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

Second Revised Sheet No. 218 Second Revised Sheet No. 218

Superseding: Original Sheet No. 218

RATE SCHEDULE FT-FLEX (Continued)

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 4(b)(vi) 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.

(c) Discounted Rates. Transporter shall have the right to discount the

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

Schedule 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 FT-FLEX service. Transporter is not obligated to offer

service at discounted rates; however, rates will not be discounted on an

unduly discriminatory basis and discounts 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 points 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 discount 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.

(d) Measurement Variance. Reservation and usage charges shall be based

on Shipper's applicable monthly Maximum Contract Demand and Delivery Point

Scheduled Quantities, respectively, irrespective of whether the applicable

monthly Measurement Variance Factor is positive or negative. Shipper shall

receive in-kind adjustments to Scheduled Quantities in order to account for

positive and negative Measurement Variance Quantities. Transporter shall

publish the applicable monthly Measurement Variance Factor on its Interactive

Internet Website. Such published Measurement Variance Factor will be bound by

maximum and minimum percentages set forth on currently effective Sheet No. 100

of this Tariff.

(e) Negotiated Rates. Notwithstanding any provision of Transporter's

Tariff to the contrary, Transporter and Shipper may mutually agree in writing

to rates, rate components, charges, or credits for service under this Rate

Schedule that differ from those rates, rate components, charges, or credits

that are otherwise prescribed, required, established or imposed by this Rate

Schedule or by any other applicable provision of Transporter's effective FERC

Gas Tariff. If