Portland Natural Gas Transmission System

Second Revised Volume No. 1

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Effective Date: 08/01/2010, Docket: RP10-885-000, Status: Effective

First Revised Sheet No. 202 First Revised Sheet No. 202

Superseding: Original Sheet No. 202

RATE SCHEDULE FT (Continued)

(e) Scheduling, Imbalance and Overrun Penalties. Transporter

shall charge Shipper any applicable scheduling, imbalance and overrun

penalties in accordance with Section 8 of the General Terms and Conditions.

(f) Other Charges. Any other charges as may be applicable

from time to time pursuant to the General Terms and Conditions or as

otherwise authorized by the FERC.

(g) Capacity Release Credits. To the extent Shipper releases

capacity in any Month pursuant to Section 11 of the General Terms and

Conditions, such Shipper shall receive a credit representing the Monthly

reservation charge simultaneously billed to the Replacement Shipper, minus all

applicable fees described in Section 11.15 of the General Terms and

Conditions. Nothing in this Section 3.2(f) relieves Shipper of its obligation

to pay to Transporter the full amount of the reservation charge for any Month

in which the Replacement Shipper fails to pay all or any portion of the

Replacement Reservation Charge.

3.3 Discounted Rates. For purposes of administering rates under this

Rate Schedule FT, Transporter shall have the right to discount the maximum

reservation rate and maximum usage rate for service under this Rate Schedule

FT and to charge a lower rate for some or all of the services performed under

this Rate Schedule; provided, however, that in no event shall rates charged

under this Rate Schedule be less than the minimum reservation rate and minimum

usage rate for firm service. Transporter shall not be obligated to offer

service at discount rates, however, discounted rates will not be made on an

unduly discriminatory basis and will be made available to all similarly

situated customers.

A Shipper with a previously negotiated rate discount limited to

service at specific receipt and delivery points may request that such

discounted rate apply to alternate points if Shipper chooses to release

capacity or use flexible receipt and delivery point rights. There shall be a

rebuttable presumption that Shipper will retain its discounted rate when

utilizing such points if Transporter currently grants discounts to another

Shipper receiving transportation service utilizing such points. However,

Transporter can rebut this presumption by demonstrating that Shipper is not

similarly situated to the Shipper receiving the discount at those points. If

the discount is retained, Shipper shall pay the higher of its contractual

discounted rate or the highest discounted rate being applicable to those

points.

On any business day, the request to transfer the discount must be

submitted at least two hours prior to the nomination that would use the

discount at alternate points. Transporter shall respond to the request within

two hours of receipt; however, any request received after 4:00 p.m. Central

Clock Time on any Business Day shall be responded to by 9:00 a.m. Central

Clock time on the following business day.