Scg Pipeline Inc.

Original Volume No. 1

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

Original Sheet No.150 Original Sheet No.150 : Superseded

GENERAL TERMS AND CONDITIONS

(continued)

24. ANNUAL CHARGE ADJUSTMENT (ACA)

24.1 Application. This Section of the GT&Cs is filed pursuant to Section

382.202 of the FERC Rules and Regulations and Order No. 472. This Section

authorizes Pipeline to recover from Shippers the annual charge assessed to

Pipeline by the Commission for Commission budgetary expenses. Pipeline shall

recover this charge by including in Pipeline’s transportation rates a per unit

rate equivalent to the per Dt charge assessed against Pipeline by the

Commission. When Pipeline provides services to Shipper under multiple

transaction arrangements on Pipeline’s system, Pipeline will assess the ACA

charge only once on the same quantities of gas.

24.2 Definitions

(a) Effective Date. Pipeline shall adjust its ACA Charge annually to be

effective each October 1.

(b) Unit Rate. Pipeline’s unit rate shall be the unit rate used by the

Commission to determine the annual assessment to Pipeline adjusted, as

appropriate, to a thermal basis.

(c) Affected Rate Schedules. The affected rate schedules are all Rate

Schedules contained in Pipeline’s FERC Gas Tariff and all services performed

under the Commission’s Regulations.

24.3 Procedures to Determine ACA Charge Unit Rate. Pipeline shall determine

the ACA Charge Unit Rate by using the unit rate used by the Commission to

determine Pipeline’s annual charge adjustment and adjust such rate, as

appropriate, to a thermal basis. Pipeline shall round such Unit Rate to the

nearest one-hundredth of one cent ($0.0001).

24.4 Changes to the ACA Charge must be filed annually to reflect the annual

charge Unit Rate authorized by the Commission each fiscal year and are subject

to the notice requirements of Section 154.22 of the Commission’s Rules and

Regulations.