Portland Natural Gas Transmission System

Second Revised Volume No. 1

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

Second Revised Sheet No. 223 Second Revised Sheet No. 223

Superseding: First Revised Sheet No. 223

RATE SCHEDULE HRS (cont.)

Hourly Reserve Service

d) ACA Charge. For each month, the ACA rate payable by the 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 rate.

e) Scheduling, Imbalance and Overrun Penalties. Transporter shall charge

Shipper any applicable scheduling, imbalance or overrun penalties in

accordance with Section 8 of the General Terms and Conditions.

f) Other Charges. These include 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, 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(g) 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

Transporter shall have the right to discount the maximum reservation rate and

maximum usage rate for the 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

firm service. Transporter is not obligated to offer service at discounted

rates; however, rates will not be discounted in an unduly discriminatory

manner and comparable 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

withheld, Shipper shall pay the higher of its contractual discounted rate or

the highest discount rate being applicable to those points.