Tennessee Gas Pipeline Company

FIFTH REVISED VOLUME NO. 1

Effective Date: 08/01/2004, Docket: RP04-355-000, Status: Effective

Third Revised Sheet No. 177 Third Revised Sheet No. 177 : Effective

Superseding: Second Revised Sheet No. 177

NET RATE SCHEDULE

3.2 Commodity Charge

For each month, the Commodity Charges shall be equal to the product of (1)

the sum of the Commodity Rates shown in the Summary of Rates and Charges

in Transporter's effective Tariff applicable to the rate zone segments

through which Shipper's gas is transported, multiplied by (2) the quantity

of gas delivered by Transporter to Shipper.

3.3 Surcharges

Surcharges shall be equal to the product of (1) the sum of (a) the Annual

Charge Adjustment surcharge and (b) any other applicable surcharges shown

in the Summary of Rates and Charges in Transporter's effective Tariff,

multiplied by (2) the quantities actually delivered by Transporter to

Shipper at the Point of Delivery.

3.4 Incremental Pressure Charge

Additional rates or charges applicable to OSP II and MassPower shall

include an Incremental Pressures Charge as provided in the service

agreement between Transporter and OSP II and between Transporter and

MassPower and as stated in the Summary of Rates and Charges in

Transporter's Tariff.

4. RECEIPT AND DELIVERY POINTS

Shipper's receipt and delivery points are set forth in its Transportation

Contract with associated maximum quantities and minimum pressures. All receipt

points within the same rate zone and supply leg, if applicable, in which

Shipper's Primary Receipt Points are located shall also be available as Secondary

Receipt Points up to the maximum daily quantity that is applicable to the Primary

Receipt Points in that rate zone and supply leg, if applicable.

5. FUEL AND USE

5.1 Shipper shall furnish the quantity of gas required for fuel and losses

associated with rendering transportation services pursuant to this Rate

Schedule. The quantity of gas retained by Transporter for fuel and losses

shall be equal to the quantity of gas scheduled for delivery to

Transporter multiplied by the applicable percentage shown for each

Shipper's service in Article 7 of this Rate Schedule.