Gas Transmission Northwest Corp.

Third Revised Volume No. 1-A

Effective Date: 10/06/2003, Docket: RP04- 23-000, Status: Effective

Original Sheet No. 224 Original Sheet No. 224 : Effective

TRANSPORTATION GENERAL TERMS AND CONDITIONS

(Continued)

35A. CREDITING OF INTERRUPTIBLE TRANSPORTATION REVENUES ON EXTENSIONS

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(2) Interruptible Transportation Revenue Credits on Medford

Extension

(a) Applicability. Revenue credits from interruptible

transportation revenues received by GTN from Rate

Schedule ITS-1 (E-1) Shippers shall be credited to the

deferred account for Washington Water Power Company's WP

Natural Gas subsidiary in accordance with the mechanism

approved by Order of June 1, 1995, 71 FERC Paragraph

61,268.

(b) Crediting Percentage. GTN shall credit to the

deferred account 90 percent of interruptible

transportation revenues received during each 12-month

period, commencing November 1st of each year, but only

to the extent that such transportation revenues exceed

the amount of fixed costs which were allocated to

interruptible transportation (Cost Allocation Amount)

by GTN as part of designing GTN's

effective transportation rates during such 12-month

period. To the extent that GTN is required

to provide interruptible transportation revenue credits

during any period during which this Paragraph 35A shall

be or shall have been in effect for less than 12 months,

a "Short Period", GTN shall pro rate the Cost

Allocation Amount by the number of days during such

Short Period as compared to the total number of days in

such 12 months. To calculate the interruptible

transportation revenue credit due under the provisions

of this paragraph, where applicable, such pro rated Cost

Allocation Amount shall be compared to GTN's

actual interruptible revenues for the Short Period.

that portion of interruptible revenues that are

attributable to the recovery by GTN of variable

costs, which portion shall be equal to the minimum

usage charge for Rate Schedule ITS-1 (E-1).

(Continued)