield, OR are not published

on at least three business days within a span of six business days, either

party may request negotiation of a replacement rate structure (a

"Renegotiation Request"). Upon such Renegotiation Request, GTN and PPM Energy

will use diligent, good faith efforts to come to a mutually agreeable

replacement rate structure. Firm Transportation Service Agreement F-10442

will terminate on the fifteenth day following a Renegotiation Request in the

event the parties do not agree on a replacement rate structure prior to such

termination.