Southwest Gas Storage Company

Original Volume No. 1

Effective Date: 04/01/1999, Docket: RP99-244-000, Status: Effective

Original Sheet No. 115 Original Sheet No. 115 : Superseded

RATE SCHEDULE ISS (Continued)

INTERRUPTIBLE STORAGE SERVICE

(3) Fuel Reimbursement Adjustment Period

The Fuel Reimbursement Adjustment Period shall be

billing periods beginning with each effective Date

of Adjustment.

(b) Computation of Effective Fuel Reimbursement Percentage

The effective Fuel Reimbursement Percentage shall be

the sum of the current Fuel Reimbursement Percentage

and the Annual Fuel Reimbursement Surcharge.

The current Fuel Reimbursement Percentage shall be

determined on the basis of (1) the estimated Quantities

of Gas delivered to Seller for the account of Buyers

under Rate Schedules FSS AND ISS and (2) the projected

Quantities of Gas that shall be required for fuel usage

and the lost and unaccounted for Gas.

(d) Computation of the Annual Fuel Reimbursement Surcharge

(1) 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 Seller's estimated

Quantities of Gas for Storage under Rate

Schedules FSS and ISS for the Recovery Period.

(2) The Recovery Period for the Annual Fuel

Reimbursement Surcharge shall be the 12 billing

Months beginning November 1.

(3) Seller shall maintain a Deferred Fuel

Reimbursement Account with appropriate

subaccounts, beginning with the effective date

of this Section 6.14. 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.

(4) 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

Buyers' total 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withdrawn during the billing Month and (2) the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 during the

billing Month.