Gas Transmission Northwest Corp.

Third Revised Volume No. 1-A

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Effective Date: 08/01/2004, Docket: RP04-346-000, Status: Effective

First Revised Sheet No. 35 First Revised Sheet No. 35 : Effective

Superseding: Original Sheet No. 35

RATE SCHEDULE FTS-1

FIRM TRANSPORTATION SERVICE

(Continued)

3. RATES (Continued)

3.6 Shipper shall pay the Maximum Reservation Charge, and the

Maximum Delivery Charge for service under this Rate Schedule

unless GTN offers to discount the Mileage Rate

components or the Non-Mileage Rate components of the

Reservation Rate or the Delivery Rate under this rate schedule.

If GTN elects to discount any such rate, GTN shall, up to

forty-eight (48) hours prior to such discount, by written

notice, advise Shipper of the effective date of such charges

and the quantity of gas so affected; provided, however, such

discount shall not be anticompetitive or unduly discriminatory

between individual shippers. The rates for service under this

rate schedule shall not be discounted below the Minimum

Reservation Charge, the Minimum Delivery Rate, and applicable

ACA Surcharge.