Scg Pipeline Inc.

Original Volume No. 1

Effective Date: 11/01/2003, Docket: RP03-611-000, Status: Effective

Original Sheet No.17 Original Sheet No.17 : Superseded

RATE SCHEDULE IT

INTERRUPTIBLE TRANSPORTATION SERVICE

(continued)

3.2 The rates which are stated on the currently effective Sheet No. 7 set

forth the maximum rates applicable to each service provided under this Rate

Schedule, and the range represented by the maximum and minimum rates stated

for each such service. Shipper shall pay the maximum rates for service under

this Rate Schedule unless Pipeline, in its reasonable judgment, offers to

discount its rates to Shipper under this Rate Schedule, or unless the parties

have agreed to a Negotiated Rate under Section 27 of the GT&Cs. Any discount

or Negotiated Rate agreed to by Pipeline and the effective period thereof

shall be stated on an executed Exhibit A to the Service Agreement,

respectively, and shall be made on a not unduly discriminatory basis. In the

case of a discount, it shall be granted consistent with the applicable

provisions of Section 28 of the GT&Cs. The rates for service under this Rate

Schedule shall not be discounted below the applicable minimum rates specified

on the currently effective Sheet No.7.

3.3 Effective as of the Date of Commencement of Service as provided for in

the Service Agreement, Pipeline shall charge and Shipper shall pay Pipeline

for transportation service, under this Rate Schedule each applicable Month

during the year the sum of the following amounts:

3.3.1 Monthly Usage Charge shall be the rate as set forth on Sheet No. 7

multiplied by the daily flow allocated in accordance with this Rate Schedule.

3.3.2 Fuel Charge: A percentage of the quantity of gas delivered by Shipper

for transportation and accepted by Pipeline at the Receipt Point(s) as gas

which shall be deemed to have been used as Fuel Retainage Quantity. The

percentage of the quantity of gas retained by Pipeline for such purposes shall

be set forth on the currently effective Sheet No. 8, and changes to such

percentage shall be made effective only at the beginning of a Month.

3.3.3 Penalties and Surcharges: In addition to the charges

specified above, Shipper shall pay to Pipeline any penalties and surcharges

applicable to service hereunder as may be set forth from time to time in the

GT&Cs Sections 7, 9, 10, 12 and 22-28 and approved by the Commission.