Tennessee Gas Pipeline Company

FIFTH REVISED VOLUME NO. 1

Effective Date: 09/01/1993, Docket: RS92- 23-012, Status: Effective

Original Sheet No. 386 Original Sheet No. 386 : Effective

GENERAL TERMS AND CONDITIONS (continued)

2. Filing of Annual Charge Rate Adjustment

The effective rates for Funding Services under Rate Schedules in Volume

No. 1 of Transporter's FERC Gas Tariff shall be the Rate After Current

Adjustment for each applicable Rate Schedule shown in the Summary of Rates

and Charges in Transporter's effective Tariff reflecting the Current

Annual Charge Rate Adjustment under this Article. The effective rate for

Funding Services under transportation Rate Schedules in Volume No. 2 of

Transporter's FERC Gas Tariff shall be the sum of the applicable Demand

Charges, Quantity Rate and the Current Annual Charge Rate Adjustment under

this Article where applicable, as shown in the Summary of Rates and

Charges.

2.1 Effective Date of Adjustment: The Effective Date of Adjustment for

each Annual Charge Rate Adjustment filed pursuant to this Article

shall be October 1 of each year. The Annual Charge Adjustment shall

become effective on the Effective Date of Adjustment without

suspension or refund obligation.

2.2 Filing Procedure: At least thirty days prior to the Effective Date

of Adjustment, Transporter shall file with the Federal Energy

Regulatory Commission and post, as defined in Section 154.16 of the

Commission's Regulations, revised Tariff Sheets to Volume Nos. 1 and

2 of Transporter's FERC Gas Tariff reflecting the Current Annual

Charge Rate Adjustment.

3. Current Annual Charge Rate Adjustment

The Current Annual Charge Rate Adjustment shall be the unit amount,

adjusted as necessary for heating value and pressure base, which the

Federal Energy Regulatory Commission orders to be effective for the fiscal

year commencing on the Effective Date of Adjustment.

4. Retention of Revenues Collected under Annual Charge Rate Adjustment

Transporter shall retain all revenues collected under this Article.

Except as provided by this Article, Transporter shall not have the right

to seek to recover in any proceeding under Section 4(e) of the Natural Gas

Act any Annual Charges recorded in its FERC Account No. 928.