Texas Gas Transmission, LLC

Third Revised Volume No. 1

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Effective Date: 04/01/2009, Docket: RP09-03-000, Status: Suspended

Original Sheet No. 2101A Original Sheet No. 2101A

GENERAL TERMS AND CONDITIONS

Section 9

(Cont'd)

9.2.5 Fuel Retention Deferred Account

(a) Fuel Retention Deferred Account. Commencing on the effective date

of this Section 9.2, Texas Gas shall determine the monthly

difference between (1) the actual quantity of gas retained as a

result of all the applicable EFRPs for the month and (2) the actual

quantity of fuel and company use gas and Lost and Unaccounted For

gas allocated to all services rendered for the month according to

the then current method in use for allocating such costs on Texas

Gas' system. The under- or over-realization of in-kind

compensation gas shall be recorded as a debit or a credit, as the

case may be, each month in the Fuel Retention Deferred Account.

The deferred account shall be accumulated in twelve-month

accumulation periods, September 1 through August 31.

(b) Calculation of Fuel Adjustment Percentage. With each annual

filing hereunder, Texas Gas shall calculate Fuel Adjustment

Percentages designed to amortize the net balance in the Fuel

Retention Deferred Account at the end of the previous accumulation

period. The Fuel Adjustment Percentages shall be effective during

each annual period, November 1 through October 31. For service

under Rate Schedules NNS, NNL, SGT, SGL, SNS, FT, STF, or IT, the

Fuel Adjustment Percentages shall be calculated by applying the

appropriate under- or over-realization of in-kind compensation to

each fuel zone and service on an annual or seasonal basis, as

applicable. Using this information with the projected zone and

service distribution, the Fuel Adjustment Percentage for those

Customers utilizing the Seasonal Option will be determined as

follows:

(1) Winter Season - November 1 through March 31, and

(2) Summer Season - April 1 through October 31.

For service under Rate Schedules FSS and ISS, the Fuel Adjustment

Percentages shall be calculated by applying the appropriate under-

or over-realization of in-kind compensation to the injections and

withdrawals under the FSS or ISS Rate Schedule. If there is a

balance remaining at the end of a particular amortization period,

such remaining balance shall be transferred to the current

accumulation period subaccount.

9.2.6 Fuel Retention for No Notice Swing Allocation

Texas Gas shall charge Customers utilizing the No Notice Swing Allocation

method a hybrid fuel retention percentage, which shall be the difference

between the applicable no-notice EFRP and the lowest forward-haul

FT/STF/IT EFRP to the applicable zone of delivery. If the Customer

utilizes the Annual Option, annual fuel rates shall be used to calculate

the No Notice Swing Allocation fuel Retention; if the Customer utilizes

the Seasonal Option, seasonal fuel rates shall be used to calculate the No

Notice Swing Allocation Fuel Retention.