Panther Interstate Pipeline Energy, L.L.C.

Original Volume No. 1

Effective Date: 02/01/2004, Docket: CP03-338-001, Status: Effective

Original Sheet No. 57 Original Sheet No. 57 : Effective

local distribution companies (Acquired Capacity). Transporter may

use Acquired Capacity for its system operational needs and to

render service to its customers. Except as provided in subsection

(b), Transporter states that, if it transports gas for others

using Acquired Capacity, it will apply to such services the same

rates and tariffs as are applicable to on system Shippers, as such

rates and tariffs may change from time to time. For purposes of

any use of Acquired Capacity covered by this Section, the "shipper

must hold title" requirement is waived.

27.2 Nothing herein shall be read to preclude Transporter from filing

with the Commission for different tariff provisions applicable to

any service which Transporter provides using Acquired Capacity;

provided, however, that the waiver of the "shipper must hold

title" requirement hereunder shall not apply in such a

circumstance and Transporter will be required to seek a case-

specific waiver of that requirement from the Commission.

28. ACA CHARGE

28.1 Purpose: This Section of the General Terms and Conditions is

filed pursuant to Section 154.402 and Part 382 (Subpart B) of the

Commission's Regulations under the Natural Gas Act and the Natural

Gas Policy Act of 1978. The intent and purpose of this Section is

to establish an Annual Charges Adjustment (ACA) provision under

which Transporter can recover from its customers annual charges

assessed to it by the Commission pursuant to Part 382 of the

Commission's Regulations (ACA Cost). All amounts assessed

pursuant to Part 382 of the Commission's Regulations shall be

recorded in Account 928. Transporter will not seek to recover

annual charges assessed to it pursuant to Part 382 of the

Commission's Regulations in an NGA Section 4 rate case. For the

purpose of recovering annual charges assessed to Transporter

pursuant to Part 382 of the Commission's Regulations, this Section

establishes an ACA charge as set forth in the Currently Effective

Rates Section of this Tariff.

28.2 Applicability: The ACA charge shall be applicable to all

transportation service performed by Transporter.

28.3 Basis of the ACA Charge: The rates for all transactions specified

in Section 28.2 hereof shall be adjusted by a unit charge to

recover ACA Cost. Such unit charge shall be that increment,