Portland Natural Gas Transmission System

Second Revised Volume No. 1

Effective Date: 09/01/2006, Docket: RP06-449-000, Status: Effective

Original Sheet No. 220 Original Sheet No. 220 : Effective

RATE SCHEDULE HRS

Hourly Reserve Service

1. AVAILABILITY

This Rate Schedule is available for service by Transporter to any Shipper,

where:

a) Transporter has determined that it has sufficient available and uncommitted

capacity to perform service requested by shipper; and

b) Shipper has made a valid request, as defined in Section 3 of the General

Terms and Conditions, or Shipper has obtained released capacity under Section

11 of the General Terms and Conditions; and

c) Shipper has met Transporter's financial creditworthiness criteria as set

forth in Section 3 of the General Terms and Conditions; and

d) Shipper and Transporter have entered into a Gas Transportation Contract for

HRS Service under this Rate Schedule; and

e) All necessary contracts have been or will be entered into by or on behalf

of Shipper for the acquisition of Gas, for the delivery of Gas to Transporter

at one or more Receipt Points on the System, and/or the further transportation

of Gas from one or more Delivery Points on the System, as applicable; and

f) All necessary regulatory and governmental approvals to purchase and sell,

transport and, if appropriate, export and/or import the Gas to be transported

by Transporter have been obtained; and

g) Transporter is not already providing service under Rate Schedule HRS at the

desired Primary Delivery Point.

2. APPLICABILITY AND CHARACTER OF SERVICE

a) This Rate Schedule shall apply to all Transportation Service rendered by

Transporter for Shipper pursuant to the executed Gas Transportation Contract

under this Rate Schedule.

b) Transportation Service under this Rate Schedule shall consist of: (1) the

receipt of Gas on behalf of Shipper, (2) the Transportation of Gas, and (3)

the Tender of Gas for delivery by Transporter to Shipper, or for Shipper's

account up to Shipper's MDQ, at hourly rates up the Shipper's MHQ.