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Original Sheet No.153 Original Sheet No.153 : Superseded

GENERAL TERMS AND CONDITIONS

(continued)

28. ORDER OF DISCOUNTS, DISCOUNT TERMS

28.1 If and when Pipeline discounts the rates applicable for service under

any Service Agreement under Rate Schedules included in Pipeline's FERC Gas

Tariff, the amount of any such discount shall be accounted for as a reduction

of maximum rates in the following sequence to the extent any of the following

components are included in the maximum rate:

Reservation Charges - Fixed Cost Unit Rate component of base

reservation rate for firm service;

Volumetric Charges - Fixed Cost Unit Rate component of base usage

rate for interruptible service;

28.2 In the event Pipeline agrees to discount its rate to Shipper below

Pipeline’s maximum rate under Pipeline’s Rate Schedules FT and IT, the

following discount terms may be reflected on Exhibit C to the FT Service

Agreement and Exhibit C to the IT Service Agreement and will apply without the

discount constituting a material deviation from Pipeline’s pro forma Service

Agreement; provided, however, any such discount shall not be less than

Pipeline’s minimum rate. Such discounted rate may apply:

(1) only to specified quantities under Shipper’s Service Agreement(s);

(2) only if specified quantities are achieved (with maximum rates applicable

to volumes above specified quantities or to all quantities if specified

quantities are never achieved);

(3) only in a specified relationship to quantities actually transported

(i.e., that the rates shall be adjusted in a specified relationship to the

quantities actually transported);