Southwest Gas Storage Company

First Revised Volume No. 1

Effective Date: 05/25/2003, Docket: RP00-471-001, Status: Effective

First Revised Sheet No. 145 First Revised Sheet No. 145 : Effective

Superseding: Original Sheet No. 145

GENERAL TERMS AND CONDITIONS

(Continued)

16 FUEL REIMBURSEMENT ADJUSTMENT (Continued)

16.4 Computation of the Annual Fuel Reimbursement Surcharge

(A) The Annual Fuel Reimbursement Surcharge shall be computed by

dividing the balance four (4) Months prior to November 1 of

the Deferred Fuel Reimbursement Account by Southwest's

estimated Quantities of Gas for Storage under Rate Schedules

FSS and ISS for the Recovery Period.

(B) The Recovery Period for the Annual Fuel Reimbursement

Surcharge shall be the twelve (12) billing Months beginning

November 1.

Account with appropriate subaccounts, beginning with the

effective date of this Section 16. For each billing Month,

the applicable subaccounts shall be increased or decreased

for a positive or negative change in Fuel Reimbursement for

the billing Month.

(D) A change in Fuel Reimbursement for each billing Month shall

be the difference between (1) the applicable currently

effective Fuel Reimbursement percentage for the billing Month

multiplied by Shipper's Storage Quantities injected and

withdrawn during the billing Month and (2) the actual

Quantities of Gas expended for fuel usage and lost and

unaccounted for gas reduced by Quantities of Gas retained

pursuant to Section 9.5 during the billing Month.

(E) Notice of Responsibility of Deferred Amounts

In the event this Section 16 shall be changed in any manner

that adversely affects Southwest's recovery of the full

amount of fuel amounts reflected in its deferred fuel

accounts, each Shipper that received storage service during

the period affected by such fuel adjustment deferred account

shall be responsible to Southwest for its proportionate share

of the amount of Southwest's unrecovered deferred fuel

amounts for the storage services which they were provided.