Portland Natural Gas Transmission System

Second Revised Volume No. 1

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

First Revised Sheet No. 207 First Revised Sheet No. 207

Superseding: Original Sheet No. 207

RATE SCHEDULE IT (Continued)

3. RATES AND CHARGES

3.1 Applicable Rates. The applicable maximum and minimum usage rates

and applicable unit charges for service under this Rate Schedule are set forth

in the currently effective Sheet No. 100 of this FERC Gas Tariff and are

hereby incorporated herein.

3.2 Monthly Bill. The Monthly bill shall consist of:

(a) Usage Charge. For each Month, the usage charge payable by Shipper

shall, unless otherwise agreed upon by Transporter and Shipper as provided

herein, be equal to the applicable maximum usage rate multiplied by the sum of

the Delivery Point Scheduled Quantity or Quantities during such Month.

(b) ACA Charge. For each Month, the ACA charge payable by Shipper

shall be equal to an amount obtained by multiplying the sum of the Delivery

Point(s) Scheduled Quantity or Quantities during such Month, by the ACA unit

charge.

charge Shipper any applicable scheduling, imbalance and overrun penalties in

accordance with Section 8 of the General Terms and Conditions.

(d) 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 Federal Energy Regulatory Commission.

3.3 Discounted Rates. For purposes of administering rates under this

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

usage rates for interruptible service under this Rate Schedule IT 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 usage rate for interruptible service.

Transporter shall not be obligated to offer service at discounted rates,

however, discounted rates will not be made on an unduly discriminatory basis

and will be made available to all similarly situated customers.