Tennessee Gas Pipeline Company

FIFTH REVISED VOLUME NO. 1

Effective Date: 03/29/2010, Docket: RP10-415-000, Status: Effective

Tenth Revised Sheet No. 406 Tenth Revised Sheet No. 406

Superseding: Ninth Revised Sheet No. 406

GENERAL TERMS AND CONDITIONS (continued)

XXIX. DISCOUNTING POLICY

29.1 Transporter may, from time to time, selectively adjust any or all of the rates

charged to any individual Shipper for service under Part 284 of the Commission's

regulations for which maximum and minimum rates are stated in this FERC Gas

Tariff. Discounting of rates shall, however, be done in the following order:

Firm Firm Interruptible

Demand Commodity Commodity

------ --------- -------------

Base Rate and PCB Base Rate PCB Surcharge

Surcharge (Pro Rata) Base Rate

Additional detail on the attribution of discounts to the PCB surcharge is provided in

Article IV, Section B, of the May 15, 1995 Stipulation and Agreement in Docket Nos.

RP91-203 and RP92-132 (Phase II-PCB Issues). The ACA Surcharge is not discountable.