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. 384 Original Sheet No. 384 : Effective

GENERAL TERMS AND CONDITIONS (Continued)

23.6 Negotiated Rate Accounting. Consistent with FERC directives set

forth in "Statement of Policy and Request for Comments" (74 FERC 61,076),

Transporter shall separately account for all costs and revenues that are

associated with negotiated-rate services implemented in accordance with such

FERC policy. Transporter shall accomplish that separate accounting by using

separately designated subaccounts, as required by the facts and circumstances,

of the Uniform System of Accounts.