Portland Natural Gas Transmission System

Second Revised Volume No. 1

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

Original Sheet No. 374 Original Sheet No. 374 : Effective

GENERAL TERMS AND CONDITIONS (Continued)

17. ACA CHARGE

17.1 ACA Charge. The rates set forth in the Rate Schedules shall

include a charge, adjusted from time to time, to reflect the annual charge

adjustment (ACA) assessed Transporter by the FERC pursuant to Order No. 472,

or any other superseding rule or order.

17.2 Charge Ordered by FERC. The current ACA Charge under the Rate

Schedules shall be the unit amount, adjusted as necessary for heating value

and pressure base, which the FERC orders to be effective for the fiscal Year

commencing on the effective date of the adjustment.

17.3 Transporter shall retain all revenues collected under this

Section 17. Except as provided by this Section 17, Transporter shall not have

the right to seek to recover, in any proceeding under Section 4 of the Natural

Gas Act any such costs recorded in its FERC Account No. 928.